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State Tax Credit News Briefs - September 2017

Missouri Senate Bill 111, which modifies the provisions regarding property tax exemptions for property located in an enhanced enterprise zone, was effective Aug. 28. Currently, such exemptions may not be granted for a period longer than 25 years from the date on which the enhanced enterprise zone was created. S.B. 111 removes the language that limits the exemption to the date on which the zone is created. The bill also requires that no exemption be granted during the final 10 years of an enhanced enterprise zone for a period longer than 10 years.

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Connecticut House Bill 7316, which concerns the evaluation of inventive programs, was effective July 1. The bill specifies the inclusion of evaluation of business assistance and incentive programs in the Commissioner of Economic and Community Development’s annual report, requires the auditors of public accounts to conduct performance audits and evaluations of such programs and report and requires the legislative appropriations, finance and commerce committees hold public hearings on such report and auditors’ findings. In addition, the legislative committees must jointly or separately hold one or more hearings on the report’s findings on or before March 1, 2018, and annually thereafter.

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Hawaii House Bill 591 was effective July 12 and provides for the addition of structures, machinery, equipment and assets to real property under the capital infrastructure tax credit. The bill also provides the definition of capital infrastructure costs in relation to the capital infrastructure tax credit. In addition, the new location of the displaced business must be within Honolulu Harbor. The bill places a maximum credit per tax year of $2.5 million per qualified infrastructure tenant and no taxpayer may claim a credit after Dec. 31, 2019. The credit will be recaptured if the qualified infrastructure tenant fails to relocate from the former Kapalama military reservation site to another location within 90 days after executing a lease with the Department of Transportation. 

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New Jersey Assembly Bill 4432 was approved by the state Senate Aug. 7. The bill would provide increased tax credit amounts under the Grow New Jersey Assistance program for certain businesses that have collaborative research relationships with colleges or universities. An eligible business would receive a base amount of $5,000 per year for each new or retained job if the business enters into a collaborative research relationship with a New Jersey public research university and locates a qualified business facility within 3 miles of that university. The 3-mile radius around a public research university campus is designated as a Garden State Create Zone. The three New Jersey public research universities are New Jersey Institute of Technology, Rowan University and Rutgers. The bill also establishes a new bonus category that potentially increases the amount of a tax credit by $2,000 per job, per year for businesses that establish collaborative research relationships with New Jersey State colleges or universities, county colleges or independent institutions of higher education. 

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Oregon House Bill 2066 will be effective Oct. 6. The bill, signed into law Aug. 2 by Gov. Kate Brown, extends the sunset for tax credits for reservation enterprise zones and affordable housing lenders. The affordable housing lender credit is increased for the fiscal year. A new tax credit is created for employers that establish and implement an employee training program in collaboration with a community college in qualifying counties, which applies to tax years beginning on or after Jan. 1. 

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The California Governor’s Office of Business and Economic Development (GO-Biz) announced Aug. 1 that for fiscal year 2017-2018, applications for the California Competes Tax Credit will be accepted online during certain time frames. The periods to apply are July 24 through Aug. 21, ($75 million available); Jan. 2, 2018, through Jan. 22, 2018 ($100 million available); and (3) March 5, 2018, through March 26, 2018 ($55.4 million plus any remaining unallocated amounts from the previous application periods). The amount available for allocation during the three application periods will be $230.4 million. GO-Biz also announced that the California Competes Tax Credit Committee meetings will be held Nov. 16, April 12, 2018, and June 18, 2018. 

Journal Category:

State Tax Credits

Authors:

Novogradac

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