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State Tax Credits News Briefs - April 2010

Legislation to increase the cap for the Kansas Historic Tax Credit (HTC) program passed the Senate in February and the House in March. Under the Senate-passed version of the measure, the program will receive $5.7 million in the next fiscal year, according to the Journal-World. The Kansas Legislature instituted a $3.75 million cap last year and cut budgets for the state's tax credit programs by 10 percent, stalling several HTC projects. In addition to increasing the cap, the bill would also reduce, from 25 percent of qualifying expenses to 22.5 percent, the amount that for-profit projects could receive, according to a report from the Wichita Eagle. Not-for-profit organization projects would receive 27 percent of qualifying expenses, down from 30 percent.


Oregon Gov. Ted Kulongoski signed legislation on March 18 to reform the business energy tax credit (BETC) by increasing accountability, capping programs for renewables, changing the manufacturing program, creating an alternative tax credit system for wind projects and extending sunset dates. House Bill 3680 will reduce the effects of the BETC on the state's general fund by recovering $54 million from 2009 to 2011 and another $97 million from 2011 to 2013, according to a Senate statement. The bill imposes a cap of $300 million on the renewable program, the main source of the rapid cost growth, and sunsets the program on July 1, 2012. It also caps the manufacturing BETC at $200 million and extends the sunset date to January 1, 2014 for pre-certification, but allows additional BETCs for companies that begin new, distinct operations that result in job creation. In addition, the bill puts limits on the total credit costs of individual wind projects. Under the regulation, the state Department of Energy would have additional authority to require information and maintain confidentiality.


The Wisconsin Legislature on February 17 approved a bill to establish a state New Markets Tax Credit (NMTC) program modeled after the federal program. Assembly Bill 642 received a vote of 11-1 in the Assembly Committee on Jobs, the Economy and Small Business, while the Senate Committee on Economic Development approved its companion bill, Senate Bill 461, unanimously. The bill provides tax credits for 18 percent of a qualified investment in a distressed community over a seven-year period, with a $10 million annual cap. The Department of Commerce must certify that each investment promotes the creation or retention of Wisconsin jobs or furthers other approved economic development goals.


The Michigan Economic Development Corporation (MEDC) will back one Michigan tech company's brownfield redevelopment project to expand while helping another 10 grow, Gov. Jennifer Granholm announced in February. MEDC expects the projects to create 17,321 jobs and produce $804 million in new state investment. Companies reaping the benefits of tax credits under the Michigan Economic Growth Authority (MEGA) include TSC Michigan Inc., a research and development facility that supplies materials for lithium-ion battery cells in Northville, which will receive a seven-year $3.2 million state tax credit; Four Winns LLC, a boat manufacturer in Cadillac, which will receive a seven-year, $27.1 million tax credit to help finance a production expansion; and Sakor Technologies, a high-tech automotive engineering firm in Perry Township that provides test development service, which will receive a seven-year $363,975 tax credit.


Stonehenge Capital Company LLC, said on March 2 that it was awarded $25 million in Florida state NMTCs. Since 1999, the company has invested more than $31 million of venture and growth equity capital in 17 high-growth companies. Stonehenge has participated in the federal NMTC program for the past six years and received $367.5 million in allocations, which it has used to invest in projects like the World War II Museum in Louisiana and the International Civil Rights Museum in North Carolina.

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State Tax Credits



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