State Tax Credits News Briefs - April 2011

Friday, April 1, 2011

The Ohio Department of Development (ODOD) announced the approval of nearly $19.2 million in Job Creation and Retention Tax Credits for 16 projects that when expanded or located in Ohio are expected to create 1,769 jobs and retain 552 positions. The recipients are Applied Energy Technologies and Applied Technologies Inc., in Maumee; Calisolar Inc., in Ontario; Frank Brunckhorst Company LLC and Simonton Building Products Inc., in Columbus; General Data Company Inc., in Clermont County; Global Cooling Inc., in Athens County; Hearthmark LLC, site to be determined; Inland Tarp & Liner LLC and 1600 North Main LLC, in Fostoria; itelligence Inc. in Blue Ash; Mettler-Toledo Inc., in Worthington; Morris Technologies, in Sharonville; Polymera Inc., in Union Township; Rhenium Alloys Inc., in North Ridgeville; Science Applications International Corporation, in Beavercreek and Springfield; and Total Baking Solutions LLC, in Wilmington

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Rather than waiting until the end of its 2011 low-income housing tax credit (LIHTC) allocation round to begin developing the 2012 qualified allocation plan (QAP), Arkansas Development Finance Authority (ADFA) has invited developers to suggest potential revisions to its 2012 QAP. The agency noted that this does not affect the 2011 allocation cycle, which will still be conducted under the approved 2011 QAP available on ADFA's web site at www.arkansas.gov/adfa. Written comments on the development of the 2012 QAP should be sent by U.S. Mail or e-mailed to [email protected] prior to July 1.

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The Missouri Legislature is reviewing legislation that would modify the provisions of state tax credit programs. The legislation is based on the Missouri Tax Credit Review Commission's recommendations released in late 2010. S.B. 280 would prevent the authorization of tax credits under the state LIHTC and brownfield remediation programs, among others, beginning in 2013, and phase out the historic preservation tax credit program in 2017. Beginning in 2012, the bill would also place an annual cap of $16 million on LIHTCs, eliminate the 4 percent LIHTC, and reduce the period of time LIHTCs are allowed to be claimed from 10 years to three years. The act would also prohibit stacking LIHTCs with HTCs, and HTCs would be capped annually at $75 million. For more details on S.B. 280, download a copy of the bill from www.taxcredithousing.com or www.historictaxcredits.com.

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Maryland Gov. Martin O'Malley testified before the state Legislature on behalf of legislation to create a tax credit program he says would generate $100 million in investments in the state's science and technology sector. Under InvestMaryland, proposed in S.B. 180/H.B. 173, tax credits would be auctioned off to insurance companies for between 70 cents and $1 per credit. If S.B. 180 is passed, the Maryland Venture Fund would receive $50 million from the auction proceeds, a portion of which would go to the Maryland Small Business Development Financing Authority. The remaining $50 million of auction proceeds would be placed with a handful of venture capital firms selected by an independent third-party. If enacted, the legislation would allow all companies to claim the credits beginning in 2015. More information on the program is available at www.choosemaryland.org.

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H.B. 1054, the Offshore Wind Energy Act, submitted before the Maryland General Assembly on February 11, would require Maryland public utilities to purchase between 400 and 600 megawatts of electricity through long-term power purchase agreements with wind power generation facilities off Maryland's coastline. Gov. Martin O'Malley says such a requirement would provide more stable energy pricing and predictability and that a large-scale project could also create jobs by boosting offshore wind development. A 500 MW offshore wind facility could generate as many as 2,000 construction and manufacturing jobs and 400 permanent positions after the turbines are operational, according to an analysis from the Department of Energy, which has classified Maryland's offshore wind resources as outstanding. The Department of the Interior also recently identified the area as one of four high-priority sites in its strategic plan to accelerate offshore wind energy development. Read the full text of H.B. 1054 by following the legislation links on www.energytaxcredits.com.

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