State Tax Credits News Briefs - April 2015

Wednesday, April 1, 2015

On Feb. 10, the Georgia Department of Revenue released Letter Ruling LRT SUT-2014-03. The ruling provides the rules and regulations for the quality jobs tax credit. Quality jobs tax credits are awarded to companies that create at least 50 jobs in a 12-month period, as long as the jobs pay wages that are at least 10 percent higher than the county average. Jobs created within seven years of initial eligibility qualify for the credit. The credit must be claimed within the earlier of one year from the date the original return is filed or one year from the date the return is due. Credits may be carried forward for 10 years. More information is available at www.georgia.org.

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Minnesota H.F. 688 was introduced Feb. 9. The bill would establish a state new markets tax credit (NMTC) program. The credit would equal 39 percent of qualified investments made after Jan. 1, 2015. These credits could be claimed over a seven-year period. The bill would provide as much as $300 million of credit authority from 2015 through 2017. H.F. 688 has an expiration date of 2029 or when all credits have been claimed. Minnesota H.F. 688 is available at www.newmarketscredits.com.

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The Oregon Business Department released amended rules 123-630-0000, 123-630-0030 and 123-630-0050, relating to the Oregon Income Community Jobs Initiative, effective March 1. The rules establish the purpose, eligibility and application and fees, respectively. The rules were amended to provide detailed information regarding the additional use of the tax credit by a community development entity (CDEs) that has already received a credit of up to $4 million. This allows for additional investments up to the maximum of $8 million on or after Jan. 1, 2014. The amended rules state the CDEs must now submit a project summary. Additional contact information has also been made available to investors.

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North Carolina Gov. Pat McCrory released his recommended 2015-2017 budget March 5. The budget includes provisions for both the historic tax credit (HTC) and the renewable energy tax credit (RETC). The HTC would be extended and would be combined with the commercial rehabilitation and mills credits. The HTC expired Jan. 1. The RETC would also expand to include non-solar projects. More information is available at www.osbm.nc.gov.

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The Wisconsin Economic Development Corporation (WEDC) released its annual report on the HTC program. The report, submitted to the Joint Committee on Finance, provides a summary of the total credits awarded under the program from its inception and details on the projects that received the credit. The state HTC program since Jan. 1, 2014, has awarded 39 projects a total amount of $41.7 million. The report is available at www.inwisconsin.com.

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