Sign Up For Novogradac Industry Alert Emails

State Tax Credits News Briefs - August 2012

Pennsylvania Gov. Tom Corbett signed into law the Historic Preservation Incentive Act, which provides a 25 percent tax credit for rehabilitating income-producing historic structures. The program was delineated in S.B. 1150 and was passed as part of the state’s budget. The program is capped at $3 million for the first year, and individual projects may not receive more than $500,000 in tax credits. The state credits must be used in conjunction with the federal historic tax credit. The Pennsylvania Historical and Museum Commission and the Department of Economic and Community Development will develop the program guidelines. Credits are expected to be issued after July 1, 2013. View the text of S.B. 1150 at www.historictaxcredits.com.

***

The Ohio Department of Development awarded $10 million in state new markets tax credits to six Ohio-based community development entities (CDEs). The tax credits are expected to spur investments of at least $25.6 million in the state. The CDEs selected to receive NMTC authority under the program’s third round are Cincinnati New Markets Fund, awarded $3 million; Cleveland New Markets Fund II, awarded $2 million; Development Fund of the Western Reserve, awarded $1 million; Finance Fund, awarded $2 million; Northeast Ohio Development Fund, awarded $1 million; and Stonehenge Community Development, awarded $1 million. More details about the recipients are available at the Ohio Department of Development.

***

New York taxpayers earned more than $750 million in tax credits in 2008, according to an annual report of credit activity from the New York State Department of Taxation and Finance. State law mandates annual studies of credits available to taxpayers that are subject to the general business corporation franchise tax. The most recent report, “Analysis of Article 9A General Business Corporation Franchise Tax Credits for 2008,” covers corporations whose taxable year began between January 1, 2008 and December 31, 2008. The study found that total credits claimed that year exceeded $3 billion for the first time. Programs with the most significant fiscal impact were Empire Zone credits, the Empire State film tax credit and the investment tax credit, which had a combined fiscal impact of $450 million or 85 percent of the fiscal impact of all credits in 2008. A copy of the report can be downloaded from www.tax.ny.gov.

***

The Oregon Department of Energy (ODOE) in June filed permanent rules for its transit, conservation, and compliance and pass-through programs. These programs are part of the Energy Incentive Program, which replaced the business energy tax credit. The rules create an operating framework for the energy conservation tax credit, including the application process, allocation of tax credits within funding limits and issuance of tax credits. They also create an operating framework for transferring tax credits through the pass-through process and for ODOE’s compliance activities, such as inspecting and verifying projects and systems. Read the permanent rules at the Oregon Department of Energy.

***

Oklahoma State Auditor Gary Jones announced in June that his office will begin auditing certain tax credit programs administered by the Oklahoma Tax Credit Commission (OTC). The state’s Tax Credit Task Force, after completing a review of all Oklahoma state tax credits, recommended these audits to ensure compliance with statutory requirements. As the audits are completed, the Oklahoma State Auditor and Inspector’s Office said it will provide a copy of each final report to legislators and the governor.

***

Iowa Gov. Terry Barnstad signed legislation in May that clarifies the pass-through entity rules concerning how to allocate the state’s historic preservation tax credit. According to the bill, H.F. 2465, the amount claimed by an individual partner, shareholder or member shall be based on amounts so designated by the equity owners of the eligible partnership, S-Corporation or limited liability company. The law is effective for tax credits reserved for a fiscal year beginning on or after July 1, 2012. A copy of H.F. 2465 is available at www.historictaxcredits.com.

Journal Category:

State Tax Credits

Authors:

Novogradac

Learn more about Novogradac's expertise and many services