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State Tax Credits News Briefs - August 2013

The Louisiana New Markets Jobs Tax Credit program was signed into law on June 13. Rep. Walt Leger, who sponsored H. B. 726, predicted the program will ultimately attract $1 billion in investment and protect Louisiana jobs. The program is intended to incentivize private businesses to invest in low-income rural and urban communities. The tax credit can be claimed against the insurance premium tax and will be available once the state’s low-income community has $110,000 of private investment. The program is capped at $49.5 million over four years with a three-year delay. The bill is available at www.newmarketscredits.com.

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South Carolina H. 3093, which allows taxpayers investing in the rehabilitation of abandoned buildings to claim tax credits, was signed into law June 11. Taxpayers can claim the tax credits against income tax and license fee liabilities or property tax assessments. To qualify, taxpayers must make an investment based on the population of the area where the building is located. An abandoned building can qualify if at least 66 percent of the space within it has been closed continuously to business for at least five years. The credit can be equal to 25 percent of the actual building rehabilitation costs with a cap of $500,000 per property in which they invest. This will be given in installments over a five-year period. The bill can be viewed at www.historictaxcredits.com.

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On July 7, the Oregon House and Senate passed a bill extending the state’s farm worker housing tax credit and excluding canola grown for biofuel in the Willamette Valley from the state’s biomass tax credit. The term agricultural worker is defined as any person who, for an agreed remuneration or rate of pay, performs temporary or permanent labor for another. The bill also defines agricultural workforce housing as housing limited to occupancy by agricultural workers, including agricultural workers who are retired or disabled, and their immediate families. Housing also cannot be occupied by a relative of the owner or operator of the agricultural workforce housing, except in the case of a manufactured dwelling in a manufactured dwelling park nonprofit cooperative. H. B. 3367 extends the state’s farm worker housing tax credit to January 1, 2020. The bill can be viewed at www.taxcredithousing.com.

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Assemblyman Sean Ryan announced an agreement between the New York Department of Taxation and Finance and the State Historic Preservation Office that will allow more areas in Buffalo to benefit from the state historic tax credit program. The agreement supplies a margin of error to income estimates so that more properties can qualify for the 20 percent tax credit. Because of the agreement, more than six hundred census tracts across the state will become eligible for the tax credit. The 2013-2014 NY state budget extended the program until 2019 and included a non-taxable refundable credit for projects placed in service in 2015. The budget proposal is available at assembly.state.ny.us/2013budget.

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Florida’s S.B. 406 was enacted May 20 and creates a three-year rotating review schedule for state tax credits and incentives related to economic development. Programs that will be analyzed include the capital investment tax credit, the qualified target industry tax refund and the brownfield redevelopment bonus refund, among others. Florida’s review and analysis of each program will include the economic benefits of the program for the previous three years, including the number of jobs created, the increase or decrease in personal income and the impact on state gross domestic product from the direct, indirect and induced effects of the state’s investment in the credit and incentive program. The bill also requires that credit and incentive information be put on a state website for public viewing. The Office of Economic and Demographic Research and the Office of Program Policy Analysis and Government Accountability (OPPAGA) was slated to submit a work plan for completing the Economic Development Programs Evaluation to legislators by July 1. The first round of incentives evaluations are due by Jan. 1, 2014 and must include information about the incentive’s effectiveness and recommendations on each program. The bill can be viewed at www.flsenate.gov.

Journal Category:

State Tax Credits

Authors:

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