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State Tax Credits News Briefs - December 2011

The Ohio Tax Credit Authority approved a $5.8 million job creation tax credit for the Sherwin-Williams Company. The country's largest paint manufacturer and retailer is consolidating its foreign subsidiaries' business support operations into its corporate headquarters in Cleveland. The move will create 110 jobs and retain 2,010 positions, according to the Ohio Department of Development, which administers the tax credit. In exchange for the credit, which will be claimed over seven years, the company is required to maintain operations at the project site for at least 10 years.

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The Northview Orthopaedic Associates medical clinic in Dahlonega, Ga. celebrated a ribbon-cutting for its 38.6-kilowatt photovoltaic solar installation. Solar Energy USA designed and installed the system using locally manufactured panels, 60 of which were ground-mounted along the rear parking lot. Another 108 panels were installed on the front of the medical office. A combination of tax incentives helped fund the project, including the Section 1603 cash grant in lieu of renewable energy tax credits and a 35 percent state solar energy tax credit. The clinic estimates that in its first year the system will generate more than 58,484 kilowatt-hours of energy and offset more than 1,562 tons of carbon dioxide emissions.

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The New York State Department of Development published regulations for implementing the Economic Transformation and Facility Redevelopment program. The new program provides tax credits for job creation, capital investment, job training and real property in areas affected by correctional facility closures, which the state has designated as economic transformation areas. Businesses may be eligible for a jobs tax credit of as much as 6.85 percent of each position's gross net wages; a 10 percent investment tax credit; a job training credit worth 50 percent of training costs; and a 50 percent real property tax credit. To qualify, businesses must apply for the credit within three years of a facility's closure, and create and maintain at least five jobs in that area.

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The Massachusetts Economic Coordinating Council approved eight projects to receive tax credits through the Economic Development Incentive Program (EDIP), State House News Service reported. State officials estimate that when combined, the projects will leverage $97 million in private investment, create 355 jobs and retain 328 positions. Businesses that proposed the projects include Magmotor Technologies in Worcester; Benovations LLC in Leominster; Vestas Technology R&D Americas Inc. in Marlborough; Techno-Bloc Corporation in North Brookfield; Warren Pumps LLC and Portland Valve LLC, both in Warren; Gulfstream Aerospace Service Corporation and Seal Ryt Corporation, both in Westfield; Mid City Steel of Westport; and Armbrook Senior Living LLC of Springfield.

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The Hawaii Department of Taxation ruled that because a company installing multiple solar systems on a single project site has a legitimate non-tax reason for its multi-system design, the company is eligible to claim the Renewable Energy Technologies Income Tax Credit (RETITC) for each system. Within its request for a ruling, the company stated that its project design will maximize the likelihood of speedy approval by the Public Utilities Commission, minimize the likelihood of grid disturbance and disruption to the local utility, incorporate physical landmarks and property characteristics, and provide the project the ability to deliver electricity in a stable manner. The department concluded in Letter Ruling No. 2011-06 that based on the company's circumstances, it is eligible to claim the RETITC for each system placed in service up to the cap of $500,000 per commercial project. The ruling applies only to the company that requested it and may not be used or cited as precedent, according to the department.

Journal Category:

State Tax Credits

Authors:

Novogradac

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