State Tax Credits News Briefs - December 2012

Saturday, December 1, 2012

The Oregon Department of Energy (ODOE) announced a new competitive tax credit incentive. The energy incentives program will grant competitive awards among seven specific technology sectors throughout the year: commercial building systems, building envelope, commercial thermal, commercial/agricultural/industrial processes, sustainable buildings, cool schools and pass-through information. A document called an opportunity announcement will precede each competition round with information on tax credit dollars available, application time periods, documentation/technical requirements needed and competitive criteria according to which applications are ranked. The application deadline for the sustainable buildings allocation is Dec. 31, 2012 at 5 p.m. PST and the deadline for the commercial/agricultural/industrial processes allocation is Jan. 15, 2013 at 5 p.m. PST. More information is available at www.oregon.gov.

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The Alaska film tax credit was renewed this year, committing up to $200 million in tax credits over 10 years for film productions in the state. A Northern Economics audit delivered to lawmakers in August concluded that the state’s film tax credit program has had positive effects on the local economy but that it is far from paying for itself. The report estimated that through February 2012, the tax credit created a fiscal deficit of $20 million. The audit found that between 2008 and 2011, the tax credit program created 432 full-time local jobs and $8.1 million in wages for Alaska residents, while out-of-state cast and crew received wages of nearly $48 million. The audit noted vagueness in the wording of the film tax program regulations. Additionally, auditors recommended greater transparency and accountability when it comes to production companies reporting wages paid to Alaskans and out-of-state residents.

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The Sherbrooke Apartments in Detroit’s Midtown district received $600,000 from a Michigan Community Revitalization program grant. The grant replaces the historic tax credit program, which was phased out when the state simplified its business tax code. The Sherbrooke Apartments opened as six units in 1913 for upper-middle-class families, with each unit containing a live-in maid’s room. The units were eventually subdivided. After a few years of vacancy, the building was acquired by developer Lis Knibbe, who will turn the apartment building into 14 one-bedroom and two-bedroom apartments, with the possibility of a three-bedroom unit. Knibbe will restore original woodwork in the building, add geothermal heating and add a balcony or private outdoor space for all above-ground units.

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The New York state Legislature enacted A.B. 10593 on Oct. 3. A.B. 10593 extends the availability of brownfield redevelopment tax credits by allowing credits for remediation certificates issued after Dec. 31, 2015 instead of the original April 1, 2015 date. The remediation certificate is required to qualify for credits. It certifies that the taxpayer has completed the required improvements to the brownfield property. The bill is available at www.assembly.state.ny.us.

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Habitat for Humanity of Council Bluffs, Iowa held a groundbreaking in November for its Charles E. Lakin Habitat for Humanity Center, named after a donor who pledged $1.2 million for the development. Lakin’s pledge will go toward a $4 million capital campaign to redevelop two historic downtown buildings into professional office space for Habitat business operations and a Habitat ReStore, a retail outlet that sells new and used building and home supplies to benefit the organization. Habitat is also working on acquiring funds through the HTC and Iowa’s Grayfield Tax Credit program.

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Correction
A caption on page 44 of the November issue misidentified an image from 3DR Laboratories Inc. It should have identified the image as a human brain. We regret the error.

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