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State Tax Credits News Briefs - December 2013

Illinois House Bill (H.B.) 383 House Amendment No. 3 was filed on Nov. 4 by state Rep. Jeanne Ives. The bill would amend the Illinois Income Tax Act by expanding the state’s Economic Development for a Growing Economy tax credit (EDGE) program. Currently, a company can claim a credit against its corporate income tax liability if it creates/retains jobs and invests at least $5 million in the state. With the amendment, companies could claim the credit against their employees’ personal income tax withholdings.

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The Massachusetts Department of Revenue published Technical Information Release (TIR) 13-15: The Tax changes in the Fiscal Year 2014 Budget, the Transportation Finance Act and the Fiscal Year (FY) 2013 Supplemental Budget in October. The TIR discusses the FY 2014 budget extension of the brownfields credit an additional five years, which had previously been scheduled to expire on Aug. 5, 2013. Under the FY 2014 budget, to qualify for a brownfields credit, the taxpayer must commence and diligently pursue the relevant environmental response action(s) on or before Aug. 5, 2018. Also, under the FY 2014 budget, the net response removal costs must be incurred prior to Jan. 1, 2019. The Community Investment Tax Credit is allowed for tax years beginning on or after Jan. 1, 2014 for qualified investments. The credit is equal to 50 percent of the total qualified investment made by the taxpayer for the taxable year. The credit was made refundable.

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The Arkansas Historic Preservation Program’s 2013 State Historic Preservation Plan is now available. Prepared by the Arkansas Historic Preservation program, this plan is to be in effect from January 2013 to December 2017 and is meant to provide a guide for historic preservation planning and activities. The plan includes a summary of the use of the state credit and the federal historic tax credit (HTC) from 2006 to 2012. It also lists the HTC as one of the most popular incentives for preserving, with percentages provided. There are also several questions about the programs in the future plan questions. The plan can be viewed at www.historictaxcredits.com

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The Rhode Island Division of Taxation held a lottery to award the state’s HTCs. The department received applications for more than $54 million, with only $34.5 million available. As of the beginning of November, only the names of those tax credit lottery winners who submitted necessary documents were provided to the public. More names will be available following the Dec. 1 application deadline. Some of the winners include the Albert C. White House, U.S. Rubber Company, Merchants Bank Building and the Narragansett Hotel Garage in Providence, Ashton Village Workers’ Housing project in Cumberland, Wickford Elementary School in North Kingstown and the Holdredge Garage in Westerly.

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U.S. Chemicals and Plastics, a division of Quest Automotive Products, received a tax break for job expansion plans in October because of the construction of a $1.58 million on-site manufacturing building. The new 23,000-square-foot warehouse, located in Massillon, Ohio, will allow the company to add up to 25 new jobs and are expected to produce almost $1 million in additional annual payroll. The Ohio Tax Credit Authority approved a 40 percent, six-year job creation tax credit for the expansion project. Currently there are 123 full-time workers at the Massillon facility owned by Quest. Construction is scheduled to start by the end of November, with the completion anticipated for May 2014.

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GP Renewables announced in October its plan to buy $15 million commercial solar PV projects in the New Jersey and Maryland area of the east coast. The Manhattan, N.Y.-based energy services company’s goal is to reinvigorate the region’s solar renewable energy credit (SREC) program. GP Renewables’ purchase will allow former owners to either liquidize their assets or continue to purchase solar energy from GP Renewables under 10- and 20- year agreements. Investors can buy back the solar power they help generate at a discounted rate, locking them into a secure tariff period while receiving the upfront payment offered by the company.

Journal Category:

State Tax Credits

Authors:

Novogradac

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