State Tax Credits News Briefs - December 2014

Monday, December 1, 2014

The Iowa Department of Revenue’s amendments to Reg. 701–52.44 became effective Nov. 19. The amendments reflect legislative changes to the renewable energy tax credit (RETC) for solar systems installed from Jan. 1, 2014, to Jan. 1, 2017. Banks are eligible to apply for the credit along with partnerships, limited liability companies and S corporations. For corporations, the solar energy system tax credit is 60 percent of the federal residential energy-efficient property tax credit related to solar systems for solar electric, heating and cooling property. It is also for equipment using solar energy in structures using fiber-optic distributed sunlight claimed on federal Form 3468 (Investment Credit) for corporations. The Iowa tax credit for a corporation cannot exceed $20,000. The regulation is available at www.tax.iowa.gov.

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On Oct. 23 the South Carolina Department of Revenue issued a private letter ruling (PLR) regarding the Abandoned Buildings Revitalization Act. PLR #14-3 provides details on the eligibility for the rehabilitation tax credit for abandoned buildings and sites. The PLR addresses concerns regarding taxpayer eligibility and qualified rehabilitations costs. The PLR stated that the taxpayer owned real property with a building that met the requirements of an abandoned building and a building site. The PLR also says that rehabilitation expenses that increase the square footage on the building site above a certain percentage do not qualify as rehabilitation expenses for purposes of calculating any credit. In addition, it was noted that because the taxpayer meets requirements, the taxpayer is allowed to claim a tax credit equal to 25 percent of the total amount of eligible rehabilitation expenses. PLR #14-3 is available at www.historictaxcredits.com.

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On Oct. 9, Advantage Dental, a cooperative of more than 30 unaffiliated dental clinics, announced $21 million for the expansion of its network in La Pine, Ore. Financing will construct nine clinics, which will create nearly 70 permanent jobs. Financing was provided through a combination of state and federal new markets tax credits (NMTCs). The clinics will expand access to dental health services in low-income communities. Clinics in John Day, Brookings, Albany, Milton-Freewater, Sutherlin, Canyonville and La Pine are operational, with a clinic in both Coos Bay and Lebanon scheduled to open later this fall.

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