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State Tax Credits News Briefs - February 2011

Colorado Gov. Bill Ritter announced two programs that will finance energy efficiency improvements in the state's commercial buildings and renewable energy businesses. The Green Colorado Credit Reserve (Green CCR) will allow businesses to finance as much as $100,000 worth of retrofits within their offices or manufacturing facilities. Participating lenders will receive a 15 percent loan loss reserve contribution for every loan registered in the program to encourage private sector lending and generate cost savings. Basing its projections on the performance of the original credit reserve program, the governor's office says that Green CCR will serve more than 160 businesses and generate $7 million in new lending. The Colorado Housing and Finance Authority (CHFA) will administer the program and use $1 million in American Recovery and Reinvestment Act (Recovery Act) funding to fund loan loss reserve contributions. The second program, the Governor's Energy Office (GEO) Revolving Loan program, is designed to finance energy efficiency and renewable energy projects. CHFA will administer approximately $13 million for this program, which is also being funded through the Recovery Act. Bach Composite Colorado Inc., a wind turbine manufacturing company in Fort Lupton, received more than $3 million through the GEO Revolving Loan program, which will support the retention and creation of 150 jobs.


Former Michigan Gov. Jennifer Granholm signed S.B. 5921 in December to create a new tax incentive to spur investment in small businesses. The small business investment credit program, also called the angel tax credit, allows a taxpayer to claim an income tax credit worth 25 percent of an investment in a qualified small business. In order to be eligible for the tax credit, the investment must be at least $20,000 and be certified by the Michigan Strategic Fund.


The Michigan Economic Development Corporation (MEDC) is backing 11 brownfield redevelopment projects, in Lansing, Detroit, Grand Rapids, Flint and Hamtramck, that are expected to generate more than $406 million in new investment and create and retain 1,400 jobs. MEDC is also awarding business tax credits to five companies that will produce nearly $70 million in new private investment and create almost 1,600 jobs. Business entities selected to receive tax incentives include Force by Design, in East Lansing; Otto Bock Polyurethane Technologies Inc. in Rochester Hills; Piston Automotive LLC in Redford; Plasan Carbon Composites Inc, in Wixom; Ring Screw LLC in Fenton, Grand Blanc Township and Sterling Heights; 20 Monroe Building Company, Grand Rapids Urban Market Holdings LLC and 38 Front Redevelopment LLC, all in Grand Rapids; 3800 Woodward, Sugar Hill Residential LLC, Emerald Springs IA and IB LDHA LP; and Free Press Holdings LLC, all in Detroit; the city of Hamtramck; the city of Lansing; Lurvey White Ventures LLC in Flint; The Knapp Centre in Lansing; and Autocam Corporation in Kentwood.


Oregon Gov. Ted Kulongoski received the George Darr Clean Energy Award for his legacy of support for clean energy. The renewable energy advocacy organization Renewable Northwest Project presented the award in Portland. During his time in office Kulongoski has backed renewable energy efforts such as the 2003 development of the state's first renewable energy action plan; legislative improvements to the small energy loan program and expansion of the residential solar tax credit program in 2005; legislation for a renewable electricity standard and to expand the business tax credit program in 2007; and a new program to accelerate and expand solar energy use in 2009.


Colorado issued a final rule implementing requirements and procedures for submitting claims to receive the state's conservation easement tax credit. Taxpayers that donate a perpetual conservation easement encumbering real property to a government entity or charitable organization are eligible to claim a tax credit worth 50 percent of the conservation easement's fair market value. The Colorado Environmental Coalition reports that the conservation easement is the state's primary land preservation tool, accounting for more than two-thirds of all protected land in the state. The state Department of Regulatory Agencies published a list of documents required for claim submission in the November 25 Colorado Register, under Regulations Section 725-4.

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State Tax Credits



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