State Tax Credits News Briefs - January 2012

Sunday, January 1, 2012

Maryland has raised the administrative fee for reviewing Sustainable Communities Tax Credit applications from 1 percent to 3 percent of the tax credit award. Legislation to increase the fee was enacted in April and the change went into effect in November. The fee increase affects commercial and homeowner applications received on or after July 11, 2011. More information is available from the Maryland Historical Trust at http://mht.maryland.gov.

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Oregon's Biomass Producer or Collector (BPC) tax credit has generated approximately 2.4 times more economic activity value than it cost in foregone tax revenue, according to a University of Oregon study. The university's Ecosystem Workforce Program evaluated the tax credit program and published its results in a working paper titled "Impacts of the Biomass Producer or Collector Tax Credit on Oregon's Wood Fuels Market and Economy." The BPC credit, which offers producers and collectors $10 per green ton of forest biomass delivered to bioenergy facilities, has helped prices in the wood fuels market remain competitive and may have supported as many as 73 local jobs in 2010, the report says. Research shows that biomass collection and delivery under the BPC program creates an average of five jobs and more than $850,000 in economic activity per 10,000 bone dry tons. Read the report online at http://ewp.uoregon.edu.

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The Ohio Department of Development (ODOD) announced the qualification procedures for the $100 million InvestOhio Tax Credit program, which provides a 10 percent income tax credit for investing up to $10 million in eligible small businesses. To qualify, investors must acquire an ownership interest in a small business and hold their investment for two years before claiming the credit. The investor and the small business must register through the Ohio Business Gateway before completing an application. The credits will be awarded on a first-come, first-served basis until the state's fiscal biennium ends on June 30, 2013. ODOD expects InvestOhio to generate at least $1 billion in private investment in the state's small businesses during that two-year period. More information about InvestOhio is available at www.development.ohio.gov.

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NetWork Kansas announced that it has selected 12 Kansas communities to participate in the Entrepreneurship Community (E-Community) partnership that allows communities to raise seed money for local entrepreneurs through donations. The tax credit allocations are distributed in the form of matching loans and grants to new and expanding businesses through a competitive application process administered by a local leadership team. Chautauqua County, Douglas County, the cities of Hoisington and Leavenworth, Norton County and Stafford County were granted $600,000 in Kansas Entrepreneurship tax credits through the program, enabling them to raise $800,000 to be loaned to local businesses. Another six E-Communities that have used previous awards for loans to local businesses were awarded $410,000 in tax credits. Combined, the 2011 E-Communities will raise nearly $1.9 million in seed funding for Kansas entrepreneurs.

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The Ohio Tax Credit Authority approved tax incentives totaling more than $60 million for 30 companies to create 3,501 new jobs and retain an additional 10,539 existing jobs. The state does not release a project-by-project estimate of how much its incentives are worth to companies, but The Plain Dealer reports that the biggest deal for Northeast Ohio is AmTrust Financial Services' decision to locate approximately 1,000 jobs to downtown Cleveland. In addition, JobsOhio and the Ohio Department of Development also approved several loans to companies, which would create an additional 688 jobs and retain 1,482 existing jobs.

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