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State Tax Credits News Briefs - January 2016

New Jersey Assembly Bill 4413 was signed Dec. 2. A4413 prohibits a state public body from awarding an economic development subsidy of more than $25,000 to a business that previously received an economic development subsidy that was a loan or loan guarantee if the recipient business is in default on that previously awarded loan or loan guarantee. The term “economic development subsidy” includes any bond, grant, loan, loan guarantee, matching fund, tax credit or other tax expenditure. A4413 was effective immediately.


On Dec. 9, the West Virginia State Tax Department issued Administrative Notice 2015-22: Small Business Economic Opportunity Tax Credit. The notice lists inflation adjustments for tax years beginning in 2016. The amount for 2016 is $9,275,150, an increase from the 2015 amount of $9,233,450. Additionally, effective for tax years beginning in 2016, a small business must have annual gross receipts of $9.2 million or less. The adjustment will be used in determining whether a small business qualifies for the tax credit.


The Colorado Department of Revenue (CDOR) amended Rule 4 CCR 725-4:2 was effective Jan. 1. The rule amended the qualifications for certification of conservation easement holders. Topics discussed in the adopted rules include organization, process, stewardship, finance and governance. The amendment included provisions on what should be assessed when reviewing the conservation easement appraisal such as the physical and legal aspects of the property description, conservation easement terms and ignificant errors affecting the credibility of the appraisal. The rule is available at


The Montana Department of Revenue amended regulations Dec. 24 concerning the state’s historic property preservation credit. The amended rules identify the federal pass-through lessee’s claim to the credit, remove language that is no longer relevant and renumber a rule to better specify that the election to transfer the federal credit must be made in conformance with the corresponding regulations. Montana ARM 42.4.2902, 42.4.2904, and 42.4.2905 were effective Dec. 25. More information is available at


On Dec. 30, the new regulations from the New Mexico Energy, Minerals and Natural Resources Department went into effect, detailing the application and certification procedures for administering the state’s new sustainable building tax credit against corporate and personal income tax for sustainable residential and commercial buildings. A corporation or person who is the owner of a building in New Mexico that has been constructed, renovated or manufactured to be a sustainable residential building and that receives certification on or after Jan. 1, 2017, may receive a certificate of eligibility for a new sustainable building tax credit. A corporation or person that is the owner of a building in New Mexico that has been constructed or renovated to be a sustainable commercial building and that receives certification on or after Dec. 30, 2015, may receive a certificate of eligibility for a new sustainable building tax credit.

Journal Category:

State Tax Credits



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