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State Tax Credits News Briefs - July 2010

Oklahoma Gov. Brad Henry signed S.B. 1267 in June, placing a two-year suspension on more than two dozen tax credit programs. Another measure approved by the Legislature, H.B. 3024, would exempt from the moratorium those credits relating to historic building rehabilitation, wind generation and job creation. The tax credit payments for those industries would instead be deferred by two years. S.B. 1267 is expected to generate approximately $25 million next year for the state, which, according to an Associated Press story, has a $1.2 billion budget deficit. The moratorium went into effect on July 1, 2010 and will sunset on June 30, 2012. View a copy of the bill at www.historictaxcredits.com.

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Pennsylvania Works! released two studies showing that private and public investments in historic preservation in the state’s two largest cities – Philadelphia and Pittsburgh – totaled almost $1.2 billion over five years. Pennsylvania Works! also reported that the state’s Historic Preservation Tax Incentive Act, which provides grants of as much as $15,000 for exterior rehabilitation of historic residences, has been stalled in the Senate for more than a year. The independent studies were conducted by the Preservation Alliance for Greater Philadelphia and the Young Preservationists Association of Pittsburgh. Read the full reports at www.historictaxcredits.com by selecting Reports and Research from the Resources drop-down menu.

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Florida Gov. Charlie Crist signed S.B. 1752 in May. The bill changes several provisions of the Florida New Markets Development Program (NMDP), including the state’s definition of a qualified active low-income community business (QALICB) to match that of the federal New Markets Tax Credit (NMTC) program. S.B. 1752 also extends from 90 days to six months the cure period for redressing a failure to make a timely investment through the state program. In addition, the legislation limits the number of times that an allocatee is allowed to correct a qualified equity investment (QEI) to once in a seven-year credit period. A copy of S.B. 1752 is available at www.newmarketscredits.com.

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Oregon Department of Energy (ODOE) filed permanent administrative rules for the Business Energy Tax Credit (BETC) program and established a new tiered priority system in June to allocate $60 million in BETCs. ODOE has already issued preliminary certificates totaling approximately $218 million and has $82 million remaining under the new $300 million cap instituted by H.B. 3680. The first funding cycle under the priority system, also established by H.B. 3680, opened on June 1 and goes through December 31, 2010. ODOE says the new system will mean closer examination of applications and involve comparing projects of similar costs prior to ODOE approval. The $60 million initial funding cycle covers: Tier 1, $10 million available for applications requesting less than $250,000 in tax credits; Tier 2, $20 million available for applications of $250,000 to $2,999,999 in tax credits; and Tier 3, $30 million available for applications of $3 million or more in tax credits. Further details about the application process and funding cycles will be posted on ODOE’s web site at www.oregon.gov/energy.

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The Florida Department of Revenue released new rules regarding the transfer or assignment of the capital investment tax credit, the renewable energy technologies investment tax credit and the Florida renewable energy production credit programs effective April 26. Amendments to these programs provide that businesses that have received the tax credits and meet certain other criteria may assign or transfer the credit by filing form F-1193T with the Department of Revenue, according to an April memorandum. The department also issued new procedures for applying for the allocation of renewable energy technologies and energy production tax credits and new requirements for claiming the credits on corporate income tax returns. The regulations are available on Florida Administrative Weekly’s web site at www.flrules.org.

Journal Category:

State Tax Credits

Authors:

Novogradac

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