State Tax Credits News Briefs - July 2013

Monday, July 1, 2013

L.B. 104, was signed into law June 5. The bill provides state tax incentives for companies that create energy from renewable sources in Nebraska. The bill expands the definition of qualified business to include renewable energy producers in the existing incentive tiers. LB 104 was introduced by Rep. Steve Lathrop and was amended by a revenue committee proposal. The bill can be viewed at www.energytaxcredits.com.

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Massachusetts’ H.B. 1127, an act to provide financing for the production and preservation of housing for low- and moderate-income residents, was declared an emergency law by the Commonwealth of Massachusetts, meaning that it would go into effect immediately upon passage. The bill authorizes financing for the production and preservation of housing for low and moderate income residents and to make related changes in certain laws. The bill focuses on state-owned public housing developments, multifamily developments, rental housing opportunities for low- and moderate-income citizens and housing for the elderly, disabled and homeless. A copy of the bill is available at www.taxcredithousing.com.

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New Jersey bills A3206/S2245, which would create the Neighborhood Revitalization State Tax Credit, were sent to the governor’s desk for approval. Sponsored by Sen. Shirley K. Turner, the program would allow businesses that contribute financial communities to receive a tax credit against their gross income. Although the bill was previously approved by the state Legislature, the governor conditionally vetoed it at that time to eliminate the extra funding necessary for the program to accommodate the increased number of businesses eligible for the credit.

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Substitute bill H.B. 6566 would require the Connecticut Department of Economic and Community Development (DECD) to create and maintain a publicly accessible online database for all state tax-credit and economic assistance programs. Supporters say the bill, spearheaded by state Comptroller Kevin P. Limbo, will increase transparency in economic assistance programs. In testimony submitted to the Finance, Revenue and Bonding Committee State Budget Director Benjamin Barnes said that many of the ideas expressed in the bill are worthy, but warned that its implementation would cost the state a significant amount of money and staff time that was not included in Malloy’s proposed budget. Limbo said that changes have since been made to the bill to accommodate those concerns. A copy of the bill is available at www.cga.ct.gov.

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The Cybersecurity Investment Incentive Tax Credit was signed into law May 2. Based on Maryland’s biotechnology investment credit, this credit allows an investor who makes a minimum investment of $25,000 in a qualified Maryland cybersecurity company, to claim a credit in the amount of 33 percent of investments made in that company. The credit is not refundable. However, any unused amount of the credit may be carried forward for seven tax years. Applications had not been released at press time, but when they become available, they will be accepted by the Maryland Department of Business and Economic Development on a first-come, first-serve basis, until the annual cap of $2 million has been reached for fiscal years (FYs) 2014 and 2015. The credit is effective July 1, 2013, and remains in effect through 2018.

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The Oregon Department of Energy (ODOE) released new rules for the Business Energy Tax Credit (BETC) program. The new rules provide a safe harbor date for projects subject to the July 1, 2014 sunset date. They also expand the transfer process to include all projects unable to find a pass-through partner prior to the sunset date and make permanent the Nov. 16, 2012, and define “use” as any time the tax credit offsets any portion of the applicant’s tax liability, rendering the tax credit nontransferable. The ODOE still must carry out its obligations to BETC participants before that program officially ends July 1, 2014 despite the 2011 Oregon Legislature replacement of the BETC program with the Energy Incentives program. The rules went into effect immediately upon their release on May 13.

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