State Tax Credits News Briefs - July 2015

Wednesday, July 1, 2015

On May 12, Georgia Gov. Nathan Deal signed H.B. 308 (Act 211) into law. The bill amends Title 48, Chapter 7, Article 2 of the Official Code of Georgia Annotated and revises the tax credit for rehabilitation of historic structures. The bill amends the state tax credit for the rehabilitation of historic structures to provide that claimed but unused credits may be transferred or sold in whole or in part to another Georgia taxpayer. The new law also stipulates that the maximum credit for any other individual certified structure will be $5 million for any taxable year or $10 million per year if the project creates 200 or more full-time, permanent jobs or $5 million in annual payroll within two years of the placed in service date. H.B. 308 is applicable to certified rehabilitations completed on or after Jan. 1, 2017. The bill is available at www.historictaxcredits.com.

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The Iowa Department of Cultural Affairs (DCA) announced more than $38 million in state historic preservation tax credits (HTCs) for 20 developments in 11 communities across the state. Awards ranged from $192,154 to $8.65 million. Cost for the rehabilitation of the developments is $145.1 million. The total investment in the projects, including qualified and non-qualified rehabilitation costs, is $164.76 million.

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On May 20, Tennessee Gov. Bill Haslam signed into law the Community Resurgence Job Tax Credit Act of 2015 (H.B. 1026). The bill creates a community resurgence job tax credit against franchise and excise tax liability for qualified businesses in the amount of $2,500. In order to qualify for the credit, the qualified business must create at least 10 qualifying jobs. The credit will apply in the tax year in which the qualified business first satisfies the job creation requirements, as well as in subsequent tax years in which further net increases occur above the level of employment established when the credit was last taken. The credit taken on any franchise and excise tax return may not exceed 50 percent of the combined franchise and excise tax liability shown on the return before any credit is taken. The credit may not be carried forward for more than 15 years. The cap is $12.5 million in any one tax year. H. B. 1026 is effective for tax years beginning on or after Jan. 1, 2016.

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On June 5, Colorado Gov. John Hickenlooper signed the EZ Investment Tax Credit for Renewable Energy (H.B. 1219) into law. The bill allows a taxpayer who places a new renewable energy investment in service on or after Jan. 1, 2015, but before Jan. 1, 2021, that results in an investment tax credit, to elect to receive a refund of 80 percent of the amount of the credit and relinquish the remaining 20 percent as a cost of the election. If 80 percent of the credit is $750,000 or less, the taxpayer receives the full refund in the first year. If 80 percent of the credit is more than $750,000, the taxpayer annually receives a refund not to exceed $750,000 per income tax year until 80 percent of the credit is completely refunded to the taxpayer. The bill also requires the Colorado economic development commission to annually post on its web site, or on the web site of the Colorado office of economic development, the level of renewable energy investment on and after the effective date of the bill. The bill also amends the definition of renewable energy investment to mean a qualified investment for projects that generate electricity from eligible energy resources. H.B. 1219 is available at www.energytaxcrdits.com.

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On May 5, the South Dakota Housing Development Authority (SDHDA) board of commissioners announced the approval of funding of 15 developments through the Housing Opportunity Fund (HOF). The HOF program is designed to promote economic development in South Dakota by expanding the supply of affordable housing. The 15 approved properties will provide new and rehabilitated multifamily units and new single family homes and rental units, as well as homelessness prevention and homebuyer assistance. HOF funding ranged from $55,000 to $675,000.

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