State Tax Credits News Briefs - June 2012

Friday, June 1, 2012

Ohio state Sens. Bill Beagle and Charleta Tavares introduced S.B. 327 in April to increase the amount of state new markets tax credits (NMTCs) that may be claimed. The bill would raise the program's annual cap from $10 million to $50 million. S.B. 327 also provides for a six-month cure period for noncompliant entities and would allow investments in businesses that derive 15 percent or more of their annual revenue from real estate transactions. The bill was referred to the Ways and Means and Economic Development Committee. View a copy of S.B. 327 at www.newmarketscredits.com.

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Ohio's General Assembly is also considering H.B. 511, another bill that proposes modifications to the state's NMTC program. H.B. 511 would conform the state program to the federal NMTC by accelerating an investor's receipt of credit installments. Credits of 5 percent of qualified equity investments (QEIs) would be permitted for the first three years and 6 percent for the final four years – compared with the current schedule of zero percent in the first two years, 7 percent in the third year, and 8 percent in the final four years. Like S.B. 327, H.B. 511 contains a provision to allow community development entities (CDEs) to invest in businesses that derive 15 percent or more of their annual revenue from real estate transactions. It also raises the maximum tax credit amount from $999,960 to $1 million. A copy of H.B. 511 is available at www.newmarketscredits.com.

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Preservation Massachusetts (PM) recognized seven historic adaptive-reuse projects designed by architecture and master planning firm The Architectural Team Inc. (TAT). The projects, which converted historic structures into housing across the state, received 2012 Paul E. Tsongas Awards at PM's annual award dinner in May. The award-winning projects include Canal Lofts, a mixed-income, multifamily community in Worcester; Curtain Lofts, an affordable 55 and older community in Fall River developed by WinnDevelopment; Linwood Mill, also a senior community, in Northbridge, developed by EA Fish Development; City View Commons I Apartments, an affordable and modernist rehabilitation of 20th-century historic buildings in Springfield, developed by the First Resource Companies; The Hayes at Railroad Square, a mixed-income transit-oriented development in Haverhill; Union Street Lofts, an urban apartment community composed of five historic buildings in New Bedford, developed by HallKeen and WHALE; and Nashoba Park Assisted Living in Ayer, developed by the Volunteers of America.

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Every dollar Hawaii provides under its solar tax credit program turns into more than $44 that circulates into the state's economy, according to a study from Blue Planet Foundation. The study, called "Renewable Energy Tax Credits: Clean, Local Energy Pays Dividends to Hawaii's Economy," was completed in April by a former University of Hawaii economist. The study also found that one 118 kilowatt photovoltaic (PV) installation generates 2.8 jobs per year, $2.1 million in local labor income, and $490,000 in additional tax revenues during the system's 30-year lifetime. If the cost of oil in Hawaii, which is the most oil-dependent state in the country, rises to $200 per barrel, the state's rate of return would increase from 10.8 to 15.3 percent, researchers said. A copy of the report is available at www.blueplanetfoundation.org.

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The Oregon Department of Energy (ODOE) announced the availability of $3 million in energy conservation tax credits for commercial building systems projects. ODOE outlined its selection process and submission requirements in an opportunity announcement revised in May. Applications are due June 1 and the tax credit recipients will receive preliminary notification in July. Total energy conservation tax credit issuance is limited to $28 million for the biennium ending June 10, 2013. More details and a frequently asked questions document are available on ODOE's web site at www.oregon.gov.

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