State Tax Credits News Briefs - June 2013

Saturday, June 1, 2013

Ohio H.B. 135, introduced in April by Reps. Dorothy Pelanda and Jack Cera, amends certain sections of the revised code to authorize a nonrefundable credit against the income tax and certain business taxes for the rehabilitation of a vacant industrial site. Applicants receive varying amounts of tax credits for rehabilitating industrial buildings that are at least 15 years old and have been at least 75 percent vacant for at least five years. The tax credit is transferable and sunsets five years after it is enacted. On or before the first day of April each year, the director shall submit to the governor, the Senate president and the speaker of the House of Representatives a report on the tax credit program. A copy of the bill can be viewed at www.legislature.state.oh.us.

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Oregon H.B. 2980, which extends the sunset date for the Farmworker Housing Tax Credit program, also known as the Agricultural Workforce Housing Tax Credit, was presented to the Joint Committee on Tax Credits in April. The program provides a tax credit for owning and operating farmworker housing. The committee held a public hearing on the legislation April 18 but the bill had not come up for a vote at press time. The Agricultural Workforce Housing Coalition, a group of housing organizations, growers, vendors, suppliers and elected officials who support affordable housing for those working in Oregon’s agriculture, supports the tax credit extension.

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The Motion Picture Association of America Inc. (MPAA) released a study on the filming of Iron Man 3 and its economic impact in North Carolina. Conducted by Meyers Norris Penny LLP (MNP) between December 2011 and December 2012, the study stated that the Marvel film generated $179.8 million in spending for the North Carolina economy, and that the full-time equivalent of approximately 2,000 jobs was created. North Carolina saw an increase in labor income. Production of Iron Man resulted in $104.1 million in labor income, and 719 vendors in 84 communities across the state were involved. Iron Man 3 received $20 million in support through state tax incentives.

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Lawmakers in Louisiana last month considered a deal that would cut a total of $525 million from the budget. Cuts in two dozen tax exemptions totaling $329 million and a reduction of $106 million is spending would be used to fund one-time expenses in the state’s government. The deal proposed to reduce state tax credits by 15 percent and to rely on an increase in existing projections of state tax revenue to balance the budget. The cuts to tax credits were oppposed by Gov. Bobby Jindal and the tax credit community, leading lawmakers to reconsider.

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Iowa legislation that would extend the Targeted Jobs program by five years passed the House with a 96-2 vote in early May. The Targeted Jobs program, which allows businesses to apply for state withholding tax credits if they plan to relocate or expand in Iowa, has a credit that equals three percent of the gross wages to each employee filling the new jobs. The legislation is designed to aid Sioux City and other Iowa border communities in competing with neighboring states. The program is available to Sioux City, Council Bluffs, Burlington, Fort Madison and Keokuk.

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Louisiana law firm Graffagnini and Associates released a report on the Louisiana Angel Investor tax credit program entitled “Louisiana Venture and Angel Capital Report.” A series of reports is expected to follow in an ongoing analysis of investment data for start-ups in the city and state. The tax credit offers a 35 percent tax break on investments. The report found that in 2011, 26 companies sought the credits and 13 received them. In 2012, 40 companies requested credits and 21 secured them. Graffagnini and Associates also found that more than $30 million was sought and almost $26 million secured in 2011, and that almost $45 million was sought and more than $34 million secured in 2012.

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State Tax Credits