Sign Up For Novogradac Industry Alert Emails

State Tax Credits News Briefs - June 2016

The Colorado Department of Revenue announced March 24 the expansion of the state’s job growth incentive tax credit to allow the credit to be refundable under certain conditions and relaxing the requirements to qualify for taxpayers who enter into a partnership with a college. Current law states the credit is not refundable but may be carried forward 10 years.

***

Utah Gov. Gary Herbert signed into law the Economic Development Tax Increment Financing Amendments (H.B. 54) March 23. H.B. 54 enacts provisions for the state to pay a partial rebate to a business entity for a portion of new state revenue generated by a business entity’s new commercial project for an agreement entered into before May 5, 2008. The legislation also sets the procedures for the applications and payment of a partial rebate. The bill was effective May 10.

***

West Virginia S. 293 was signed into law March 29 and extends the sunset date of the Neighborhood Investment Program Act to from July 1, 2016, to July 1, 2021. The bill amends certain sections of the Code of West Virginia to include a deadline for taxpayers. There is now entitlement to the tax credit for a contribution made to a certified project after July 1, 2021, and no credit is available to any taxpayer for any contribution made after that date. Taxpayers who gained entitlement to the credit through eligible contributions made to certified projects before July 1, 2021, however, will retain that entitlement and apply the credit pursuant to the requirements and limitations under the law. The bill will be effective June 20.

***

Maine S. 578, amendment to the Maine Capital Investment Program, was signed into law March 30. The amendment establishes the Maine Capital Investment Fund, to be administered by the Finance Authority of Maine, to support the capital needs of business development projects under the program. The program provides loans or bond funding to the eligible business development projects that have projected costs of at least $50 million, or are projected to result in the creation or retention of at least 250 full-time employment positions that pay at least 125 percent of the state annual average weekly wage. Qualified applicants meeting certain criteria may receive a direct loan of up to $50 million from the fund for a single business development project, or up to $100 million in bond funding for a single business development project and up to $200 million in bond funding to the same applicant for multiple business development projects.

***

Nebraska Legislative Bill 1083 was approved by Gov. Pete Ricketts April 7. The bill enacts the Next Generation Business Growth Act, which is designed to promote innovation and entrepreneurship and creates a venture development and innovation task force to develop a plan to implement the new program. In addition, the bill increases the funding for tax credits under the Community Development Assistance Act to $75,000 for the 2016-17 fiscal year. L.B. 1083 will be effective three months after adjournment of the 2016 Nebraska legislative session.

Journal Category:

State Tax Credits

Authors:

Novogradac

Learn more about Novogradac's expertise and many services