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State Tax Credits News Briefs - March 2010

In January, Maryland Gov. Martin O’Malley announced the release of the state’s energy agenda for 2010, emphasizing renewable energy production and tax credits. Proposed legislation calls for extending renewable energy credits for businesses interested in going green. Specifically, the administration will introduce a bill to reauthorize the renewable energy production tax credit set to expire at the end of the year, keeping the existing $25 million cap intact. The bill would also offer a state income tax credit of 85 cents per kilowatt-hour for electricity generated by qualified resources and 50 cents per kilowatt-hour for electricity generated from co-firing a qualified resource with coal, limited to $2.5 million per eligible taxpayer.


The Oregon Department of Energy has issued new administrative rules governing the pass-through rate for the business energy tax credit (BETC). The pass-through option allows a project owner to transfer the BETC in exchange for capital to assist with costs of the project. The new rules offer a tiered rate depending on the type of project and project owner. Public entities, federally recognized Indian tribes and renewable energy resource equipment manufacturing facilities will receive a separate rate from other applicants. The tiered rates are designed to provide more capital to project owners and restore the original intent of the pass-through. More information is available at


Virginia Gov. Bob Connell introduced in January the “Jobs and Opportunity Agenda,” a legislative package consisting of 20 pieces of legislation and previously announced budget amendments. The governor proposes lowering from 50 to 25 the threshold number of employees that a major business facility in an enterprise zone or distressed area would need to hire for the facility to qualify for Virginia’s major business facility job tax credits. The administration also supports the small business investment company credit, which provides for the creation of private investment funds (up to $100 million) that will invest in small businesses in Virginia. A proposed green jobs tax credit would allow a $500 income tax credit for the creation of as many as 350 green jobs for taxable years beginning on or after January 1, 2010. Taxpayers may qualify for the enterprise zone grant program if the jobs are in an enterprise zone.


Sen. Jason Crowell, R-Mo., introduced Senate Bill 728 in January. The bill would subject nearly all state tax credits to the budget appropriation process. The Coalition for Historic Preservation and Economic Development says this change would effectively eliminate all the legislative language on historic tax credits approved last year by the Missouri General Assembly. Smaller historic restoration projects would begin to count against the cap and the application procedures for projects that ensure equity for small and large projects submitted to the Department of Economic Development would be eliminated. All Missouri historic tax credit programs would expire on June 30, 2011 unless an allocation was made for that specific year through the legislative appropriations process. More information about S.B. 728 and what it could mean for the state’s low-income housing tax credit will be featured in the April issue of the Novogradac Journal of Tax Credits.


In his 2010 State of the State Address, Gov. Ted Strickland outlined his suggestions for solutions to address Ohio’s immediate economic challenges. Strickland announced the creation of the Energy Gateway Fund in that address. The 40 million dollar fund will offer access to capital for new and expanding advanced energy companies and revenue generated from the fund’s investments will be reinvested in additional energy companies. In addition, Strickland said he will ask the Legislature to “erase Ohio’s tangible personal property tax on generation for wind and solar facilities that break ground this year, create Ohio jobs, and begin producing energy by 2012.” A copy of the complete speech can be found online at

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State Tax Credits



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