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State Tax Credits News Briefs -March 2014

The Missouri House Economic Development Committee heard testimony on House Bill (H.B.) 1498 on Jan. 28. Sponsored by Rep. Anne Zerr, the bill revises the annual allocation amount for several tax credit programs. It also extends the expiration date on specified tax credits. The state’s low-income housing tax credit (LIHTC) and the historic tax credit (HTC) would be affected. For LIHTCs, H.B. 1498 would cap the 9 percent credit at $130 million in fiscal year (FY) 2015. The cap would be lowered by $5 million each year until it reaches $110 million in FY 2019. For projects financed through the 4 percent credit, no more than $6 million in tax credits shall be authorized each fiscal year ending on or before June 30, 2015; For each fiscal year beginning on or after July 1, 2015, a $4 million cap will be in effect. For the HTC, for each fiscal year beginning on or after July 1, 2010, but ending on or before June 30, 2015, the cap is $140 million. For each fiscal year beginning on or after July 1, 2015, the annual program cap would be $90 million for projects receiving more than $275,000 in tax credits. In addition, the bill would prohibit a taxpayer from receiving both 9 percent state LIHTCs and state HTCs for the same property. At press time, H.B. 1498 did not have a hearing scheduled and was not on the House calendar. The bill is available at www.taxcredithousing.com and www.historictaxcredits.com.

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Massachusetts H. 3799 was considered by the Joint Committee on Revenue Jan. 28. Sponsored by Reps. Antonio Cabral and Paul A. Schmid III, the bill would create a tax credit for fire suppression systems installed in historic buildings. Supporters say the incentive would protect historic buildings from fire. The tax credit would equal 50 percent of costs incurred installing the system, with a maximum of $10,000 per taxpayer in any fiscal year until 2031. If passed, the bill would take effect July 1. The bill is available at www.historictaxcredits.com.

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Restore Oregon, an organization dedicated to saving and taking care of historic buildings and communities, posted a report in January entitled “Revitalizing Main Street: Economic Development & Job Creation Through a Rehabilitation Tax Credit.” The report says a rehabilitation tax credit would benefit the state. The report reviews who would benefit, discusses what other states are doing, provides case studies of rehabilitated buildings, provides information on federal incentives and proposes a rehabilitation tax credit tailored for Oregon. The report is available at www.historictaxcredits.com.

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On Jan. 7, the Hawaii Department of Taxation released Taxation Announcement 2014-1, which established new rules for the state’s renewable energy technologies income tax credit. The rules apply to multifamily, commercial and residential property. The document defines terms such as “actual cost,” “commercial property,” “multifamily residential property,” “renewable energy technology system” and “total output capacity.” The notice also determines the total output capacity requirements for solar energy systems. These rules are effective for systems installed and placed in service on or after Jan. 1, 2013.

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Cumberland Arms, a senior housing facility in Cumberland, Md., received $1.45 million in state tax credits, provided by the Maryland Department of Planning’s Sustainable Communities program. Cumberland Arms was one of 10 developments to receive tax credits under the program. Renovation costs will total $5.8 million, and work will be done by Hampstead Companies. Renovations will include work on the kitchens, bathrooms, flooring, lobby and façade.

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The Ohio Tax Credit Authority provided job creation tax credits and a sales tax exemption for six economic expansion projects in Northeast Ohio that are expected to create 450 jobs. The annual payroll is also expected to reach $19.5 million. The state received a total of 13 development packages. Combined, these development packages are expected to create more than 1,000 jobs and retain another 1,600 jobs. The new payroll is also expected to reach more than $47.4 million and create a $319.6 million investment across the state.

Journal Category:

State Tax Credits

Authors:

Novogradac

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