State Tax Credits News Briefs - March 2015

Sunday, March 1, 2015

On Jan. 1, the West Virginia State Tax Department updated Publication TSD-110. The publication provides an overview of tax credits that may be claimed against corporate and personal income taxes, including the Jobs Creation Tax Credit. Publication TSD-110 also provides annual updates of wage-related requirements for certain credits through 2015, such as the applicable inflation adjusted minimum salary for qualifying new jobs. Updated Publication TSD-110 is available at www.state.wv.us.

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The California Governor’s Office of Business and Economic Development (GO-Biz) released Jan. 6 an updated version of its California Competes Tax Credit (CCTC) frequently asked questions (FAQs), to include contact information, application mechanics and employment requirements. Theupdated FAQ also made a change regarding the maximum ratio that will move an application to the Phase II evaluation process. The answer portion now includes the cutoff ratios for the first period of the 2014-15 fiscal year. GO-Biz also announced that the second application closed Feb. 2 and had $75 million available. The California Franchise Tax Board reminded taxpayers that for fiscal year 2014-15, $151.1 million of the California Competes Tax Credits will be available for allocation during three application periods. In addition, the California Franchise Tax Board (FTB) held a meeting for interested parties Feb. 19 in Sacramento to explain the review procedures as to what types of information and records may be available and used by taxpayers who have been awarded a CCTC. The meeting was a follow-up to FTB Notice 2014-02, which informed taxpayers of the procedures that will be used as guidelines to review books and records of taxpayers.

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The Maryland Department of Planning’s Joint Committee on Administrative, Executive and Legislative Review granted emergency status Jan. 9 to the repeal of existing regulations for Sustainable Communities Tax Credit certifications. The emergency regulations clarify certain existing regulations, as well as adding and removing other regulations in order to adhere to Chapter 601 of 2014, which removed certain requirements and added options for small commercial projects to receive Sustainable Communities Tax Credit Certifications. The emergency status began Jan. 1 and will expire June 30. The regulations are available at www.mgaleg.maryland.gov.

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Delaware Gov. Jack Markell announced Jan. 11 that Wilmington, Dover and Seaford are the state’s first three Downtown Development Districts (DDDs). The Downtown Development Districts Grant program, enacted by the Downtown Development Districts Act of 2014, establishes areas within a municipality or unincorporated area that will qualify for development incentives and other state benefits. Benefits include tax breaks, city and county incentives and grants to those making qualified real estate investments of up to 20 percent of investments’ costs. The first three sites were selected from among nine applicants. Applications were evaluated based on need and impact, quality of the applicants’ submitted district plans and local incentives offered. The Downtown Development District Grant program is designed to spur private capital investment in commercial business districts and other neighborhoods, stimulate job growth and improve the commercial vitality of such districts and neighborhoods, help build a stable community of long-term residents by improving housing opportunities, and assist municipalities in strengthening neighborhoods.

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