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State Tax Credits News Briefs - March 2016

The U.S. Court of Appeals for the Fourth Circuit affirmed Jan. 8 that a U.S. Tax Court decision that found that more than $3.8 million contributed to Route 231 LLC should be treated as ordinary income from a disguised sale of Virginia conservation tax credits. The decision in Route 231 LLC v. Commissioner held that the transfer of Virginia tax credits between Route 231 and Virginia Conservation constituted a disguised sale of property under tax code Section 707, and that the amounts received were reportable as gross income in the 2005 tax year. The court ruling is available at


Missouri S.B. 692 was introduced Jan. 6, and would change the maximum authorization on low-income housing tax credits from $6 million to $12 million per year. A taxpayer would  be allowed a state tax credit, whether or not allowed a federal tax credit. Qualified properties would  have been placed in service after Jan. 1, 1997. The bill is available at


On Jan. 17, the City of Baltimore enacted Ordinance No. 15-434, Council Bill No. 15-0565, which establishes a municipal personal property tax credit for qualified supermarkets in food-desert incentive areas. To qualify, a supermarket must be grocery store that has all major food departments, be newly constructed or newly substantially renovated, be located in a food desert retail incentive area, have expended the greater of $150,000 or $25 per square foot of floor space on new personal property, have at least 500 square feet of floor space dedicated to the sale of fruit and vegetables, and have at least 500 square feet of floor space dedicated to the sale of other perishable goods. The credit is applicable to all tax years beginning after Dec. 31, 2015.


New Jersey Gov. Chris Christie on Jan. 19 signed two bills into law. S. 3282 permits a two-year extension for a developer of a qualified residential project or qualified business facility to submit documentation supporting its credit amount under the Urban Transit Hub Tax Credit program. The law also provides an additional two years for developers to submit information on the credit amount certified for any tax period. In addition, the law permits a one-year extension for a developer of a qualified residential project to submit documentation of having received a temporary certificate of occupancy to receive tax credits under the Economic Redevelopment and Growth Grant program. The deadline for a business to submit documentation under the Grow New Jersey Assistance program (for a credit applications made before July 1, 2014), is extended to July 28, 2018. Another bill, S. 2880, provides up to $25 million in Economic Redevelopment and Growth Grant (ERG) tax credits to Rutgers, the state university of New Jersey, for eligible projects including buildings and structures, open space with improvements, and transportation facilities. The law also raises the program cap from $600 million to $625 million. S. 3282 and S. 2880 were effective Jan. 19.


The deadline to submit applications to the California Governor’s Office of Business and Economic Development (GO-Biz) for the California Competes Tax Credit was Jan. 25. There are $75 million in tax credits available during this application period for businesses that are expanding and adding jobs in the state. The application period ran from Jan. 4, through Jan. 25.

Journal Category:

State Tax Credits



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