State Tax Credits News Briefs - May 2015

Friday, May 1, 2015

On April 2, the Iowa Department of Revenue adopted amendments to the Iowa Administrative Code relating to the Redevelopment Tax Credits program for brownfield and grayfield sites. The amendments reflect the appointment of the Economic Development Authority as the administering agency for the tax credits. The amendments also specify the information required when a tax credit is transferred. The amendments state that in the case of a transfer of the credit, certain items must be disclosed. This includes the amount of all consideration in the transfer; the names of recipients of any consideration given; a list of money payments, with the names of the recipients; and a list of nonmonetary consideration received in exchange for the credit, with a description of the nature of such nonmonetary consideration. The amendments also state that if the transferee is a partnership, limited liability company, S corporation, or estate or trust claiming the credit, then a list must be submitted with contact information and tax information of all those involved. The amendments also provide that the increase in the basis of the redevelopment property that would otherwise result from the qualified redevelopment costs must be reduced by the amount of the redevelopment tax credit. The amendments are effective May 6.

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The Mississippi Business Finance Corporation re-enacted the rural economic development tax credit (S.B. 2658) March 23. The bill reinstates statutes for bond issuance to finance economic development projects. The bill also reenacts statutes that allow for a credit against Mississippi income taxes. The repeal date was extended from Oct. 1, 2015, until Oct. 1, 2017. S.B. 2658 will be effective July 1.

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Iowa Economic Development Authority (IEDA) awarded $20 million in workforce housing tax credits April 2 to 37 developments across the state. The tax credit program makes state tax incentives available to developers building or rehabilitating housing in Iowa. There are four criteria that must be met to receive credits. A housing development located on a grayfield or brownfield site, there must be repair or rehabilitation of dilapidated housing stock, it has to be an upper-story housing development and it must be new construction in a greenfield (community with demonstrated workforce housing needs). IEDA expects additional tax credits to be available in fiscal year 2016.

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The Rhode Island Division of Taxation approved $5 million in state tax credits April 7, for the proposed redevelopment of Pontiac Mills in Warwick, R.I. The mill, a 38-industrial building complex constructed circa 1838, will undergo renovations in four-phases. Rehabilitation costs are expected to total $25 million. The site has already been partially redeveloped, with a loft-style Nylo Hotel that opened in 2008.

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