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State Tax Credits News Briefs - November 2010

The New Hampshire Community Development Finance Authority (CDFA) awarded more than $4 million to a dozen organizations to further their affordable housing and economic development programs. Under the program, businesses that invest cash, securities or real property to fund CDFA-approved projects are eligible for a 75 percent tax credit. Funding awards include $500,000 to convert retail space into a theater campus in Meredith; $42,469 to replace an old theater marquee for not-for-profits’ advertising use in Franklin; and $93,750 for tuition assistance, playground expansion, and the creation of a professional development fund at Mid-State Montessori Center in Plymouth.


Massachusetts drafted renewable portfolio standard regulations in September that would make the state’s renewable energy credits (RECs) for biomass projects harder to get, the Associated Press reported. The proposed rules would require wood-burning plants to operate at a minimum 40 percent efficiency to receive a fraction of an REC for each megawatt-hour generated, increasing on a sliding scale. A facility would have to achieve 60 percent efficiency to receive full credit. The Biomass Power Association says the new standards would curb the construction of new facilities, barring them from state support needed to attract investors. The Massachusetts Department of Energy Resources’ proposed the change following a controversial study’s finding that some biomass technologies may produce more carbon emissions than coal plants.


Subgroups of Virginia Gov. Bob McDonnell’s Economic Development and Job Creation Commission, charged with developing policy recommendations to stimulate economic growth, have submitted their official recommendations. Among the proposals are tax credits for investments in small businesses or targeted industries such as biotechnology or life sciences, and the replacement of certain alternative energy tax credits with clean energy grant programs. The commission’s goal is to address programs and infrastructure that have the potential to hinder Virginia’s economic competitiveness. McDonnell and his staff will prepare legislative proposals based on the commission’s final report before the state Legislature convenes on January 12.


The Pennsylvania Department of Revenue issued Corporation Tax Bulletin 2010-01 to clarify the expiration of tax benefits for Keystone Opportunity Zones, Keystone Opportunity Expansion Zones, Keystone Opportunity Improvement Zones and the calculation of these tax credits in the year the benefits expire. Taxpayers with a December 31 tax year end will be entitled to a credit for the entire year with no modification to the credit’s calculation. A taxpayer with a tax year ending on a date other than December 31 will be entitled to a credit based on its activity in the subzone or expansion subzone from the beginning of its tax year to December 31. The bulletin is available at the Pennsylvania Department of Revenue.


Green Energy Development Inc. (GED) announced a joint venture partnership with Clean Energy Capital Partners LLC (CECP) to execute an 8 megawatt, $32 million solar project in New Jersey. GED said CECP brings experience in solar-specific renewable energy certificates and state tax credits. The partners will own and operate the project, sharing in the $6 million in renewable energy tax credit monetization and other revenues the project is expected to generate annually.


New York Sen. Kirsten Gillibrand introduced the Upstate Works Act, legislation that she says would expand cities’ access to capital investments so business can grow through tax credits, tax-exempt bonds and other benefits. The bill would expand eligibility for small- and medium-sized cities’ to secure funding through the Empowerment Zone and Renewable Communities program by enlarging the zone boundaries. Cities participating in the program use the funds to invest in businesses in their communities. The legislation also includes provisions such as a $30 billion manufacturing revolving loan fund for clean energy manufacturing operations, a tax credit for farmers to develop products that would expand their operations, federal grants to retrain workers, and widen broadband access.

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State Tax Credits



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