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State Tax Credits News Briefs - October 2011

Oregon Gov. John Kitzhaber signed legislation to create the Oregon Low Income Community Jobs Initiative, a state new markets tax credit (NMTC) program. The new program is modeled after the federal NMTC. The credit is taken over seven years with a maximum of $16 million in total credits claimed per year. The legislation, S.B. 817, sets aside 15 percent of the total amount of QEIs for investments in businesses that directly improve the environment or reduce greenhouse gas emissions, or produce products that have the same effects. The program took effect in September. See a copy of the bill at www.newmarketscredits.com.

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Portland General Electric (PGE) and the Oregon Department of Transportation (DOT) broke ground on the nation's largest solar highway. Baldock Solar Highway, on Interstate 5 northbound near Wilsonville, will generate nearly 2 million kilowatt-hours per year and include a display that will allow the public to learn about solar energy. PGE will build and operate he $10 million project, which is expected to be operational in January 2012. Financing sources include the state's Business Energy Tax Credit program, the Energy Trust of Oregon, PGE's Clean Wind program and Bank of America.

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New Mexico Gov. Susana Martinez issued an executive order to prepare an annual tax expenditure budget, which will be a comprehensive review of all state tax credits in order to evaluate their effect on job creation and economic development. The review will be led by the Taxation and Revenue Department. Before the executive order was issued in August, New Mexico did not have a systematic means of reporting on tax expenditures and of analyzing whether those expenditures meet their intended objectives, according to the governor's office.

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The Nebraska Department of Economic Development (DED) outlined implementation steps for the new Angel Investment Tax Credit (AITC) program, created under L.B. 389. Investors can apply for certification to claim a 35 to 40 percent refundable state income tax credit for investment in certified Nebraska start-up companies. A total of $3 million in tax credits is available per calendar year. The initiative is intended to attract at least $7.5 million in new private equity investments to start-up tech companies annually. Guidelines and application forms are available at www.neded.org.

Journal Category:

State Tax Credits

Authors:

Novogradac

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