State Tax Credits News Briefs - October 2012

Monday, October 1, 2012

Illinois Gov. Pat Quinn signed legislation extending the state’s 97 existing Enterprise Zones to July 2016. Senate Bill 3616 also created an Enterprise Zone Board, which will have the authority to approve or deny new enterprise zone applications. In addition to amending or eliminating a number of the previous tax provisions for Enterprise Zones, the new legislation has increased the reporting requirements of businesses applying for tax benefits from the Enterprise Zone program or High Impact Business Program. Enterprise Zones were originally enacted in 1982 to encourage the growth of businesses in depressed geographic areas. According to the governor’s office, the program has created 354,762 jobs since its inception in businesses located within Enterprise Zone districts. Access S.B. 3616 on www.ilga.gov.

***

Missouri Gov. Jay Nixon reconvened the Bi-Partisan Tax Credit Review Commission to review and update the original report it released in November 2010 on its state tax credit program. The governor said he reconvened the commission because of the dramatic jump in state tax credit redemption from $522.9 million in the fiscal year of 2010 to $629.3 million in 2012, a record increase of 15.4 percent. The commission, composed of 27 business, community and legislative leaders, was originally created by Nixon to review each of the state’s 61 tax credit programs and to make recommendations for optimal return on investment. A copy of the commission’s 2010 report can be found at www.tcrc.mo.gov.

***

New York’s Capital Region Council is competing against nine other regional economic development councils for $750 million in state grants. The Albany-area council is requesting $50 million for its 46 endorsed projects, including a proposed high-tech energy plant at the Watervliet Arsenal, renovation of the Catamount Ski resort, development of proposed apartments at DaLaet’s Landing and a new building at the University of Albany’s College of Nanoscale Science and Engineering. Gov. Andrew Cuomo developed the Regional Economic Development Councils in 2011 as a way for regions to create long-term strategies for economic growth. Each council can complete an online consolidated funding application detailing which projects it wants to endorse and how much funding it needs to develop them. More information is available at www.regionalcouncils.ny.gov.

***

Kansas’ Rural Business Development Tax Credit program, which allocates $2 million in state tax credits each year toward rural economic development, may be discontinued during the next legislative session. It is funded by businesses and individuals who in turn receive a state tax credit that is 75 percent of the amount they contributed. A majority of the funds goes to creating a loan fund for startup and existing businesses in the state’s seven designated economic development regions. The rest of the funds are split between business support services, regional development and marketing, and for business technology developments. The program was initially created by the 2004 Kansas Legislature and extended in 2007 through 2012.

Journal Category: