State Tax Credits News Briefs - October 2013

Tuesday, October 1, 2013

On Aug. 12, Massachusetts released the second annual Massachusetts Tax Credit Transparency Report. The report is part of an initiative to make government spending more accessible to the public, provides information on 13 tax credits awarded or issued during calendar year 2012. Included are summary tables for the amounts of transferable or refundable credits for each program. The report showed that more than $17 million in state low-income housing tax credit (LIHTC) funds were awarded. For the state historic tax credit (HTC), $50 million was awarded, and $15.3 million used. Also updated was the 2011 Tax Credit Transparency Report to include credit awards or issuances to taxpayers whose applications were pending at the time of the release of the report last June.

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On Aug. 15, the Kansas Department of Commerce announced that $4.13 million in tax credits from Kansas Community Service Tax Credit Program (CSP) will go to 28 nonprofit organizations. Community service, crime prevention and health care projects are eligible. Applicants may request up to $250,000 in tax credits. Organizations in rural areas (less that 15,000 population) are eligible for a 70 percent credit, and organizations in non-rural area are eligible for a 50 percent credit. A few of the organizations and their allocations include Arrowhead West Inc., Dodge City, $225,000; St. Catherine Hospital Development Foundation, Garden City, $195,000; The Brown Grand Opera House Inc., Concordia, $100,000; Sunlight Children’s Advocacy and Rights Foundation, El Dorado, $195,000; Jewell County Hospital, Mankato, $130,000; and the Ronald McDonald House Charities of Northeast Kansas, Topeka, $20,000.

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The Oregon Department of Energy held a public hearing on Sept. 23 to review the draft administrative rules to increase the application, final review and pass-through fees for its Energy Incentives program. The fee increases for Energy Conservation, Transit Services and Alternative Fuel Vehicle Infrastructure tax credits include but are not limited to an additional $300 for the application fee ($200 to $500), an additional $40 for energy conservation informational filing fee ($60 to $100), an additional 0.05 percent of the project cost for the final review fee (0.5 percent to 0.55 percent) and removing the $25,000 cap on the pass-through with assistance fee. Fee Changes for Renewable Energy Development grants include but are not limited to an additional $300 for the application fee ($200 to $500). Also, the fee change for Business Energy Tax Credits is removing the $400 re-inspection fee. Rules went into effect Oct. 2.

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Nine Ohio properties will create more than 591 jobs and retain 943 jobs statewide thanks to assistance provided by the Ohio Tax Credit Authority. The projects are expected to produce more than $29 million in new payroll and $40 million in investment. Some of the properties include Myers Industries Inc. in the Village of Middlefield (Geauga County), which expects to create 65 full-time positions and generate $2 million in additional annual payroll and retain $11 million in existing payroll; Benjamin Steel Company Inc. in City of Cincinnati (Hamilton County), which expects to create 40 full-time positions and generate $1.5 million in additional payroll; Healthcare Regional LLC in Union Township. (Clermont County), which expects to create 30 full-time positions and generate $1.3 million in additional annual payroll and retain $1.6 million in existing payroll; Casad Company Inc. in the City of Celina (Mercer County), which expects to create 59 full-time positions, generate $1.4 million in addition annual payroll and retain $1.5 million in existing payroll.

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The Nebraska Department of Revenue (DOR) on Aug. 30 gave a presentation on the 2012 Nebraska Tax Incentives Annual Report to the Legislature’s Appropriations and Revenue Committees. This was the DOR’s first time presenting information from the report to the Legislature. The annual report details information about the performance of the state’s tax incentives program. The DOR must present its findings to the committees by Sept. 1 each year and provide information requested by three or more committee members within 30 days of their request. This year’s report can be found at www.revenue.ne.gov.

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