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State Tax Credits News Briefs - September 2013

Oregon House Bill 2370 was passed on July 29. Introduced by state Rep. Kim Thatcher, this bill is the most recent in a series regarding the Oregon Transparency Website. The site was created in 2009 to provide residents with information on how the state government spends their tax dollars, as well as information about state agency revenues, expenditures, contracting and human resources. Passed unanimously, the bill requires the posting of additional details about several economic development programs. It also requires the posting of links to meeting minutes, administrative rules and more information about contracts issued by various state agencies, boards and commissions. Local governments will also have a place to link to their own budget transparency websites. The bill can be viewed at olis.leg.state.or.us/liz/2013R1.

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The fiscal year (FY) 2014 North Carolina state budget was signed on July 26. The budget eliminated a state income tax credit for landowners who donate land or easements for conservation. The previous credit was worth 25 percent of the fair market value of a landowners’ donation up to $250,000 for individuals and $500,000 for corporations. A copy of the budget is available at osbm.nc.gov.

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The Pennsylvania Department of Community Economic Development (DCED) announced that application submission for the state historic tax credit (HTC) program will begin on Sept. 1. The program will offer a 25 percent credit for the rehabilitation of qualified, income-producing buildings. Applications must be submitted through the DCED electronic single application system. To be considered a qualified structure, properties must have been acquired as part of a completed project beginning July 1 of this year. The state HTC program has a total of $3 million in funding, and a cap of $500,000 per development.

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In a letter to the Coalition of Greater Little Rock Neighborhoods Kathy Wells, coalition president, announced a policy change in Little Rock City Hall regarding the state’s historic tax credit (HTC) program. The policy will allow the city to put a 180-day hold on demolition of structures on the unsafe and vacant building listing that are deemed historic. More than 700 structures are on the list. In her letter, Wells said it is up to the coalition to educate neighbors about the $25,000 tax credit available on each of the eligible structures and that credits may be sold to investors, as well as carried forward for five years. Visit the Arkansas Historic Preservation Program for more information.

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Integrated Biomass Resources received $3.75 million from BizCapital to expand its Wallowa, Ore. facility. The expansion will lead to the creation of 10 to 14 permanent jobs in addition to eight construction jobs. The wood products manufacturer expects to boost efficiency, reduce waste, allow the company to time the production of specific products to meet specific market demands, and to broaden production from bundled fire wood, wood chips and heat logs to include animal bedding and wood shavings. Expansion will also include forest restoration to meet the demand for a wider variety of logs.

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The Connecticut Housing Finance Authority awarded $10 million in state Housing Tax Credit Contributions (HTCCs) in August to six developments. Workforce housing will receive $1 million. Tax credits will also go to the Live Where You Work program, a statewide loan fund, and the Workforce II Revolving Loan Fund in New Haven. The HTCC program also requires $2 million be set aside for supportive housing. The maximum amount of tax credits that a developer can receive is $500,000 per year. More than 500 new affordable units will be developed in locations such as Bridgeport, New London and New Haven, and in smaller communities like Lakeville, Willimantic and Winsted. Businesses receive a dollar-for-dollar tax credit on their state of Connecticut tax taxes.

Journal Category:

State Tax Credits

Authors:

Novogradac

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