State Tax Credits News Briefs - September 2015

Tuesday, September 1, 2015

Louisiana H. 749 (Act 357) was signed into law June 29. The bill requires the state’s House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to review and report on certain tax credits beginning no later than Jan. 31, 2016. The committees will also be required to submit recommendations to either continue or terminate the credits no later than March 1, 2017. The bill, which was effective immediately, is available at www.legis.la.gov.

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The Utah Governor’s Office of Economic Development (GOED) July 31 adopted Utah Administration Code Sections 357-10-1 through 357-10-12. These sections provide regulations concerning Utah’s Small Business Jobs Act (S. 233) that was effective July 8. The regulations clarify how to apply and qualify for the tax credit, the calculation of time, the designation of a qualified equity investment, what constitutes a lapse and how tax credits can be recaptured.

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On July 1, New Hampshire Gov. Maggie Hassan signed H.B. 599, concerning the economic revitalization zone credit, into law. The bill changes the eligibility requirements for economic revitalization zones. Now it is required that each zone be re-evaluated every five years to determine if the zone still meets eligibility criteria. H.B. 599 specifies that only full-time jobs are counted for purposes of calculating the business tax credits received by the zone. The bill also authorizes the commissioner of the Department of Resources and Economic Development to establish rules for evaluating the effectiveness of an economic revitalization zone tax credit program. H.B. 599 is available at www.gencourt.state.nh.us.

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Oregon Gov. Kate Brown signed H.B. 2171 into law July 20. H.B. 2171 is an omnibus bill extending several tax credits while prohibiting credits from being used to offset the state’s corporation minimum tax. The bill reverses the 2013 Oregon Supreme Court ruling Con-Way Inc. v. Dep’t of Revenue, which declared that tax credits could be used to offset the corporation minimum tax. H.B. 2171 specifically states that the business energy tax credit cannot offset the corporation minimum tax. State revenue from this decision is expected to increase by $19.2 million. The new sunset date is 2020.

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On July 15, the Colorado Department of Revenue approved Colorado Code Regulations Section 39-22-522, amendments for the gross conservation easement credit. The amendments state that in an emergency, a nonprofit corporation can claim a gross conservation easement credit for a conservation easement donation that it made to a qualified organization, regardless of whether it has unrelated business taxable income. However, a nonprofit corporation which has a state governmental entity as a shareholder cannot claim the credit.

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