State

July 8, 2008 (MD) – One Maryland Economic Development Tax Credit Amended
Maryland amends the One Maryland Economic Development Tax Credit by lengthening the average rate of unemployment determination period to 24 months from 18 months. The new law also provides that a "qualified distressed county" can be a county that no longer meets the average rate of unemployment or average per capita income requirements but that has met one of these criteria at some point in the past 12 months.

July 8, 2008 (CO) – Colorado Child Care Facilities Credit Extended
Colorado extends the Credit for Child Care Facilities' sunset date to January 1, 2020 (previously January 1, 2010).

July 8, 2008 (CO) - Colorado creates tax credit for Hiring Persons with Developmental Disabilities
Colorado creates new corporate tax credit for Hiring Persons with Developmental Disabilities. The new credit will be effective January 1, 2009 through January 1, 2011 and will be equal to 50% of the wages paid to qualified employees during the first three months of employment, then 30% of the wages for the next nine months.

July 8, 2008 (MO) – Alternative Fuel Vehicle Refueling Property Credit enacted in Missouri
Missouri will offer a tax credit for costs of alternative fuel vehicle refueling property construction beginning January 1, 2009. the credit will be equal to 20% of the qualifying costs or $20,000, whichever is less.

July 8, 2008 (AK) - Alaska creates new law allowing Film Credit
Alaska has passed a new law allowing a transferable corporate income tax credit for Qualified Film Production expenditures.

July 8, 2008 (NH) - New Hampshire enacts Coos County Tax Credit, designed to attract jobs to the North County.
New Hampshire has enacted the Coos County Tax Credit, designed to attract jobs to the North County. The credit is for $750 per employee per year for jobs paying 150% of the minimum wage; jobs paying 200% of the minimum wage are eligible for a $1,000 per job credit. The credit maybe taken for five consecutive years.

July 8, 2008 (AL) – Alabama Capital Credit extended
Alabama has extended the Capital Credit to December 31, 2013 (previously sunset date was 12/31/08).

July 8, 2008 (OK) – Tuition Reimbursement Credit for Aerospace Industry now available in Oklahoma
Oklahoma has placed into law a new credit for the Aerospace industry. Starting in 2009, a credit maybe taken for 50% of tuition reimbursements paid to qualified employees for the first three years of employment. Also enacted is a credit for a percentage of compensation paid to qualifying employees ($12,500 maximum per employee), based on whether the employee graduates from an in-state or out-of-state educational institution.

July 8, 2008 (OH) – Ohio Historic Building Rehabilitation Credit Amended
Ohio makes various changes to the Historic Building Rehabilitation credit, including the application period(s), which are now July 1, 2009 through June 20, 2010, and July 1, 2010 through June 30, 2011.

July 8, 2008 (TN) – Green Energy Tax Credit for Manufacturers Created in Tennessee
Tennessee has enacted a Green Energy Tax Credit for certified green energy supply chain manufacturers, equal to the difference between the charge for electricity sold to the manufacturer and the charge that would have been made for the delivered electricity if the maximum certified rate had been applied. A new Carbon Charge credit is also enacted for such manufacturers.

July 8, 2008 (SC) – South Carolina provides Textile Communities Revitalization Credit
South Carolina has passed legislation which provides a textile communities revitalization credit. The amount of the Textile Communities credit is equal to twenty-five percent of the actual rehabilitation expenses made at the textile mill site times the local taxing entity ratio of each local taxing entity that has consented to the credit, subject to certain criteria.

July 8, 2008 (OK) – Oklahoma extends High-Speed Data Processing Facilities Credit
Oklahoma has extended the tax credit for High-Speed Data Processing Facilities through 2013. The credit was previously set to expire after 2008.

July 8, 2008 (CT) – Retroactive Extension for Connecticut Movie and Digital Media Production Expense Credit
The Connecticut Movie and Digital Media Production Expenses Credit for insurance companies is extended retroactively to income years commencing on or after January 1, 2006.

July 8, 2008 (CO) – Sunset Date extended for Colorado Historic Properties Preservation Credit
The Colorado Historic Properties Preservation credit's sunset date is extended to January 1, 2020 (previously the sunset date was January 1, 2010).

July 8, 2008 (OK) – New Carryforward for Oklahoma Biodiesel Production Facility Credit
Effective July 1, 2009, the Oklahoma Biodiesel Production Facility Credit may be carried forward for five years.

July 8, 2008 (MO) – Missouri enacts Mega-Project Tax Credit in enhanced Enterprise Zones
Missouri has authorized a Mega-project Tax Credit in enhanced enterprise zones. The credit is equal to pa percentage of the new annual payroll attributable to employees related to the manufacturing and assembly process. Approvals for mega-projects must occur before 2009; tax credits will be allowed starting in 2013.

July 8, 2008 (IL) – Illinois Continues Film Industry Incentive under New Act
Illinois has enacted the Film Production Services Tax Credit Act of 2008, which replaced the Film Production Services Tax Credit Act. The new act is intended to be a continuation of the old credit program. Illinois enacts Film Production Services Tax Credit Act of 2008.

July 8, 2008 (MD) – Work-Based Learning Program Credit Re-established in Maryland
Maryland has reestablished the Work-Based Learning Program Tax Credit for employers providing supervised learning for students. The credit is equal to 15% of the student's wages, up to $1,500 per student for the taxable year.

July 8, 2008 (MD) – Maryland Disability Employment Tax Credit Extended
Maryland has extended the Disability Employment Tax Credit to employers who hire qualified individuals before July 1, 2009 (previously July 1, 2008).

July 8, 2008 (FL) – Florida Child Care Tax Credit set to Expire
Florida's Child Care Tax Credit program will expire June 30, 2008; no applications will be approved after the expiration date. Unused credits may be carried forward for 5 years.

July 8, 2008 (PA-Philadelphia) – City of Philadelphia Provides Hiring Ex-Offender Credit
The city of Philadelphia will provide a credit against the Philadelphia Business Privilege tax for hiring ex-offenders, effective beginning tax year 2008.

July 8, 2008 (AK) – Alaska Amends Education Tax Credit
Alaska expands its Education Tax Credit; corporate taxpayers may now claim credits for up to $150,000 for contributions to secondary school vocational education programs and state-operated vocational and technical schools. Previously only contributions to two- and four-year colleges and universities were eligible. The new law is effective January 1, 2009.

July 8, 2008 (MN) – Minnesota JOBZ Credit Amended
Minnesota has amended the JOBZ credit, including certification requirements and clawback rules. Effective October 15, 2008, taxpayers receiving JOBZ incentives must file an annual report listing the tax benefits; failure to do so will result in disqualification from receiving future JOBZ tax benefits along with recapture penalties

May 28, 2008 (GA) - Georgia enacts new energy income tax credits
Georgia has enacted new energy income tax credits. An annual $2.5 million credit is allowed for wood residuals diverted to renewable biomass qualified facilities. Another credit is available for the construction or purchase of clean energy property that is placed in service between July 1, 2008 and December 31, 2012.

May 20, 2008 (MS) - Mississippi amends the Motion Picture Production Company Credit
Mississippi has amended the Motion Picture Production Company Credit, allowing that the taxpayer must have a minimum of $20,000 in base investment and/or payroll.

May 20, 2008 (MD) - Maryland extends the State Employment Opportunity Credit to June 30, 2009
Maryland has passed legislation extending the State Employment Opportunity Credit to June 30, 2009. The credit may now be applied for employees hired before July 1, 2009 (previously July 1, 2008).

May 20, 2008 (MD) - The Maryland Job Creation Tax Credit has been extended to January 1, 2014 (previously January 1, 2010)
The credit applies to positions at a newly established or expanded facility that begins operations before January 1, 2013 (previously 1/1/09).

May 20, 2008 (IA) - Iowa now provides that the Bio-Diesel Blended Fuel Tax Credit must be calculated separately for each retail site of a taxpayer instead of on total sales.

May 20, 2008 (GA) - Georgia has amended the Less Developed Area New Jobs Credit
The criteria for defining a less developed area have been changed. Also, taxpayers in areas of pervasive poverty need only increase employment by at least two jobs in order to qualify.

May 20, 2008 (GA) - Georgia enacts a new credit for qualified cash investments in the research fund
Georgia has enacted a new credit for qualified cash investments in the research fund, the purpose of which is to provide early-stage financing for businesses formed as a result of the intellectual property resulting from the research conducted in the research universities in Georgia. The credit is equal to 25% of the investment.

May 14, 2008 (AL) - Alabama has expanded the real property abatement for certain facilities that produce electricity from renewable resources

May 14, 2008 (AL) - Alabama's capital credit for future years beginning after 2011 is now applicable to utility projects of specific investment levels for electricity produced from renewable energy sources.

May 8, 2008 (GA) - Georgia passes changes to Conservation Real Property Donation credits
A new threshold of 25% between the fair market value and the amount paid to the donor is enacted, as well as an increase to ten years for the unused credit carryforward period, along with other changes.

May 8, 2008 (MI) - Michigan has raised the number of additional renaissance zone designations to 17 from 13

May 8, 2008 (NY) - The New York Power for Jobs Tax Credit for utilities that deliver power has been extended through 2009

May 6, 2008 (IA) - Iowa amends laws regarding the Wind Energy Production Credit
The definition of a qualified facility is amended; the new law also extends the eligible period for facility placement through June 30, 2012. Other changes also apply.

April 30, 2008 (MD) - Maryland passes legislation on Research & Development Tax Credit
Maryland passes legislation providing for corporate income tax credit for cellulosic ethanol technology research and development conducted in state. The maximum annual credit per taxpayer is $250,000.

April 30, 2008 (MD) - Maryland enacts corporate income tax credit for bio-heating oil purchased for space or water heating.

April 30, 2008 (KY) - Kentucky provides new credits for purchases of energy efficient products or Energy Star homes.

April 30, 2008 (MI) - Michigan now allows certain new Business Tax credits to include health care benefit costs in addition to payroll attributable to new and certain retained jobs.
Michigan now allows certain new Business Tax credits authorized by the Michigan Economic Growth Authority (MEGA) to include health care benefit costs in addition to payroll attributable to new and certain retained jobs. Certain recapture rules are also enacted.

April 30, 2008 (MI) - New Michigan law allows a Business Tax credit for qualified new jobs.
New Michigan law allows a Business Tax credit for qualified new jobs under a MEGA agreement for taxpayers winning a procurement contract with the US Department of Defense, Department of Energy or Department of Homeland Security.

April 30, 2008 (MI) - Michigan amends the MEGA tax credit to include tourism attraction facilities and qualified lodging facilities as eligible businesses.
Various amendments to currently standing definitions are also enacted.

April 30, 2008 (MD) - Maryland has created a property tax exemption for certain solar energy and geothermal property.

April 29, 2008 (IA) - Iowa has amended its Film Project tax credit to allow for a maximum credit of 25% of qualified expenditures per project.

April 28, 2008 (NY) - New York has extended the sunset date for the Investment Tax Credit for financial services firms to October 1, 2011 from October 1, 2008.

April 25, 2008 (ID) - Idaho has recently passed legislation that will repeal the state's Corporate Headquarters Incentive Act of 2005, effective July 1, 2008.

April 25, 2008 (MS) - Mississippi has made amendments to the Qualified Equity Investment Tax Credit.
Mississippi has made amendments to the Qualified Equity Investment Tax Credit, including increasing the credit percentage to 8% from 4%. Some definitions are modified, along with other changes.

April 25, 2008 (VA) - Virginia has implemented a new sales tax exemption for certain computer equipment used in data centers. 
The data centers must be in a locality with an unemployment rate greater than 4.9% (as of November 2007).  The exemption will be in conjunction with an agreement entered into during 2008.

April 25, 2008 (NE) - New Nebraska law provides a sixth tier under the Nebraska Advantage Act.
New Nebraska law provides a sixth tier under the Nebraska Advantage Act, wherein tax incentives are allowed to taxpayers creating new jobs paying at least 150% of the state average wage or 200% of the average wage in the county where the business is located, whichever is greater.  To qualify, a taxpayer must either create a minimum of 75 new jobs and invest at least $10 million, or create at least 50 jobs with a $100 million minimum investment.

April 13, 2008 (DC) - A new sales tax exemption is allowed in the District of Columbia on the purchase of building materials for the development of retail stores or restaurants located in priority development areas.

April 13, 2008 (WV) - West Virginia will be reducing the corporate income tax rate to 6.5% from 8.75% gradually over the next few years.
Also, the franchise tax will be completely phased out for tax years beginning on or after January 1, 2015.

April 13, 2008 (TN) - Tennessee now allows an ad valorem tax exemption for eligible headquarters facilities that agree to make payment to municipalities in lieu of special assessments or other fees or charges that would be levied on a project if such project were privately owned.

April 13, 2008 (KS) - Kansas creates a new tax credit for energy efficient improvements on non-owner occupied housing units.

April 10, 2008 (MI) - Michigan amends the brownfield credit to provide new maximum credits for projects designated as urban development area projects.
More projects are now allowed to be approved each year under the new law; taxpayers may also now choose between carrying forward excess credits and receiving a reduced refund.

April 10, 2008 (MI) - Michigan passed a new law allowing a credit against the Michigan Business tax for eligible production companies that enter into agreements with the Michigan Film Office.

April 3, 2008 (LA) - Louisiana has authorized an additional $50 million in New Markets Tax Credits for qualified taxpayers beginning April 1, 2008.

April 3, 2008 (ID) - Idaho has created the New Capital Investments Incentive Act of 2008.
This Act provides a property tax exemption for property in excess of $400 million within a single county to extend that the property is part of an overall minimum investment of $1 billion related to new plant and building facilities for a project period.

April 3, 2008 (WI) - Wisconsin has enacted legislation to allow taxpayers applying for development zone capital investment credits for projects located in airport development zones to receive higher priority for consideration if the airport development zone is considered a distressed area.

April 3, 2008 (WV) - West Virginia has extended its Neighborhood Investment Program to July 1, 2011.  The total maximum aggregate tax credit allowed is increased to $2.5 million in a state fiscal year.

April 3, 2008 (WV) - The Film Industry Investment Act in West Virginia now allows for an increased credit allowance for hiring local workers
The new percentage is four percent (prior law, 2%).   The same legislation authorizes the transfer or sales of the credits and enacts new certification requirements, among other changes.

April 3, 2008 (MS) - Mississippi has extended the sunset date of its Skills Training Credit to July 1, 2012 (previously July 1, 2008).

March 24, 2008 (NM) - New Mexico has extended the deadline for job creation qualified for the High -Wage Jobs sales tax credit until July 1, 2015 (previously July 1, 2009); effective 5/26/2008.

March 24, 2008 (CO) - Colorado provides clarification on eligible employees for the New Business Facility Credit or the Aircraft Manufacturer New Employee Credit.
Only those employees for whom taxes are withheld under the taxpayer's own taxpayer identification numbers or those employees of a work-site employer/employee leasing company which withholds taxes under its own taxpayer identification numbers are eligible.

March 24, 2008 (VA) - Local Tourism Zone Incentives amended.
Virginia increases the number of years in which Local Tourism Zone incentives may be offered to 20 years (previously 10 years); effective 7/1/2008.

March 24, 2008 (OR) - Maximum certified cost increased for renewable energy resource facilities credit.
Oregon has increased the maximum certified cost of a manufacturing facility receiving preliminary certification to $40 million from $20 million for purposes of the renewable energy resource facilities credit.

March 24, 2008 (UT) - Utah creates new refundable economic development tax credit for Economic Development Zones.

February 13, 2008 (MI) - Property Tax: NEZ Certificate Application Requirements Amended.
Michigan law has been amended to allow an application for a Neighborhood Enterprise Zone to be filed after a building permit is issued for facility construction under certain circumstances.

February 8, 2008 (LA) - Cap Reached for New Markets Tax Credits Program.
Louisiana has reached the statutory $50 million cap on New Markets Tax Credits; no new credits may be issued.

 

View a list of archived state legislative updates.