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Mississippi Businesses Benefit from Major Economic Impact Act

Certified businesses that construct a plant engaged in the manufacture of tiers or other related rubber or automotive products and enterprises owning or operating maritime fabrication and assembly facilities are eligible for up to 25 years in exemptions against corporate income tax arising from the project. Continue reading “Mississippi Businesses Benefit from Major Economic Impact Act”

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State Tax Credits and Incentives: Know Where You Stand

Many states offer lucrative tax credits to encourage businesses to relocate, hire, or invest within a state’s borders. These incentives are a no-brainer for smart executives. But after the deal is done, many companies struggle to capture all of the intended tax credits because of missed deadlines on capital investment and hiring.

Problem: Leaving Tax Credits on the Table because of Missed Deadlines

Solution: ICS Compliance Monitor

Maximizing non-WOTC credits and incentives is about the process. With Walton’s ICS Compliance Monitor, you can see exactly where you are in the process of obtaining tax credits and incentives. The ICS Compliance Monitor Dashboard shows deadlines and progress for each state tax credit or incentive your company is planning on participating in.

For example, let’s say your company is participating in the Illinois Edge program, the California Competes program, and the New Jersey Grow program. For the Illinois Edge program, your company must invest $5 million and must create a minimum of 25 new jobs. You can see on your dashboard that your company has spent more than $5 million to expand your manufacturing facility, but has only created 18 new jobs. You can then direct your HR team to create the remaining 7 jobs so that your company will be eligible to receive your tax credits. At a glance, you’ll know exactly where you are in each state of the project.

While potentially lucrative, sate tax credits can be complicated. It is easy to miss key deadlines and objectives to obtain tax credits; especially if your company has several tax credits initiatives in different states, all with different rules. With the ICS Compliance Monitor, you can instantly see if you are on track for big tax credits or in need of action to ensure your company is not leaving money on the table. Would you like to effortlessly monitor your company’s state tax credits?

Contact us.

Utah Veteran Credit Removed

The Utah veteran credit for recently deployed veterans will no longer be available beginning in 2016. A Utah State Tax Commission notice indicates that the non-refundable credit against corporate income tax will be removed form the 2016 corporate tax return and may not be claimed or carried forward. The removal is taking place due to the following having been met: (1) the total amount of the credit claimed is less than $10,000; (2) less than 10 persons file a return claiming the credit; and (3) a period of two taxable years has passed after the taxable year in which either (1) and/or (2) occurred.

California Film and Television Tax Credit Program — Sales and Use Tax Liability

Significant changes have been made to the California Film and Television Tax Credit Program, which allows qualified taxpayers a tax credit against income and/or sales and use tax liabilities based on expenditures for film and television shows produced in California. Under A1839, not only has a new ranking system replaced the current lottery system as well as an expansion of eligibility to big budget feature films; and a funding increase from $100M to $300M per fiscal year; but also a New Film and TV Tax Credit Program has been established effective January 1, 2016. Continue reading “California Film and Television Tax Credit Program — Sales and Use Tax Liability”

New Alabama Jobs Act

The Alabama Jobs Act provides incentives to businesses for projects that create new jobs and whose predominant activity involves chemical manufacturing, data centers, engineering, design, research, or metal/machining technology, or for businesses that create jobs and have a base workforce of at least 50 new employees for all other projects. Unless the program is extended or expanded, project agreements must have been executed on or prior to December 31, 2019, with an aggregate balance of outstanding incentives not to exceed $850 million. Continue reading “New Alabama Jobs Act”

Wisconsin Allows Tax Credits to Expire

Several Wisconsin tax credits expired for taxable years beginning on or after January 1, 2014. While no new credits may be computed, according to the Wisconsin Department of Revenue unused nonrefundable credits computed prior to the expiration date may be carried forward subject to the carryforward limitations of each credit.

The following tax credits have expired for taxable years beginning on or after January 1, 2014:

Refundable Credits

  • Dairy manufacturing facility investment credit
  • Meat processing facility investment credit
  • Food processing plant and warehouse investment credit
  • Film production services credit
  • Film production company investment credit
  • Beginning farmer and farm asset owner credit

Non-refundable Credits

  • Biodiesel fuel production credits
  • Dairy and livestock farm investment credit
  • Internet equipment credit
  • Ethanol and biodiesel fuel pump credit
  • Post-secondary education credit
  • Water consumption credit
  • Super research and development credit
  • Research facilities credit

For more information regarding Wisconsin tax credit programs, contact Walton.

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California Competes Tax Credit Application Period Open

Applications are now being accepted for the California Competes Tax Credit. The California Competes Tax Credit provides an income or franchise tax credit to businesses that relocate to California or expand within California. The proposed business venture, investment, or expansion in California is the basis for award of the California Competes Tax Credit. Applications are reviewed by the Governor’s Office of Business and Economic Development (GO-Biz) and will be accepted through April 6, 2015. The application period is the last of three for fiscal year 2014-2015.

California Competes Releases Final Regulations

Effective February 5, 2015, final regulations to implement the California Competes Tax Credits (CCTC) program were adopted. These final regulations are substantially similar to regulations adopted as emergency regulations on November 17, 2014. CCTC is administered by the Governor’s Office of Business and Economic Development (GO-Biz), is a credit against the personal income and the corporation franchise (income) tax for businesses locating or expanding in California, based on an amount negotiated between Go-Biz and the taxpayer (as approved by the CCTC Committee).

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