California Continues to Encourage Businesses Growth
With the California Enterprise Zone Program (CAEZ) allowed to expire, California continues its efforts to encourage businesses to create jobs and make investments in California with new and expanded tax credit and incentive programs.
Idaho Boosts Incentives for Job Creation Through the Idaho Reimbursement Incentive Act
As of July 1, 2014, the Idaho State Tax Commission put in place temporary administrative rules, creating a refundable tax credit for qualified business entities that create a certain minimum number of qualified new jobs and generate certain new revenue in Idaho.
Michigan Moves to Exempt Business Property From Personal Property Tax
As of January 1, 2015, Michigan eligible industrial and commercial personal property will be exempt from personal property tax. Michigan voters approved the measure on August 5, 2014, allocating a portion of the state use tax to fund the elimination of the personal property tax on eligible industrial and commercial personal property. The reduction in the state portion of the use tax has been replaced with a local community stabilization share of the tax to fund the exemption of eligible industrial and commercial personal property from the personal property tax.
Don’t Forget to Take Advantage of New York’s Offerings
New York’s FY 2014-2015 included a number of attractive additions and changes to taxes and incentives. Corporations may look forward to a reduction in their franchise tax rate from 7.1% to 6.5%, effective January 1, 2016, while manufacturers will enjoy a reduced tax rate from 5.9% to 0% as of January 1, 2014 in addition to a refundable income tax credit equal to 20% of the real property taxes paid by manufacturers that own property.
Updates to the Nebraska Advantage Microenterprise Tax Credit Act, Application, and Schedule I
The Microenterprise Act provides an individual actively involved in micro-businesses a refundable individual income tax credit based on demonstrated growth of the business over two tax years in an eligible area. For applications filed on or after January 1, 2014, all Nebraska counties are eligible with the exception of specific areas. The Microenterprise Act provides an individual actively involved in micro-businesses a refundable individual income tax credit based on demonstrated growth of the business over two tax years.
Kentucky New Markets Tax Credit Cap Increase
During the 2014 legislative session, the credit cap for the new markets tax credit was increased from $5 million to $10 million. The New Markets Development Program tax credit provides a person or entity, making a qualified equity investment, a credit equal to thirty-nine percent (39%) of the purchase price of the qualified equity investment made by the person or entity claiming the credit, to be utilized against its tax liability for the taxable year that includes the credit allowance date equal to the applicable percentage for the credit allowance date multiplied b...
Health Insurance Exchange – Reimbursing Employee Premiums
Businesses choosing not to provide a health insurance plan directly to employees must provide reimbursement to employees for the premiums they pay for a qualified health insurance plan that they must acquire through either the health insurance exchange or independently. The IRS has posted FAQs that address the consequences of an employer reimbursing its employees for these premiums. Proposed by some as an inexpensive way to shift the expense of providing employee health care away from the employer (“dumping strategy”), requiring only that the employer provide its employ...
NJ EDA Now Accepting Applications for Incentive Programs Expanded Under The New Jersey Economic Opportunity Act of 2013
The New Jersey Economic Opportunity Act of 2013 was signed into law on September 18, 2013. The Act streamlines New Jersey’s five existing economic development incentive programs into two. The Grow New Jersey Assistance (Grow NJ) Program will be the main job creation and retention incentive program. Grow NJ is for businesses creating or retaining jobs and making a capital investment in a Qualified Incentive Area and that meet or exceed minimum employment and capital investment requirements. Businesses may apply for grants of corporate business and insurance premiums tax credits for job creation/retention.
Colorado Job Creation and Main Street Revitalization Act
Effective May 14, 2104, the Colorado Job Creation and Main Street Revitalization Act provides an income tax credit for costs incurred in connection with the preservation of historic structures.
Tax Extenders Stall in Senate
The tax extenders bill, H.R. 3474, Hire More Heroes Act, has stalled for the moment in the Senate due to a disagreement regarding amendments. The impasse occurred when Sen. Harry Reid (D-NV) moved to consider a cloture motion on Amendment No. 3060 to H.R. 3474. The primary issue at this point is not the support for the tax extenders themselves, 93 senators voted to take up H.R. 3474, but rather whether additional amendments should be allowed and, if so, whether those amendments must be germane to the tax provisions in the bill.