PORTFOLIO

Credits and Incentives: Oregon Through Wyoming (Portfolio 1480)

Be a trusted advisor to your clients with Bloomberg BNA Tax Portfolios. In this Portfolio, our expert authors focus on state tax credits and incentives in Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

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DESCRIPTION

The Credits and Incentives: Oregon Through Wyoming Portfolio contains a detailed discussion of the tax credits and incentives currently available to businesses on a state-by-state basis.

 

This Portfolio also addresses the issues of constitutionality, effectiveness, and the initiatives and policy directions states have taken with respect to existing programs.

 

The working paper section of the Portfolio contains maps and descriptions of targeted economic development zones, where available, and a listing of state and local economic development authority contacts. These materials will help the reader determine if a proposed site lies within a targeted economic development zone.


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AUTHORS

MARK L. NACHBAR, ESQ., CPA

Mark L. Nachbar, Esq., CPA is currently a principal with Ryan in Chicago, Illinois.


Credentials / Mark received his B.S.M., Tulane University (1979); J.D., University of Illinois, College of Law (1982); Certified Public Accountant (Illinois, 1979); member: Tax Management, State Tax Advisory Board; Chicago Bar Association, State and Local Tax Committee; Illinois Bar Association. 


SCOTT A. AVERY
Credentials / Scott received his B.S.B.A. from the University of Arizona (1989).

BRENT J. HAWKINS
Credentials / Brent received his B.A. from Brigham Young University (1992); M.S. Brigham Young University (1993).

TABLE OF CONTENTS

Detailed Analysis

1480.01. INTRODUCTION

1480.02. GENERAL ECONOMIC INCENTIVES

Introductory Material

A. Investment Credit

B. Jobs Credit

C. Research and Development Credits

D. Energy Credit

E. Targeted Economic Development Area Credit

F. Sales and Use Tax Incentives

G. Property Tax Incentives

H. Other Incentives

1480.03. CONSTITUTIONAL ISSUES

Introductory Material

A. Equal Protection Clause

B. Commerce Clause

1. Boston Stock Exchange

2. Maryland v. Louisiana

3. Westinghouse Electric Corp.

4. Bacchus Imports, Ltd. v. Dias

5. West Lynn Creamery, Inc. v. Healy

6. Perini Corp. v. Commissioner

1480.04. CREDITS AND INCENTIVES: DO THEY WORK

Introductory Material

A. Factors Affecting Business Location Decisions

B. When Taxes Become a Factor

C. Credits as a Competitive Factor

D. The Cost of Credit and Incentive Programs

1480.05. STATE INITIATIVES AND POLICY DIRECTIONS

Introductory Material

A. Cost Benefit Analysis

B. Clawbacks

C. Strategic Analysis

1480.06. OREGON

Introductory Material

A. Economic Development Credits and Incentives

1. Research Activities Credit

a. Research Activities Expense Credit

b. Alternative Research Activities Sales Credit

2. Development Account Contribution Credit

3. Enterprise Zone Credits

a. Long-Term Enterprise Zone Facilities

b. Electronic Commerce in Designated Enterprise Zone Credit

4. Advanced Telecommunications Facility Credit

Content

5. Small City Business Development Exemption

6. Film Production Development Contribution Credit

7. Oregon Capital Corporation Investment Credit

8. Water Transit Vessel Credit

9. University Venture Development Fund Contribution Credit

B. Environmental Credits

1. Pollution Control Facility Credit

2. Pollution Prevention Credit

3. Plastics Recycling Credit

4. Diesel Engine Replacement Credit

5. Diesel Engine Repower or Retrofit Credit

C. Energy Credits

1. Energy Conservation Facility Credit

2. Alternative Fuel Station Credit

3. Rural Renewable Energy Development Zones

4. Biofuel Raw Material Production Credit

D. Health Related Credits

1. Bone Marrow Transplant Expense Credit

E. Children, Youth Education Credits

1. Contributions of Computers or Scientific Equipment Credit

2. Dependent Care Assistance Credit

3. Dependent Care Facilities Credit

4. Youth Apprenticeship Sponsorship Credit

5. First Breaks Program Credit

6. Employee and Dependent Scholarship Program Credit

F. Lender Credits

1. Energy Conservation Credit

2. Low Income Housing Credit

G. Agriculture and Silviculture Credits and Incentives

1. Reforestation Credit

2. Fish Habitat Improvement Credit

3. Fish Screening Devices Credit

4. Crop Gleaning Credit

5. Farm Worker Housing Construction or Rehabilitation Credit

6. Farm Processing Equipment Property Tax Credit

7. Voluntary Removal of Riparian Land From Farm Production Credit

8. On-Farm Processing Facilities Credit

9. Food Processing Property Tax Incentive

1480.07. PENNSYLVANIA

Introductory Material

A. Neighborhood Assistance Tax Credits

1. Neighborhood Organization Contribution Credit

2. Enterprise Zone Investment Credit

B. Employment Incentive Payment Credits

C. Research and Development Credit

D. Keystone Opportunity Zones

1. Business Activities Credit

2. Job Creation Credit

E. Keystone Innovation Zones

F. First Class Cities Economic Development Districts

G. Strategic Development Areas

H. Resource Enhancement and Protection Program (REAP)

I. Financial Assistance Programs

1. Pollution Prevention Assistance Account

2. Economic Development Administration Loans

3. Economic Development Administration Grants

4. Tax-Exempt Bonds

J. Miscellaneous Credits

1. Coal Waste Removal and Ultraclean Fuels Tax Credit

2. Educational Improvement Tax Credit

3. Alternative Energy Production Credit

4. Film Production Credit

1480.08. RHODE ISLAND

A. Enterprise Zone Credits

1. Business Investment Wage Tax Credit

2. Donation Tax Credit

3. Interest Income Tax Credit

B. Mill Building and Revitalization Act

1. Investment Tax Credit

2. Wage Tax Credit

3. Interest Income Tax Credit

C. Jobs Development Act

D. Tax Incentives For Employers Act

E. Jobs Training and Education Credits

1. Jobs Training Credit

2. Adult Education Credit

3. Employer Dependent Day Care Assistance and Development Credit

4. Education Assistance and Development Credit

5. Employer's Apprenticeship Credit

6. Credit for Hiring Juvenile Delinquents

7. Scholarship Contribution Credit

F. Research and Development Credits and Incentives

1. Research and Development Property Credit

2. Credit for Qualified Research Expenses

3. Elective Deduction for Research and Development Facilities

G. Investment Tax Credits and Incentives

1. Manufacturing Investment Credits

2. Biotechnology Investment Credit

3. Innovation and Growth Incentives

4. Historic Preservation Investment Credit

5. Capital Investment in a Small Business Credit

H. Energy Credits

1. Hydroelectric Power Developer Credit

2. Alternative Fueled Vehicle and Filling Station Credits

I. Small Business Tax Credits

1. Disabled Access Credit

2. Small Business Administration Fee Credit

J. Film Credits

1. Motion Picture Production Credit

K. Preferential Apportionment

L. Miscellaneous Credits

1. Quality Certification Credit

1480.09. SOUTH CAROLINA

A. Income Tax Moratorium

1. Substantial Investment and New Job Creation

2. Prior Moratoria

a. Taxpayers Qualifying for Job Development Benefits

b. Manufacturing and Other Eligible Facilities

B. General Credit Provisions

1. Ordering

2. Credits of "Consolidated" (Combined) Corporations

C. Job or Employee Credits and Incentives

1. Job Tax Credit

a. General Provisions

b. Types of Qualifying Businesses

c. Qualifying Jobs

d. County Rankings

e. Credit Amount

f. Calculating the Credit

g. Frequently Asked Questions and Helpful Tips

h. Example

2. Job Development and Job Retraining Credits

a. Job Development Credit

b. Job Retraining Credit

3. Credit for Hiring Family Independence Recipient

4. Credit for Hiring Displaced Workers

5. Apprenticeship Income Tax Credit

6. Employee Child Care Programs Credit

D. Investment Credits and Incentives

1. Community Development Corporation Investment Credit

2. Venture Capital Investment Incentive

3. Palmetto Seed Capital Credit

4. Industry Partnership Fund Credit

5. Qualified Contribution to Hydrogen Fund Credit

6. Credit for Investing in an Economic Impact Zone

E. Energy Credits

1. Solar Energy Heating or Cooling System Installation Credit

2. Alternative Motor Vehicle Credit

3. Plug-in Hybrid Vehicle Credit

4. Ethanol or Biodiesel Production Credits

a. Credit for Production

b. Credit for Qualified New Production Beginning January 1, 2017

5. Ethanol or Biodiesel Research and Development Credit

6. Biomass Resources Credit

7. Credits for Renewable Fuels

a. Credit for Distribution or Dispensing Facility

b. Credit for Processing Facility

8. Credit for Energy Conservation and Renewable Energy

F. Environmental Credits and Incentives

1. Conservation Credit

2. Credit for Water Impoundments and Water Controls

3. Habitat Management Credit

4. Brownfields Voluntary Cleanup Credit

5. Recycling Facility Tax Credit

6. Mercury Switch Disposal Credit

G. Motion Picture Credits and Incentives

1. Motion Picture Project Credit

2. Motion Picture Production Facility Credit

3. Motion Picture Commercial Production Credit

4. Motion Picture Production Company Rebate

5. Motion Picture Sales Tax Exemptions

H. Property Credits

1. Historic Structure Rehabilitation Credit

2. Textile Communities Revitalization Credits

a. Property Tax Credit

b. Corporation Tax Credit

c. Repealed Credit

3. Retail Facilities Revitalization Credit

I. Agricultural Credits and Incentives

1. Milk Producer Credit

2. Agricultural Use of Anhydrous Ammonia Credit

J. Miscellaneous Credits

1. Research and Development Credit

2. Corporate Headquarters Credit

a. General Provisions

b. Qualifying Headquarters

c. Real Property Costs

d. Personal Property Costs

e. Claiming the Credit

f. Assignment of Rights

3. Credit For Infrastructure Construction

4. Minority Business Credit

5. Credit Against License Tax for Infrastructure

6. South Carolina Business Development Corporation Shareholder Credit

7. County Business Development Corporation Shareholder Credit

8. Port Cargo Volume Increase Credit

9. Quality Improvement Program Credit

10. Whole Effluent Toxicity Testing Credit

11. Donated Deer Credit

K. Deferral of Tax on Income Attributable to Foreign Trade Receipts

1480.10. SOUTH DAKOTA

A. Energy Incentives

1. Large Commercial Wind Farm Incentive

2. Small Commercial Wind Energy Facility Incentive

B. Business Facilities Incentives

1. New or Expanded Business Facility Incentive

2. New or Expanded Agricultural Processing Facility Incentive

C. Movie, Documentary, Television Film or Advertising Projects Incentives

D. Renewable Resource Electric Power Facility Incentive

1480.11. TENNESSEE

A. Credit for Purchase of Industrial Machinery

B. Jobs and Employee Credits

1. Job Credit

2. Job Credit for Employing Persons with Disabilities

3. Child Care Credit

C. Environmental Credits

1. Green Energy Supply Credits

a. Green Energy Credit

b. Carbon Charge Credit

D. Movie and Television Credits and Incentives

1. Movie or Television Production Company Refund

E. Headquarters Credits

1. Headquarters Relocation Expense Credit

2. Sales and Use Tax Credit for Headquarters Facilities

F. Miscellaneous Credits

1. Hospital Company Tax Credit

2. Low-Income Housing Tax Credit

1480.12. TEXAS

Introductory Material

A. Enterprise Zone and Defense Readjustment Zone Incentives

1. Franchise Tax Refund

2. Franchise Tax Credit

3. Deduction for Taxable Capital (Repealed)

4. Sales and Use Tax Refunds for Enterprise Projects

5. Sales and Use Tax Refunds for Defense Readjustment Zone Projects

6. One-Time Sales and Use Tax Refund for Job Retention

7. Exclusion of Gross Receipts for Services Performed in a Defense Readjustment Zone

8. Reinvestment Zone Incentives

B. Tax Increment Financing Act

C. Reinvestment Zone Tax Refunds

D. Refund for Wages Paid to Employees Receiving Financial Assistance

E. Credit for Wages Paid To Certain Children Committed to Texas Youth Commission

F. Deduction for the Cost of Solar Energy Devices

G. Credit for Wages Paid to Inmates

1. Current Inmates

2. Former Inmates

H. Severance Tax Incentives

I. Child Care Credits

1. Tax Credit for Establishing Day-Care Center or Purchasing Child-Care Services

2. Tax Credit for Contributions to Before and After School Programs

J. Research and Development Tax Credit

K. Job Creation Credit

L. Credit for Wages Paid to Employees with Disabilities

M. Capital Investment Tax Credit

N. Tax Credit for Title Insurance Holding Companies

O. Merger Credit (for Taxable Capital Purposes Only)

P. Temporary Credit (for Earned Surplus Purposes Only)

1480.13. UTAH

A. Economic Development Credit

B. Enterprise Zone Credits

1. Job Creation Credits

2. Investment Credit

3. Contributions Credit

4. Rehabilitation Credit

5. Targeted Business Credit

6. Utah Venture Capital Investment Credit

C. Recycling Market Development Zone Credit

D. Contribution Credits

1. Sheltered Workshop

2. High Technology Contributions

E. Energy Credits

1. Clean Air and Efficient Vehicle Credit

2. Solar Project Credit

3. Renewable Energy Systems Credits

a. Residential Energy System Credit

b. Commercial Energy System Credit

c. Commercial Energy System Using Wind, Geothermal, or Biomass

4. Steam Coal Credit

5. Alternative Energy Systems Sales and Use Tax Exemption

6. Non-Highway Fuel

F. Targeted Jobs Credit

G. Interest From State, Municipal, Federal Obligations

H. Historic Building Preservation Credit

I. Low-Income Housing Credit

J. Research and Development Credits

1. Research Expense Credit

2. Research Machinery and Equipment Credit

K. Motion Picture Credits and Incentives

1. Motion Picture Incentive

2. Motion Picture Sales and Use Tax Exemptions

L. Miscellaneous Incentives

1. Credit for Hand Tools Used in Farming Operations

2. Sales and Use Tax Exemption for Pollution Control Facilities

3. Sales and Use Tax Exemption for Steel Mills

M. Priority of Credits

1480.14. VERMONT

A. Vermont Employment Growth Incentive (VEGI)

1. Generally

2. Wage Threshold

3. Application Requirements

a. "But For" Test

b. Cost-Benefit Modeling

c. Program Guidelines

4. Five-Year Incentive Period

5. Recapture

6. Incentive for Green Businesses

B. Economic Advancement Tax Incentives (EATI)

1. Payroll Tax Credit

2. Research and Development Tax Credit

3. Sustainable Technology Research and Development Credit

4. Workforce Development Incentive Tax Credit

5. Vermont Export Tax Incentive

6. Small Business Investment Tax Credit

7. High-Tech Growth Incentives

C. Financial Services Development Tax Credit

D. Downtown and Village Center Tax Credit Program

1. Historic Rehabilitation Credit

2. Facade Improvement Credit

3. Code Improvement Credit

E. Miscellaneous Credits

1. Affordable Housing Investment Credit

2. Training Credits

3. Angel Venture Investment Capital Credit

4. Wood Products Manufacturing Credit

5. Solar Energy Investment Credit

6. Substantial Rehabilitation Credit

7. Older or Historic Building Rehabilitation Credit

1480.15. VIRGINIA

A. Enterprise Zone Credits

1. Business Tax Credit

2. Real Property Investment Tax Credit

3. Zone Investment Tax Credit

4. Enterprise Zone Grant Fund

B. Neighborhood Assistance Tax Credit

C. Housing Credits

1. Credit for Rent Reductions Granted to the Elderly, Disabled, or Homeless

2. Low–Income Housing Credit

D. Environmental Credits

1. Purchases of Recycling Machinery and Equipment Credit

2. Clean Fuel Vehicles and Clean Fuel Vehicle Refueling Property

3. Clean Fuel Vehicle Jobs Credit

4. Waste Motor Oil Burning Equipment Credit

E. Agricultural Credits

1. Purchases of Advanced Technology Pesticide and Fertilizer Application Credit

2. Purchases of Conservation Tillage Equipment Credit

3. Agricultural Best Management Practices Tax Credit

F. Major Business Facility Job Credit

G. Miscellaneous Credits and Exemptions

1. Coal Cogenerator Credit

2. Coalfield Employment Enhancement Credits

3. Qualifying Steam Producers Tax Credit

4. Telecommunications Credit

5. Partial Exemption of Rehabilitated Property

6. Day-care Facility Investment Tax Credit

7. Worker Retraining Tax Credit

8. Historic Rehabilitation Tax Credit

9. TANF Recipient Hiring Credit

10. Qualified Equity and Subordinated Debt Investments Tax Credit

11. Land Preservation Tax Credit

12. Research and Development Investment Tax Credit

13. Employees With Disabilities Credit

H. Priority of Credits

I. Financial Assistance Program

J. Other Programs

1. Targeted Jobs Grant Program

1480.16. WASHINGTON

A. Business Development Credits

1. Research and Development Credit

2. Electric Utility Rural Economic Development Revolving Fund Credit

3. Information Technology Help Desk Services in Rural Counties Credit

4. Preproduction Development Expenditures Credit

B. Job Credits

1. Programming or Manufacturing Software in Rural Counties

2. New Employment in Rural Counties Credit

3. Business Project Tax Credit

4. Job Training Services Credit

5. International Services Credit

C. Environmental and Agricultural Credits

1. Timber Harvest Excise Tax Credit

2. Pollution Control Facility Tax Credit

3. Cogeneration Facility Tax Credit

D. Miscellaneous Credits

1. Employee Transportation Credit

2. Leasehold Excise Tax Credit

3. Small Business Tax Credit

4. Multiple Activities Tax Credit

1480.17. WEST VIRGINIA

A. Business Development Credits

1. Business Investment and Jobs Expansion Credit (Economic Opportunity Credit)

a. Calculating the Credit

b. Qualified Property

c. Qualified Jobs

d. Application Required

e. Annual Allowance

(1) Business Investment and Jobs Expansion Credit

(2) Economic Opportunity Credit

(3) Both Credits

f. Forfeiture and Recapture

g. Transfer to Successors

h. Certified Projects

(1) Business Investment and Jobs Expansion Credit

(2) Economic Opportunity Credit

i. Corporation Headquarters Relocation Credit

j. Small Business Credit

2. Tax Credit for New Steel Manufacturing Operations

3. Tax Credit for New Aluminum or Polymer Manufacturing Operations

4. Aerospace Investment Credit

5. Manufacturing Investment Tax Credit

B. Credit For Industrial Expansion or Industrial Revitalization

C. Preferential Property Tax Valuation for Manufacturing Facilities

D. Employment Credits

1. Military Incentive Credit

E. Credit for Eligible Investment in Research and Development Projects

1. Credits Against Business Franchise, Income, and Severance Taxes

2. Research and Development Sales and Service Tax Exemption

F. Coal Credits

1. Coal Conversion Facility Credit

2. Coal Loading Facilities Credit

3. Thin-Seam Rate Reduction

4. Natural Gas Industry Jobs Retention Act

G. Financial Institutions Credits

1. Financial Organization Credit for Income Tax Paid to Another State

2. Financial Organization Credit for Net Worth Taxes Paid to Another State

3. Financial Organization Property Tax Credit

H. Credits to Utilities That Reduce Rates

1. Credit to Utilities for Providing Reduced Residential Rates

2. Credit for Reduced Telephone Utility Rates

I. Environmental Credits

1. Alternative Fuel Motor Vehicles Credit

2. Agriculture Equipment Tax Credit

3. Credit for Value-Added Products from Raw Agricultural Products

4. New Value-Added Wood Manufacturing Operations

J. Miscellaneous Credits

1. Credit for Venture Capital Investments

2. Credit for Eligible Housing Development Project

3. Credit for the Rehabilitation of Historic Buildings

4. Colin Anderson Credit

5. High-Growth Business Tax Credit

6. Credits Available to Firms Located in High-Tech Research Zones

7. Tourism Development Project Sales Tax Credit

K. Neighborhood Investment Program Tax Credit

1480.18. WISCONSIN

A. In General

B. Manufacturer's Sales Tax Credit/Exemption

C. Research Credits

1. Research Expense Credit

2. Research Facilities Credit

D. Development Zone Program

1. Development Zone Jobs Credit

a. Pre-1998 Credit

b. Post-1997 Credit

2. Development Zone Personal Property Investment Credit

3. Development Zone Location Credit

4. Development Zone Sales Tax Credit

5. Development Zone Additional Research Credit

6. Development Zone Day Care Credit

7. Development Zone Environmental Remediation/Brownfield Credit

E. Enterprise Development Zone Program

F. Farm Credits

1. Farmland Tax Relief Credit

2. Farmland Preservation Credit

3. Dairy and Livestock Farm Investment Credit

G. Miscellaneous Credits

1. Community Development Finance Credit

2. Rehabilitation Credit

3. Insurance Tax Credit for Investments in Certified Venture Capital Companies

4. Early Stage Seed Investment Credit

1480.19. WYOMING


WORKING PAPERS

Working Papers

Item Description Sheet

Worksheet 1 State Tax Credits and Incentives: Agency Directory

Worksheet 2 Oregon Enterprise Zones

Worksheet 3 Planning and Designated Enterprise Zones in Pennsylvania

Worksheet 4 Rhode Island Enterprise Zones

Worksheet 5 Tennessee Economically Depressed Counties

Worksheet 6 Texas Enterprise Zones

Worksheet 7 Utah Enterprise Zones

Worksheet 8 Virginia Enterprise Zones

Worksheet 9 Wisconsin Enterprise Zones

Bibliography

BIBLIOGRAPHY