The following were originally printed in the Weekly State Tax Report, part of the State Tax Library.

Weekly State Tax Report

Volume 2008 Number 20
Friday, May 16, 2008

Georgia Enacts Measure Increasing Film Tax Credit Amount to 20 Percent

Georgia increases the film and television production tax credit from 9 percent of a production investment to 20 percent under a measure enacted by the state. The incentives apply to film and television productions, commercials, music videos, and video game productions.

Maine Legislation Alters Estate Tax Law by Offering Credit, Clarifying Compliance Issues

Maine allows a credit against estate tax for all constitutionally valid estate, inheritance, legacy and succession taxes actually paid to another jurisdiction on the value of real or tangible personal property, under omnibus tax legislation enacted by Maine. In addition, the measure requires a personal representative to file an amended Maine estate tax return within 90 days of a federal change that increases the amount of federal estate tax.

Electricity Not Exempt as New York Resale, Not Component Part of Telecommunications

A telecommunications company was not entitled to a refund of sales tax it paid on the purchase of electricity to run its switching equipment, the New York Supreme Court, Appellate Division, holds in In re XO N.Y. Inc. Because the electricity is not a component of the product it sells, it is not eligible for a resale exemption, the court finds.

Michigan Directive Advises on State's Small Business Credit for Controlled Group

The business activity of all members of a controlled group will be combined with the business activity of a short-year entity that is claiming the small business tax credit in order to calculate the credit, the Michigan Department of Treasury states in an internal policy directive. There are certain disqualifiers for the credit, and if any disqualifiers apply to any of the affiliates, then the affiliates and the short-year entity will not be eligible for the credit.

Perspective: New Jersey Division of Taxation Singles Out General Engines for 'Full' Summary Judgment

In General Engines v. Director, Div. of Taxn., a taxpayer challenged Florida's throwout rule as unconstitutional on its face, but because of the state's motion for summary judgment, was forced to adopt an "as applied" defense. In this article, the attorneys for General Engines, Kyle Sollie, David Gutowski and Kenneth Levine, all with Reed Smith LLP, provide an analysis of the case, which involves a Florida manufacturer whose New Jersey tax burden would increase six-fold under the state's throwout rule.