Incentives Watch: Enough Credit? A Look Back at Significant Developments in 2013


As the year comes to a close, it’s always nice to take a look back at the important state tax credit issues that arose during the past 12 months.  The year started out with the ‘fiscal cliff’ and its associated drama.  In the end, President Obama signed the American Taxpayer Relief Act of 2012 (ATRA), which extended tax incentives for alternative energy producers.  The credit for wind energy facilities was extended another year to Jan. 1, 2014.

And then there’s the topic of film tax credits.  In February, Georgia amended its film tax credit in order to clarify certain loan-out company provisions.  From loan-out company provisions to the overall effectiveness of film tax credits in general, the states provided plenty of fodder for posts on this topic. 

Nevada enacted a new film tax credit while Connecticut imposed a film moratorium.  Georgia’s and Alaska’s film tax credit programs were discussed, as well as incentives offered in foreign countriesand their attempt to lure film productions from the U.S.

The effectiveness of film production tax credits offered by states continued to be a hot topic this year.  Louisiana’s Legislative Auditor released its finding that the state’s film tax credit program cost Louisiana $512 million in lost revenue from 2006 to 2011.

Yet another popular blog topic was renewable energy and the state tax credits offered to support this industry.  For example, Arkansas enacted an income tax exemption for qualified drop-in biofuels manufacturers for tax years starting on or after Jan. 1, 2013.

Solar energy continued to be a “hot” topic, with states enacting various tax incentives in support of it.  Louisiana enacted a new solar energy tax credit in June and issued and information bulletin on the new credit.  In fact, solar energy output is predicted to beat wind energy output for the first time this year, according to Bloomberg New Energy Finance.

Overall, it’s been another busy year for state tax credits and incentives, which leads one to wonder - what will be the big issues for state tax incentives in 2014?

Tell us your thoughts at Bloomberg BNA's State Tax Group on LinkedIn or on Twitter at @BBNATax .


*For more information about state tax credits, check out Bloomberg BNA’s Credits and Incentives Portfolios.