State Tax Credits

The Massachusetts General Court recently passed MA House Bill 4352, an economic development bill relative to several infrastructure investment measures, enhanced competitiveness and economic growth in the Commonwealth of Massachusetts.

The Mississippi State Legislature recently passed HB 1257 to amend Section 57-105-1 of the Mississippi Code of 1972 in order to allow certain public entities to participate in New Markets Tax Credit financing as qualified low-income businesses.

New York State Homes and Community Renewal (HCR) has announced the availability of its latest round of funding for the Low-Income Housing Credit (LIHC), Housing Trust Fund (HTF), HOME Program, and State Low-Income Housing Tax Credit Program (SLIHC).

Maine State Senate President Kevin Raye (R-Perry) and Senator Doug Thomas (R-Ripley) recently succeeded in passing an amendment to the state’s FY 2013 budget which increases the individual tax credit cap for the state’s New Markets Capital Investment Program (NMCIP) program from $10 million to $40 million.

The Indiana Housing and Community Development Authority (IHCDA) recently announced the availability of $100,000 in Individual Development Account (IDA) tax credits for purchase by individuals or companies and subsequently issued clarifications about the difference between Individual Development Account (IDA) tax credits and the IDA program in general.

Alaska’s Governor Sean Parnell recently signed new legislation (SB 66) into law that will create a new markets tax credit (NMTC) loan guarantee and leveraged loan assistance program within the Alaska Industrial Development and Export Authority (AIDEA).

The New York State Assembly and Senate have passed legislation (A. 9110/S. 6134) that increases the maximum amount of state historic tax credits that may be awarded to any one project from $5 million to $12 million, and encourages the revitalization of large historic properties across the state.

The North Dakota Legislature recently set a $15 million maximum threshold to the North Dakota Housing Finance Agency’s (NDHFA) Housing Incentives Fund (HIF), which is capitalized by contributions from state income and financial institution taxpayers in order to develop affordable multifamily housing.

Representative McKinley (R-WV) on June 8 introduced the “Preserving America’s Downtowns and Heritage Act of 2012″ (HR 5930) which would amend Section 47(a) of the Internal Revenue Code of 1986 to boost rates for the historic rehabilitation tax credit (HTC) and the non-historic rehab tax credits.

The Preservation League of New York State has developed a series of commercial tax credit case studies to illustrate the positive impact of the New York State Rehabilitation Tax Credits.

The Rhode Island Public Expenditure Council (RIPEC) released a report on the costs and benefits of reinstating the Rhode Island Historic Preservation Investment Tax Credit (HPITC) program.

On May 9, Alabama’s state legislature sent the proposed Alabama New Markets Development Act (HB257) to Governor Wallace’s office for approval. The bill is informed by the Federal New Markets Tax Credit and much of the language and general structure mirrors key concepts and precedent in Section 45D of the IRS Code of 1986; however, there are several notable differences.