August 31, 2012 |
2012-R-0271 | |
BUSINESS TAX CREDIT DISCLOSURE IN OTHER STATES | ||
| ||
By: Judith Lohman, Assistant Director | ||
You asked which states publicly disclose the companies receiving state business tax credits and how the information is reported. This memo updates our February 2005 report on this subject (OLR Report 2005-R-0114).
SUMMARY
Thirty-three states disclose information about recipients of at least one of their state business tax credits, exemptions, and other tax expenditures. The format and online accessibility of the information varies widely. Most states do not disclose information for every tax credit. The tax incentives about which states disclose the most information are those provided to companies to encourage them to locate, expand, or stay in the state.
Using a database of 160 major business tax incentive programs in 49 states designed to provide economic development incentives, we found that states provide online, company-specific disclosure for 75, or roughly 45% of the tax-related incentives. Six states disclose company-specific information about all of their major economic development tax incentives while 13 states disclose no company-specific information about any.
Connecticut discloses company-specific information about recipients of three economic development tax incentive programs. Among Connecticut's surrounding states, Massachusetts and Rhode Island disclose information about recipients of 13 and six tax credit programs, respectively. New York discloses such information for two of its tax incentive programs; Maine and Vermont, for one each; and New Hampshire, for none.
Several states, such as Missouri, North Carolina, and Pennsylvania, disclose information on tax incentives through extensive online databases. These states provide the names of companies benefiting from tax incentives, project locations, and credit amounts, as well as jobs created and other performance data for each tax incentive program.
STATE DISCLOSURE POLICIES FOR TAX INCENTIVE PROGRAMS
In 2010, an organization called Good Jobs First published a survey of state online information disclosure policies about businesses that benefit from major state economic development incentives. The original 2010 report identified four or five “key” incentive programs for each state. The criteria for choosing the key programs was total cost; programs figuring most often in interstate economic development competition; and, in some cases, the amount of controversy the program engenders. Since it issued its report in December 2010, Good Jobs First has continually updated its database of programs and state disclosure information at the website Accountable USA. The Accountable USA database now includes 233 programs.
Using the Accountable USA database as a starting point, supplemented by state disclosure reports and databases and tax and economic development agency websites, we compiled a list of 160 programs offered by 49 states that provide tax credits, exemptions, refunds, or abatements to companies as economic development incentives. Table 1 (attached) lists these programs and notes whether there is online disclosure of companies that benefit from the tax incentives in the program. Our survey yielded the following results:
● Six states, Iowa, Maryland, Missouri, North Carolina, Ohio, and Wisconsin, report company-specific information on recipients of all of their states' key tax credit programs. Texas and Vermont each report such information on their single key tax incentive programs.
● Of the states with at least three key economic development tax incentives, 13 report company-specific information on all but one of them. These states are: Indiana, Kentucky, Louisiana, Massachusetts, Michigan, Nebraska, Nevada, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, and Washington.
● Of the 20 states where one of the listed economic development tax incentives applies to films and digital media, 12 report recipient data for film credits: Alaska, Arizona, Louisiana, Maryland, Massachusetts, Michigan, Missouri, North Carolina, Pennsylvania, Rhode Island, and Wisconsin.
● Of the 16 states that have tax credits for research and development (R&D) investments as a major economic development incentive, six disclose the names of businesses receiving R&D credits and their credit amounts: Iowa (if a company receives more than $500,000 in total R&D credits), Maryland, Massachusetts, Oregon, Pennsylvania, and Washington.
● Thirteen states provide no disclosure for any of their key economic development tax incentives: Arkansas, Delaware, Georgia, Idaho, Kansas, Mississippi, Nevada, New Hampshire, New Mexico, Oregon, South Carolina, Tennessee, and Wyoming.
DISCLOSURE IN CONNECTICUT AND NEIGHBORING STATES
Connecticut
Connecticut discloses a range of company- and project-specific information about three economic development tax credit programs: the Urban and Industrial Site Reinvestment, Job Creation, and Qualified Small Business Job Creation tax credits. The information is included in the Department of Economic and Community Development's (DECD) annual report. The most recent report covers FY 11. Some of the credits included in the FY 11 report have since been modified.
The Urban and Industrial Site Reinvestment credit provides credits against a range of business taxes for qualifying investments in eligible industrial site investment projects or eligible urban reinvestment projects. Credits are taken over a 10-year period. Published information includes company name, municipality, total development cost, total authorized credits, leverage ratio, total credits awarded to date, jobs to be retained and credited, and total job commitment. The report also includes an estimated credit distribution schedule for each recipient, together with the estimated annual state revenue impact of each project.
The Job Creation tax credit goes to companies that create at least 10 new full-time jobs in the state. The credit is up to 60% of the state income tax withholding for each new employee. The Qualified Small Business Job Creation credit goes to business with fewer than 50 employees that hire at least one full-time worker. The credit is $200 for each worker hired. For these credits, DECD publishes the recipient company's name, address, industry, total credit allocation, and credits awarded to date.
Massachusetts
A 2010 law requires the Massachusetts Department of Revenue (DOR) to disclose the following information for specified tax credits awarded or claimed on or after January 1, 2011: (1) the tax credit program and recipient's identity; (2) the credit amount received by each recipient and, if applicable, for each project; and (3) the date the credit was awarded or issued for each taxpayer and project. The DOR issued the first Massachusetts Tax Credit Transparency Report on June 4, 2012.
The report covers the 2011 tax year and provides the required information on 13 refundable or transferrable tax credits. (It does not provide information on credit transferees.) The report covers the state tax credits for film production, historic rehabilitation, low-income housing, brownfield remediation, medical device companies, dairy farmers, life sciences businesses (four separate credits), economic development, certified housing development, and conservation land.
Rhode Island
A 2008 law requires the state's Division of Taxation to report annually the names and addresses of those who received six state tax credits in preceding year and the amount received. Taxpayers that receive any of the six credits must also report any bonds, grants, loans, loan guarantees, matching funds, or tax credits they received from a state governmental entity or state or public agency during the preceding fiscal year. The most recent is the FY 12 Report, published August 15, 2012. It covers credits and incentives received during FY 11.
New York
By law, the New York Department of Taxation and Finance must disclose recipients of two tax credit programs: the Excelsior Jobs Program and the Brownfield Tax Credit Program.
The Excelsior Jobs Program provides the following refundable tax credits to businesses: (1) up to $5,000 for each new job created, (2) 2% of qualified investments, (3) 10% of new investments based on the federal Research and Development credit, and (4) a property tax credit for firms locating in certain distressed areas and firms in targeted industries that meet higher employment and investment thresholds (regionally significant projects).
The Excelsior Jobs report is quarterly and must disclose the names of credit recipients, the amount of the credit received, and other information the revenue commissioner finds helpful in evaluating the program. The first quarterly report was issued on June 30, 2012. For each business admitted to the program, it lists (1) the business' name and region (county); (2) type of business; (3) new job, investment, and research and development expenditure commitments; and (4) maximum allowable tax credits. For businesses that were issued credits for the 2011 tax year, the report also lists the following performance data: (1) jobs created, (2) qualified investments, (3) tax credits issued, and (4) benefit-cost ratio (total remuneration of net new jobs created plus capital investments divided by tax credits issued).
New York's brownfield credit program provides three related tax credits: brownfield redevelopment tax credits, remediated brownfield credits for real property taxes, and environmental remediation insurance credits. The program report is annual. The most recent report covers the 2009, 2010, and 2011 tax years. For the brownfield redevelopment credit, the report lists (1) the recipient's name; (2) the project site name and location; (3) whether or not the project is located in an enterprise zone; and (4) the total costs and tax credits for each project broken down into site preparation, tangible property, and on-site groundwater remediation components. For the remediated brownfield credit for real property taxes, it shows (1) the recipient's name, (2) the project site name and location, (3) whether or not the project is located in an enterprise zone, and (4) the total credit claimed.
STATES WITH SIGNIFICANT ONLINE DISCLOSURE
In addition to the states mentioned above, several others provide extensive information on tax credit recipients and programs.
● Illinois provides a searchable database of information on companies receiving credits from 10 economic development programs, including three tax incentive programs: the EDGE tax credit and the Enterprise Zone machinery and equipment sales and utility tax exemptions. Information includes credit amounts, job creation and retention data, and average salaries for each occupational category.
● Kentucky's searchable database covering many state financial incentive programs, including tax credits. Information includes the recipient's name, incentive status, approval dates, and project locations by county.
● Louisiana's performance reporting database provides searchable information for the state's Enterprise Zone, Industrial Tax Exemption, Restoration Tax Abatement, and Quality Jobs incentive programs. Information includes company names and incentive values.
● Missouri's accountability portal (MAP) allows users to view tax credit issuances by category, customer, or legislative district. Examples of tax credit projects include real estate development, remediation of contaminated sites, rehabilitation of historic structures, downtown revitalization, new job creation, and investment in Missouri. Information is available for 2000 through 2013.
● North Carolina's Department of Revenue posts recipient data for many tax credit programs, including the recipient's name and credit amount, job reports, and (in some cases) pay levels.
● Ohio reports on companies receiving certain economic development tax credits, including the recipient's name, credit amount, and job information.
● Pennsylvania's Department of Community and Economic Development Investment Tracker website provides information for economic development incentive and tax credit programs from January 1, 2000 to the present. Programs are searchable by name; approval date; applicant or taxpayer name; project name; job numbers; and grant, loan, and tax credit amounts.
● Wisconsin's online listing displays each recipient's credit amount, number of jobs promised, and number actually created.
TABLE 1: DISCLOSURE OF BUSINESSES RECEIVING MAJOR STATE BUSINESS TAX INCENTIVES FOR ECONOMIC DEVELOPMENT
STATE |
PROGRAM |
DESCRIPTION |
ONLINE DISCLOSURE |
Alabama |
Enterprise Zone Credit |
State income, sales and use, and franchise tax credits for firms locating in economically distressed areas |
No |
Film Production Rebates |
Rebates on qualified expenses, including payroll costs for workers who are state residents |
No | |
Income Tax Capital Credit |
Credits against business income taxes based on capital spending |
No | |
Alaska |
Alaska's Clear and Equitable Share/Oil and Gas Production Tax Credits |
Credits to companies engaged in oil exploration and drilling |
No |
Film Industry Tax Credit |
Transferrable credit for up to 30% of film production costs |
Yes | |
Arizona |
Quality Jobs Tax Credit |
Income tax credits to companies creating new jobs in Arizona. The credit is valued at up to $9,000 over a 3-year period for each new employee with a 5-year carry forward for unused credits |
No |
Research & Development (R&D) Income Tax Credit |
Credits against corporate income tax for increased R&D expenditures |
No | |
Arkansas |
Arkansas Advantage Income Tax Credit |
Corporate income tax credit for job creation |
No |
InvestArk Sales and Use Tax Credits |
Credits relating to purchase of property and equipment by existing firms |
No | |
Tax Back Sales and Use Tax Refund |
Sales and use tax refund on building materials and machinery for Arkansas Advantage participants |
No | |
California |
Enterprise Zone Program |
Companies receive subsidies, such as property tax abatements and corporate income tax credits for hiring new employees and locating in designated areas |
No |
Film and TV Production Credit |
Credits against corporate income and/or sales and use taxes for expenditures made by film productions |
No | |
Research and Development Tax Credit |
Credit against corporate income tax for increased R&D expenditures |
No | |
Colorado |
Enterprise Zone Program |
Designated areas in which companies may qualify for up to nine different tax credits and other abatements/exemptions |
No |
Job Growth Incentive Tax Credit |
Corporate income tax credits of up to 50% of the employer's portion of federal Social Security tax withholding for new jobs |
Yes | |
Connecticut |
Enterprise Zone and Urban Job Tax Credits |
Tax credits for companies creating jobs in specially designated zones |
No |
Film Tax Credits (production, infrastructure, digital animation) |
Transferrable corporate or insurance premium tax credit for up to 30% of film production costs |
No | |
Jobs Creation Tax Credit |
Tax credits equal to 60% of new employee personal income tax withholdings |
Yes | |
Urban and Industrial Site Reinvestment Act |
Corporate income tax credits for qualifying companies |
Yes | |
Delaware |
Bank Franchise Tax Credits |
State income tax credit for hiring new bank employees and meeting investment requirements |
No |
Blue Collar Jobs Tax Credits |
Corporate income tax and other credits for firms meeting job and investment requirements |
No | |
Florida |
Capital Investment Tax Credit |
Corporate income tax credit for firms in targeted industries and for headquarters projects that meet job creation and investment requirements |
No |
Enterprise Zone Program |
Provides property tax abatements, sales and use tax exemptions, and state income tax credits to firms locating into areas designated as economically distressed |
No | |
Qualified Target Industry Tax Refund |
Grants and multiple tax refund program for firms in targeted industries that meet job creation and wage requirements |
Yes | |
Georgia |
Investment Tax Credit |
State income tax credit for firms that meet minimum investment requirements |
No |
Job Tax Credit |
State income tax and payroll withholding credits for firms that create new jobs that meet wage and health benefit requirements |
No | |
Mega Project Tax Credit |
State income tax and payroll withholding credits for large projects that meet job creation and investment requirements |
No | |
Quality Jobs Tax Credit |
State income and payroll withholding credits for firms that meet job creation and wage requirements |
No | |
Hawaii |
Capital Goods Excise Tax Credit |
Credits against corporate income taxes for excise taxes paid on purchases of capital goods |
No |
Enterprise Zones |
Tax credits for selected companies in designated areas |
Yes (Company names published but not credit amounts) | |
Film & Digital Media Income Tax Credit |
Corporate income tax credits for film and media companies |
No | |
High Technology Tax Credits |
Tax credit program aimed at the high-tech sector (Expired but previously awarded credits continue) |
Yes (Company names published but not credit amounts) | |
Idaho |
3% Investment Income Tax Credit |
Credit against corporate income tax worth up to 3% of the value of capital investment; may be carried forward for up to 14 years |
No |
New Jobs Income Tax Credit |
Corporate income tax credit of $1,000 per job in certain broad industry sectors |
No | |
Production and Equipment Supplies Sales Tax Exemption |
Sales and use tax exemption for equipment and materials used for manufacturing, processing, mining, farming, fabricating operations, and semiconductor clean rooms |
No | |
Research and Development Activity Income Tax Credit |
Corporate income tax credit for spending on R&D |
No | |
Illinois |
Economic Development for a Growing Economy (EDGE) Tax Credit |
Tax credit program based on worker personal income tax withholding over 10 years |
Yes |
Enterprise Zone Program |
Eight state and five local subsidies for specially designated zones throughout the state |
Yes, but many recipients are exempt from disclosure | |
Film Production Services Tax Credit |
Tax credits for 30% of film production costs and 45% of wages; companies can sell or transfer the credits for up to five years |
No | |
Indiana |
Economic Development for a Growing Economy (EDGE) Tax Credit |
Tax credit program valued according to net new worker personal income tax withholdings over 10 years |
Yes |
Enterprise Zone Program |
Four state tax subsidies for locating in specially designated zones |
No | |
Hoosier Business Investment Tax Credit (HBITC) |
Corporate income tax credit equal to up to 30% of capital investments |
Yes | |
Iowa |
Enterprise Zone (business only) |
Multiple local and state subsidies (property tax abatement income tax credits, etc.) for firms located in designated zones |
Yes |
Research Activities Credit |
Refundable state income tax credit for qualified R&D expenditures |
Yes, for companies receiving more than $500,000 in credits | |
Kansas |
Business Machinery and Equipment Credit |
Refundable corporate income tax credits equal to 25% of business personal property tax paid on commercial machinery and equipment |
No |
High Performance Incentive Program |
Corporate income tax credits for capital investments and training expenses, plus sales tax exemptions on certain expenditures |
No | |
Kentucky |
Bluegrass State Skills Corporation |
Grants and corporate income tax credits to compensate companies for training their new and existing employees |
Yes |
Coal Used in the Manufacture of Electricity |
Sales and use tax exemption on the purchase of coal used to manufacture electricity |
No | |
Kentucky Business Investment Program |
Corporate income tax credits and “wage assessments” (subsidies drawn from employee wages) for firms that meet job creation, wage, benefit, and investment requirements |
Yes | |
Kentucky Enterprise Act |
Sales and use tax refund on qualified expenditures for firms that meet investment requirements (higher incentives available if located in an enterprise zone) |
Yes | |
Machinery for New and Expanded Industry and Certain Industrial Machinery |
Sales and use tax exemption for machinery used in manufacturing or processing |
Yes | |
Louisiana |
Enterprise Zones |
Corporate income and franchise tax credits tied to the hiring of workers from targeted groups |
Yes |
Industrial Tax Exemption Program |
Property tax abatements awarded by the state for industrial investment |
Yes | |
Motion Picture Investor Tax Credit |
Corporate income tax credit for motion picture investment |
Yes (Disclosure limited to credits for digital media and infrastructure; No disclosure for film production credits) | |
Purchases of Manufacturing Machinery and Equipment Exemption |
Sales and use tax exemptions |
No | |
Quality Jobs Program |
Cash rebates for payroll costs and sales and use taxes; also investment tax credits |
Yes | |
Maine |
Business Equipment Tax Reimbursement |
Property tax reimbursement for large companies |
Yes |
Pine Tree Development Zones |
Corporate income and other tax credits for firms that meet job creation and wage requirements |
No | |
Research Expense Tax Credits and Super R&D Tax Credit |
Corporate income tax credit for qualified activities |
No | |
Maryland |
Enterprise Zone – Real Property Credit |
10-year property tax credit for corporations expanding or locating in special zones with high rates of unemployment |
No |
One Maryland Tax Credit |
Corporate income tax credit for companies creating new jobs |
Yes (company names only; not credit amounts) | |
Film Tax Credit |
Refundable credits of up to 25% for feature film production expenses; 27% for t.v. series |
Yes | |
Research and Development Tax Credit |
Credit for qualifying R&D expenditures |
Yes | |
Massachusetts |
Economic Development Incentive Program |
Credits against corporate excise taxes plus tax increment financing or property tax abatements for companies in targeted areas |
Yes |
Film Tax Credit |
Credits against corporate excise tax issued to film productions for payroll and non-payroll production expenditures |
Yes | |
Investment Tax Credit (Manufacturing) |
3% investment tax credit against corporate excise tax |
No | |
Life Sciences Investment Tax Credit |
Refundable 10% investment tax credit for growing biotechnology businesses that are certified life science companies |
Yes | |
Research Tax Credit |
Corporate excise tax credits based on increases in R&D expenditures |
Yes | |
Michigan |
Brownfield Zone Credits |
Corporate income tax credit of up to 20% of the value of investments in blighted contaminated, or obsolete properties |
Yes |
Film Tax Credits |
Corporate income tax credits for up to 42% of film production expenses up to an aggregate level. (Since 2011, a capped cash grant program) |
Yes | |
Michigan Economic Growth Authority (MEGA) Tax Credits |
Income tax credit program for companies expanding or relocating in the state (Discontinued in 2011 but credits are guaranteed through 2031) |
Yes | |
Michigan's Advanced Battery Credits |
Subsidies awarded to businesses seeking to commercialize advanced battery technology for electric cars (Discontinued in 2011 but credits are guaranteed through 2031) |
Yes | |
Renaissance Zone Program |
Tax incentives for companies located in designated areas |
No | |
Minnesota |
Job Opportunity Building Zones |
State and local tax subsidies for companies locating in special zones |
Yes |
R&D Tax Credits |
Credits to companies for up to 10% of qualifying R&D expenditures |
No | |
Mississippi |
Advantage Jobs Incentive Program |
Payments based on worker personal income tax withholding for firms which meet job creation, wage, and basic health benefit requirements |
No |
Jobs Tax Credit |
Corporate income tax credit based on employee payroll; firms must meet minimum job requirements |
No | |
Manufacturing Investment Tax Credit |
Corporate income tax credit for existing manufacturers that meet investment requirements |
No | |
Rural Economic Development Credits |
Corporate income tax credits |
No | |
Missouri |
Business Use Incentives for Large-Scale Development (BUILD) |
Bond financing and refundable corporate income and other tax credits for firms that meet job creation, wage, and investment requirements |
Yes |
Film Production Credit |
Corporate income and other tax credits on qualified film production expenditures |
Yes | |
Quality Jobs Program |
Refundable corporate income tax credits linked to worker personal income tax withholding for businesses that meet job creation, wage, heath benefit requirements |
Yes | |
Rebuilding Communities |
Credits equal to 40% of corporate income tax liability or 40% of certain equipment costs for firms locating in distressed areas |
Yes | |
Montana |
Oil and Natural Gas Production Tax Credit |
Reduced production tax rates for oil and gas wells meeting certain requirements |
No |
Qualified Research Credit |
5% credit against corporate income taxes based on research expenses |
No | |
Nebraska |
Employment and Investment Growth Act |
Wage and investment tax credits for companies that create new jobs (Sunset in 2005 but existing agreements last up to 21 years) |
Yes |
Manufacturing Machinery and Equipment Exemption |
Sales and use tax exemption for industrial machinery and equipment |
No | |
Nebraska Advantage |
Investment credits, wage credits, sales tax refunds and exemptions, workforce training subsidies, R&D tax credits, microenterprise tax credits, and inventory tax exemptions |
Yes | |
Nevada |
Modified Business Tax Abatement |
Reduced business tax rates for new and expanding businesses, based on wage rates, hiring levels, and capital investment |
No |
Personal Property Tax Abatement |
Up to 50% abatement on business personal property taxes owed by companies that locate or expand business in the state |
Yes | |
Sales and Use Tax Abatement |
Reduced sales and use tax of up to 2% on capital equipment purchases |
Yes | |
New Hampshire |
Community Development Investment Program (Investment Tax Credit) |
75% tax reduction for companies donating funds or property to economic development or housing projects with a "community benefit" |
Yes |
Economic Revitalization Zone Tax Credits |
Variety of tax credits for companies locating in designated areas |
No | |
Research and Development Credit |
Credits against the business enterprise tax linked to R&D expenditures |
No | |
New Jersey |
Business Retention and Relocation Assistance Grant |
Tax credits of $1,500 per job, as well as sales tax exemptions, for companies considering relocation out-of-state |
Yes |
Research and Development Tax Credits |
Transferable corporate income tax credits for increased R&D expenditures |
No | |
Urban Enterprise Zone Program |
Sales and use tax exemptions, property tax abatements, and corporation business tax credits linked to hiring and capital investment for companies in designated zones |
No | |
New Mexico |
Film Tax Credit |
25% tax rebate on direct production and post-production expenditures |
No |
High Wage Jobs Tax Credit |
Refundable credits worth 10% of wages and benefits for new jobs that meet minimum salary requirements; credits may be applied against the state portion of gross receipts tax, compensating tax, and withholding tax |
No | |
Manufacturer's Investment Tax Credit |
Credit of up to 85% of gross receipts taxes and payroll withholding taxes equal to 5% of the value of certain industrial equipment |
No | |
New York |
Brownfield Cleanup Program |
Corporate tax credit program created to encourage remediation and development of old industrial sites |
Yes |
Empire State Film Production Credit |
Refundable corporate tax credits and sales tax exemptions for film production costs |
No | |
Empire Zone Program |
State corporate income tax credits and local property tax abatements (Replaced by Excelsior Jobs Program) |
No | |
Excelsior Jobs Program |
Corporate tax credits linked to job creation, investment, and R&D expenses |
Yes | |
North Carolina |
Film Production Credit |
Refundable corporate income tax credits for film production |
Yes |
Tax Credits for New and Expanding Businesses |
Corporate income tax credits for firms which meet job creation, wage, and investment requirements (Replaces William S. Lee credits) |
Yes | |
William S. Lee Quality Jobs and Business Expansion Act |
Corporate income tax and other credits for businesses which meet job creation, wage, and investment requirements and engage in a qualified activity. (No new recipients since 2007) |
Yes | |
North Dakota |
Income Tax Exemption for New or Expanding Business |
Five-year exemptions from state corporate income taxes for companies locating or expanding in the state |
No |
Renaissance Zones |
Tax credits and property tax abatements for businesses (and homeowners) in designated areas |
No | |
Wage and Salary Credit |
Corporate income tax credits for new or relocating companies based on payroll costs |
No | |
Ohio |
Community Reinvestment Area Program |
Abatement up to 100% for businesses in designated areas (homeowners can also qualify) |
Yes |
Job Creation Tax Credit |
Refundable commercial activity tax/income tax credits based on employees' personal income tax withholding |
Yes | |
Job Retention Tax Credit |
Tax credits for companies that retain employees in the state; may be applied against the commercial activity tax |
Yes | |
Oklahoma |
21st Century Quality Jobs |
Quarterly cash rebates funded by worker personal income tax withholding for firms that meet job creation, wage, and benefit requirements |
No |
Investment/New Jobs Tax Credit |
Corporate income tax and insurance premium tax credits and sales tax refunds for businesses that meet job creation, wage, and investment requirements |
Yes | |
Quality Jobs |
Quarterly cash rebates funded by worker personal income tax withholding for firms that meet payroll, wage, and benefit requirements |
Yes | |
Oregon |
Oregon Production Investment Fund (Film) |
Income tax credits for firms or individuals to offset private contributions to the state film production fund; used to rebate cost of goods and services purchased in the state, and provide cash payments worth 16% of wages paid to film production employees |
Yes |
Research Tax Credit |
Corporate income tax credits based on increased R&D expenditures |
Yes | |
Business Energy Tax Credit Program |
Corporate income tax credits for companies engaged in renewable energy production and the manufacturing of renewable energy equipment, and energy efficiency/conservation projects |
Yes | |
Strategic Investment Program |
Exempts a portion of capital investments from property taxes for large manufacturing and high-tech companies |
No | |
Pennsylvania |
Film Production Credit |
Tax credits worth 25% of qualified film production expenses incurred in the state |
Yes |
Job Creation Tax Credit |
Corporate income tax credits worth up to $1,000 per job for companies that increase employment |
Yes | |
Keystone Opportunity Zone Program |
Subsidies, including property tax abatements, hiring credits, and sales and use tax exemptions for businesses located in zones |
No | |
Research and Development Tax Credit |
Transferable corporate income tax credits worth up to 20% of a company's increase in R&D spending |
Yes | |
Rhode Island |
Corporate Income Tax Rate Reduction for Job Creation |
Reductions in corporate income taxes for companies meeting various job creation benchmarks |
Yes |
Enterprise Zone Tax Credits |
Corporate income tax credits for companies creating jobs in special zones; |
Yes | |
Job Training Tax Credit |
Corporate income tax credit of up to 50% of training costs for new or existing employees |
Yes | |
Manufacturing and High Performance Investment Tax Credits |
Corporate income tax credits |
No | |
Motion Picture Production Tax Credit |
Corporate income tax credits for up to 25% of production costs for films and other electronic media projects |
Yes | |
South Carolina |
Investment Credit |
Corporate income tax credits for manufacturers |
No |
Job Development Credits |
Payments based on worker personal income tax withholding for firms that meet job creation, wage, and health benefit requirements. |
Yes | |
Job Tax Credit |
Corporate income tax credit for job creation |
No | |
Research and Development Credit |
Corporate income and other tax credits for qualified R&D expenses |
No | |
South Dakota |
No key tax credit programs |
NA |
NA |
Tennessee |
Headquarters Tax Credit |
Sales and use and other tax credits for corporate headquarters projects that meet job creation, wage, and investment requirements |
No |
Jobs Tax Credit |
Franchise and excise tax credits for job creation and investments |
No | |
Sales and Use Tax Credit for Qualified Facility to Support an Emerging Industry |
Tax credits for firms that create high-skill, high-wage jobs and meet minimum job creation and investment requirement |
No | |
Texas |
Texas Economic Development Act |
Property tax reduction program primarily benefiting clean-energy and manufacturing companies |
Yes |
Utah |
Economic Development Tax Increment Financing |
Refundable corporate income tax credits worth up to 30% of new state revenues (from sales, corporate income, and employee withholding taxes) over the life of new commercial projects |
No |
Motion Picture Incentive Fund and Other Film Incentives |
20% post-performance corporate income tax credit or cash rebate on qualifying film production expenses, plus sales and use tax exemptions and rebates |
Yes | |
Targeted Business Tax Credits |
Refundable credits against corporate income tax for nonretail businesses in certain Enterprise Zones that employ zone residents |
Yes | |
Vermont |
Economic Advancement Tax Incentives |
Tax credits, property tax abatements, and sales tax exemptions (Closed to new participants in 2007 but some companies are still receiving benefits) |
Yes |
Washington |
Aircraft Pre-Production Expenditures Business and Occupation (B&O) Tax Credit |
Credits against the B&O tax for aerospace preproduction development expenditures |
Yes |
High Technology B&O Tax Credit |
Credits against the B&O tax for increased R&D expenditures |
Yes | |
High Technology Sales and Use Tax Deferral/Waiver |
Deferral of sales and use taxes on construction and machinery investments made by high-tech firms; taxes eventually waived for companies that don't move away |
Yes | |
New Jobs in Rural Counties and CEZ Tax Credit |
Credit of up to $4,000 per job against business and occupation tax for manufacturing, R&D, or computer service businesses located in rural counties or community empowerment zones |
No | |
West Virginia |
Economic Opportunity Tax Credit |
Corporate income tax and other credits for job creation and investment |
No |
Film Industry Investment Act |
Corporate income tax and other credits based on film production expenditures |
No | |
Manufacturing Investment Tax Act |
Corporate income tax and other credits for industrial investments |
No | |
Strategic R&D Tax Credit |
Corporate income tax and other credits based on qualified research and development expenditures |
No | |
Wisconsin |
Economic Development Tax Credit Program |
Corporate income tax credits for companies locating or expanding in five types of special zones |
Yes |
Film Tax Credit Program (Film Production Services & Production Company Investment) |
Discretionary tax credit awarded to companies on qualified film production expenses |
Yes | |
Wyoming |
Data Processing Center Sales and Use Tax Exemption |
Sales and use tax exemption on computing equipment purchases exceeding $2 million per year by data processing centers |
No |
Film Industry Financial Incentive |
Cash rebate of up to 15% of the value of expenditures made by film productions |
Yes | |
Sales and Use Tax Exemption for Manufacturing Equipment |
Sales and use tax exemption for purchases of manufacturing equipment |
No |
Sources: Accountable USA; state economic development, tax, and transparency websites
JL:ts