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CORPORATIONS; TAX EXEMPTIONS;

OLR Research Report


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