Business Facilities - January 2008 - (Page 8) Arkansas income tax liability in the tax year the credit is earned. CALIFORNIA POLLUTION CONTROL FINANCING provides businesses with financing for pollution abatement equipment and waste disposal and resource recovery facilities for the management of environmental pollution hazards. The California Pollution Control Finance Authority offers direct loans, conventional loan guarantees, tax-exempt or taxable bonds, and loan portfolio insurance to businesses seeking financing for qualified pollution control projects, including land and buildings attributable to the project, equipment, engineering fees, and administrative fees. LOCAL AGENCY MILITARY BASE RECOVERY AREAS (LAMBRA) are companions to Enterprise Zones. Companies that locate in these designated military base areas are offered bidding preferences of 1% to 9% in specified state contracts. The LAMBRA Act provides for two bidding preferences, Worksite and Workforce. The Worksite preference provides a 5% bidding preference on state solicitations for goods and services valued at more than $100,000 if the worksite is located in a LAMBRA. To be eligible for a Workforce preference, the bidder must first identify an eligible worksite, and then the bidder can request an additional 1% to 4% workforce preference by certifying to hire a specified percent of the contract workforce employees from LAMBRA qualified individuals. RECYCLING MARKET DEVELOPMENT ZONE (RMDZ) REVOLVING LOAN PROGRAM: This program provides direct loans to eligible businesses that manufacture recycled raw materials, produce new recycled products, or reduce waste from the manufacture of a product. Applicants may borrow a maximum of 75% of the cost of a project up to $2 million, and terms are generally 10 years with fixed low interest rates. Funds may be used to acquire equipment, make leasehold improvements, purchase recycled raw materials and inventory, or acquire real property. NET OPERATING LOSS CARRYOVER: New businesses can carryover 100% of their losses 8 JANUARY 2008 over eight years if the loss is in their first year of operation, 100% over seven years if in their second year of operation, and 100% over six years if in their third year of operation. Existing California businesses can carryover 50% of their losses for five years. COLORADO BIOTECHNOLOGY SALES AND USE TAX REFUND: Qualified companies may seek a refund every year for all Colorado sales and use taxes they paid on purchases of tangible personal property, including microscopes, chemical reagents, and software, used directly and predominately in the research and development of biotechnology. COLORADO FIRST & EXISTING INDUSTRY CUSTOMIZED JOB TRAINING PROGRAMS: These programs are intended to increase employee retention and provide customized job training assistance for new and expanding companies, as well as companies retraining employees in new technologies. The typical award is approximately $800 per trainee. The COLORADO FILM PRODUCTION 10% CASH REBATE INCENTIVE is a performance based incentive plan that may rebate up to 10% of the cost of producing a film, documentary, or television program when that project is produced and filmed in Colorado. To qualify, a production must spend at least 75% of total below-the-line expenditures and 75% of total payroll in Colorado. Out-ofstate production companies must spend a total of at least $1 million, and Coloradobased companies must spend at least $100,000. A pre-application must be approved before beginning production. The 10% incentive is paid upon completion and verification of the qualifying expenditures. The MANUFACTURING REVENUE BOND PROGRAM provides favorable tax-exempt Private Activity Bond financing targeted to small manufacturers in Colorado. The program provides for the financing of real estate, machinery, and equipment associated with expansion projects specific to manufacturers. Borrowers must meet all eligibility thresholds and federal tax code requirements, and often must compete for available volume, which is capped statewide under federal rules. CONNECTICUT The URBAN AND INDUSTRIAL SITE REINVESTMENT TAX CREDIT PROGRAM is a dollar-for-dollar corporate tax credit for an investment up to a maximum of $100 million in an urban area or an industrial project. The credits can be used over 10 years. Should the company not be in a position to take advantage of the earned credits, they can be carried forward for five consecutive years or be transferred to another corporate taxpayer to be used in the same year the credits were earned. JOB CREATION TAX CREDIT: A corporate business tax credit for Connecticut companies that hire at least 10 new employees for a minimum of a 12-month period. The credit is equal to 60% of the state income tax withheld from the employee’s wages and the credit applies for five consecutive years. MANUFACTURING MACHINERY AND EQUIPMENT LOCAL PROPERTY TAX ABATEMENT: A 100%, five-year abatement of local property tax on newly acquired and installed manufacturing machinery and equipment eligible for five to seven year depreciation. The local property tax on manufacturing machinery and equipment in Connecticut will be phased out at a rate of 20% per year over the five-year period from 2007 to 2011. The BIOSCIENCE FACILITIES FUND assists firms to build out wet laboratory and related space. Since its inception in 1998, the program has committed more than $33 million for over 320,000 square feet of lab and support space throughout the state. The program is open to biotech firms that are located in Connecticut or looking to relocate to the state. DELAWARE The NEIGHBORHOOD ASSISTANCE ACT encourages business firms paying Delaware corporate tax to invest in neighborhoods and communities considered impoverished under the act by offering a tax credit to the corporation. If a business firm invests in an impoverished community either directly by providing services or projects to low-income individuals in an impoverished area, or indirectly by contributing money or goods and
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