Category Archives: Tax Credits

tax credits

Incentive reviews on the way

Written by: on July 10, 2016

by The Oklahoman Editorial Board

TAX incentives have been a hot topic at the Legislature in recent years, particularly as the state has had to deal with budget shortfalls. Lawmakers in 2017 should get a clearer picture of just how effective several of these incentives really are.

A law approved in 2015 requires each state economic incentive to be evaluated once every four years. There previously had been no formal process in place to review the effectiveness of the tax credits, rebates, deductions and other programs the state offers to businesses.

The commission recently approved a schedule for presenting its evaluations to state policymakers. The panel’s review of 11 incentives totaling $110 million per year will be handed over to the governor and Legislature prior to the 2017 session.

Among the 11 incentives are the five-year ad valorem tax exemption (annual cost to the state: $67.6 million), the zero-emission tax credit for renewable energy ($26.6 million), the Oklahoma Film Enhancement Rebate Act ($5 million), the Historic Rehabilitation Tax Credit ($4.3 million) and the Aerospace Engineer Tax credit ($3.6 million).

The evaluations are being performed by PFM, a financial advisory services firm based in Philadelphia. Leading the team in Oklahoma are the former state budget directors of New York and Iowa.

The push to reform or eliminate tax credits and incentives has been talked about for years. PFM’s work is designed to give lawmakers firm data to measure just how much bang the state is getting for its buck. We look forward to seeing what it is evaluators have to say about the first 11 incentives on their list.

In Oklahoma, it’s easier to register to vote today than at any time in state history. Yet fewer people do so. An analysis by the Tulsa World found that 16 percent of eligible Oklahomans did not register to vote in 2000. By 2014 (the most recent year for which data was available), the nonregistered group rose to 29 percent of the eligible population. Eighty-two percent of those aged 30 to 39 were registered in October 1999, but just 61 percent in 2014. Among 18-to-29-year-olds, registration fell from 61 percent to 48 percent. The only group to maintain or increase registration levels was those 60 and older. It’s notable that higher registration numbers preceded many reforms adopted to make registration easier in Oklahoma. This suggests that a lack of civic engagement, not complex registration procedures, is to blame for these trends.

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via upstatebusinessjournal.com

4 new tenants to be announced for Drayton Mill

Written by: on June 14, 2016

via Upstate Business Journal

Four new tenants will soon occupy commercial space under development at the 114-year-old Drayton Mill in Spartanburg County.

Developers plan to announce the names of the businesses during a private event at 11 a.m. Thursday at the mill.

Drayton Mills Marketplace includes more than 60,000 square feet of warehouse space and the former textile mill’s Romanesque Revival company store built between 1902 and 1950.

The commercial space will complement the Drayton Mills Lofts, a 289-unit luxury apartment community, including a 60-foot lap pool, fitness center and other amenities in and around the mill’s vacant spinning and weaving plants.

A renovation of the warehouses and company store began early this year after Greenville-based Pacolet Milliken Enterprises sold the space to Tara Sherbert, managing partner of TMS Development in Charlotte, N.C., and John Montgomery, principal of Spartanburg-based Montgomery Development.

Visitors will be able to park their cars in a lot next to the commercial space off Drayton Road between Floyd and Lake streets.

Project officials said almost 19,000 cars per day pass by the mill on Drayton Road. They hope to eventually connect the walking trail with the Cottonwood Trail to increase biking, walking, running and other recreational opportunities for local residents.

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tesla

Colorado’s $5,000 EV Flat Tax Credit Makes Tesla’s $35,000 Model 3 A Lot More Attractive

Written by: on May 17, 2016

It looks as though the state of Colorado is welcoming electric vehicles (EVs) with open arms. The state just took the wraps off what it is likely the country’s best state-based incentive with respect to EVs: a tax credit that is worth a whopping $5,000 [PDF].

Unlike previous EV tax credits from the state, which relied on often complicated calculations based on battery size, this is a flat tax applicable to all light-duty EVs. Georgia’s EV credit also used to top out at $5,000, but it was discontinued as of July 1st 2015. What makes Colorado’s incentive even more attractive is that the $5,000 can be assigned to a dealership or finance company at the point of sale. That means that you’d effectively knock $5,000 off the price of a brand new EV at the time of purchase instead of waiting for tax filing time to claim the funds.

This makes “mainstream” EVs like the Tesla Motors Model 3 and the Chevrolet Bolt even more attractive to potential buyers. The Model 3 was first unveiled to the public in late March, but even before the veil was lifted on the entry-level EV, over 100,000 people had already plunked down $1,000 deposits for preorders. As of today, over 400,000 people have preordered the vehicle.

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Read more at http://hothardware.com/news/colorado-signs-off-on-5000-ev-tax-credit#ARbItI23DEwwHVEU.99

renewable enery

Renewable Energy Tax Credit Projects Transform Communities

Written by: on April 1, 2016

Novogradac Journal of Tax Credits to Honor Innovative Renewable Energy Developers

San Francisco, Ca (PRWEB) March 31, 2016

The Novogradac Journal of Tax Credits this week announced the winners of the 2016 Renewable Energy Power Awards, which recognize effective and innovative use of renewable energy tax credits. Winners will be honored April 28 at the Novogradac Financing Renewable Energy Tax Credit Conference in San Francisco.

“Congratulations to this year’s 2016 Power Award winners,” said Stephen Tracy, conference chairman and partner in Novogradac & Company LLP’s San Francisco office. “Whether it was by bringing solar energy to a historically coal-fueled region, by powering a hospital with fuel cell energy or by lowering utility bills for low-income families, these development teams have shown the versatility and effectiveness of using renewable energy tax credits to help finance the transformation of these communities.” Awardees were recognized in three categories:

Financial Innovation 
Development: Aerojet Rocketdyne Solar Farm 
Location: East Camden, Ark. 
Developer: Silicon Ranch Corporation

Overcoming Obstacles 
Development: FuelCell Power Plant at UCI Medical Center 
Location: Orange, Calif. 
Developer: FuelCell Energy Inc.

Small Community Project Development: Sonoma Court 
Location: Escondido, Calif. 
Developer: Affirmed Housing Group

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cleveland

Tax credits a gift to Huntington Building and Euclid Avenue: editorial

Written by: on December 23, 2015

By Editorial Board The Plain Dealer
on December 19, 2015 at 7:00 AM, updated December 19, 2015 at 7:06 AM

Downtown Cleveland has many beautiful structures. One of the most stunning, at least on the inside, is the former Huntington Building on the northeast corner of East 9th Street and Euclid Avenue.

The 21-story building’s massive L-shaped lobby includes large marble columns and murals painted by Jules Guerin, whose works also appear inside the Lincoln Memorial in Washington, D.C.

Huntington Building gets historic tax credits

Now known as the 925 Building, it was constructed in the 1920s to be the headquarters for Union Trust, then a major U.S. bank. Its architects also designed Terminal Tower.

Huntington Bank moved out in 2012, but the largely vacant building should soon be brimming with occupants again thanks in part to a $25 million historic tax credit awarded Wednesday by the Ohio Development Services Agency. The state was wise to contribute to the building’s revival.

The Huntington Building will be coming back not as bank offices, but as a mix of apartments., hotel rooms, restaurants, offices, retail and event space. Construction is expected to start in the second quarter of next year.

Cleveland Athletic Club building to be renovated

Another winner in the state’s competitive historic tax credits process was the Cleveland Athletic Club building further east on Euclid Avenue. It received $5 million in credits to assist with a $52 million conversion into apartments, with a restored swimming pool, a ground-floor restaurant and space for events.

Among those passed over in this round was the May Co. building, also on Euclid, which developers John Carney, Bob Rains and David Goldberg hope to convert into apartments.

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hope-atlanta

State Tax Credit Exchange Sponsors Heroes for HOPE

Written by: on November 19, 2015

Few charitable groups have been serving their community for well over a century, but HOPE Atlanta has done just that. The 115-year-old organization doesn’t have a superstar celebrity attached to it or a worldwide presence, but for those in Atlanta who know their work, they enthusiastically participate in their annual fundraising efforts, the Heroes for Hope event.

What began as part of the Traveler’s Aid movement, has become a powerful resource in Atlanta that continues to stretch to accommodate as many as possible. In the early part of its inception, volunteers would wait at train stations to offer help, especially to the most vulnerable.

“HOPE Atlanta does remarkable work,” says Kady DeWees, Business Development Director for State Tax Credit Exchange (STCE), a sponsor of this year’s event. “As a single mother, I was especially moved by the stories and photos of families who could turn to HOPE for shelter and services when they felt they were at the end of their rope.”

State Tax Credit Exchange employees understand the impact of the services HOPE Atlanta provides. For more than a decade, the company has worked to bring investors to affordable housing projects in several states.

“The need for affordable housing affects every demographic,” adds DeWees. “For young families, single parents, retirees and those struggling to get their lives on track, the issue represents a challenge for thousands of Americans each year. I am proud to work for a firm that uses its resources to support the creation of affordable and hospitable communities for citizens like those HOPE Atlanta serves.  Having a home a person can be proud of and feel safe in really DOES give hope that everyone needs.”

HOPE Atlanta assisted over two thousand individuals last year.  No longer exclusive to the train station, the group’s Airport Outreach Team works to engage homeless persons at Atlanta Hartsfield-Jackson airport, offering services from “transportation to alternative housing solutions including shelters, treatment programs, transitional and permanent housing programs.”

Other programs include helping homeless individuals gain permanent housing by providing security deposits and utilities charges; assisting with transportation and resettlement services for women affected by domestic violence; and providing emergency shelter for homeless families when shelter space is not available. According to their website, “HOPE Atlanta placed 518 homeless adults and 223 children in emergency shelters, affording them an opportunity get off the streets and seek stable housing.”

To learn more about additional programs including help for veterans, visit HOPE Atlanta online at HOPEAtlanta.org.

State Tax Credit Exchange invests in projects which qualify for federal and state tax credits and passes the benefits of those credits on to taxpayers through investment programs.

STCE invests in solar, historic, mill, abandoned building, and low income housing projects, working with insurance companies, corporations and high net worth individuals to deliver profitable investment opportunities that are good for all. Since its inception in 2005, STCE has invested in over 200 projects and delivered more than $150m of funding to government incentivized projects in about a dozen states in the US and Puerto Rico.

 

Renewable Energy Tax Credits

What should states be doing to increase electric car sales? (Report)

Written by: on November 7, 2015

A new report entitled Charging Up compiled by the Sierra Club and its partners, the Conservation Law Foundation and Acadia Center, finds that when it comes to promoting electric car growth in the US, many states have promised much but delivered little. In particular, the states in the Northeast and Mid-Atlantic regions have fallen far behind their goals. For example, the six New England states have a combined goal of 1.7 million electric cars on their roads by the end of 2015, yet only 30,000 such vehicles are presently registered in the region. That’s a dismal performance.

Gina Coplon-Newfield, director of the Sierra Club’s EV program, says in the report, “Plug-in electric vehicles are a clean, affordable choice over the gasoline- fueled vehicles that are making our air dirty and our families and our climate sick. We need the utility industry, auto industry, and government in each and every state to dramatically increase policies that encourage electric vehicle use, and this report shows how we can do just that.”

The report lists 9 steps the Club recommends that manufacturers, state governments and auto dealers take to increase the number of electric vehicle sales in the Northeast and Mid-Atlantic regions of the country:

  1. High-level task forces or commissions to provide state-level leadership and coordination.
  2. Consumer incentives to make EVs less expensive and more convenient.
  3. Programs to make EVs more accessible to low-income residents.
  4. Utility programs and investments that incentivize EV adoption as part of a modernized grid.
  5. Policies to promote widespread availability of consumer-friendly charging stations.
  6. State and local governments lead by example by integrating EVs into their fleets and other programs.
  7. Increased efforts by automakers to manufacture EVs that appeal to a broad range of consumers, and to market and sell them aggressively in and beyond California.
  8. Auto dealership programs that promote EVs.
  9. Public education and outreach to ensure the vast majority of consumers view EVs as a viable and desirable option.

All are good recommendations, of course, but many have political implications that will make them controversial. Not everyone is in favor of government incentives, an issue that will become prominent in the US a year from now when the current federal $7,500 tax credit is ready to expire, a new US president will be elected and a deeply fractured Congress has to decide what incentives, if any, should be put in place to replace the federal tax credit.

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Federal Budget

SFGATE.com: Obama signs 2-year budget, debt deal before default deadline

Written by: on November 4, 2015

WASHINGTON (AP) — President Barack Obama on Monday signed into law a bipartisan budget bill that avoids a catastrophic U.S. default and puts off the next round of fighting over federal spending and debt until after next year’s presidential and congressional elections.

Obama praised the rare bipartisan cooperation behind the deal, saying that 2-year agreement that funds the government through the 2017 fiscal year puts the government on a responsible path.

It should finally free us from the cycle of shutdown threats and last-minute fixes and allows us to, therefore, plan for the future,” Obama said in brief remarks as he signed the bill.

Tuesday was the deadline for averting a default on U.S. financial obligations by raising the debt limit.

The Senate gave final approval to the House-passed bill late last week and sent it to Obama. He signed it in the Oval Office, shortly before departing on a day trip to New Jersey and New York to focus on the criminal justice system, as well as raise money for his fellow Democrats.

The legislation raises the limit on the government’s debt through March 2017, pushing reconsideration of what in recent years has become a contentious issue until after the elections for the White House and Congress in November 2016.

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DELAWAREONLINE.COM: Historic church complex set to continue ‘Lord’s work’

Written by: on November 1, 2015

robin brown, The News Journal 7:14 p.m. EDT October 23, 2015

WILMINGTON The fate of a landmark church complex, historic and massive, but long vacant, is a mystery no more.

After years facing an uncertain future including possible sale for shopping development, the Cathedral Church of St. John at North Market Street and Concord Avenue, will continue to host the Lord’s work.

So say leaders of the Episcopal Diocese of Delaware that owns the site, the Ministry of Caring that is acquiring it and folks in the Brandywine Village neighborhood, where worries grew during its continued vacancy that a bad decision about its future could have been disastrous for the community.

The Ministry of Caring, a nonprofit known for its Emmanuel Dining Room network to feed the needy, plans to convert the stately stone church and office building into much-needed housing for moderate- and lower-income elderly residents.

“The sacredness of this place, which gave honor and glory to God, will continue to serve Him in its ministry to the poor,” said the Right Rev. Wayne P. Wright, bishop of the statewide diocese.

“We see this as a great use for this facility and a way to continue serving the needs of the community,” he said. “We’re very happy about it.”

Gov. Jack Markell praised the project, saying Ministry of Caring founder and executive director Brother Ronald Giannone has “made a powerful case” for the plan’s ability to serve the needs of moderate- and lower-income seniors.

The plan would change the land’s use for the first time in centuries.

“It’s going to be a very challenging project,” Giannone said.

He aims to apply next summer for Low Income Housing Tax Credit Equity funds of about $4.8 million and $2.65 million in housing development funds through the Delaware State Housing Authority. Also projected are historic tax credit equity funds, equal to 30 percent of gross expenses paid at a project’s end, of roughly $1.4 million from the federal government and nearly $1.9 million from the state. Delaware’s Department of Natural Resources and Environmental Control is expected to cover the $625,000 for environmental abatement through its Brownfield Program.

In addition to Longwood Foundation funds to buy the site, Giannone lists $200,000 from the Welfare Foundation, $300,000 received from JPMorgan Chase with that much more expected, and $90,000 from TD Bank.

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Susan Kluttz

Kluttz wins award for historic tax credit work

Written by: on October 4, 2015

Published 12:10 am Tuesday, September 29, 2015

With North Carolina’s historic tax credit firmly in place, Cultural Resources Secretary Susan Kluttz received formal recognition this weekend for a statewide tour spanning more than 50 cities.

The North Carolina branch of the American Institute of Architecture this weekend presented Kluttz its Legacy award for her successful effort to renew the state’s historic tax credit, which expired in 2014. North Carolina’s recently passed budget includes a lesser version of the tax credit. For income-producing properties, it includes 15 percent credit for up to $10 million in expenditures and 10 percent credit for expenditures between $10 million and $20 million.

In order to revitalize the credit, former Salisbury mayor Kluttz toured the state. Gov. Pat McCrory joined her on several stops, including Salisbury. In connection with the award presentation, Executive Vice President of the NC AIA David Crawford said Kluttz’s work made “a huge difference to the architectural community.”

Kluttz said she was honored to have received the award, but shifted credit to McCrory, legislators who supported historic tax credits and the community and professional groups who advocated for the tax credit. She said media organizations also played a role in renewing the historic tax credit. Kluttz said she was “preaching to the choir during many of her tour stops.” The media helped spread Kluttz’s message to others who weren’t familiar or didn’t agree with tax credits, she said.

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