Credits and Incentives

Out-of-State Businesses Doing Hurricane Florence Repair Work Not Required to Register or File and Pay South Carolina Taxes

Out-of-state business performing specified Hurricane Florence disaster repair work are not required to register or file and pay South Carolina sales tax.

Florida Establishes Sales Tax Credit Scholarship Program, Effective October 1, 2018

The new Florida Sales Tax Credit Scholarship Program authorizes tenants of a commercial rental property to receive a credit against the state sales tax due on rent, lease, or license fee payments.

Maryland Enacts Manufacturing Incentive Program

Maryland has enacted a manufacturing incentive program called the “More Jobs for Marylanders” program.

Minnesota Enacts Changes to Qualified Business and Nonprofit Economic Development Corporation Exemptions

Effective July 1, 2017, the refundable sales tax exemption for qualified businesses in greater Minnesota cities is expanded to ten years for businesses that invest at least $200,000,000 over a ten-year period.

Company Liable for Deferred Washington Sales Tax Under Community Empowerment Zone Program

A manufacturer that was granted a community empowerment zone deferral of Washington sales tax was liable for the deferred taxes because it failed to hire the number of employees required by the program.

Texas Announces Exemption for Disaster Relief in Bastrop County

Texas citizens affected by Bastrop County wildfires can claim a sales tax exemption on labor charges to repair damages. More…

Pipeline and Fittings for Gas Gathering System Exempt in Colorado

A Colorado company’s pipeline and fittings purchases qualified as exempt manufacturing machinery for the enterprise zone sales tax exemption. More…

Illinois Enacts Credit Reporting Requirements

Illinois has enacted legislation that imposes an annual reporting requirement on Illinois taxpayers that receive corporate or personal income tax credits, sales tax exemptions, or the abatement of property tax under the Economic Development for a Growing Economy Tax Credit…

Indiana Enacts Legislation Authorizing Review, Analysis, and Evaluation of Tax Incentives

Indiana has enacted legislation that requires the Commission on State Tax and Financing Policy to regularly review, analyze, and evaluate Indiana state and local tax incentives that encourage economic development or alter, reward, or subsidize a particular action or behavior…

New York Defers Sales Tax for Building Materials

New York City Mayor Michael Bloomberg announced that a temporary New York state and New York City sales tax deferment on materials needed for rebuilding larger businesses damaged by Hurricane Sandy will take place. (Press Release, New York City Mayor…

New York Extends Deadline for Hurricane Emergency Tax Exemption Program

The deadline to apply for New York City’s sales tax exemption provided under the Hurricane Emergency Sales Tax Exemption Program has been extended from February 1, 2013, to April 1, 2013. The program provides emergency assistance to small businesses impacted…

Recapture of Benefits Must be Posted in Illinois

Illinois has enacted legislation requiring the Department of Commerce and Economic Opportunity to post information on its website regarding the recapture or claw back provisions relating to business exemptions and tax benefits available to businesses under the Corporate Accountability for…

Tennessee Authorizes Disaster Relief Tax Refund

Individuals who receive disaster assistance from the Federal Emergency Management Agency (FEMA) as a result of a natural disaster happening in Tennessee can claim a refund of Tennessee sales and use tax paid on eligible items purchased to replace or…

Cook County Files Suit Against Kankakee and Channahon Alleging Sales Tax Kickback Scheme

The City of Chicago, Cook County and the RTA in Illinois filed a lawsuit against the city of Kankakee, the city of Channahon, and other parties, seeking damages due to an alleged kickback scheme among Kankakee, Channahon, brokers, and certain…

Illinois Makes Changes to Enterprise Zone Regulation

Changes have been made to an Illinois regulation on enterprise zone and high impact business programs relating to income tax, sales and use tax, electricity excise tax, and gas revenue tax. References to census data are updated to reflect newly…

Kentucky Expands Energy Independence Act Credit Program

Kentucky enacted legislation expanding the Incentives for Energy Independence Act credit program to include the in-state portion of a carbon dioxide transmission pipeline used exclusively for the purpose of transporting carbon dioxide to a point of sale, storage, or other…

Nevada Amends Tax Abatements to Provide for Repayment

Nevada enacted legislation that amends various provisions that allow partial sales and use and property tax abatements for items such as renewable energy facilities and certain energy efficient buildings. Under the amendment, effective July 1, 2012, the provisions require that…

New Jersey Provides Information on Revised UEZ Refund Filing Procedures

New Jersey has issued a revised sales and use tax notice informing taxpayers that as a result of legislation that became effective April 1, 2011, all Urban Enterprise Zone (UEZ) businesses are eligible to receive a sales tax exemption at…

Pennsylvania Amends Keystone Opportunity Zone Act

Pennsylvania Governor Tom Corbett has signed legislation amending the Keystone Opportunity Zone (KOZ), Keystone Opportunity Expansion Zone (KOEZ), and Keystone Opportunity Improvement Zone (KOIZ) Act. Effective immediately, the legislation authorizes the extension of tax exemptions, deductions, abatements, and credits; the…

Kansas Amends Exemption for KEZA Businesses

Kansas enacted legislation that amends the sales and use tax exemption for tangible personal property and services purchased for the purpose of the construction, reconstruction, enlargement, or remodeling of a business or retail business meeting the requirements of the Kansas…

District of Columbia Fiscal Year 2011 Budget Support Act of 2010 Enacted.

The District of Columbia has enacted the Fiscal Year 2011 Budget Support Act of 2010. The Act imposes the 6% sales taxes on medical marijuana and soft drinks, eliminates supermarkets, qualified restaurants, and retail stores from the exemption for qualified…

Washington’s Tax Incentives for the Aluminum Industry Extended

The State of Washington has extended the sunset date of business and occupation (B&O) and sales and use tax incentives for the aluminum industry to January 1, 2017. The incentives were originally set to expire on January 1, 2012. The…

Energy Efficient Appliance Rebates Subject to Illinois Tax

Gross receipts subject to Illinois Retailer’s Occupation (sales) Tax are defined as all the consideration actually received by the seller, except traded-in tangible personal property. If a seller receives a reimbursement or rebate for a discount, the amount of that…

Missouri Discusses the Taxability of Equipment and Food Used in Pharmaceutical Research

The Missouri Department of Revenue recently determined that a taxpayer’s purchase of laboratory and medical monitoring equipment were exempt from sales and use tax. The taxpayer conducts contract research for pharmaceutical companies through a variety of studies that require special…