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1997 SESSION

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SB 820 Enterprise Zone Act.

Introduced by: Charles R. Hawkins | all patrons    ...    notes | add to my profiles

SUMMARY:

Enterprise Zone Act. Allows unallocated amounts of tax credits in the $5 million tax credit pool to be allocated to business firms normally limited to the $3 million tax credit pool who would otherwise not receive tax credits when the $3 million tax credit pool is oversubscribed, and vice versa. Except for this pour-over feature, business firms who are required to negotiate the amount of their business tax credits and real property investment tax credits will take their tax credits from the $3 million pool, while other business firms will take their tax credits from the $5 million pool. The Department of Housing and Community Development (DHCD) is required to keep confidential (with exceptions) any information regarding a business firm's tax liability, employment, property, or income supplied to the Department; a penalty is provided for a violation of this confidentiality by any current or former employee. The Department of Taxation is authorized to provide DHCD with information regarding a business firm's eligibility for tax credits. The formula for allocating the income of a qualified business firm between business activities located both within and outside an enterprise zone is amended to eliminate the location where sales are made as a factor. A business firm will be able to count residents of any enterprise zone, rather than only the zone where the firm is doing business, in determining whether it qualifies for the business income tax credit. Certifications by DHCD regarding a business firm's eligibility for tax credits will not prevent the Tax Department or State Corporation Commission from challenging a taxpayer's claim for a tax credit. The measure also clarifies that the 30 percent tax credit for qualified zone improvements, not to exceed $125,000 in any five-year period, is a refundable tax credit. Technical amendments clarify that insurance companies will be eligible for credits against their gross premium tax liability. Misdemeanor only.


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