Bulletin: TCI – Investment Tax Incentives
In an effort to attract new capital investment inside their borders, many state governments throughout the United States offer some form of investment tax incentive. Currently, over 45 states have investment incentive programs where a new or expanding business might qualify for an income/franchise tax credit, tax exemption, refund or rebate. These programs offer much needed relief to growing businesses.
Your business may be entitled to an investment tax incentive for investments in real or personal property. Five examples of state investment tax incentives are shown below:
- Connecticut Fixed Capital Investment Credit
Income tax credit for 5% of the amount paid or incurred for any new qualified fixed capital investment.
- Idaho Investment Tax Credit
The state offers a 3% income tax credit for new qualified investment.
- Illinois Replacement Tax Credit
Certain businesses (manufacturers, coal mining & retailers) are eligible for a 0.5% income tax credit for investments in qualified replacement property placed in service within the state.
- Louisiana Ad Valorem (Inventory) Tax Credit
Refundable income tax credit is allowed for ad valorem taxes paid to political subdivisions of Louisiana on inventory held by manufacturers, distributors, and retailers.
- South Carolina Capital Investment Credit
Investment tax credit for qualified manufacturing and productive equipment properties placed in service during the taxable year. The credit is 0.5-2.5% of qualified investment based upon the useful life of the property.
Equifax Workforce Solutions has a dedicated team with experience in all areas of federal, state and local taxation to assist employers in capturing tax credit and incentive opportunities. If your company is interested in receiving more information on state investment tax incentive programs, please contact us.
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