Bulletin: Tax Credits and Incentives – 2015 Legislative Highlights
Situation 2015 was a busy year for state and federal legislators who made major decisions on the future of key tax credit and incentive programs. In December 2015, businesses were overjoyed when the federal government succeeded in extending long popular tax credit hiring programs. However, on a more somber note, most state legislators (apart from Colorado and New York) managed to reduce or eliminate several popular state credits. Solution The federal Protecting Americans From Tax Hikes (PATH) Bill of 2015 enacted the following:
- The permanence of the Research & Development (R&D) Tax Credit
- A five-year extension for the Work Opportunity Tax Credit (WOTC) through the end of 2019
- Two year extension for the Empowerment Zone and Indian Employment Credits
Certain states made the following changes:
- Alabama repealed the Income Tax Capital Credit and replaced it with the Alabama Jobs Act, providing an investment credit applicable to various taxes or a jobs credit against utility tax.
- The Florida enterprise zone program expired at the end of 2015.
- Rhode Island repealed its enterprise zone program effective June 30, 2015.
- Illinois suspended a number of grants and credits due to budget woes, including their Economic Development for a Growing Economy (EDGE) credit.
- Louisiana reduced many incentives by up to 28% due to budget constraints until 2018.
- Louisiana converted the Ad-Valorem Inventory Tax Credit from fully-refundable to partially-refundable for businesses with taxes of $10,000 or more.
- Colorado expanded its enterprise zone program, with a major overhaul of zone boundaries.
- New York created a new training program which offers a credit of up to $10,000 per employee.
Value Equifax Workforce Solutions monitors federal and state legislation to ensure that your business makes the most of incentives available to you. If your company is interested in receiving more information on these incentives or any other incentives, please contact your account manager (AM) direct or contact us here. Download pdf versions
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