An Act Eliminating Certain Unclaimed And Seldom Claimed Tax Credits.
Impact
The potential impact of SB 263 on state laws includes a reduction in the tax credits available to certain facilities within the state, particularly those that no longer meet the requirements for claiming such credits. This legislation would amend current statutes regarding manufacturing and service facilities, ultimately consolidating support for businesses that are actively creating jobs and contributing to economic growth within designated zones. Eliminating seldom claimed tax credits may help redirect fiscal resources toward more productive incentives that encourage job creation and economic development.
Summary
Senate Bill 263 aims to streamline and eliminate certain tax credits that have historically gone unclaimed or seldom claimed. The legislation seeks to repeal existing provisions in state statute that provide tax credits to manufacturing and service facilities that do not meet the eligibility requirements anymore. It is expected to reduce the administrative burden on the state in tracking and managing these credits, while also encouraging the focus on tax incentives for active and impactful facilities. With a projected effective date of July 1, 2018, the bill is designed to apply to income years commencing after January 1, 2018.
Sentiment
Overall, the sentiment around SB 263 appears favorable among proponents who believe that it is a necessary step toward creating a more efficient and effective state tax system. Supporters argue that it strengthens the focus on meaningful economic contributions from businesses rather than diluting fiscal resources on credits that fail to stimulate significant job growth or business operations. Conversely, critics might express concerns that any reduction in available tax credits could deter investment in the state or lead to the unintentional hindrance of potential business expansions.
Contention
Some notable points of contention surrounding SB 263 include the concerns expressed by certain stakeholders regarding the fairness of eliminating tax credits that, while seldom claimed, might still provide necessary support to some businesses or industries. There may also be discussions about the transparency and clarity of the criteria used for determining the eligibility of facilities for tax credits and whether the provisions in the bill can adequately address the economic needs of varied sectors within the state.
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Creates "Manufacturing Reboot Program" in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.