Limits investment tax credit to manufacturers. Requires determination of goals, objectives and effectiveness of the credit. Repeals the specialized investment tax credit.
Impact
The introduction of S2170 is expected to have significant implications for state taxation policies, effectively repealing the specialized investment tax credit. This repeal should streamline tax incentives toward sectors that contribute more directly to job creation and economic growth. The bill includes provisions that require taxpayers to provide enhanced data reporting to assess the effectiveness of the credit. Various departments will need to collaborate to submit necessary data and analyses, strengthening transparency and accountability in how tax credits are allocated and their economic impact is measured.
Summary
Senate Bill S2170 relates to the amendment of the Investment Tax Credit, specifically limiting the eligibility of the credit to manufacturers as defined in the state's general laws. The bill reinforces the requirement for taxpayers to meet certain economic criteria to qualify for the tax credit, intending to align tax incentives more closely with the state's economic objectives. It aims to encourage investment in the manufacturing sector by offering tax deductions based on the acquisition of tangible personal property necessary for production activities.
Contention
While S2170 aims to ensure that tax incentives are effectively directed towards sectors that contribute to economic growth, there may be concerns regarding whether the limitations on the eligibility of the tax credit could stifle investments in other sectors. Critics might argue that the focus on manufacturers could lead to a lack of diverse economic development opportunities in other industries not classified under this bill. The proposal may stimulate debate on how to balance competitiveness in the manufacturing sector while fostering growth in a broader range of economic activities.