Wisconsin’s Department of Economic Development has awarded $3 million in tax credits to investors in 14 startups in the state so far in 2024.
The tax credits are part of the state’s Qualified New Business Venture program, which began in 2005. It gives 25% transferrable tax credits for investors in qualified new businesses capped at $3 million for a $12 million cash equity investment.
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The use of tax credits and state subsidies has grown significantly in recent years, and the trend is expected to intensify in the near future.
A report from the Independent Fiscal Office noted that Pennsylvania awarded $857 million in tax credits in fiscal year 2022-23, and the IFO projects that $1.23 billion will be given away in 2023-24.
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The number of electric vehicles (EV) that qualify for tax credits fell from 43 to 19 on Monday following new rules about the number of components in the vehicle that can be made by China and other foreign entities, according to Reuters.
On Dec. 1, 2023, the Treasury Department released guidance for which EVs are eligible for its $7,500 tax credit, requiring vehicles to have at least 60% of battery components and 50% of total critical minerals used not be from a foreign entity of concern like China starting in 2024. Vehicles that are impacted by the changes include the Volkswagen ID.4, Tesla Model 3 Rear Wheel Drive, BMW X5 xDrive 50e, Audi Q5 PHEV 55, Cadillac Lyriq and Ford E-Transit, losing eligibility for the credit, according to Reuters.
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Across the country, towns and cities of various sizes envisioned an electrified public transit system that could shuttle residents with vehicles that produced no carbon-filled exhaust.
Many of those communities purchased buses from Silicon Valley-based Proterra, which was able to produce 550 buses over its 19-year existence before it went bankrupt in August.
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Today’s decrepit shopping malls may become tomorrow’s mixed-use communities.
Making the conversion happen, though, could be driven by state grants, tax abatements and credits.
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Pennsylvania’s investment in film tax credits hasn’t delivered the economic returns policymakers had anticipated, according to a recent analysis.
In its five-year review, the Independent Fiscal Office said the program’s $8.5 million net tax revenue does accomplish its legislative intent, even if tens of thousands of dollars in potential profit seep out of the state in the meantime.
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Georgia lawmakers could consider overhauling the state’s tax credits when they reconvene in January, but the specific action they take could depend on what they hear from experts over the next few months.
“The economic reality of tax credits is that when we help to expand an industry that isn’t profitable without our help, that’s bad for the economy,” University of Georgia professor Jeffrey Dorfman, the state’s fiscal economist, told members of the Joint Tax Credit Review Panel, which held its first public meeting this week. “Generally, this is not what you want to do. Thus, tax credits only make sense for business attraction if attracting that plant or employer or industry to the state is going to bring you some spillover benefit, some long-term benefit or some non-economic benefit.”
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Georgia leaders plan to review the state’s various tax credits, saying they want to ensure any credits provide a “significant return on investment” for Georgia’s taxpayers.
The review, announced Thursday, will include the oft-lauded film tax credit. House and Senate members will work with various industry stakeholders and state offices, including the Georgia Department of Economic Development, the Governor’s Office of Planning & Budget and the Georgia Department of Revenue.
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Connecticut lawmakers are considering a plan to scrap a controversial tax credit that has been criticized as a giveaway for big Hollywood movie studios.
A new proposal filed by several lawmakers would phase out the state’s film tax program, which doles out tens of millions of dollars each year in tax credits for movie and TV productions.
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Sen. Ted Cruz, R-Texas, commemorated National School Choice Week by filing two bills to advance school choice, one of which his staff said would be the most significant educational reform since the GI bill.
“We need to provide students with a variety of educational options to fit their needs,” Cruz told The Daily Signal in an email statement Tuesday. “I have often said that school choice is the civil rights issue of the 21st century, and I believe no differently today than I did when I began serving in the Senate a decade ago.
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Georgia officials pride themselves on the state’s tax credits for the movie industry, but a leading economist says the tax credits don’t benefit the state.
“There’s nothing politicians love more than jocks and movie stars,” Kennesaw State University economist J.C. Bradbury told The Center Square. “That’s why they give out a lot of subsidies for sports stadiums, and film and movie credits are also something that are often given out.
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Georgia’s two senators voted for the Democrats’ recently enacted Inflation Reduction Act, even though it strips South Korean automaker Kia — one of the state’s largest employers — of eligibility for the law’s electric vehicle tax credits.
Kia, which employs thousands in Georgia, is planning to build another automobile factory in the state and hire 8,500 people, according to The Atlanta Journal-Constitution. Due to domestic assembly requirements in the new law, however, the automaker’s EV and plug-in fleet will lose their current eligibility for $7,500 tax credits on the purchase of new electric vehicles.
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The Michigan Economic Development Corporation must fully disclose the total value of taxpayer subsidies it has offered to General Motors, the Michigan Supreme Court ruled.
The court’s unanimous opinion in Sole v. MEDC held the MEDC must disclose, without redactions, the total amount of corporate subsidies promised to GM.
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In an effort to collect on tax credits it says it is owed, Bridgestone Americas, one of the world’s largest tire companies whose American headquarters is located in Nashville, is suing the state of Tennessee.
“Bridgestone has filed a complaint in Tennessee Chancery Court regarding corporate tax credits accrued in 2017 and 2018,” Bridgestone Americas Communications Director Sara Cooper confirmed to The Tennessee Star. “The complaint was filed as a procedural protection of the company’s interest while the Tennessee Department of Revenue completes its review of these credits. Bridgestone cannot comment further on on-going legal matters.”
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House Republicans are arguing against a Democratic proposal to increase the $7,500 taxpayer-funded credit for electric car purchases to as much as $12,500, arguing that it would disproportionately help wealthy Americans who can afford to buy pricey electric vehicles.
Democrats on the House Ways and Means Committee have proposed increasing the credit as part of their party’s filibuster-proof $3.5 trillion budget reconciliation bill, which includes new social programs and billions for electric vehicle infrastructure.
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Tax credits pulled a quarter million Ohioans out of poverty over the course of a year in 2018, according to a Columbus-based policy analysis group’s study.
Scioto Analysis called its study, which was released Tuesday and based on 2018 American Community Survey data, the most accurate picture of poverty in Ohio to date.
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Sen. Mark Kelly (D-AZ) joined U.S. Sens. Maria Cantwell (D-WA) and Ron Wyden (D-OR) to co-sponsor legislation that indirectly funds local media. The Local Journalism Sustainability Act establishes tax credits that give consumers a huge deduction on media subscriptions, subsidizes journalists’ salaries, and funds news outlets by paying for businesses to advertise.
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While the tech giant Amazon has publicly endorsed proposals to raise the corporate tax rate in the United States, the company has been secretly lobbying to keep its own tax rates low, Politico reports.
Last year, during the 2020 presidential election, Amazon CEO Jeff Bezos openly supported then-candidate Joe Biden’s proposals to raise taxes on American corporations. Those proposals have re-emerged in recent weeks as a possible means of funding a possible infrastructure bill, and Biden has been advocating for other countries around the world to adopt higher corporate tax rates as well.
But recently, Amazon has been stepping up its lobbying efforts to try to convince Congress and the White House to allow the company to keep using certain tax breaks in order to keep its own rates low. The retail giant hired a tax lobbyist named Joshua Odintz, who formerly worked as a Democratic aide on Capitol Hill and then as an official in the Obama Administration. In addition to Amazon’s own efforts, similar lobbying has been undertaken by a group known as the “R&D Coalition,” which consists of several companies and organizations including Amazon, Intel, and the National Association of Manufacturers.
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After the CEO of Georgia-based Delta Airlines caved to pressure from left wing activist groups and criticized a bill signed into law requiring voter identification for absentee ballots, Georgia’s House Republicans responded by voting to strip Delta of a major tax credit.
Delta has long-enjoyed a $35 million tax credit on jet fuel in the Peach State, but Thursday night, that tax credit was jeopardized, as House Republicans voted along party lines to end it, according to The Atlanta Journal-Constitution.
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by Todd DeFeo Ohio is giving tax credits that could reach an estimated $23.4 million to 10 companies planning to expand their businesses in the state. The companies plan to create a total of 1,559 new jobs and retain 1,788 jobs statewide, according to development officials. The projects are expected to result in more than $105 million in new payroll and bring about more than $139 million in investments statewide. Companies only earn the tax credits, approved by the Ohio Tax Credit Authority (TCA), if they meet specific criteria as part of an agreement with the state. “As always, these are estimated values of the potential tax credits if all elements approved by the Tax Credit Authority are met,” Lisa Colbert, public information officer for the Ohio Development Services Agency, said in an email. “These are not actual tax credits. The Job Creation Tax Credit is a performance-based credit. So, the actual value of the tax credit is based on jobs created and new payroll tax generated, as verified.” In the largest project, Mercy Health, which operates 43 hospitals in seven states, is expanding its Cincinnati campus and expects to create 500 full-time positions. The TCA approved a 12-year…
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Wisconsin Gov. Tony Evers and Foxconn Technology Group officials are talking about making changes to the contract signed in 2017 that was based on constructing a larger display screen manufacturing facility than is now proposed. But neither side is giving details. So how might the deal be changed? And what’s at stake for each side? Here are five areas to watch as talks continue, based on interviews with people familiar with the Foxconn deal and others like it: Jobs: It makes sense that Foxconn would want to open up the deal because it appears unlikely to meet the original jobs targets, said Bob O’Brien, president of U.S.-based Display Supply Chain Consultants, which tracks the global flat-panel industry. Foxconn already came up well short of its first-year target of 260 jobs, costing it $9.5 million in tax credits. This year’s jobs goal has doubled to 520, and the 2020 goal — when Foxconn says production will begin — is nearly 2,000 jobs. Starting in 2027, it must have at least 10,400 workers to qualify. It makes sense that Foxconn would want to renegotiate to lower the threshold to qualify, O’Brien said. The current contract awards Foxconn up to $1.5 billion in…
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by Chris White General Motor’s decision to restructure and layoff thousands of employees Monday includes eliminating a hybrid vehicle former President Barack Obama once called the car of the future for the Detroit company. GM said Monday that it will cut roughly 14,000 people in North America and will idle factories in Michigan, Ohio, Maryland and Canada. The layoffs come as the company focuses on manufacturing electric vehicles over gas-powered sedans. Politicians and ordinary citizens are blasting the decision. “It’s all about greed. It’s all about putting more in their pockets,” one employee said, according to CBS. “The bad thing is to get this news on the day after we come back from Thanksgiving,” another employee noted. “GM owes the community answers on how the rest of the supply chain will be impacted & what consequences its disastrous decision will have” Ohio Sen. Sherrod Brown, a Democrat, wrote in a tweet following the announcement. The bulk of the cuts include 8,000 salaried jobs, making it the largest cutbacks since GM went bankrupt and was bailed out by taxpayers during the 2008 financial crisis. One victim of the move is the Chevrolet Volt, a hybrid car Obama once championed. “I got to get…
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Less than two weeks before Governor Haslam introduced his IMPROVE Act centered on a gas tax increase for road funding, Pure Foods, Inc., a recipient of $1.2 million in state economic development funds, filed for bankruptcy. The $1. 2 million from the state’s FastTrack Economic Development (ED) Fund did not go directly to Pure Foods. Instead, it was allocated for use by KEDB for construction of a speculative building that Pure Foods leased for 10 years. According to the Kingsport Tennessee Times News, in March 2015, the Canadian based gluten-free snack food company, Pure Foods, Inc., was set to establish its U.S. headquarters at the Gateway Commerce Park in Kingsport, Sullivan County. The deal included an investment of $22 million, an 80,000-plus square foot facility, and the creation of 273 new jobs generating an annual a payroll of $8 million. The Kingsport Economic Development Board (KEDB) and the Kingsport Chamber of Commerce also supported the project by providing financial assistance and various incentives, including the purchase of 33 acres of land in the Gateway Commerce Park for $6.5 million borrowed from First Tennessee Bank. According to the Transparent Tennessee website’s FastTrack Project Database, ED grants provide additional support for…
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