United States Credits and Incentives

In 2022, the Alabama Legislature established a Study Commission on Renewing Incentives with a mandate to evaluate the state’s economic development programs. One of the primary incentives under the Commission’s review is the Alabama Jobs Act, a post-performance capital investment and job creation tax credit. With the program set to expire on July 31, 2023, the incentive will be a key item on the state’s economic development legislative agenda in the year ahead.

The Commission’s initial findings found positive results for the program and its full recommendations are expected in time for the commencement of the 2023 legislative session. According to the Commission’s preliminary review, the Alabama Jobs Act is projected to create a taxpayer return on investment of 173% over the next 20 years. Thus far, the program has led to the creation of over 34,000 jobs and capital investment in excess of $17 billion.

Alabama Credits and Incentives Website

Beginning in 2023, small businesses will have a new financing option in Alaska through a multi-stakeholder partnership known as the State Small Business Credit Initiative (SSBCI). The SSBCI – which is a joint effort by the University of Alaska, state government, and the Alaska Small Business Development Center – intends to leverage approximately $60 million of U.S. Department of Treasury to provide funding to small businesses that otherwise struggle to secure critical financing.

The funding will support the SSBCI for 10 years, including $32 million in loan guarantees, through qualified state lenders and local equity investment funds.

Alaska Credits and Incentives Website

To support businesses making major capital investments in the Grand Canyon State, the Arizona legislature approved a significant change in its preexisting personal property tax valuation schedules. Known as HB 2822, the legislation set the full cash value of business and agricultural personal property to 2.5% of the property’s acquisition cost during or after-tax year 2022. This shift ultimately creates a significant reduction in taxes for manufacturers and other personal property devoted to commercial or industrial use.

Arizona Credits and Incentives Website

Northwest Arkansas is the latest region to offer incentives to recruit workers to its community. Leveraging a creative concept of offering $10,000 in Bitcoin, along with a mountain or road bike, the Northwest Arkansas Council developed the Life Works Here initiative to attract remote tech talent. According to the economic development organization’s data, the initiative saw over 66,000 applicants for the program, of which 65% did not have a prior connection to the region.

Arkansas Credits and Incentives Website

The California Competes Tax Credit is set for another application round commencing on January 3, 2023, with at least $120 million in tax credits available. This latest round follows another highly competitive funding allocation earlier this year, which also included $120 million in cash grants for businesses creating at least 500 new full-time jobs, investing a minimum of $10 million in eligible capital costs, and/or investing in distressed areas as defined by state regulations.

In addition, utilizing funds from cannabis tax revenue, the California Governor’s Office of Business and Economic Development (GO-Biz) awarded $35.5 million across 78 grants to community-based nonprofit organizations and local health departments. Aimed to support communities with job placement and health treatment, the initial grant round had over 300 applications requesting over $450 million in funding. Another round is expected to be announced in early December 2022.

California Credits and Incentives Website

A Rocky Mountain State community established a new incentive program to help attract high-paying jobs and capital investment to their city. Referred to as the Deal Closing Fund, the Colorado Springs Chamber & Economic Development Corporation established a post-performance grant program tied to companies creating new jobs, with an emphasis on targeted industry sectors, and considering multiple state options. Eligible businesses can receive up to $5,000 per net new full-time permanent job created. Funding for the initial round of the incentive is set for $3 million in 2022.

Colorado Credits and Incentives Website

Businesses creating new jobs in the Constitution State can now receive rebates on their state taxes following a shift in Connecticut’s premier incentive program. Under the JobsCT program, companies in targeted industries (including finance, insurance, clean energy, technology, bioscience, and digital media) must create at least 25 new full-time roles to be eligible.

The rebates, designed to be delivered only on a post-performance basis, are estimated at approximately $10,000 per new job. Eligible jobs must earn salaries at least 85% of the median household income where they are located, with the incentives being realized after the third year. Ultimately the incentive may be captured for up to seven years at the discretion of the state economic development agency.

Connecticut Credits and Incentives Website

The First State’s largest city approved significant changes to its property tax abatement policies to help drive investment throughout the community. With a tax abatement set to expire and two others requiring attention, the Wilmington City Council approved several changes and extensions without opposition. In addition to an extension to 2030 of an abatement for investments in historic properties, and an expansion to full abatements for vacant properties, the Council also restricted the use of City exemptions if already granted by the county.

Delaware Credits and Incentives Website

To entice businesses to relocate, expand, remain in the District of Columbia, the Office of the Deputy Mayor for Planning and Economic Development (DMPED) recently expanded a key incentive program. Referred to as the Vitality Fund, the incentive program is a discretionary grant aimed primarily at office users in the District that have at least 25 full-time employees, lease or own at least 7,000 square feet of space for a minimum of five years, and commit to having employees be on-site for at least 50% of work hours, in the aggregate. The recent expansion eases eligibility requirements and now any location within the District can qualify for the award. Typical awards will range between $100,000 and $1,000,000, based on the project’s scope and alignment with the city’s economic strategy.

Governor Ron DeSantis announced several new awards in previous months through the Florida Jobs Growth Grant Fund. Targeting job creation through investments in infrastructure and workforce training, the state has allocated more than $87 million across the state since July 2021. With the available remaining funds, according to the Florida Department of Economic Opportunity forthcoming awards are set to target short and long-term recovery efforts in areas impacted by Hurricane Ian.

In a hyper-competitive environment for television and film productions, one Sunshine State county has established its own incentive program to attract investments. Broward County officials launched a performance-based program for eligible production and digital media projects tied to the overall local spend, employment of residents, and production days in the region. To qualify, projects must spend at lest $400,000 in the County on qualifying payroll and production expenditures, employ 55% of the main cast and crew from Broward or Miami-Dade County, and have at least 60% of the production days locally, among other requirements, to earn a rebate of 15% on total costs. The incentive is capped at $175,000 per production.

Florida Credits and Incentives Website

A mega electric vehicle project continues to move forward in the Peach State despite legal challenges to the local incentive agreement. Rivian Automotive, an American electric vehicle company, had announced a $5 billion electric truck manufacturing plant, which would create over 7,500 jobs, in Morgan and Walton counties just east of Atlanta. To attract the project, state and local officials offered a $1.2 billion incentive package, which included $700 million in local property tax exemptions. A Morgan County Superior Court judge has since rejected validation of a related bond agreement, however, stating that the deal was not feasible under state law. Legal action is expected to continue as grading at the 2,000 acre site is currently underway, with a target to being production in 2024.

Georgia’s robust film and television industry survived a major policy shift earlier this year when legislation designed to revise the state’s tax credit program was shelved. The legislation, which was initially approved by the state’s Senate Finance Committee, would have placed a cap on annual tax credits of $900 million and prohibited the sale of credits to third parties. According to figures released by the Georgia Film Office, the industry spent $4.4 billion across 412 productions in Fiscal Year 2022 alone, a new record. Legislation is also expected to be on the agenda in 2023 related to an incentive for the music industry which is primarily based on the origination of a tour in the state.

Georgia Credits and Incentives Website

Honolulu City Council is currently reviewing legislation that would create significant incentives for businesses investing along the City’s planned rail line. Known as Bill 45, the legislation would establish significant tax breaks and expedited permitting for qualified projects within transit-oriented development (TOD) areas.

To capture a property tax rebate for thirty years, a project would need to invest at least $100 million in new facilities and create a minimum of 100 new jobs within a TOD. If a project reaches an investment level of $50 million and creates at least 50 jobs, the business could capture a tax rebate for three years. The legislation has been moving forward through the council process and received public support from the mayor.

Hawaii Credits and Incentives Website

Idaho Governor Brad Little successfully called a legislative special session to pass a $1 billion tax cut and education funding package. The legislation, which passed overwhelmingly in both bodies of the Idaho Legislature, provides $500 million in tax rebates for Idahoans, reduces the state income tax rate from 6% to 5.8%, moves $330 million to K-12 public school funding per annum, and creates an $80 million annual fund for workforce training. Directing the funding allocations and authorizations will be set on the agenda for the 2023 legislative session.

To help entice more investment in the Gem State’s semiconductor industry, the state legislature approved a new sales tax exemption. The legislation, known as the Idaho Semiconductors for America Act, exempts construction and building materials which are to be utilized to construct, expand or modernize a semiconductor facility from sales taxes. To secure the exemption, businesses must work through an agreement process with the state in advance.

Idaho Credits and Incentives Website

Businesses investing in electric vehicle manufacturing are now officially receiving incentives under a new a program enacted late last year. Referred to as the Reimagining Electric Vehicles in Illinois Act (REV Illinois Act), businesses investing in a new or existing manufacturing facility to produce electric vehicles, electric vehicle component parts, or electric vehicle power supply equipment can qualify for exemptions on income tax withholding, utility tax, training, and equipment/capital costs.

If investing at least $20 million in capital investments and creating fifty new jobs within four years, businesses may capture up to 100% of income tax withholdings for new jobs in priority areas for up to ten years, up to 10% for eligible training costs, up to 75% in income tax credits for construction wages, and 0.5% on investment in qualified property. For mega investment projects, the credit periods are extended to 15 years, along with exemptions on retailers’ occupation taxes on building materials, state utility taxes for electricity and natural gas, and the telecommunication excise tax.

Illinois Credits and Incentives Website

Applications were officially accepted for the first time under the Hoosier State’s new film tax incentive program. The Film and Media Tax Credit will provide eligible film, television, music, and digital media productions with a credit of up to 20% for qualified production expenses. Additional bonuses of up to 5% can be attained if at least 20% of the overall workforce is Indiana-based during pre- and post-production, along with another 5% bump if the production credits include an Indiana brand.

Indiana state legislators will reportedly be seeking additional funding in 2023 for the successful Regional Economic Acceleration and Development Initiative (READI) program. In the initial round, $500 million was allocated to the effort to develop the state’s future workforce with a community engagement strategy. Ultimately, 17 community applicants received grants ranging from $5 million to $50 million. The first funding round leveraged federal dollars from the American Rescue Plan.

Indiana Credits and Incentives Website

To address an ever-increasing challenge across the country, the Hawkeye State approved new incentives this year to support the development of child care facilities. The Child Care Business Incentive Grant was created to provide critical resources for businesses to build on-site child care centers and secure child care slots for employees.

Governor Kim Reynolds recently announced the first round of child care center infrastructure awards with $26.6 million in grants, with $25.9 million going to child care center developments and over $600,000 for partnerships between existing child care centers and local businesses to open child care slots. According to the Iowa state officials, this investment will create over 1,700 child care slots.

Iowa Credits and Incentives Website

Kansas ultimately landed the mega project it sought by creating a new incentive program earlier this year. This summer, Panasonic Group announced it would invest roughly $4 billion to develop a new plant in DeSoto that will create 4,000 new jobs. The final incentive package, which is buoyed by the new investment tax credit, will reportedly be valued at $829 million over ten years, less than the original $1.2 billion figure previously disclosed.

Building on this year’s budget proposal from Governor Laura Kelly, legislation may be considered in 2023 for a new film and television incentive program. The proposed incentive would receive $12 million in funding to support a transferable tax credit of up to 30% for Jayhawk State productions utilizing at least 10% Kansas-based talent. The proposal would also create grant programs, each budgeted at $1 million, to support workforce development, infrastructure, and film education in the state.

Kansas Credits and Incentives Website

Legislators in the Bluegrass State were unsuccessful in passing a key incentive for data center developments in this year’s legislative session. House Bill 379, which passed out of committee, never received a full vote on the floor of the Kentucky House of Representatives. The legislation would have established a sales and use tax exemption for qualified data centers investing at least $150 million and creating a minimum of twenty jobs. Similar legislation was vetoed by Governor Andy Beshear last year. An incentive for data centers is expected to be revisited again during the 2023 legislative session.

Kentucky Credits and Incentives Website

Legislation in the Bayou State was defeated earlier this year which would have made certain changes to the Industrial Tax Exemption Program (ITEP) permanent. Introduced by Senator Rogers Pope, the bill would have incorporated into the Louisiana state constitution modifications to ITEP that were originally enacted by executive order under Governor John Bel Edwards in 2016. These programmatic changes, which have had mixed responses from the state’s business community, reduced tax breaks under ITEP from 100% to 80% and provided for ultimate approval by local taxing authorities.

Louisiana Credits and Incentives

A year after launching the $1 billion Maine Jobs & Recovery Plan, Governor Janet Mills has outlined the initiative’s initial success and its next phases. Leveraging federal stimulus and recovery dollars, the J&RP has supported a number of workforce development, infrastructure, and business cost savings programs. Among the latest announced was a $23.7 million reduction in unemployment taxes in 2023, nearly $400,000 in workforce transportation grants, and $3.5 million through the “Industry Partnerships” program – which is a grant for training and educational organizations focusing on targeted skill development.

Maine Credits and Incentives Website

With a significant labor challenge facing the construction industry, Governor Larry Hogan announced a new workforce initiative. Supported by a $15 million investment by the state, the “Jobs that Build” initiative will provide up to $10,000 for eligible workers in the construction and infrastructure industry with sign-on and retention bonuses, training support, and child care and housing costs.

New regulations governing the popular More Jobs for Marylanders incentive program are now in place, primarily impacting application procedures and funding priorities. Under the new rules, which became final on April 4th, initial tax credit applications will no longer be accepted on a rolling basis. They must be submitted by enrolled businesses during an application period. Additionally, priority for funding is given to areas in one of two tiers. If in a Tier 1 area, the refundable income tax credit is available for up to ten years, while projects located in a Tier 2 area may capture the credit for up to five years. A business that received a Program Enrollment Certificate of Approval prior to June 1, 2022, will be grandfathered under the programmatic rules of the original statute.

Maryland Credits and Incentives Website

Governor Charlie Baker recently signed a $3.76 billion spending bill with key investments in economic development, clean energy, and workforce and community development. Among the major provisions, the legislation invested $153 million in direct business support, $100 million for the development of workforce housing, and $75 million to expand broadband infrastructure and internet access. Funding for the spending legislation was primarily through Fiscal Year 2022 surplus revenue and federal funds from the American Rescue Plan Act Recovery Fund.

Massachusetts Credits and Incentives Website

Making a major investment in the Great Lakes State’s economic development programs, Governor Gretchen Whitmer recently signed SB 844 into law. The legislation, a supplemental spending bill, allocates nearly $850 million for the state’s Strategic Outreach and Attraction Reserve (SOAR) Fund. The SOAR fund, which was established in late 2021, directly targets economic development projects through a blend of incentives, workforce development, and infrastructure investments, including the Michigan Strategic Site Readiness Program. Of the funding approved in the bill, $233 million was re-allocated from the previous year, which if not included in this package, would have reverted to the state’s general fund.

Michigan Credits and Incentives Website

This past summer, Governor Tim Walz laid out his economic strategy for the next decade. Titled “Minnesota’s Moment: Roadmap for Economic Expansion”, the governor outlined a list of policies and programs for the future of the Land of 10,000 Lakes. Alongside workforce and skill development initiatives and increased collaboration with Minnesota employers, Walz proposed a significant deal closing fund of $160 million for businesses starting in or relocating to the state.

Minnesota Credits and Incentives

Businesses investing and creating jobs in the Magnolia State now have a new tax incentive aiming to simplify and streamline the process. The Mississippi Flexible Tax Incentive (MFLEX), which was signed into law by Governor Tate Edwards earlier this year, provides a universal state tax credit for eligible businesses to utilize offsets best fit for their company.

To be eligible for MFLEX, businesses must create at least 10 full-time jobs and make a qualifying capital investment of $2.5 million. From there, the business may use the MFLEX credit to offset a variety of tax liabilities, including state income, franchise, and sales and use taxes, and withholding tax. Transparency provisions will be in place for MFLEX requiring companies to report key metrics such as wages and investment.

Mississippi Credits and Incentives Website

In a recent special legislative session, Missouri lawmakers approved a $40 million incentive package targeting investment and job creation in rural communities. Among several biofuel provisions, the legislation provides a credit of up to 25% for investments in meat processing facilities and a new incentive to create “urban farms” in communities of 50,000+ residents. After earlier legislation was vetoed by Governor Mike Parsons for sunsetting after only two years, the latest bill extended the term of the incentives for six years.

Missouri Credits and Incentives Website

Montana Governor Greg Gianforte recently announced a policy priority to raise the threshold for a key tax exemption in the Treasure State. Building on a law passed last year that raised the exemption cap on the state’s business equipment tax, the governor will be working in the 2023 legislative session to increase it further. While not confirmed by Governor Gianforte’s office, the reported increase in the exemption threshold he proposes may be as high as $1 million.

Montana Credits and Incentives Website

Rural economic development in the Cornhusker State received a major boost after legislation was signed into law earlier this year. LB 1261e extended the Nebraska Advantage Rural Development Act, a state tax credit incentive that was set to expire at the end of 2022, through 2027. In addition, the legislation increased the annual credit allocation from $1 million to $10 million, while also increasing the maximum credit for certain projects from $150,000 to $300,000. Another bill was also approved which provides refundable tax credits for fuel retailers selling E15 or higher blends of ethanol.

Nebraska Credits and Incentives Website

To address a “brain drain” challenge facing the Silver State, Nevada has established a talent retention program. Primarily focused on the top science and engineering talent, the new program will leverage $4 million to create a startup and technology retention program through the University of Nevada-Reno and the University of Nevada-Las Vegas. With an emphasis on providing help to minorities, women, and first-generation college students, the project will commence in the 2023 spring semester. Funding for the programs comes from a 2019 settlement with T-Mobile that included a charitable contribution of $30 million.

Nevada Credits and Incentives Website

Governor Chris Sununu recently announced a significant reduction in payroll taxes for Granite State businesses. With the state’s unemployment trust fund above pre-pandemic levels at over $300 million, the balances will trigger a 30% tax rate reduction for most businesses. Under state law, the reduction is automatically prompted when the fund maintains a balance of $250 million or more for an entire calendar quarter.

New Hampshire Credits and Incentives Website

An economic development program designed to incentivize redevelopment of brownfield sites has been officially approved in the Garden State. Established by the New Jersey Economic Recovery Act of 2022 (ERA), the Brownfields Redevelopment Incentive (BRI) Program will provide $300 million in funding over six years to support remediation costs.

Awarded on a competitive basis, the BRI incentive may be up to 50% of qualified remediation costs, with a cap of $4 million. If the site is located in a targeted area, the incentive cap may increase to 60% and $8 million, respectively. The application process is expected to commence in early 2023.

New Jersey Credits and Incentives Website

Proponents of film incentives in the Land of Enchantment are touting the success of the state’s thriving industry. With another record year, the film and television industry reportedly had a direct spend of $855.4 million in the fiscal year 2022. In a study conducted by the New Mexico Film Office, at least 92% of productions would not have happened in the state without the tax credit. With neighboring states, including Arizona, further arming their film production incentive toolboxes, the debate is expected over the program dynamics in 2023.

New Mexico Credits and Incentives Website

Amidst a competitive landscape in attracting semiconductor manufacturing projects, Governor Kathy Hochul signed into law “Green CHIPS” legislation. Amending the existing Excelsior Tax Credit Program, the new law will create a new category for semiconductor manufacturers investing at least $3 billion and creating a minimum of 500 jobs.

The Green CHIPS credit term will be for a post-performance period of ten years. If an eligible business makes an additional investment of at least double the initial requirements, the company could qualify for another ten years of tax credits. In addition to the project scope requirements, projects will also need to have an approved clean energy plan, make significant investments in workforce and community development initiatives, and provide prevailing wage rates for project construction.

New York Credits and Incentives Website

Tarheel State lawmakers approved legislation to modify a mega project incentives package in response to dynamic economic and supply chain challenges. Without specifically naming the company, the bill’s language adjusts the trigger requirements for a reimbursement incentive of $175 million for a mega-site in Randolph County. Originally set to require 5,000 jobs to trigger the incentive, this special legislation lowers the job creation commitment to 4,500 new positions along with a capital investment of $4.7 billion.

North Carolina Credits and Incentives Website

North Dakota Governor Doug Burgum recently announced a robust plan for workforce and community development. Calling it the “Energizing our Communities” plan, the governor announced multiple initiatives totaling over $20 million for North Dakota. As part of a wider Main Street Initiative, the latest plan includes a $10 million Rural Revitalization and Redevelopment Grant Program, $5 million for a Rural Workforce Housing Program, and an expansion of investments through the state’s Renaissance Zone Program.

North Dakota Credits and Incentives Website

Buckeye State Governor Mike DeWine recently announced the availability of grants to help cover apprenticeship training costs. Businesses that have registered apprenticeships under the ApprenticeOhio program can capture up to $25,000 in grants for eligible training costs incurred since July 1, 2020. Sponsors and employers have until December 31, 2022, to apply for the grants, which can be up to $2,500 per apprentice for up to ten apprentices.

The Ohio Tax Credit Authority has officially signed off on a major tax credit to support a mega project announced earlier this year. To support an Intel semiconductor manufacturing investment of $20 billion that will create 3,000 jobs, the state officials approved a tax package that could total as much as $650 million. Altogether, the complete incentive package could be in excess of $2 billion for the transformative project.

Ohio Credits and Incentives Website

The most robust remote worker attraction program in America has reached an incredible milestone. Tulsa Remote, which provides remote talent $10,000 and free workspace, among other incentives, has reportedly enrolled more than 2,000 individuals in the program. According to program figures, the remote worker initiative generates $62 million in economic impact for the community.

To help lure a major manufacturer to the Sooner State, Governor Kevin Stitt signed into law the Large-scale Economic Activity and Development (LEAD) Act of 2022. The bill, which was reportedly developed for a pursuit of a major Panasonic project that ultimately went to Kansas, would provide nearly $700 million for a company investing at least $3.6 billion and creating 4,000 jobs. To provide transparency and return on investment for taxpayers, the incentive was developed to be awarded on a post-performance basis.

Oklahoma Credits and Incentives Website

With a robust semiconductor industry workforce in Oregon, Governor Kate Brown will be a strong advocate for new incentives to support sector businesses in the next legislative session. In a recent policy announcement, the governor touted the need for the development of a tax credit targeting investments for manufacturing and research for the semiconductor industry in Oregon.

To support in the meantime, she has set out $1 million for the Strategic Reserve Fund to help communities with industrial site preparation and infrastructure development. Governor Brown also requested $350,000 to expedite the environmental review process for industrial properties.

Oregon Credits and Incentives Website

Keystone State lawmakers approved a sweeping economic development incentives package at the conclusion of the 2022 legislative session. Signed into law by Governor Tom Wolf, the bill creates three new tax credit programs to support several key industries for the Commonwealth of Pennsylvania. Known as the Pennsylvania Economic Development for a Growing Economy program (PA EDGE), nearly $2 billion in tax credits will go to semiconductor manufacturing and biomedical research, businesses purchasing and processing Pennsylvania milk, including $500 million to build a new processing facility, and expands the existing Local Resource Manufacturing Tax Credit.

Pennsylvania Credits and Incentives Website

In the wake of the devastating impact of Hurricane Fiona, the leading hospitality and tourism agency for Puerto Rico has announced a new grant program. To support the revitalization and community development efforts, the recent grant announcement from the Puerto Rico Tourism Company (PRTC) will allocate $2.3 million across the island. Operating under Resolution 22-08, eligible businesses will need to prove the company was operation at the time of Hurricane Fiona and can deploy the grant funds for the purchase and replacement of equipment, along with offsetting costs to reopen their businesses.

Building on a successful workforce development and talent retention program in the Ocean State, Governor Dan McKee announced a re-opening of applications for the Wavemaker Fellowship program. Designed as a competitive student loan reimbursement program, the Wavemaker Fellowship provides refundable tax credits for recent graduates working in STEM and certain design fields. Initially approved in 2015, the program’s tax credits can cover student loan payments of up to $6,000 per year for up to four years for graduate degree holders. In addition, holders of qualified bachelor degrees can capture up to $4,000 per annum, with the level set at $1,000 annually for associate degree graduates.

Rhode Island Credits and Incentives Website

In a robust effort to build the Palmetto State’s skilled talent base, Governor Henry McMaster announced an additional $25 million for the Workforce Scholarships for the Future program. The workforce development program provides South Carolinians pursuing an industry credential or associate degree in high-demand fields (such as manufacturing, computer science, logistics, and healthcare) with scholarships to cover tuition and fees at the state’s technical colleges. Combined with $39 million already provided by state legislators, the program is expected to help train over 40,000 workers across South Carolina.

The City of Conway has developed a new, creative program to help incentivize the development of accommodations in the community. Designed as a competitive, discretionary incentive, a hotel or commercial short-term rental development with a minimum of eight units in the city may be eligible. Potential incentives that may be considered for an eligible investment under the Hotel Incentive Program include the hospitality fees collected for up to five years, property tax abatement for up to five years, and expedited city review periods.

South Carolina Credits and Incentives Website

Many local jurisdictions in South Dakota have had to revamp their property tax break policies following rule changes set forth by the state legislature. One example is in Meade County, where local lawmakers recently adopted a new discretionary formula for how best to incentivize development in their communities. With the state’s baseline tax formula being a 20% incremental sliding scale over five years, Meade County approved a 0% set rate over that same term, thus tax-free for qualified new investments.

South Dakota Credits and Incentives Website

Economic development officials are requesting additional funding to help support their expansion and investment attraction efforts across the Volunteer State. For the next fiscal year, Tennessee’s Department of Economic and Community Development requested $202.5 million in supplemental budget outlays for FastTrack grants and site development. To support the popular FastTrack grant program, the agency requested $103 million, which would include $85 million in one-time funding and $18 million in recurring dollars. Additionally, the department asked for $45 million to support major investments in site development and infrastructure planning.

Tennessee Credits and Incentives Website

A widely successful incentive program in the Lone Star State is set to expire at the end of 2022, which is creating a rush of applicants before the sunset occurs. Known as Chapter 313, which is a reference to the corresponding section of state code, this program allows businesses to receive a property tax concession from a school district under an incentives agreement. With significant support from the business and economic development communities, there is optimism a new program will be enacted during the next legislative session. Active Chapter 313 agreements will not be impacted by the sunset as they will remain intact until the end of their respective terms.

Texas Credits and Incentives Website

To bolster Utah’s growing entertainment industry, particularly in rural counties, state lawmakers expanded the current film and television production incentive program. The legislation, S.B. 49, amended the existing Utah Motion Picture Incentive Program (MPIP) to add more emphasis for projects shooting at least 75% of their production days in rural counties. This modification allocates an additional $12 million annually targeting rural productions.

Utah Credits and Incentives Website

After garnering global attention with their breakthrough idea of providing worker relocation incentives, Vermont lawmakers have approved another iteration of the well-known program. With $3 million in approved funding, the newest version of the program will provide grants of up to $7,500 for individuals relocating to Vermont for a remote position in another state, or address local workforce challenges, moving to the Green Mountain State for a job.

Vermont Credits and Incentives Website

With their lease at FedEx Field set to expire in 2027, a major battle is underway between politicians and community leaders in the District of Columbia, Maryland, and Virginia to woo the Washington Commanders football team. Virginia lawmakers have already proposed several bills to bring the major American professional sports franchise to the Commonwealth. Of the two proposals going through the state House and Senate, both would establish a Virginia Football Stadium Authority to finance the construction via bond issuance. How that funding is ultimately recaptured is where they differentiate. The Senate version would allow for the capture of sales taxes, certain personal income tax revenues, and corporate tax revenues, among others, for thirty years. The alternative would be limited to the sales tax over a twenty-year term. Without successful movement in the conference, efforts on moving legislation forward are on hold until 2023.

Virginia Credits and Incentives Website

Evergreen State lawmakers approved a major expansion of data center incentives on the final day of the legislative session. While an existing data center incentive, which is primarily a sales and uses tax exemption on eligible equipment, has been successful in developing the state’s industry, the program was geographically limited. The new legislation, House Bill 1846, extends the tax exemptions to the rest of the state.

Under the new data center incentive program, there will be a limitation of only six awardees per year. Applicants for the program will need to meet certain criteria for eligibility, including a minimum of three full-time workers for every 20,000 square feet of leased white space.

Washington Credits and Incentives Website

The race for remote talent is heating up in West Virginia as another round of the successful Ascend WV program is underway. Expected to bring 1,000 remote workers to the Mountain State, Ascend WV provides eligible individuals a $12,000 cash relocation paid over a two-year period. In addition to the cash grants, the program provides a year of free outdoor recreation valued at $2,500, complimentary coworking space, and free outdoor gear rentals, among other local benefits.

West Virginia Credits and Incentives Website

In an effort to provide more public transparency on the Wisconsin tax increment financing (TIF) process, Governor Tony Evers signed into law Act 142, a bill originally introduced in 2021. Commencing in January 2023, assessors will need to provide additional information regarding construction and demolition values for each Tax Incremental District (TID).

As part of the Municipal Assessment Report, new fields for assessors will include the new values with the Wisconsin Department of Revenue publishing a report of net new construction values in fall 2023. For TID annual reporting, first posted in 2024, supplemental information will include net new construction values for each year beginning with 2023, new construction percentage, and TID construction impact on the municipal levy.

Wisconsin Credits and Incentives Website

Cowboy State lawmakers are getting closer to once again having incentives to promote the Wyoming film industry. Unfortunately, despite getting positive traction in this year’s legislative session, proponents of film and television production incentives could not get the required two-thirds majority vote in budget discussions. The 30% production credit, which would be funded through statewide lodging taxes, is expected to be back on the legislative agenda in 2023.

Wyoming Credits and Incentives Website