State would cap neighborhood program tax credits at $108 million

The state would limit neighborhood program tax credits to $108 million each fiscal year. The limit would cover tax credits for approved neighborhood assistance programs. The total includes $2 million reserved for businesses whose income is taxed through their owners. If either applicant group’s full allocation is not approved in a fiscal year, the unused portion would become available to qualifying taxpayers in the other group. The act would take effect 60 days after enactment.

The Department of Revenue would grant 90% credits for certain business contributions and could allow 90% credits for priority programs. The required 90% credits would cover business contributions to approved veterans’ housing assistance and comprehensive service projects with five-year commitments. Credits for priority programs would be discretionary, and those programs must meet priorities set in state rules approved by the governor. Each recipient’s yearly credits could not exceed $1 million for fewer than four projects or $2.5 million for four or more projects. The overall program cap would also apply. The act would take effect 60 days after enactment.