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State Tax Credits for Job Creation & Capital Investments

by Kelley Rendziperis, on Mar 22, 2022 8:46:44 AM

As we enter another tax season, companies should analyze which credits exist for their job creation and capital investment activities. Site Selection Group compiled the following information for use in determining whether your company is eligible for a state investment or job tax credit. Some of the credits listed may be discretionary in nature, meaning they would need to be negotiated and secured prior to making the subject investment or creating the jobs, while others are statutory incentives that may be claimed on the company’s state income tax filing.

The following chart identifies opportunities for tax credits associated with job creation. We generally excluded credits for hiring certain types of employees (e.g., unemployed, prior felons, etc.)

Job Tax Credit

State Program Name
Alabama Alabama Jobs Act – Jobs Credit
Approved Basic Skills Education Credit
Alaska Veteran Employment Credit
Arizona Quality Jobs Tax Credit 
Arkansas Existing WorkforceTraining Credit
Targeted BusinessPayroll Income Tax Credit
PayrollRebate
Advantage Arkansas JobCreation Income Tax Credit
California California Competes Credit
New Employment Credit
Colorado Job Growth Incentive Tax Credit
Connecticut Eligible Education Loan Payment Tax Credit
Human Capital Investment Credit
Delaware New Economy Jobs Credit
New Business Facility Corporate Income Tax Credit
District of Columbia Tax Credit to Qualified High Technology Companies for Wages
Florida Rural Job Tax Credit
Urban Job Tax Credit
Georgia Job Tax Credit
Quality Jobs Tax Credit
Retraining Tax Credit
Hawaii N/A
Idaho Tax Reimbursement Incentive
New Jobs Income Tax Credit
Illinois Economic Development for a Growing Economy (EDGE) Credit
High Impact Business Program
Indiana Economic Development for a Growing Economy (EDGE) Credit
Iowa High-Quality Jobs Program
New Jobs Tax Credit
Targeted Jobs Withholding Credit
Kansas Promoting Employment Across Kansas (PEAK) Incentive
High-Performance Incentive Training Credits
Kentucky Employee Skills Training Investment Credit
Kentucky Business Investment (KBI) Program
Kentucky Jobs Retention Act (KJRA) Credit
Louisiana Quality Jobs Program Rebate
Enterprise Zone Credit
Maine Pine Tree Development Zones
Maryland Job Creation Tax Credit
Massachusetts Economic Development Incentive Program Credit
Life Sciences - Refundable Jobs Credit
Veteran's Hire Tax Credit
Michigan N/A
Minnesota N/A
Mississippi Job Creation Tax Credits
National and Regional Headquarters - Income Tax Credit
Missouri Missouri Works Program
Business Facility Tax Credit Program
Montana Job Growth Incentive Tax Credit 
Nebraska ImagiNE Nebraska Act
Nevada Modified Business Tax Abatement
New Hampshire Economic Revitalization Zone Tax Credit
The Coos County Job Creation Tax Credit 
New Jersey Aspire Program
Emerge Program
New Jobs Investment Tax Credit
New Mexico High-Wage Jobs Credit
Job Mentorship Tax Credit
Rural Areas Jobs Credits
Veteran Employment Tax Credit
Welfare-to-Work Credit
New York Excelsior Jobs Program Tax Credit
Employment Incentive Credit
Employee Training Incentive Program Credit
Empire State Jobs Retention Credit
North Carolina N/A
North Dakota Workforce Recruitment Credit
Ohio Jobs Creation Tax Credit
Oklahoma New Jobs Credit
Oklahoma Quality Jobs Program Act
Oregon N/A
Pennsylvania Job Creation Tax Credit
Keystone Special Development Zone
Rhode Island Qualified Jobs Incentive Act
Employment Tax Credit
Jobs Training Credit
Investment Tax Credit
South Carolina Annual Job Tax Credit
South Dakota N/A
Tennessee Job Tax Credit
Texas N/A
Utah Economic Development Tax Increment Finance Tax Credit
Vermont N/A
Virginia Green Job Creation Credit
Major Business Facility Job Credit
Worker Training Tax Credit
Washington B&O Credit for New Employees in Manufacturing and Research and Development in Rural Counties
Veteran Hiring Credits
Washington Customized Training Program Credit
West Virginia High-Wage Growth Business Tax Credit
Corporate Headquarters Credit
Economic Opportunity Tax Credit
Wisconsin Business Development Credit
Enterprise Zone Tax Credits
Wyoming N/A

 

The following chart identifies opportunities for tax credits associated with capital investments. We generally excluded investments associated with venture capital/seed contributions, small business credits, and credits tied to investments made in certain geographic regions (e.g., brownfields, enterprise zones, etc.).

Investment Tax Credit

State Program Name
Alabama Alabama Jobs Act – Investment Credit
Alaska Salmon Product and Herring Development Tax Credit
Arizona Qualified Facilities Tax Credit
Arkansas ArkPlus Investment Income Tax Credit
California California Competes Credit
Colorado New Colorado Investment Credit
Old Colorado Investment Tax Credit
Connecticut Machinery and Equipment Expenditure Tax Credit
Urban and Industrial Site Reinvestment Tax Credit
Fixed Capital Tax Credit
Delaware New Business Facility Corporate Income Tax Credit Alternative Investment Tax Credit
District of Columbia N/A
Florida Capital Investment Tax Credit
Georgia Qualified Investment Tax Credit
Hawaii Capital Goods Excise Tax Credit
Idaho Investment Tax Credit
Illinois Economic Development for a Growing Economy (EDGE) Credit
Replacement Tax Investment Credit
High Impact Business Program
Indiana Hoosier Business Investment Tax Credit
Corporate Headquarters Relocation Tax Credit
Iowa High-Quality Jobs Program – Investment Tax Credit
Kansas High-Performance Incentive Investment Tax Credit
Kentucky Kentucky Reinvestment Act (KRA) Incentives
Kentucky Business Investment (KBI) Program
Recycling or Composting Equipment Tax Credit
Louisiana Retention and Modernization Credit
Maine Major Business Headquarters Expansion Credit
Maine Capital Investment Credit
Maryland Aerospace, Electronics, or Defense Contract Tax Credit
Biotechnology Investment Incentive Tax Credit
Cybersecurity Investment Incentive Tax Credit
Employer Security Clearance Costs Tax Credit
Massachusetts Economic Development Incentive Program Credit
Investment Tax Credit
Michigan N/A
Minnesota N/A
Mississippi Manufacturing Investment Tax Credit
Rural Economic Development Credit
Missouri Business Facility Tax Credit Program
Montana Credit for Investment in Property to Process Reclaimed Material
Mineral and Coal Exploration Incentive Credit
Nebraska ImagiNE Nebraska Act
Nevada N/A
New Hampshire N/A
New Jersey Aspire Program
Emerge Program
New Jobs Investment Tax Credit
New Mexico Investment Tax Credit
New York Investment Tax Credit
North Carolina N/A
North Dakota N/A
Ohio N/A
Oklahoma Investment Credit
Oregon N/A
Pennsylvania Qualified Manufacturing Innovation and Reinvestment Deduction
Rhode Island Investment Tax Credit
South Carolina Capital Investment Credit
South Dakota N/A
Tennessee Industrial Machinery Tax Credit 
Texas N/A
Utah Economic Development Tax Increment Finance Tax Credit
Vermont Machinery & Equipment Credit for REAP Zones
Virginia International Trade Facility Credit
Washington N/A
West Virginia Five for Ten Program
Manufacturing Investment Credit
Environmental Agricultural Equipment Tax Credit
Wisconsin Business Development Credit
Enterprise Zone Tax Credits
Wyoming N/A

 

The above lists are not all-inclusive and are meant as a general representation of the job and investment tax credits that may be applicable to your business operations. Next month we will release our Annual Economic Incentive Market Report which will highlight the top discretionary economic incentive programs in each state.

If you have any questions about the credits listed above or are interested in pursuing discretionary incentives for future capital investment and job creation, please reach out to Kelley Rendziperis at krendziperis@siteselectiongroup.com.

Topics:Distribution CentersManufacturingEconomic DevelopmentProperty Tax Abatements

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