Some Statutory Tax Incentives Require State Approval
- Single sales factor apportionment for income tax purposes,
- Sales and use tax exemptions,
- Investment tax credits, and
- Local property tax exemptions.
The requirements are statutory. However, a relatively complicated application is due by January 31st and annual re-certifications are required.
Transferable Tax Credits
Both statutory and negotiated credits can be transferrable to other taxpayers.
For example, in Pennsylvania, several credits including the Keystone and R&D Credits can be transferred to other taxpayers if they cannot be utilized. This process generally requires approval by the state as the buyer or transferee generally requires assurances from the state that the credits are accurate that there will be no recourse to the company that has purchased the credits.
Currently, over 15 states have transferrable tax credits programs. Some of the most popular and successful programs involved film tax credits. PMBA state tax credit and incentive team work with companies across the United States in buying and selling transferrable tax credits.
State R&D Tax Programs
Most states offer a tax credit for research and development performed within their state. If a company performs such activities they can obtain the credit on their tax return. Visit our State R&D Webpages to see which states have programs and how to apply.
States and the R&D Credit:
Angel Investor Tax Credit Program
All investors that invest in a qualifying NJ emerging technology business may benefit from a tax credit. For more information on the program visit the NJ EDA Website.
The PMBA team has over 25 years of experience in helping companies identify and monetize state and local tax credits and incentives. Call us today to schedule an initial consultation.