§ 36 §5215 — Jobs and investment tax credit

1.
Credit allowed.
A taxpayer, other than a public utility as defined by Title 35‑A, section 102, is allowed a credit to be computed as provided in this section against the tax imposed by this Part, subject to the limitations contained in subsection 3. The amount of the credit equals the qualified federal credit, as defined in subsection 2, for taxable years beginning on or after January 1, 1979, except that a credit may be taken with respect to used property, and may not be allowed with respect to an excluded investment.
2.
Definitions.
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
3.
Limitations.
The tax credit for any taxable year is applicable only to those taxpayers:
4.
Carry-over.
The amount of credit that may be used by a taxpayer for any taxable year may not exceed either $500,000 or the amount of tax otherwise due, whichever is less. Any unused credit may be carried over to the following year or years for a period not to exceed 7 years, including the year the credit was first taken, and may be deducted from the taxpayer's tax for that year or those years, subject to the same limitations provided in this subsection.
5.
Carry-back.
There may be no carry-back to prior years of the amount of credit allowable under this section.
6.
Recapture.
If, during any taxable year, any qualified investment property is disposed of, or otherwise ceases to be property covered by subsection 3, paragraph A with respect to the taxpayer, before the end of the useful life that was taken into account in computing the credit under subsection 1, then the tax under this Part for that taxable year must be increased by an amount equal to the aggregate decrease in the credit allowed under subsection 1 for all prior taxable years that would have resulted solely from substituting for the useful life, in determining qualified investment under the Internal Revenue Code of 1954 as of December 31, 1985, the period beginning with the time the property was placed in service by the taxpayer and ending with the time the property ceased to be property covered by subsection 3.
6-A.
Affiliated groups; tax years prior to January 1, 1995.
This subsection applies retroactively to all tax years beginning before the effective date of this subsection as well as prospectively to all tax years beginning on or after the effective date of this subsection but prior to January 1, 1995 and for which the taxpayer's right to file an original or amended return had not or has not expired at the time of the taxpayer's filing of the return. In the case of corporations that are members of an affiliated group engaged in a unitary business, the credit provided for in this section applies as follows.
6-B.
Affiliated groups; tax years beginning on or after January 1, 1995.
This subsection applies to tax years beginning on or after January 1, 1995. In the case of corporations that are members of an affiliated group engaged in a unitary business, the credit provided for in this section applies as follows.
6-C.
Application.
Except for the credit allowed with respect to the carry-over of unused credit amounts pursuant to subsection 4, the tax credit allowed under this section does not apply to tax years beginning on or after January 1, 2016.
7.
Legislative findings.
The Legislature finds that encouragement of the growth of major industry in the State is in the public interest and promotes the general welfare of the people of the State; that the use of investment tax credits to encourage industry to make substantial capital investments in the State is necessary to promote the purpose of the Legislature of encouraging the growth of industry; and that the requirements of at least $5,000,000 in qualified investment in the State and an increase of at least 100 new jobs following the investment are reasonable qualifying criteria for the application of an investment tax credit and will best promote substantial capital investment in the State.
8.
Report on jobs and investment tax credit.

Legislative History

PL 1977, c. 722 (NEW). PL 1979, c. 541, §A237 (AMD). PL 1981, c. 364, §69 (AMD). PL 1985, c. 535, §§16-18 (AMD). PL 1987, c. 504, §31 (AMD). PL 1987, c. 772, §39 (AMD). PL 1987, c. 880, §§1-3 (AMD). PL 1993, c. 395, §21 (AMD). PL 1993, c. 672, §1 (AMD). PL 1993, c. 672, §2 (AFF). PL 1995, c. 560, §§G19,20 (AMD). PL 1997, c. 504, §§14-16 (AMD). PL 1997, c. 761, §§3,4 (AMD). PL 1999, c. 414, §§45,46 (AMD). PL 1999, c. 414, §56 (AFF). PL 1999, c. 708, §44 (AMD). PL 2001, c. 652, §10 (AMD). PL 2003, c. 391, §§7,8 (AMD). PL 2007, c. 627, §89 (AMD). PL 2015, c. 267, Pt. DD, §20 (AMD).