Another little word is "refundable" which means if no taxes are owed the public owes the holder a cash payment- or equivalent there of.
They use these in Maine in conjuction with tax exemptions that are in separate acts and often worth 100% of the holder's taxes.
But in the media and on the state websites "refundable tax credits" are referred to simply as "tax credits. To know that it is a refundable tax credit, one must read the statute. The name of one tax credit is the Seed Caputal Tax Credit, but it is really The Seed Capital Refundable Tax Credit.
A refundable tax credit compined with a tax exemption is a subsidy.
In Maine at one point the Seed Capital (refundable) Tax credit was once worth 60% of the corporation's capitalization costs. Its now been reduced to 40% and that is also high. Then there are the matching funds. First stop by and pick up your tax exemption, then get your matching fund- and then your Seed Capital (refundable) tax credit. I do not know if there were stipulations about combining the matching fund and the tax credit but I have not come across any and I have been reading the statutes for years. A lot of things are acheived by the State Legislature through the ommission method of writing bills.
Another little word is "refundable" which means if no taxes are owed the public owes the holder a cash payment- or equivalent there of.
They use these in Maine in conjuction with tax exemptions that are in separate acts and often worth 100% of the holder's taxes.
But in the media and on the state websites "refundable tax credits" are referred to simply as "tax credits. To know that it is a refundable tax credit, one must read the statute. The name of one tax credit is the Seed Caputal Tax Credit, but it is really The Seed Capital Refundable Tax Credit.
A refundable tax credit compined with a tax exemption is a subsidy.
In Maine at one point the Seed Capital (refundable) Tax credit was once worth 60% of the corporation's capitalization costs. Its now been reduced to 40% and that is also high. Then there are the matching funds. First stop by and pick up your tax exemption, then get your matching fund- and then your Seed Capital (refundable) tax credit. I do not know if there were stipulations about combining the matching fund and the tax credit but I have not come across any and I have been reading the statutes for years. A lot of things are acheived by the State Legislature through the ommission method of writing bills.