SB274 Summary

• Extends the period to satisfy initial employment and wage requirements from one year to two years for capital credit projects placed into service in 2019, 2020, or 2021 that were directly affected by the COVID-19 pandemic.

• Exempts approved project entities from disqualification for failing to meet annual employment and wage requirements during tax years 2020-2021 if the COVID-19 pandemic was the primary cause of the failure.

• Eliminates forfeiture penalties for projects failing to maintain employment and wage requirements before January 1, 2022, but imposes a 100% forfeiture penalty on capital credits for tax years beginning after January 1, 2022, reduced by 20% for each successive prior year within a five-year forfeiture period.

• Increases the exemption amount for severance, unemployment compensation, and termination pay from $25,000 to $50,000 per tax year for employees terminated due to administrative downsizing, effective for tax years beginning after December 31, 2019.

• Makes unemployment compensation received under federal CARES Act provisions completely exempt from state, county, and municipal income tax for tax years 2020 and 2021.