HB10-1396 Summary

• Eliminates income tax credits available through the Urban and Rural Enterprise Zone Act effective January 1, 2011, affecting six credit types: contributions to zone administrators, property investment, job training programs, new business facility employees, research and experimental activities, and vacant building rehabilitation.

• Eliminates the sales and use tax exemption for machinery and machine tools purchases used solely and exclusively in enterprise zones effective January 1, 2011.

• Allows transitional credits for income tax years commencing prior to January 1, 2011 under existing agreements, with reduced percentages for some credits (from 50% to 25% for administrator contributions).

• Establishes a temporary three-year commercial trucking vehicle credit from 2011-2015 with increasing percentages (0.5% to 3%), then repeals the entire article effective January 1, 2025.

• Takes effect August 11, 2010, subject to voter approval if a referendum petition is filed within 90 days of adjournment.