SB 1055 Summary

• Establishes a program allowing businesses to exchange accumulated tax credits for approval of capital projects that expand operations, increase employment, or generate substantial economic returns, subject to Commissioner of Economic and Community Development approval and econometric analysis.

• Creates two tax credit auctions administered by the Commissioner: a Technical Education Cooperative (TEC) initiative auction (minimum bid 80 cents per dollar of credit) to fund workforce development and technical education programs, and an innovation investment fund auction (minimum bid 80 cents per dollar of credit) requiring investments of $5-10 million in state start-up businesses or corporate spin-offs.

• Allows film production tax credits to be claimed against sales and use taxes (chapter 219) for income years commencing on or after January 1, 2018, with a 6-cent-per-dollar fee deposited into the TEC initiative account.

• Permits estates of decedents dying on or after January 1, 2021, to reduce estate tax liability by half the amount invested in TEC initiatives or innovation investment funds (capped at $5 million per decedent and $30 million aggregate), with a four-year holding period requirement.

• Caps total accumulated credits exchanged across all auctions at $50 million and requires annual reporting to legislative committees on applications received, approved projects, and projected state revenues.