CS for CS for SB 1390 - Tax Credits Summary

• Creates new tax credit for qualifying businesses establishing intellectual property projects with cumulative investments of $50-500 million over 3 years, providing 20-26 percent credits against corporate income tax, sales and use tax, or combination thereof.

• Establishes tax credit for qualifying businesses investing in production infrastructure costs exceeding $100 million over 10 years, allowing unused credits to carry forward 10-20 years after project commencement.

• Provides tax credit for strategic priority projects with eligible capital costs of at least $75 million at 20 percent of costs, with options to transfer credits within 1 year of grant.

• Creates $2 million tax credit for 2018 taxable year for passenger car rental/leasing companies (NAICS 53211) that engaged in 1031 exchanges between August 1, 2016 and August 1, 2017, with retroactive operation to January 1, 2018.

• Revises definitions in capital investment tax credit program to include intellectual property projects and production infrastructure, and authorizes credit revocation and rescission when investment thresholds are not met.