HB 1354 Summary

• Provides a sales and use tax credit for purchases of building materials made by property owners in enterprise zones from businesses located within those zones (100% credit) or in cities containing enterprise zones (50% credit), for redevelopment or rehabilitation purposes.

• Adds a 1% allowance to retail merchants' sales tax collection allowance if located in an enterprise zone, in addition to existing allowances.

• Creates an adjusted gross income tax deduction for individuals equal to qualified increased enterprise zone income earned during the taxable year, including distributive shares from pass-through entities.

• Establishes a jobs creation tax credit of $1,500 per new full-time employee hired at an enterprise zone location, with credit carryover and refund provisions for unused amounts.

• Effective dates: July 1, 2013 for sales tax provisions; January 1, 2014 for income tax and jobs credit provisions.