Virginia—Corporate, Personal Income Taxes: Worker Training Credit Extended and Expanded
Apr. 18, 2022
The sunset date for the Virginia worker training tax credit has been changed from January 1, 2022, to January 1, 2025. In addition, eligible training has been expanded to include courses at any Virginia public institution of higher education.
Ch. 431 (H.B. 695), Laws 2022, effective July 1, 2022
Maine—Corporate Income Tax: Employment Tax Increment Financing Provisions Amended
Apr. 19, 2022
Enacted Maine corporate income tax legislation changes the benefit calculation for employment tax increment financing.
Benefit Calculation Beginning in 2022
For requests for reimbursement for calendar years beginning after December 31, 2021, the amount of reimbursement must be based on the benefit base for a qualified employer rather than on the amount of income tax withheld for qualified employees.
Definitions
“Benefit base” means the total incremental gross wages paid during the calendar year by a qualified business to qualified employees multiplied by 4.5%.
“Gross employment tax increment” means the total gross wages paid by a qualified business to qualified employees above the base level of employment for the qualified business. Finally, “gross wages” means taxable wages, tips and other compensation included on the wage and tax statement for services performed in this State during the calendar year.
L.D. 1156 (H.P. 834), Laws 2022, effective 90 days after adjournment of the Maine Legislature
Mississippi—Multiple Taxes: Mississippi Flexible Tax Incentive Act Enacted
Apr. 22, 2022
The Mississippi Flexible Tax Incentive Act has been signed into law. The Act creates credits against state taxes for qualified economic development projects, including:
- income taxes;
- franchise tax;
- withholding tax; and
- sales tax (excluding contractor’s tax).
In order to qualify, businesses must create a new enterprise or expand upon an existing enterprise in Mississippi, make a minimum qualified investment of at least $2.5 million, and create at least 10 new full-time jobs within the state.
S.B. 2159, Laws 2022, effective July 1, 2022
Kansas—Corporate, Personal Income Taxes: Changes Coming for R&D Credit
Apr. 21, 2022
Kansas is making changes to the research and development (R&D) credit for tax years after 2022 that include:
- offering the credit to all eligible taxpayers, including personal income taxpayers, not just corporate income taxpayers;
- increasing the credit from 6.5% to 10% of a taxpayer’s R&D expenses; and
- allowing taxpayers without a current tax liability to transfer the credit.
Ch. 63 (H.B. 2239), Laws 2022, effective July 1, 2022 and as noted
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The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or other tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
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