NO. 2. AN ACT RELATING TO WOOD PRODUCTS MANUFACTURE INCOME TAX CREDIT.
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 5930y is added to read:
§ 5930y. Wood Products Manufacture TAX Credit
(a) The secretary of commerce and community development, annually on or before February 1, shall designate any two adjacent counties having at least five percent of their combined jobs provided by employers that manufacture finished wood products and having the highest combined unemployment rate in the state for at least one month in the previous calendar year. Upon making a designation, the secretary shall send a written notice to the commissioner of taxes identifying the designated counties.
(b) A credit against the income tax liability is available as follows:
(1) A credit of two percent of the wages paid in the taxable year by an employer for services performed in the designated counties associated with the manufacture of finished wood products. The credit shall be available to the employer in any year the counties qualify and for one year after a qualification ends.
(2) The credit, either alone or in combination with any other credit allowed by this chapter, shall not reduce the income tax liability of the employer by more than 80 percent.
(3) The recapture of development incentives established in subchapter 6 of chapter 47 of Title 3 shall apply to the tax credits in this section, except that the provisions of subsection 2512(c) of that title shall not apply to a business relocation outside the designated counties.
Sec. 2. EFFECTIVE DATE; SUNSET
Sec. 1 of this act (wood products manufacture tax credit) shall apply to taxable years beginning on or after July 1, 2005. 32 V.S.A. § 5930y is repealed July 1, 2006, and no credit under that section shall be available for any taxable year beginning on or after July 1, 2006.
Approved: June 22, 2005
The Vermont General Assembly
115 State Street