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BILL AS INTRODUCED 2007-2008

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H.668

Introduced by Representatives Morley of Barton, Bostic of St. Johnsbury, Clark of St. Johnsbury, Hudson of Lyndon, Johnson of Canaan, Kilmartin of Newport City, Larocque of Barnet, Larrabee of Danville, Lawrence of Lyndon, Leriche of Hardwick, Marcotte of Coventry, Peaslee of Guildhall, Randall of Troy, Rodgers of Glover, Shaw of Derby and Wheeler of Derby

Referred to Committee on

Date:

Subject:  Taxation; income tax; wood products tax credit

Statement of purpose:  This bill proposes to increase the wood products income tax credit.

AN ACT RELATING TO WOOD PRODUCTS INCOME TAX CREDIT

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 5930y is amended 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 four 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.  Sec. 9 of No. 212 of the Acts of the 2005 Adj. Sess. (2006), is amended to read:

Sec. 9.  SUNSET

Sec. 2 of Act No. 2 of the Acts of 2005 is amended to read:

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, 2008, and no credit under that section shall be available for any taxable year beginning on or after July 1, 2008.

Sec. 3.  EFFECTIVE DATE

This act shall apply to taxable years 2008 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us