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BILL AS INTRODUCED 2007-2008

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S.359

Introduced by   Committee on Economic Development, Housing and General Affairs

Date:

Subject:  Economic development; taxation; environmental technology; jobs

Statement of purpose:  This bill proposes to amend the Vermont employment growth incentive (VEGI) to make it more effective for environmental technology businesses; to provide businesses a grace period in meeting

first-year employment goals for the VEGI program similar to the grace period for second and third years in that program; and to repeal the upcoming 2011 limitation on the sales tax exemption for aircraft parts.

AN ACT RELATING TO VERMONT EMPLOYMENT GROWTH INCENTIVE AND SALES TAX EXEMPTION FOR AIRCRAFT PARTS

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

* * * Increase in Vermont Employment Growth Incentive for Environmental Technology Businesses * * *

Sec. 1.  32 V.S.A. § 5930b(g) is added to read:

(g)  Employment growth incentive for environmental technology business.

(1)  For purposes of this subsection, an “environmental technology business” means a business that is subject to income taxation in Vermont and whose current or prospective economic activity in Vermont for which incentives are sought under this section is certified by the secretary of commerce and community development to be primarily research, design, engineering, development, or manufacturing activity related to any one or more of the following:

(A)  Waste management, including waste collection, treatment, disposal, reduction, recycling, and remediation.

(B)  Natural resource protection and management including water and wastewater purification and treatment, air pollution control and prevention or remediation, soil and groundwater protection or remediation, and hazardous waste control or remediation.

(C)  Energy efficiency or conservation.

(D)  Clean energy, including solar, wind, wave, hydro, geothermal, hydrogen, fuel cells, waste-to-energy, or biomass.

(E)  Any other environmental technology certified by the secretary of commerce and community development.

(2)  Any application for a Vermont employment growth incentive under this section for an environmental technology business shall be considered and administered pursuant to all provisions of this section, except that:

(A)  the “incentive ratio” pursuant to subdivision 5930b(a)(11) of this title shall be set at 100 percent; and

(B)  the “payroll threshold” pursuant to subdivision 5930b(a)(17) of this title shall be deemed to be zero.

* * * Adding a First-Year Grace Period for Meeting

 VEGI Employment Targets * * *

Sec. 2.  32 V.S.A. § 5930b(c)(5) and (6) are amended to read:

(5)  A business whose application is approved and, in the first award period year, fails to meet or exceed its payroll target and one out of two of its jobs and capital investment targets shall forfeit all authority to earn and claim incentives under this section.  The department of taxes shall notify the Vermont economic progress council that the first year award period targets have not been met, and the council shall rescind the incentive authorization in its entirety.

(6)  A business whose application is approved and, in the first, second, or third year of the award period, fails to meet or exceed its payroll target and one out of two of its jobs and capital investment targets may not claim incentives in that year.  To the extent such business reaches its first, second, or third year award period targets within the succeeding two calendar year reporting periods immediately succeeding year one, two, or three of the award period, which ever is applicable, such business may claim incentives in five-year installments as provided in subdivisions (1) through (4) of this subsection.  A business which fails to meet or exceed its payroll target and one of its two jobs and capital investment targets within this time frame shall forfeit all authority under this section to earn and claim incentives for award period year one, two, or three, as applicable, and any future award period years. The department of taxes shall notify the Vermont economic progress council that the first, second, or third year award period targets have not been met within the prescribed period, and the council shall rescind authority for the business to earn incentives for the activity in year one, two, or three, as applicable, and any future award period years.

* * * Repeal 2011 Limitation on

 Sales Tax Exemption for Aircraft Parts * * *

Sec. 3.  REPEAL

     Secs. 7a and 7b of No. 81 of the Acts of 2007 (sales tax exemption for aircraft parts limited to commercial aircraft only, beginning July 1, 2011) are repealed.

* * * Effective Dates * * *

Sec. 4.  EFFECTIVE DATES

     This act shall take effect upon passage, except Sec. 2 of this act (Vermont economic growth incentive first-year grace period) shall take effect retroactively as of January 1, 2007.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us