Tax incentives for high-growth companies

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Several new measures providing tax incentives to encourage the creation and expansion of high-growth companies are highlighted in SSTI's  report, "Trends in Tech-based Economic Development: Local, State and Federal Action in 2013."

These measures include:

  • Arizona: expansion of the state's R&D tax credit by providing a refund for R&D activities to small, innovative companies with little or no cash flow
  • California: replacement of enterprise zone tax breaks with a sales tax exemption of manufacturing or R&D equipment, a hiring credit for businesses in high unemployment areas, and a jobs-based tax credit
  • Florida: elimination of the sales tax on manufacturing equipment
  • Hawaii: extension of an income tax credit for research activities
  • Maine: extension of the Seed Capital Tax Credit for investors

  • Maryland: creation of a refundable tax credit for investors in seed and early state cybersecurity companies plus expansion of the R&D and biotechnology tax credits
  • New Hampshire: expansion of the state's R&D tax credit
  • New Jersey: establishment of an angel tax credit program for investors in businesses that conduct research, manufacturing or technology commercialization
  • Texas: creation of an R&D tax credit against the franchise or sales tax

The report also addresses a few initiatives to increase accountability and transparency for economic development investments, noting bills passed in Indiana, Rhode Island and Texas.

The full trends report can be read here.

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