HD12 - Neighborhood Assistance Act Tax Credit – September, 2016
Report of the Joint Subcommittee to Evaluate Tax Preferences on the Neighborhood Assistance Act tax credit program pursuant to Item 1.S. of Chapter 780 of the 2016 Acts of Assembly.
Item 1.S. of Chapter 780 of the 2016 Acts of Assembly (the Appropriation Act) directed the Joint Subcommittee to Evaluate Tax Preferences (the Joint Subcommittee) to "undertake a review of the Neighborhood Assistance Act tax credit program and to report to the General Assembly on any proposed changes to the program structure, eligibility requirements, distribution of funding or overall funding amounts made available to the credit."
The Joint Subcommittee incorporated review of the Neighborhood Assistance Act tax credit program as a part of its agenda during the 2016 interim. Staff from the Division of Legislative Services and the Department of Taxation compiled a report providing an overview of (i) the legislative history and current statutory provisions of the program, (ii) the fiscal impact of the credit, and (iii) similar tax credit programs offered in other states. The Joint Subcommittee discussed various provisions of the credit at length and opened the floor to public comment at two separate meetings. Ultimately, however, the Joint Subcommittee did not make any formal recommendations to amend the current provisions of the tax credit program.