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FTB “Tax News” April 2012
Here is the April 2012 edition of the FTB’s “Tax News” newsletter.
Congress to Review Tax Extenders
Congressman Dave Camp (R-MI), Chairman of the Ways and Means Committee issued a press release today announcing that the Committee would hold hearings in April to examine programs known as “tax extenders” which expired at the end of 2011 and have yet to be renewed. Included in these extenders are the WOTC and Research & [...]
Assemblymember Manuel Perez Named Chair of National Hispanic Caucus of State Legislators Business & Economic Development Task Force
The following is a press release from the National Hispanic Caucus of State Legislators which lists “defending the Enterprise Zone program from elimination in state budget negotiations” as among Assemblyman Perez’s accomplishments: WASHINGTON, March 21, 2012 /PRNewswire/ — The National Hispanic Caucus of State Legislators (NHCSL) proudly announces Assemblymember Manuel Perez (CA) as the new [...]
BNA Daily Tax Report: “Cement Maker Cannot Claim Enterprise Zone Tax Credits for Expensed Machinery Parts”
The following is from Laura Mahoney at the BNA Daily Tax Report on the Taiheiyo Cement case. Reproduced with permission from Daily Tax Report, 50 DTR K-5 (Mar. 15, 2012). Copyright 2012 by The Bureau of National Affairs, Inc. (800-372-1033) SACRAMENTO, Calif.—California’s enterprise zone tax credit is available for machinery parts if they are capitalized, [...]
FTB Wins its Case Against Taiheiyo Cement in Court of Appeals
The California State Court of Appeals agreed with the FTB’s narrow interpretation of Enterprise Zone Sales/Use Tax Credit laws when it sided with the FTB against Taiheiyo Cement U.S.A. this week. Taiheiyo had sued the FTB for nearly $5 million in refunds of taxes, interest and penalties paid as well as declaratory relief. Most importantly, [...]
New Enterprise Zone Bill From Assemblymember V. Manuel Pérez AB 2673
New bill language appeared today for AB 2673 authored by Assemblymember V. Manuel Pérez, Chairman of the Assembly Jobs Committee. I spoke to the Committee’s consultant Toni Symonds for clarification. Chairman Pérez now has two Enterprise Zone bills: AB 1411 is intended to be the vehicle for a comprehensive program reform package that will attempt [...]
FTB “Tax News” March 2012
Here is the March 2012 edition of the FTB’s “Tax News” newsletter.
Senator Ted Lieu Takes LAO to Task on Twitter
The Legislative Analysts Office (LAO) has been consistently critical of all State tax credit programs. At a recent hearing the LAO distributed this report which discusses the cost of “tax expenditures,” i.e. tax credits. Senator Ted Lieu took aim at the LAO report in a string of comments on Twitter. In his first comment he [...]
Two New Hiring Tax Credits Proposed
A pair of new bills proposing new hiring tax credits went into print today. SB 1179 by Senator Walters proposes a new credit for manufacturers who hire disabled workers. SB 1197 by Senator Calderon proposes a new hiring credit for any California employer who hires a veteran as defined by the new federal WOTC veteran [...]
Press Release From Assemblyman Alejo on AB 484
The following is a press release published today by Assemblymember Luis Alejo regarding AB 484 and his view of the necessity to extend the designation of the Watsonville Enterprise Zone: Assemblymember Alejo (D-Salinas) is authoring AB 484 to allow an expiring enterprise zone to be eligible to receive all enterprise zone benefits until the California [...]
League of California Cities Supports Alejo Bill to Extend Watsonville and Antelope Valley Enterprise Zones
The League of California Cities has released a statement in support of AB 484, the new bill by Assemblyman Alejo which would extend the expiring Watsonville and Antelope Valley Enterprise Zones until HCD designates new zones.
Assemblyman Alejo Acts to Save Watsonville Enterprise Zone
Assemblyman Luis Alejo (D-28) has gutted and amended AB 484, which has already passed through the Assembly and now resides in the Senate. According to language posted today, the bill would: …authorize the jurisdiction of an expiring enterprise zone to send a letter to the department expressing the intent of the jurisdiction to reapply for [...]
New Director of HCD Appointed
The Governor’s office published the following press release today announcing the appointment of a new director of HCD: Linn Warren, 59, of Davis, has been appointed director of the California Department of Housing and Community Development. Warren has been a program director at the California Housing Finance Agency since 2010, where he served in multiple [...]
IRS Issues New Rules for Claiming New Vet WOTC Categories
The IRS released a bulletin today explaining the new WOTC categories established by the VOW to Hire Heroes Act of 2011 which was enacted Nov. 21, 2011. The Service also provided more detailed guidelines as well as an update form 8850. The guidelines introduce three significant changes to the mechanics of the program: 1. Since [...]
Dicon Fiberoptics v. FTB Scheduled for Oral Argument in Supreme Court
A case involving the FTB’s ability to scrutinize the documentation behind Enterprise Zone vouchers has been scheduled on March 6 for argument in the California Supreme Court after a long delay. The following is the summary of the matters at hand from the Court: Dicon Fiberoptics v. Franchise Tax Bd., S173860. (173 Cal.App.4th 1082; Los [...]
