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Business property: tangible personal property that is used in connection with a <br />business or for the prodr.'ction of income. Must be capitalized under the Code. <br />Luxury passenger automobiles and watercraft used principally for entertainment and <br />pleasure, with no admission charge, are not eligible. <br />Cost: Oefined in section 179 of the Code. <br />Purchase: Defined in section 179 of the Code. <br /> <br />Linkage with Investment Tax Credit <br />Taxpayer cannot take Business Property Tax Credit and Investment Tax Credit <br />against the same property. <br /> <br />D. Linkage with IRS expensing rules <br />· IRS a([ows expensing of business property up to $17,500 for small business; the <br /> limit will increase to $25,000 over next seven years. <br /> <br />E. Perf'ormance requirements <br />· If property is moved out of state or sold within the five year period, the credit expires. <br />· The taxpayer must maintain and make available to the Department of Revenue <br /> records the Secretary considers necessary for verifying eligibility and the amount of <br /> the credit <br />· The Secretary of Revenue must report annually the number of taxpayers claiming <br /> the credit, the cost of property for which credits were claimed, and the total cost. <br /> <br /> IX, Preliminary Thoughts on Process <br />· When to file the application <br />· Role of Commerce Finance Center <br /> <br /> X. Some Hypothetical Examp'ies <br />· Deveicping hypothetical for clients: some cautions <br />· Review of sample impact estimates <br />· Relationship to tax liability <br /> <br /> Xi. iNCREASED INDUSTRIAL DEVELOPMENT FUND PROJECT LIMIT~ <br />l~'~reases per project limits for existing fund to $400,000 ' <br />increases per job limits for existing fund to $4000 <br /> <br />i:/ricldbdefcrd.doc <br /> <br /> <br />