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B. Special definitions <br />· Business property: tangible personal property that is used in connection with a <br /> business or for the production 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: Defined in section 179 of the Code. <br />· Purchase: Defined in section 179 of the Code. <br /> <br />C. 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 allows 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. Performance 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 Examples <br />· Developing hypothetical for clients: some cautions <br />· Review of sample impact estimates <br />· Relationship to tax liability <br /> <br />XI. INCREASED INDUSTRIAL DEVELOPMENT FUND PROJECT LIMITS <br /> <br />· Increases per project limits for existing fund to $400,000 <br />· Increases per job limits for existing fund to $4000 <br /> <br />i:trickJbriefcrd.doc <br /> <br />Developers' Presentation <br /> <br />7 8/5/96 <br /> <br /> <br />