How do the new programs outlined in last night’s State of the Union address impact us in Downtown Tucson?
January 25, 2012
We are still analyzing the information, but a preliminary review of the proposals outlined by the President last night has been conducted by Michael Novogradac. Links to the original documents are included in his fine post: http://novogradac.wordpress.com/ Quotes and items in italic below are from Mr. Novogradac’s piece.
Major tax credits will be available for communities that sustain a major loss of jobs (understood to be when a military base closes or a large manufacturer leaves town). Hopefully, this will not apply to Downtown Tucson.
Of use in Tucson is the proposed extension of the provision that allows businesses to expense the full cost of their investments in equipment. The obvious goal is to increase investments here. The administration says that over the next two years, this would provide businesses with $50 billion in tax relief.
“A related proposal would make permanent, enhance and simplify the Research and Experimentation Tax Credit. The administration says that about 70 percent of the benefit directly supports jobs in the United States, and every dollar spent encourages U.S.-based investment, as only research and experimentation performed in the United States is eligible.” The high tech start-ups based at the AZ Center for Innovati0n and around the City should be sure to review this proposal. Call us if you would like some assistance (837-6508).
With regard to jobs:
To boost employment, the president proposed efforts to promote new skills and better education. Among the proposals he suggested were:
- a partnership between community colleges and businesses to help train and place 2 million skilled workers,
- a Veterans Jobs Corps that would help communities hire veterans as cops and firefighters,
- and reforming job training and Unemployment Insurance to help dislocated workers get back to work.
During these remarks, he referenced new tax credits for companies that hire veterans. The Returning Heroes Tax Credit provides businesses that hire unemployed veterans with a credit of up to $5,600 per veteran, and the Wounded Warriors Tax Credit offers a credit of $9,600 per veteran for businesses that hire veterans with service-connected disabilities.
We all need to focus on employing our returning heroes.
The President’s budget will be released February 13 and further details about these credits should be available by then.