Tax Credits

WASHINGTON - The House voted Tuesday to roll back income tax increases on the vast majority of Americans, finalizing a deal on the so-called fiscal cliff after weeks of gridlock. The approval, in a session that stretched late into the New Year's holiday, came after hours of closed-door debate among Republicans, with conservatives threatening to derail a bill that had overwhelmingly passed the Senate in the early hours of the morning. The final tally, 257 to 167, included support from 172 of the chamber's Democrats and just 85 of the majority Republicans, far fewer than half.

SACRAMENTO - A battle is raging over a California program that grants businesses tax breaks for creating jobs but prevents the public from knowing who got them and why. At issue are enterprise zones, which were established to boost employment in disadvantaged urban neighborhoods and rural areas. California is home to 40 of these special districts, in which about 35,000 companies have qualified for tax credits. Last year they reaped an estimated $700 million in credits - a figure that state tax officials project will grow to $1 billion by 2016.

If you've been holding back on the new $6,500 federal tax credit for repeat home purchases, you now have all the official IRS guidance you'll need to buy a house, qualify for the credit and pocket the $6,500. That's because the Internal Revenue Service finally published the rules for the repeat purchase credit along with key details for taxpayers that had been missing since President Obama signed the legislation creating the program Nov. 6. The IRS posted its revised Form 5405 on its website ( www.irs.

The California Film Commission saw a nearly 20% jump in the number applications for its annual film tax credit lottery. The Film Commission said 380 projects had applied for a piece of the $100 million the state allocates annually for film and television projects. That's up nearly 18% from a year ago, when only 28 projects were approved for credits -- the same number that were approved on Monday. Film Commission officials said the winning projects would be identified Tuesday, after applicants have been notified.

An old show business adage is that everyone wants to get in on the act, which is what's happening in Sacramento as legislators scramble to propose bills to give tax breaks to Hollywood to keep and develop entertainment jobs in California.

This year's $8,000 federal tax credit for first-time home buyers has attracted as many as 90,000 ineligible claimants -- including a 4-year-old child -- raising questions about efforts to extend the popular program. In all, tax credit claims totaling more than $600 million are suspicious, tax officials testified Thursday before Congress. The credit, on home sales to first-time buyers that close through Nov. 30, is an important piece of the $787-billion stimulus package enacted in February and is part of the Obama administration's effort to lift housing sales.

Question: How do you pack a theater with jaded movie industry professionals? Answer: Show them the latest hot information on film tax credits. Nearly 200 people crammed into an auditorium at the Landmark Theatre in West Los Angeles recently to learn the latest skinny on the kind of topic that would set an accountant's heart aflutter. The filmmakers, production executives and bankers were attending the Spring Fling Production Incentives Symposium, hosted by the aptly named Incentives Office, a Los Angeles firm that helps filmmakers and lenders navigate the welter of tax credits and rebates.

SAN JOSE - After a morning of closed-door campaigning here Thursday, President Obama plans to talk about tax credits for clean energy production during a visit to Iowa. As he focuses on his administration's efforts to boost job creation, Obama plans to call on Congress to extend tax credits designed to encourage businesses to invest in clean energy production, senior officials said. Obama is scheduled to make his remarks on a visit to TPI Composites, a global provider of composite wind blades to major turbine manufacturers.

Re "Do Hollywood tax credits really help the economy?," Sept. 6 The Times' article expressing skepticism over the effectiveness of tax credits for filming in California avoids mentioning New York. That state's astronomical handout to the film business amounts to more than $400 million a year (compared to the proposed $100 million a year for California through 2018). The success of New York's aggressive program can be measured by several indicators: a tenfold leap in production over as many years; a strengthening of the film talent base; an already booming tourist business that can now boast a "Hollywood on the Hudson" component; a business community well aware that film crews on the streets and on sound stages mean better business for everybody; and a population excited to have yet one more glamorous feather in its cap. The Times notes that other states have not seen this kind of return on their investment.

First it was artificially tanned, party-crazed Italian Americans. Now it's mud-racing, squirrel-hunting Appalachians. MTV is again at odds with state film officials who refuse to subsidize the network's latest reality TV show with tax credits. West Virginia film officials have cited MTV's unflattering depiction of state culture in "Buck Wild. " The show, scheduled to start filming next spring in Charleston and Sissonville, follows a group of recent high school graduates living in rural West Virginia as they participate in homegrown activities such as mud-racing.

Minnesota has a new Snowbate to entice film and TV productions. The state's new Film Production Jobs Program, known as Snowbate, has been voted into law. Minnesota lawmakers recently agreed to increase annual funding for the rebate program to $10 million from $500,000 starting July 1.  Film producers also will now be eligible to receive a rebate of up to 25% for work done in the state, which is competing with dozens of other states that offer...

SACRAMENTO - Gov. Jerry Brown is taking another stab at largely eliminating a state $700-million tax break for "enterprise zones" aimed at creating jobs in economically strapped localities. The governor failed in his efforts in 2011 to eliminate these politically popular quarter-century-old zones, located in the legislative districts of about three out of every four lawmakers. In his revised budget Tuesday, Brown proposed that 40 enterprise zones be replaced by a sales tax credit for companies that purchase manufacturing or biotech research and development equipment.

First it was Texas Gov. Rick Perry who came to California with his cowboy swagger and boasts about lassoing away businesses. Then the South Dakota governor swept through to recruit dairy farmers. Soon after, the Iowa governor made an appearance. Now they're coming in pairs. Joining forces, Utah Gov. Gary Herbert and Virginia Gov. Bob McDonnell are heading to California on Thursday to try their luck at wooing California businesses. On a two-day tour with stops in Costa Mesa, Palo Alto and San Francisco, the old friends plan to tout the wonders of doing business in their states.

SACRAMENTO - During his State of the State address last week, Gov. Jerry Brown detoured from his high praise for state government's recent thrift to take aim at a program that he says wastes hundreds of millions of tax dollars. Brown's previous efforts to scale back or eliminate the $700-million Enterprise Zone Program gained little traction with lawmakers. The program, which gives employers tax credits of up to $37,000 for each hire they make in areas designated as blighted, has survived despite numerous studies concluding that it does little to create jobs or development.

New York Gov. Andrew Cuomo wants a five-year sequel to the state's popular film and television tax credit program. As part of a budget unveiled Tuesday, Cuomo proposed extending New York's $420-million annual tax credit program five more years. The budget also proposes reducing restrictions on claiming the state's post-production portion of the credit and additional reporting to "document the effectiveness of the credit in creating jobs," according to a statement from the governor's office.

WASHINGTON - The House gave final approval Tuesday night to a bill to rescind tax increases for the vast majority of Americans, but only after a day of closed-door debate among Republicans, who were forced to allow a vote on a compromise many in their party disdained. The final tally, 257 to 167, included most of the chamber's Democrats and fewer than half of the Republican majority. The deal, largely negotiated by Vice President Joe Biden and Senate Republican Leader Mitch McConnell (R-Ky.)

For President Clinton to propose to give more money, in the form of earned income tax credits, to those who don't pay income taxes, in an income tax reform bill, is pure nonsense. No, it's more than that. It's welfare in disguise and a sop to supporters angry that he signed the welfare reform bill. DONALD HIRT Paso Robles

California's film tax credit program has helped to stem the flight of movies and TV shows since it was enacted in 2009, but would be improved with more funding and fewer restrictions on the types of projects that can qualify, a new study concludes. The report, "Fighting Production Flight," from the Milken Institute says the film tax credit program — which gives producers 20% to 25% tax credits toward qualified production expenses for films and TV shows shot in California — has been successful in that it has been oversubscribed and has had a "demonstrable impact in arresting the decline in filmed entertainment spending and employment in the state.

WASHINGTON - The House voted Tuesday to roll back income tax increases on the vast majority of Americans, finalizing a deal on the so-called fiscal cliff after weeks of gridlock. The approval, in a session that stretched late into the New Year's holiday, came after hours of closed-door debate among Republicans, with conservatives threatening to derail a bill that had overwhelmingly passed the Senate in the early hours of the morning. The final tally, 257 to 167, included support from 172 of the chamber's Democrats and just 85 of the majority Republicans, far fewer than half.

WASHINGTON - As negotiators closed in on a tax-and-spending deal to avert the “fiscal cliff,”  President Obama delivered a nationally televised plea Monday for a final push by Congress in the hours remaining before midnight Monday when taxes are set to increase. “They're close, but they're not there yet,” Obama said, referring to bipartisan talks led by Vice President Joe Biden and Senate Republican leader Mitch McConnell of Kentucky. The president added, “if there's one second left” before Congress has to act, “they will use that last second.” Among the issues left to be resolved, he said, confirming earlier news reports, is an agreement that would delay across-the-board spending cuts, which would otherwise go into effect on Wednesday.