In order to receive the tax credit, contributions must be made during the department-approved fund-raising time period. No more than one million dollars in tax credits can be authorized annually and the programs total tax credit issuance is capped at three million dollars over the life of the program. The tax credit can be used to offset a taxpayer's income tax; corporate franchise tax; financial institutions tax; or bridge, express, and public utilities tax. Tax credits can be carried forward for up to five years or transferred. A regional economic development organization may submit an application to the department for a tax credit authorization. An approved organization must submit quarterly reports detailing its expenditures and the progress of its project. Within six months of the end of the project, the organization must report its results and submit an audit to the department. If funds have not been expended in accordance with the approved application or the project has not been completed, the organization must repay the department an amount equal to the tax credits issued. No application will be authorized to receive more than two million dollars in tax credits and no more than fifty thousand dollars of the tax credits received per year can be used to support the operation of the organization, including salaries, marketing, operating expenses, and equipment.

The act creates a five hundred dollar income tax credit for the purchase of a new or existing home. In order to qualify, the home must be purchased between June 1, 2008 and November 30, 2008 for a purchase price which is equal to or less than the Federal Housing Administration's insured traditional forward loan limit for the county in which the home is located. The tax credit is fully refundable. In the case of multiple ownership, the tax credit will be allocated to all owners based upon ownership interest. In no event will more than five hundred dollars in tax credits be issued for a purchase of any one home. The tax credit program is capped at two million dollars, and credits will be issued on a first-to-file first-to-receive basis. The provisions of the act creating the tax credit will expire August 28, 2009.

The act authorizes a state and local sales and use tax exemption for purchases of electricity, gas, propane, water, telecommunications services, other utilities, machinery, and equipment by a person operating a business in a mine that is not used for mining. To be eligible, the mine must contain at least one million square feet of space for business use and the business facility must be operated by a qualified company that is engaged or has been engaged in a high impact, technology business, or small and expanding business project at the business facility.

The provisions of the act regarding the Regional Economic Development Initiative will expire three years from the effective date of the act.

JASON ZAMKUS