The Benefits | Investment Tax Credit

An investment tax credit is available for the purchase of production property and equipment used to produce goods. This credit is also available for property and equipment purchased for the financial securities industry, industrial waste treatment facilities, air pollution control facilities, and research and development.

The credit is equal to 10% for business corporations and 8% for personal income tax filers.

The investment tax credit cannot reduce the franchise tax for any tax year to less than the alternative minimum tax or the fixed dollar minimum. Any amount of the credit that cannot be used in a given tax year may be carried over to succeeding years. A taxpayer that qualifies as a new business may elect to treat 50% of the credit amount available for carryover as an overpayment of the taxpayer’s tax.