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‚ÄčTax Credit Reports

Act 25 of 2022 expanded the reporting requirements of tax credits and tax benefits to allow for greater transparency. The administering agency of the tax credit or tax benefit is now required to publish a report no later than 45 days after the end of a program year. The report is statutorily required to contain the following:

(1)  The name of each applicant that received a tax credit or tax benefit in the prior program year.

(2)  For a tax credit, the amount of tax credit awarded to each applicant.

(3)  For a transferrable tax credit, whether an applicant sold, assigned, or transferred any tax credit in the prior program year.

(4)  If applicable, an itemization of expenses and jobs generated as a result of the receipt of the tax credit or tax benefit.

(5)  If available to the administering agency, all of the following relating to a transferrable tax credit:

(i)  The name of the recipient to which the transferrable tax credit was sold, assigned, or transferred in the prior program year. Individuals receiving the tax credit are exempt from this requirement.

(ii)  The amount of the transferrable tax credit that was sold, assigned, or transferred.

(iii)  The price for which a tax credit was sold, assigned or transferred.

While basic reporting for the Research and Development (R&D) Tax Credit has been compulsory since its creation by Act 7 of 1997, requirements were expanded by Act 46 of 2003 to include the names of all taxpayers utilizing the credit and the amount of credits approved and utilized by each taxpayer. The R&D report to be published in October 2023 will also incorporate the additional requirements of Act 25 above.