Cherrytree Group Blog

Tax Credits in the Recent News

[fa icon="calendar"] Jun 29, 2016 3:47:42 PM / by Warren Kirshenbaum

Our ever evolving world of tax credits has recently generated some interesting press. Today’s blog post will highlight some recent tax credit news.

Brought to the floor of the United States House of Representatives is a bill that proposes to increase the number of renewable energy sources that are eligible to qualify for the federal Section 45 investment tax credit(“ITC”). This proposed bill is presently limited to biogas-based electricity applicants, and would allow for a 30 percent tax credit.  With affirmative legislative support, the bill would include nutrient recovery systems and manure resource recovery as being eligible for this federal tax credit, and thus permit more incentives for the usage of renewable energy sources within agriculture.


A bill in teh US House of Representatives increases the number of renewable energy sources eligible for the federal section 45 investment tax credit.

The IT firm “SimpliVity” based in Westborough has taken advantage of Governor Charlie Baker’s Economic Development Incentive Program, leaving them with $100,000 in investment tax credits (“ITC”), and securing at least 100 jobs. The data center will also be able to retain an additional 390 jobs as well as generate another $400,000 in ITC’s over more than a year.

Cherrytree Group understands investment tax credits and their ability to generate jobs.

Locally, a new project development in Providence, RI could acquire about $1.4 million in Rebuild Rhode Island tax credits after the Rhode Island Commerce Corporation recommended that the new Hyatt Place Hotel in Warwick receive up to $5.3 million in economic incentives. the tax credits can be utilized by the developer, transferred to third parties, or redeemed back by the state at a 10% discount, plus other cost, fee and return parameters.  The addition of these tax credits could allow the developer to receive incentives that would fund up to 20 percent of the total project cost.


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Topics: Investment Tax Credit, tax credit

Warren Kirshenbaum

Written by Warren Kirshenbaum

Warren is the President and CEO of the Cherrytree Group, a tax credit consulting, brokerage, and syndication firm.

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