The current version of HB 327 would allow all tax credits that are not currently transferable to become transferable. AIM/TRIM supports this concept for two reasons: it makes the tax credits currently earned by our members more useful; and it allows more accurate budget projections, leading to more fiscally responsible allocation of resources by budget officials. Currently, budget officials have no way of knowing how many credits will be redeemed in any particular fiscal year because the tax credits may be carried forward or backward in many cases. By making the tax credits transferable, the tax credits should be redeemed quicker and this reduces the uncertainty caused by the tax credits, allowing budget officials to more accurately allocate the use of state resources.
What does this have to do with business taxes, you ask? Ask yourself this question: If the state is irresponsible with the use of its resources and additional revenue is necessary, where is the most likely source of any tax increase? I think the 90’s taught us that businesses are the first targets of any additional “revenue enhancing” tax increases. So allowing budget officials to use state resources more wisely actually helps us protect against the need for future tax increases that would otherwise result from faulty spending practices.
