Federal Taxation of State Tax Credits
6 Pages Posted: 25 Jun 2016
Date Written: May 30, 2016
This article analyzes the Federal income tax treatment of state incentive tax credits. It considers whether and when refundable credits should be included in income and discusses their appropriate character as capital gain or as ordinary income.
Keywords: taxation, federal income taxation, state tax credits, state tax expenditures, capital gain, constructive receipt
JEL Classification: H24, H25, H59, H71, H77, K34
Suggested Citation: Suggested Citation