ENACTED LEGISLATION (Signed by the Governor)

PENNSYLVANIA
The statewide cap for the Pennsylvania tax credit has been reduced from $75 million per year to $42 million for the fiscal year ended 6/30/2010 and $60 million for the fiscal year ended 6/30/2011. 
 

CONNECTICUT
Connecticut has made modifications to its program which were previously reported in the Connecticut updates on September 4, 2009 and October 9, 2009. Click here for details.

SIGNED BY THE MAYOR (Awaiting Congress' Approval)

DISTRICT OF COLUMBIA
Earn a rebate of 42% on qualified production expenditures that are subject to taxation in DC; 21% on qualified expenditures not subject to taxation in DC; 30% on qualified personnel expenditures (below-the-line DC residents); and, 50% of qualified job training expenditures.  To qualify, the production company must spend at least $250,000 in DC for the development, preproduction, production, or postproduction of a qualified production; file an application and enter into an agreement with the Mayor; and, not be delinquent in any tax obligation owed to DC.  There is no cap on the program nor is there a per project cap.  However, the rebate is subject to the availability of funds and projects will be approved on a case by case basis. Although this bill has been signed by the Mayor, it must be approved by Congress before becoming law.  Congress has until November 15 to enact the legislation.

MISCELLANEOUS

PER DIEM RATES
The IRS has issued its annual update of per diem rates that taxpayers can use to reimburse employees for lodging, meals and incidental expenses incurred during business travel for the fiscal year 2010.  Click here to view the revised rates applicable to per diem allowances paid for travel on or after October 1, 2009.

SOCIAL SECURITY WAGE BASE
For 2010, the maximum amount of earnings subject to Social Security tax will remain unchanged at $106,800.  The Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) tax rate is set by statute at 6.2 percent for employees and employers, each.  Thus, an individual with wages equal to or larger than $106,800 would contribute $6,621.60 to the OASDI program in 2010, and his or her employer would contribute the same amount.  The tax rate for Medicare's Hospital Insurance program is 1.45% percent for employees and employers, each, without any earnings limitation.