Clean fuel tax credit hits turbulence amid political gridlock. The Biden administration will not finalize guidelines for a new clean fuel production tax credit before leaving office, reports Reuters. The credit, aimed at spurring the production of sustainable aviation fuels to reduce airline emissions, was to supposed to begin on Jan. 1. Disputes between agriculture and environmental groups continue to stall progress. The delay leaves the credit open to repeal under the incoming Trump administration.
Missouri eyes tax credits to address child care crisis. A long-stalled package of tax credits aimed at increasing access to child care may move in Missouri’s 2025 legislative session that begins Jan. 8. The Missouri Independent reports the proposal would provide credits for businesses creating child care programs or expanding access. Missouri faces a worsening shortage of child care, with nearly half of children under age five living in “child care deserts.” Support from Republican Gov.-elect Mike Kehoe may help push the package forward.
West Virginia revenue holds steady despite tax cuts. West Virginia’s November tax collections exceeded projections by 4.9 percent, helping the state stay close to its fiscal year 2025 revenue targets, reports the News and Sentinel. Year-to-date collections reached $2.1 billion, slightly above estimates but down 5.1 percent compared to the same period last year.
Japan considers raising tax-free income threshold to address labor shortages. Japan’s government is weighing a proposal to increase the income tax exemption threshold from the current 1.03 million yen ($6,900) to encourage part-time workers to take on more hours amid a labor shortage. The ruling Liberal Democratic Party and coalition partners are collaborating with an opposition party to build support to potentially raise the threshold to 1.78 million yen. While the change is unlikely to take effect before 2026, proponents argue it would boost disposable income and promote economic activity. However, the move could initially reduce annual tax collections, creating debate over its short-term fiscal impact.
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