A Win For Taxpayers: Cuno Decided
SALT Tax Alert, March 21, 2006

On May 15, 2006, the U.S. Supreme Court issued its decision in Cuno v. DaimlerChrysler in favor of taxpayers, overturning the U.S. Sixth Circuit Court of Appeals finding that Ohio's credit for new manufacturing machinery and equipment was unconstitutional. The Court found that the plaintiffs' status as taxpayers was insufficient to give them standing to challenge state tax or spending decisions.

This decision effectively means that the value of the previously claimed tax credits, as well as any carryforwards (which are now treated by Ohio as grants, rather than credits), can continue to be used.

A downloadable copy of our previous Alert, which explains the Machinery and Equipment Credit/Grant in more detail, is available at the right for your reference. 

Contact Mike Baker, Ohio State & Local Tax Leader, at 800.430.0931 with questions or for more information.

Disclaimer: The information provided in this alert is only a general summary and is being distributed with the understanding that Plante & Moran, PLLC is not rendering legal, tax, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, assumes no liability whatsoever in connection with its use.