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benefits and incentives
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Rebuilding Communities Tax Credit Program.
Benefits:
- 40% Income Tax Credit: State income tax credits given to the eligible business for each of the three tax years after the commencement of operations at the new project facility. Credits are based on 40% of the state income tax due. The maximum amount of credits per business is $125,000 per year for each of the three tax years for which the credits are claimed;
OR
- 40% Specialized Equipment Tax Credit: State income tax credit based on 40% of the amount of funds expended for new specialized equipment (new purchases of computer equipment, medical laboratories and equipment, research laboratory equipment, manufacturing equipment, fiber optic equipment, high speed telecommunications, or wiring for telephone, Internet, computer networking, or other communication/date purposes; computer equipment maintenance or software development expenses performed by outside companies are also eligible) and expense for costs incurred from the time the pre-application was received plus the next three calendar years. The maximum amount of credits per business is $75,000 per year;
- 1.5% Employee Tax Credit: Qualified employees may receive a tax credit against state individual income tax equal to 1.5% of their gross salary (not including benefits) paid at such facility, earned for three years (starting the year after commencement of Operations). The business must receive one of the 40% credits in order for the 1.5% Employee Tax Credit to be provided;
NOTE:
The 40% Specialized Equipment tax credit may be used for taxes owed the previous three years and in any of the five years thereafter, or may be sold/transferred if desired. The 1.5% Employee Tax Credit may be used only in the tax year the credit was distributed;
Businesses that submitted a pre-application after the exhaustion of the $10 million annual allocation will be notified that they will be placed on "Standby" by the State Department of Economic Development.
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