Investment Tax Credit (ITC)
An
investment Tax credit is available for businesses that purchase or build
property in the Zone. The credit is equal to 10 percent for a corporation
and 8 percent for a personal income tax filer. The credit may be claimed
each time a qualified property is acquired or built.
To be eligible the property must:
Be acquired, constructed or erected by the tax payer on or after the date of
designation and prior to the expiration.
Be used in the production of goods by manufacturing, processing, assembling,
refining, mining, extracting, farming, or agriculture.
Is an industrial waste treatment facility or air pollution control facility
used in the tax payer's trade or business.
Is a research or development property.
Any
unused credits may be carried forward until expired.
A new business may elect to treat 50 percent of the carryover as a tax
overpayment and request a refund or have the overpayment credited against
outstanding tax liability.
Employment Incentive Credit (EIC)
Must be in conjunction with claiming the Investment Tax Credit.
Available for those businesses who are eligible for the Investment Tax
Credit AND create new employment.
The credit equals 30 percent of the Investment Tax Credit for each of the 3
consecutive years following the year in which the investment tax credit was
claimed.
To be eligible the business must:
Claim the Investment Tax Credit and employ at least 101 percent of the
average number of people employed in the year before the investment tax
credit was claimed.
Any unused credits may be carried forward until expired.
A new business may elect to treat 50 percent of the carryover as a tax
overpayment and request a refund or have the overpayment credited against
outstanding tax liability.