Business Facilities - January 2008 - (Page 11) ful venture, and complete the project within a reasonable period of time. To help information technology firms to remain competitive in a dynamic, constantly changing and evolving business environment, Iowa has created the INFORMATION TECHNOLOGY TRAINING PROGRAM. This program provides funds for IT firms to develop, retool, refine, and broaden the skills of existing highlevel employees with awards of up to $25,000 per company. The TARGETED JOBS WITHHOLDING TAX CREDIT offers financial incentives to out of state business locating in Iowa and creating targeted jobs in an Urban Renewal Area. Five pilot cities are testing the incentive—Sioux City, Council Bluffs, Burlington, Keokuk, and Fort Madison. Designed to help border cities be more competitive with adjoining states, the program allows a tax credit amount equal to 3% of the gross wages paid by an employer. The DEMONSTRATION FUND provides preseed capital to encourage prototype and concept development activities by small- and mediumsized companies with high growth potential in the industries of advanced manufacturing, biosciences, and information technology. KANSAS HIGH PERFORMANCE INCENTIVE PROGRAM: This program offers five potential benefits. They are: • A 10% income tax credit for eligible capital investment exceeding $50,000 at a company’s qualified business facility, with a carry-forward that can be used in the next 10 years in which the facility requalifies. • A sales tax exemption to use in conjunction with the company’s eligible capital investment at its qualified business facility. • A training tax credit of up to $50,000. • Priority consideration for other business assistance programs offered through the state. • A grant funding half of consulting costs, up to $12,500, to help accelerate the growth of the business (funding for this component must be allocated by the legislature each year; no funding is currently available). THE KANSAS INDUSTRIAL TRAINING (KIT) PROGRAM is a flexible workforce training program that assists firms involved in both pre-employment and on-the-job training. Examples of eligible expenditures include instructor salaries, curriculum planning and development, travel, materials, supplies, textbooks, manuals, minor training equipment, and certain training facility costs. KANSAS ECONOMIC OPPORTUNITY INITIATIVES FUND: These performance-based, 0%, forgivable loans can offset costs associated with the establishment of a new facility or the expansion of an existing facility. Eligible costs include site improvements, construction, build-out, and purchases and relocation of machinery and equipment. The loan is forgiven in 20% annual increments over a five-year period based on the job and payroll targets. KENTUCKY THE KENTUCKY JOBS DEVELOPMENT ACT (KJDA) PROGRAM is for new and expanding service- and technology-related projects. KJDA projects may receive a 100% credit against the state income tax arising from a project and may collect a job assessment fee of up to 5% of the gross wages of each employee whose job is created by the project and who is subject to Kentucky income tax. Amounts can be up to 50% of project startup costs and up to 50% of annual facility rental cost or rental value for up to 10 years. THE KENTUCKY INDUSTRIAL DEVELOPMENT ACT (KIDA) PROGRAM is for new and expanding manufacturing projects. A project approved under KIDA may receive state income tax credits for up to 100% of its capital investment for up to 10 years on land, buildings, site development, building fixtures, and equipment used in the project. Or, the company may collect a job assessment fee of 3% of the gross wages of each employee whose job was created by the approved project and who is subject to Kentucky income tax. A minimum capital investment of $100,000 and creation of at least 15 new fulltime jobs is required. THE KENTUCKY RURAL ECONOMIC DEVELOPMENT ACT (KREDA) PROGRAM is for new and expanding manufacturing projects locating in economically distressed Kentucky counties. Companies with projects approved under KREDA may potentially receive state income tax credits and job assessment fees for up to 100% of their capital investment for up to 15 years on land, buildings, site development, building fixtures, and equipment used in the project. THE KENTUCKY ENVIRONMENTAL STEWARDSHIP ACT PROGRAM promotes the manufacture of a new product or substantially improved existing manufactured product that has a less or reduced adverse effect on human health and the environment. Qualifying projects may recover up to 25% of the costs incurred for fixed assets necessary to produce the product, and 100% of employee training costs associated with manufacturing the product. THE KENTUCKY ENTERPRISE INITIATIVE ACT (KEIA) PROGRAM is available to companies that establish a new or expanded service, technology, manufacturing, or tourism attraction project. It will allow approved companies to receive a refund of sales and use tax paid for construction materials and building fixtures. It is also available for sales and use tax refunds for equipment used in research and development. LOUISIANA THE INDUSTRIAL TAX EXEMPTION PROGRAM exempts new manufacturing facilities and expansion from state, parish, and local property taxes for up to 10 years. This program can be particularly important to capital-intensive industry. Initial exemption is for five years with an option for an additional five years. This program also includes exemptions for miscellaneous capital additions. THE QUALITY JOBS PROGRAM is available to companies engaged in manufacturing and basic industry, plus administrative and auxiliary services. Companies must offer a basic health benefit plan to new employees and pay at least 75% of the premium. A company must also offer health insurance to the dependents of employees, but 80% of the new jobs must average at least 30 work hours per week. Benefits include a rebate of 5% or 6% of the annual gross payroll for full-time new direct jobs created. THE TAX EQUALIZATION PROGRAM equalizes the overall taxes between a Louisiana site BUSINESS FACILITIES 11
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