Business Facilities - January 2008 - (Page 18) competitive transformational projects that have a major economic impact on the state’s or region’s economy. ONE NORTH CAROLINA FUND: The One North Carolina Fund assists the state in industry recruitment and expansion by providing financial assistance through local governments to attract business projects that will stimulate economic activity and create new jobs. The grants require and are contingent upon a local match. Grants are for set amounts and disbursed typically in quarterly increments over a three-year period as jobs are created and verified. NORTH DAKOTA PARTNERSHIP IN ASSISTING COMMUNITY EXPANSION: Provided through the Bank of North Dakota, this program is available to new primary-sector businesses including manufacturing, data processing, communications, telecommunications, and some service industries. Funds are used to purchase property and equipment and certain working capital requirements. Funds can’t be used to refinance existing debt. NORTH DAKOTA DEVELOPMENT FUND: Primary-sector businesses can also secure financial assistance through the North Dakota Development Fund. This fund is administered through the North Dakota Department of Commerce and provides “gap” financing not available from other, more traditional sources. Funds are available through direct loans, participation loans, subordinated debt, and equity investments. Development Fund dollars can be used for real estate, equipment, and working capital. WORKFORCE 20/20 is a state-funded program that assists North Dakota employers with implementing new technologies and work methods. Funded projects must emphasize job skills and basic skills training. Funds are available regardless of the company’s size. The direct cost of employee training can be reimbursed under the Workforce 20/20 program. Costs can include instructor wages, tuition and registration fees, curriculum development, and leasing of training equipment. SALES AND USE TAX EXEMPTIONS: North Dakota provides sales tax exemptions for 18 JANUARY 2008 equipment and materials used in manufacturing and other targeted industries. The exemption does cover replacement equipment. OHIO THE OHIO JOB CREATION TAX CREDIT PROGRAM: Established in 1993, this program provides a refundable tax credit against a company’s corporate franchise or income tax based on the state income tax withheld from new, full-time employees. It is available to businesses that create at least 25 net new full-time positions at a facility in Ohio and pay a minimum of 150% of federal minimum wage. In special circumstances, a company could create as few as 10 new full-time positions paying at least 400% of the federal minimum wage. MANUFACTURING MACHINERY & EQUIPMENT INVESTMENT TAX CREDIT is a nonrefundable corporate franchise or state income tax credit for manufacturers located in Ohio that purchase qualified new or retooled machinery and equipment used in manufacturing. The manufacturer receives a 7.5% tax credit on the excess investment. A credit of 13.5% is available in “priority investment areas.” The total value of the credit is divided equally over seven years, and the manufacturer is permitted to carry forward any unused credit for up to three years. Credit exceeding $1 million must meet special requirements. THE TECHNOLOGY INVESTMENT TAX CREDIT offers a variety of benefits to Ohio taxpayers who invest in small research and development and technology-oriented firms. The maximum credit of $37,500 per investment may be applied to personal income tax, corporation franchise tax, public utility excise tax, or tax on dealers’ intangibles. Investment for which tax credit is claimed must be a purchase of common stock, preferred stock, membership interest, partnership, or other equity position that does not exceed $150,000. Under the JOB RETENTION TAX CREDIT PROGRAM (JRTC), the Ohio Tax Credit Authority may issue a nonrefundable tax credit equal up to 75% of the state income taxes withheld from the taxpayer’s eligible full-time employees at the project site for a period, in most cases, of up to 10 years. The tax credit term may extend up to 15 years under certain circumstances. THE OHIO RESEARCH AND DEVELOPMENT INVESTMENT TAX CREDIT provides a nonrefundable tax credit against the corporate franchise tax and is designed to encourage Ohio’s corporations to invest in increased research and development activities. The credit equals 7% of the excess amount of Qualified Research Expenses. OKLAHOMA The OKLAHOMA QUALITY INVESTMENT ACT is designed to help Oklahoma manufacturers who are “at risk” of closing or leaving the state due to old or obsolete equipment or for a number of other reasons. The act allows the state to provide incentives of up to 10% of a company’s investment over a five-year period. There is a cap of $10 million on the amount the state could pay in incentives in any one year. The OKLAHOMA QUALITY JOBS PROGRAM: This incentive program provides quarterly cash payments of up to 5% of newly created gross taxable payroll to a qualifying company. A qualified company must achieve a $2.5 million annual payroll for the new full-time employees for any four consecutive quarters during its first 12 quarters in the program. If this payroll amount is not achieved, payments cease. The payments received do not have to be paid back. INVESTMENT/NEW JOBS TAX CREDITS: Manufacturers who hold a manufacturer’s sales tax exemption permit may choose this income tax credit based on either an investment in depreciable property or on the addition of full-time equivalent employees engaged in manufacturing, processing or aircraft maintenance. Participation in this benefit prohibits a manufacturer from participating in the Quality Jobs Program. Manufacturers that invest in qualified new depreciable property and also hire new employees, may compute the five-year tax credit either (1) by calculating 1% of the qualifying investment or (2) by multiplying $500 per new employee, and then choosing whichever credit is larger. The maximum credit in the first five years equals up to 5% of the investment, or $2,500 per new employee. The credit doubles for most investments in
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