Business Facilities - January 2009 - (Page 10)

GROSS RECEIPTS apportionment formula. This new formula substantially reduces Georgia income tax for companies based in the state that deliver a large portion of products or service to customers outside Georgia. (In the previous corporate income tax system, companies were taxed on property in Georgia, total payroll receipts, and Georgia gross receipts.) CENTERS OF INNOVATION: The state has established six Centers of Innovation, each supporting a different strategic industry, where innovative companies can accelerate their growth by tapping university-sponsored research, university and private sector talent, and other state and private sector resources. Qualified companies may be eligible for matching research grants. Industries include aerospace, agriculture, life sciences, logistics, manufacturing, and entrepreneur outreach. JOB TAX CREDIT: Strategic industries such as distribution, technology, manufacturing, telecom, processing companies and their headquarters qualify for Georgia’s Job Tax Credit. Depending on the community’s tier, companies must create between five and 25 net new jobs per year to qualify. For each year (up to five years) the jobs are maintained, qualified companies can claim a tax credit with a value of $750—$3,500 per job, per year. An additional $500 credit is offered in counties that participate in a multi-county joint development authority. Unused job tax credits may be carried forward for 10 years. Increased job tax credits, equal to Tier 1 credits, also are allowed for companies that create jobs in less developed pockets of metro areas, regardless of the county’s tier. short-term classroom training to upgrade the skills of Hawaii’s workforce. The NATIVE HAWAIIAN REVOLVING LOAN FUND is a lending program for Native Hawaiians whose mission is to increase sustainable, Native Hawaiian-owned businesses by fostering economic independence, commitment, and fiscal responsibility through entrepreneurial/job development. once they complete training has been more than $14 an hour. The average cost of training has been about $1,800. ILLINOIS ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY (EDGE): The EDGE program can provide tax credits to qualifying companies equal to the amount of state income taxes withheld from the salaries of employees in the newly created jobs. The non-refundable credits can be used against corporate income taxes to be paid over a period not to exceed 10 years. A company must agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full-time jobs in Illinois. For a company with 100 or fewer employees, the company must agree to make a capital investment of $1 million and create at least five new full-time jobs. The HIGH IMPACT BUSINESS (HIB) PROGRAM: Under HIB, businesses may qualify for investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, and a state sales tax exemption on manufacturing equipment purchases, repair, and replacement parts. The project must involve a minimum of $12 million investment causing the creation of 500 full-time jobs or an investment of $30 million causing the retention of 1,500 full-time jobs. RIVER EDGE REDEVELOPMENT ZONE (RERZ) PROGRAM: RERZ zones in Aurora, East St. Louis, and Rockford offer sales tax exemption and property tax abatements, plus an Environmental Remediation Tax Credit. Qualifying Illinois manufacturers may earn a MANUFACTURER’S PURCHASE CREDIT (MPC) when the manufacturer purchases manufacturing or graphic arts machinery and equipment that qualify for the existing sales/use tax exemptions. The MPC may be used to pay state sales or use tax on future purchases of qualifying production-related tangible personal property. The MPC is equal to half of the 6.25% state tax that would have been owed if the purchase was not otherwise exempt. The AGRIFIRST GRANT PROGRAM is designed to provide grants to persons and IDAHO IDAHO BUSINESS ADVANTAGE is available for smaller businesses making a minimum $500,000 investment in a new facility and creating at least 10 new jobs paying above $40,000 annually plus benefits. Qualifying companies receive an enhanced Investment Tax Credit of 3.75% up to $750,000 in any one year, a new jobs tax credit starting at $1,500 and climbing to $3,000 per job, and a 2.5% real property improvement tax credit up to $125,000 in any one year along with a 25% rebate on sales tax paid on construction materials for the new facility. NEW JOBS INCOME TAX CREDIT: Businesses may earn a $1,000 tax credit for each additional employee added. New employees must work a minimum of 20 hours per week, make at least $15.50 an hour, and be eligible to receive employer-provided coverage under an accident or health plan. The credit may be carried forward up to three years. INVESTMENT TAX CREDIT: This 3% credit is available for qualifying new investments in Idaho. It can offset up to 50% of state income tax liability and may be carried forward up to 14 years. THE WORKFORCE DEVELOPMENT TRAINING FUND: This employer-financed fund provides $2,000 in urban areas and $3,000 in rural areas toward the training of workers for new jobs either in a relocating, expanding or startup business. At least five new jobs must be created for companies in urban areas to qualify but only one in rural areas. The jobs must pay a minimum of $12 an hour plus employer-assisted health care. The subsidies are provided on a reimbursement basis, and financed with a 3% diversion of unemployment insurance taxes. During the past three years, the average wage for these workers HAWAII The HAWAII ENTERPRISE ZONES PROGRAM: Eligible businesses that satisfy Enterprise Zone hiring requirements are exempt from the Hawaii General Excise Tax, and can claim two partial state personal or corporate income tax credits for up to seven consecutive years. The EMPLOYMENT AND TRAINING FUND PROGRAM provides funding assistance to employers for industry specific training programs in critical skill shortage and highgrowth occupational areas, and non-credit, 10 JANUARY 2009

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Business Facilities - January 2009 Contents First Word Cover Story: State Incentives Guide Mexico Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Virginia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming No label Canada Alberta British Columbia Manitaba New Brunswick Nova Scotia Ontario Québec Saskatchewan Asia/Pacific International Caribbean Cental/South America Europe Advertiser Index

Business Facilities - January 2009

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