Business Facilities - January 2009 - (Page 12)

machinery and equipment acquired by qualified purchase or lease or transferred into the state is exempt from state and local property tax. The exemption pertains to machinery and equipment used in the expansion of an existing facility or the establishment of a new facility. The exemption covers machinery and equipment used in manufacturing or warehousing/distribution, commercial equipment, computers, desks and chairs, copiers and fax machines. 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 fiveyear period based on the job and payroll targets. KENTUCKY INCENTIVES FOR ENERGY INDEPENDENCE ACT (IEIA) requires a capital investment of at least $25 million for an alternative fuel facility using biomass, or an investment of at least $100 million for an alternative fuel facility using coal, as its primary feedstock. A capital investment of at least $1 million is required for a renewable power facility that meets minimum electric output standards based upon the power source. The negotiated incentives cannot exceed 50% of capital expenditures and may include a reimbursement of sales and use taxes paid on tangible personal property; a tax credit of the income tax and limited liability entity tax owed by the company; and wage assessment incentives up to 4% of gross wages of each employee whose job was created as part of the project. 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. 12 JANUARY 2009 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 limited 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 full-time jobs are 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 also is available for sales and use tax refunds for equipment used in research and development. LOUISIANA The ENTERPRISE ZONE TAX CREDIT PROGRAM provides a $2,500 credit per new job, and rebates 4% sales/use tax on materials, machinery or equipment. The program is eligible to companies that increase employment by 10% within the first 12 months, or add at least five new jobs in the first two years. The QUALITY JOBS CASH REBATE provides a 5% or 6% rebate of annual gross payroll for new direct jobs for up to 10 years. The program is eligible to companies that fall within one of the state’s six target industries: Biotechnology and Biomedical; Micro-manufacturing; Software, Internet and Telecommunications; Environmental Technology; Food Technology or Advanced Materials; or have total annual out-of-state sales of at least 50%. The RESTORATION PROPERTY TAX ABATEMENT provides five-year abatement for the rehabilitation of an existing structure. The abatement is available to companies that are located in a qualifying district and approved by local governing authority. Taxes are based on assessed valuation of property prior to beginning of improvements. The INDUSTRIAL TAX EXEMPTION PROPERTY TAX ABATEMENT provides abatement for materials used in new manufacturing, for up to 10 years. The abatement is eligible only to capital investments by Louisiana manufacturers. MAINE The PINE TREE DEVELOPMENT ZONE PROGRAM is a performance-based tax incentive initiative. Its benefits include a 100% refund of corporate income tax and insurance premium tax for five years, a 50% refund for an additional five years, a return of 80% of the state income taxes withheld for net new employees through Employment Tax Increment Financing, 100% sales and use tax exemption on equipment purchases, 100% sales and use tax reimbursement on construction materials, local option Tax Increment Financing, and reduced electric rates. The BUSINESS EQUIPMENT TAX REIMBURSEMENT PROGRAM reimburses all local property taxes paid on production machinery and equipment for up to 12 years, less any

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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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