Business Facilities - January 2009 - (Page 22)

leased to own, or leased for at least 20 years. Credits are transferable between related entities. Unused credits may be carried forward up to 15 years for biotechnology firms and up to seven years for other types of manufacturers. To meet the definition of a high-performance manufacturer, the firm must be in SIC codes 28, 30, 34 to 36, or SIC 38, and the employer’s median annual wage paid to its full-time equivalent employees must be greater than the average annual wage paid by all Rhode Island employers in the same twodigit SIC code. In addition, the company applying must meet at least one of the following three criteria: • The employer’s median annual wage paid to its full-time equivalent employees is greater than or equal to 125% of the average annual wage paid by all employers in the state (125% of the average annual wage paid to all covered workers in 2004 was equal to $46,351); or • The average annual wage paid to the employer’s full-time equivalent employees classified as production workers (as defined by the Department of Labor and Training) is greater than the average annual wage paid to all production workers in the state in the same two-digit SIC code; or • The firm invests at least 2% of total payroll costs in worker training or retraining. Biotechnology-related firms wishing to use the Investment Tax Credit beyond seven years must, for each tax year, maintain an average quarterly employment level that is at least 9.5% above the level maintained in the fourth year of the initial credit, and pay an average quarterly median wage is at least equal to the quarterly median wage for the previous three calendar years. RESEARCH & DEVELOPMENT EXPENSE CREDIT: Rhode Island offers a 22.5% tax credit for increases in qualified research expenses—the highest rate in America. Unused credits may be carried forward for up to seven years. JOB TRAINING TAX CREDIT: Rhode Island law grants a credit against the corporate income tax (or the insurance premium tax) equal to 50% of eligible training expenditures for new or existing employees, in accor22 JANUARY 2009 dance with an approved training plan. Employees must be full-time, and after training, the employee must earn at least 150% of the Rhode Island minimum wage. The credit is capped at $5,000 per employee over a three-year period. SOUTH CAROLINA The JOB TAX CREDIT is a statutory incentive offered to companies, both existing and new, that create new jobs in South Carolina. The credit is available to companies that establish or expand corporate headquarters, manufacturing, tourism, distribution, processing, warehousing, qualified servicerelated, research and development, extraordinary retail establishment, qualified technology intensive and bank facilities. The company must create a monthly average of 10 net new full-time jobs at the facility in a single taxable year. If a company has fewer than 99 employees worldwide, it may be eligible for a job tax credit if it creates a monthly average of two or more net new fulltime jobs in a single taxable year. In most instances, companies can expect to receive from $1,500 to $8,000 per job depending on the county designation. SINGLE FACTOR SALES APPORTIONMENT: Companies whose primary business in the state is manufacturing, distribution, or selling or dealing in tangible personal property will apportion its income by multiplying the net income remaining after allocation by a fraction consisting of a company’s sales made in South Carolina divided by its total number of sales. This new formula eliminates property and payroll from the equation and is advantageous for a company whose majority of sales occurs outside South Carolina. The new method is being phased in over a five-year period with a 20% reduction each year of income attributable to South Carolina which began in 2007. In 2011, the new formula will be fully applicable. SALES TAX EXEMPTION: In addition to maintaining a low sales tax rate, South Carolina offers a number of sales tax exemptions for manufacturers including manufacturing production machinery and applicable repair parts; manufacturing materials that become an integral part of the finished product; industrial electricity and other fuels used in manufacturing tangible personal property; research and development equipment; manufacturers’ air, water and noise pollution control equipment; material handling equipment for manufacturing or distribution projects investing $35 million or more; packaging materials; and long distance telecommunication services, including 800 services. PRE-JOB TRAINING PROGRAM: South Carolina offers a pre-job training program to provide qualified companies with welltrained and highly motivated employees. This program is accomplished through a comprehensive and customized process that includes recruiting, screening and training for companies that agree to move to, or expand business in, South Carolina. INFRASTRUCTURE GRANTS: • The Rural Infrastructure Fund assists qualified counties in the state's rural areas by providing financial assistance for infrastructure and other projects that enhance economic growth and development. • The Economic Development Set-Aside Program assists companies in locating or expanding in South Carolina through road or site improvements and other costs related to business location or expansion. • Tourism Infrastructure Development Grants support new or expanding tourism or recreation facilities or designated development areas primarily through infrastructure projects. SOUTH DAKOTA The AGRICULTURAL PROCESSING AND EXPORT (APEX) FUND provides up to 75% of the total project cost and requires the applicant to secure the other funds before applying for the APEX loan, including a 10% minimum equity contribution. The maximum loan amount available from the APEX program is $237,500. Eligible project costs include the purchase of land and the associated site improvements; the purchase and installation of machinery and equipment; the construction, acquisition, or renovation of a building; and fees, services, and other costs associated with construction. Interest rates

Table of Contents Feed for the Digital Edition of Business Facilities - January 2009

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

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.