* Ten-year general income tax credit against a business’ state tax liability. The credit is up to 80% in year one and up to 60% in years two through ten. To qualify, a business must be an existing business, which is one that was actively engaged in the conduct of trade or business in an area prior to that area being designated as an enterprise zone or that was engaged in the conduct of trade or business in the Commonwealth and relocates to begin operation of a trade or business within an enterprise zone. The business must increase its permanent full-time work force by at least 10% over the average work force of a base taxable year. For businesses qualified after July 1, 1997, at least 25% of the increase in permanent full-time employees employed at the business must either have incomes at or below 80% of the area median income for the jurisdiction for a twelve month period prior to employment or be zone residents
.* Real property improvement tax credit equals up to 30% of qualified zone improvements, not to exceed $125,000 within a five-year period. Rehabilitation projects must cost at least $50,000 or be equal to the assessed value of the real property prior to the improvements being made, whichever is greater. Qualified improvements in new construction projects must cost at least $250,000.
* Investment tax credit against a business’ state tax liability for businesses investing $100 million and creating 200 jobs. The percentage amount is subject to negotiation between the business and the state and could be worth up to 5% of the investment. Business firms qualifying for the investment tax credit have the option of taking this incentive in lieu of the real property improvement tax credit.
* Job grants for new permanent full-time positions created by business start-ups and expansions by existing firms equal to $1,000 per zone resident and $500 for positions filled by a non-zone resident. The annual maximum job grant to any one business is $100,000 for three consecutive calendar years commencing with the first grant year. Businesses may qualify for more than one three-year job grant period provided the business creates additional permanent full-time positions. Businesses applying for the first three-year grant period must demonstrate that they have increased the business’s enterprise zone permanent full-time positions by 10% over a base year. Only the full-time positions created above the 10% threshold are job grant eligible. For the second and any subsequent three-year period of grant eligibility, the business must demonstrate it increased employment by 20% over the redetermined base year.
