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Job Tax Credit |
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Credit of $4,500 per job to offset up to 50% of franchise and excise (F&E) taxes in any given year with a carry forward for up to 15 years. |
Create at least 25 net new full-time positions within a 36 month period and invest at least $500,000 in a qualified business enterprise. |
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Community Resurgence: Credit of $2,500 per each position. |
Create 10 net new full-time jobs each paying the state’s average occupational wage and also be located in a census tract where poverty rate exceeds 30%. |
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Enhanced Job Tax Credit |
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Allows an additional annual credit for locations/expansions in designated Tier 2, Tier 3, and Tier 4 Enhancement Counties. Enhanced JTC can offset up to 100% of F&E liability. |
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Tier 2: 3 year annual credit at $4,500 per job with no carry forward. |
Create at least 25 net new full-time positions within a 36 month period and invest at least $500,000 in a qualified business enterprise. |
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Tier 3: 5 year annual credit at $4,500 per job with no carry forward. |
Create at least 20 net new full-time positions within 60 month period and invest at least $500,000 in a qualified business enterprise |
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Tier 4: 5 year annual credit at $4,500 per job with no carry forward. |
Create at least 10 net new full-time positions within 60 month period and invest at least $500,000 in a qualified business enterprise. |
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Industrial Machinery Tax Credit |
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Credit of 1% to 10% for the purchase, third party installation and repair of qualified industrial machinery. |
Manufacturing: includes purchases for machinery; apparatus and equipment with parts; appurtenances and accessories; repair parts and labor.
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Warehousing and distribution: includes material handling equipment and racking systems with a minimum $10M capital investment within 36 months. |
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Headquarters, call centers: includes computer; network; software or peripheral computer devices, purchased in making required capital investment for job tax credit. |
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Sales and Use Tax Exemptions |
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Manufacturing: sales tax exemption for industrial machinery and reduced sales tax rate for utilities at qualified manufacturing facilities. |
Exemptions include industrial machinery, repair parts and industrial supplies used in the manufacturing process. Reductions include: 0-1.5% tax on water depending on use and 0-1.5% on gas, electricity and various energy sources depending on use. |
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Headquarters: State sales tax credit for qualified personal property purchased for a qualified headquarters facility. |
Investment period begins 1 yr. prior to construction/ expansion and ends 1 yr. after construction/ expansion has concluded, but can be extended to 6 yrs. with permission from the state. HQs receive a non-expiring sales tax credit for 6.5% for qualified personal property directly related to the new full-time job creation. |
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Warehouse/Distribution: Sales tax exemption for material handling and racking systems purchased for a qualified warehouse or distribution center. |
Investment of $10M or more, including the purchase of new equipment, made during a 3 year period. |
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Call Centers: Tax exemption on any sales of interstate telecommunication and international telecommunication services sold to a business for use in the operation of one or more qualified call centers. |
Must have at least 250 jobs engaged primarily in call center activities. |
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Data Centers: Sales tax exemption for certain hardware and software purchased for a qualified data center. |
Minimum capital investment of $100M and 15 new full-time positions paying at least 150% of the state’s avg. occupational wage; investment must be made during a 3 yr. period, but can be extended to 5 yrs. for investments under $1B or 7 yrs. for investments exceeding $1B with the state’s permission. |
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Research and Development: Sales tax exemption on certain equipment used in research and development. |
Equipment must be used necessary to and primarily for research and development purposes. |
