Taxes & Incentives

Job Tax Credit

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.

 

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%. 

Enhanced Job Tax Credit

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.

 

 

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.
 

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
 

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. 
Industrial Machinery Tax Credit

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.

 

   

Warehousing and distribution: includes material handling equipment and racking systems with a minimum $10M capital investment within 36 months.

   

Headquarters, call centers: includes computer; network; software or peripheral computer devices, purchased in making required capital investment for job tax credit.

Sales and Use Tax Exemptions

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.

 

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.

 

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.

 

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.

 

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.

 

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.