High Wage Jobs Tax Credit: Refundable corporate income tax credit equal to 8.5% of wages and benefits paid for each job created and retained for a 44-week period. The position must have an annual salary of at least $40,000 (project located in community with fewer than 60,000 residents) or $60,000 (project located in community with more than 60,000 residents) to qualify for the incentive. The credit can be taken for 4 years and the amount of credit claimed each year cannot exceed $12,750 per job. The credit may only be claimed for up to 1 year after the end of the 3 qualifying periods. The credit can be applied to the state portion of the gross receipts tax, compensating tax, and withholding tax. Any excess credit will be refunded to the taxpayer.
Rural Jobs Tax Credit: Non-refundable corporate income, gross receipts or personal income tax credits are available to manufacturers and non-retail service companies that locate in rural communities. Rural areas are divided into 2 tiers:
The maximum tax credit amount with respect to each qualifying job is equal to:
A qualifying job is a job filled by an eligible employee for 48 weeks in a 12-month qualifying period. Credits may be claimed for 2 or 4 years depending on the tier of the county. Unused credits may be carried forward for up to 3 years.
Investment Tax Credit for Manufacturers: Non-refundable corporate income, gross receipts or personal income tax credit equal to 5.125% of the value of qualified equipment. For every $500,000 of equipment, 1 employee must be added up to $30 million. For amounts exceeding $30 million, 1 employee must be added for each $1 million of equipment. The credit may (also) be claimed for equipment acquired under an IRB. This is a double benefit because no gross receipts or compensating tax was paid on the purchase or importation of the equipment.
LEDA Grants: The Local Economic Development Act (LEDA) allows municipalities in conjunction with the State to award discretionary cash grants to support infrastructure development and business attraction efforts that are consistent with local and regional economic development plans.
Job Training Incentive Program (JTIP): Provides reimbursable grants to cover training costs for newly created jobs. Reimbursements range from 50%-75% of employee wages and travel expense. Qualifying projects include those involved in the manufacturing, processing or assembling of agricultural or manufactured products; storing, warehousing, distributing or selling products of agriculture, mining or having been manufactured; or an “Economic Base Employer,” - defined as an employer who is deemed eligible for in-plant training assistance by the Economic Development Department’s Job Training incentive Program.