SPOTLIGHT PROGRAMS

Quality Jobs (QJ) program: Cash rebates ranging from 4% to 6% of annual gross payroll of new direct jobs that meet wage requirements for a term of up to 10 years.  The State also has the ability to offer either 4% state sales and use tax rebate on capital expenditures or a 1.5% project facility expense rebate on the total capital investment, excluding tax exempted items.

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Competitive Projects Payroll Incentive Program: Eligible businesses may qualify for a payroll rebate ranging from 12%-15%, depending on the business's industry.  Additionally, the company will be eligible for either a 4% rebate of state sales and use taxes on capital expenditures or a rebate equal to 1.2% of project facility expenses.

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TAX CREDITS

Research and Development Tax Credit:  Provides a transferable tax credit of 30% for R&D expenditures incurred in the State for companies which receive a federal Small Business Innovation and Research (SBIR) grant or a Small Business Technology Transfer (STTR) grant.  Non-SBIR or STTR companies can receive a non-refundable and non-transferable tax credit of up to 30% for R&D expenditures in the State.

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Enterprise Zone: Businesses that create at least 5 permanent net new jobs or increase their national payroll by at least 10%, of which at least 50% are hired from one of four targeted groups, are eligible to receive income and franchise tax credits.  The benefits include either a one-time $3,500 or $1,000 tax credit for each new full-time job created as well as a 4% rebate of state sales and use tax on materials, machinery, furniture and/or equipment or a 1.5% refundable tax credit on total capital investment, excluding exempted items and at a maximum of $100,000 per net new job.

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TAX EXEMPTIONS

Industrial Tax Exemption: This program offers up to 80% property tax abatement for up to 10 years on qualifying capital investment related to the manufacturing process.

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Sales Tax Exemption on Manufacturing Machinery & Equipment: Effective July 1, 2018, MM&E is exempted from 4% of state sales taxes, thus the tax rate for MM&E will be 1%.

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Sales Tax Exemption on Business Utilities: Effective July 1, 2018, business utilities (electricity, water, steam, and natural gas) are exempted from 4% of state sales taxes, thus the tax rate for business utilities will be 2%.

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JOB TRAINING

FastStart®: Provides customized employee recruitment, screening, and training for new and expanding businesses.

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Last updated: May 2023