Employment & Investment Growth Act Benefits and Sample Timelines

Incentives 20 Mil 3 Mil & 30 Emp 10 Mil & 100 Emp
Sales factor election X X X
Direct refunds on qualifying property X X X
5% compensation credit   X X
10% investment credit   X X
Property tax exemption     X
Sample Agreements Sample Sample Sample

Facts

  1. Application filed September 27, 1998.
  2. Application filed for a $3,000,000 and 30 employee project for a new manufacturing facility.
  3. Applicant has a December 31 federal tax year end. There are no short tax years.
  4. Applicant reaches the $3,000,000 and 30 employee level in tax year end December 31, 2004.
  5. The taxpayer maintained the required levels of employment and investment for the entitlement period

Example Timeline 1

Base year

  • (1/1/97 - 12/31/97)

Direct refunds

  • (9/27/98 - 12/31/10)

Attainment period

  • (9/27/98 - 12/31/04) 
  • Maximum Allowable Time

Credit refunds (must be sufficient credits from prior year)

  • (1/1/05 - 12/31/18)

Entitlement period
(1/1/04 - 12/31/10)

Credit use for income tax (must be sufficient credits at end of year)

  • (1/1/04 - 12/31/18)

Carryover period

  • (1/1/11 - 12/31/18)

Facts:

  1. Application filed September 27, 1998.
  2. Application filed for a $10,000,000 and 100 employee project for a new manufacturing facility.
  3. Applicant has a December 31 federal tax year end. There are no short tax years.
  4. Applicant reaches the $3,000,000 and 30 employee level in tax year end December 31, 2002.
  5. Applicant reaches the $10,000,000 and 100 employee level in tax year end December 31, 2004.
  6. The taxpayer maintained the required levels of employment and investment for the entitlement periods

Example Timeline 2

Base year

  • (1/1/97 - 12/31/97)

Direct refunds

  • (9/27/98 - 12/31/08)

Attainment period

  • (9/27/98 - 12/31/03)
  • Maximum allowable time

Credit refunds (must be sufficient credits from prior year)

  • (1/1/04 - 12/31/16)

Entitlement period

  • (1/1/03 - 12/31/08)

Credit use for income tax (must be sufficient credits at end of year)

  • (1/1/03 - 12/31/16)

Carryover period

  • (1/1/09 - 12/31/16)

Facts:

  1. Application filed September 27, 1998.
  2. Application filed for a $3,000,000 and 30 employee project for a new manufacturing facility.
  3. Applicant has a December 31 federal tax year end. There are no short tax years.
  4. Applicant reaches the $3,000,000 and 30 employee level in tax year end December 31, 2002.
  5. The taxpayer maintained the required levels of employment and investment for the entitlement period.

Example Timeline 3

 

Base year

  • (1/1/97 - 12/31/97)

Direct refunds

  • (9/27/98 - 12/31/08)

Attainment period

  • (9/27/98 - 12/31/02)

Credit refunds (must be sufficient credits from prior year)

  • (1/1/03 - 12/31/16)

Entitlement period

  • (1/1/02 - 12/31/08)

Credit use for income tax (must be sufficient credits at end of year)

  • (1/1/02 - 12/31/16)

Carryover period

  • (1/1/09 - 12/31/16)

Facts:

  1. Application filed September 27, 1998.
  2. Application filed for a $3,000,000 and 30 employee project for a new manufacturing facility.
  3. Applicant has a December 31 federal tax year end. There are no short tax years.
  4. Applicant reaches the $3,000,000 and 30 employee level in tax year end December 31, 2004.
  5. The taxpayer was in recapture for tax years ending December 31, 2006 through December 31, 2008.

Example Timeline 4

 

Base year

  • (1/1/97 - 12/31/97)

Direct refunds

  • (9/27/98 - 12/31/05 &amp 1/1/09 - 12/31/10)

Attainment period

  • (9/27/98 - 12/31/04)

Credit refunds (must be sufficient credits from prior year)

  • (1/1/05 - 12/31/18)

Entitlement period

  • (1/1/04 - 12/31/10)

Credit use for income tax (must be sufficient credits at end of year)

  • (1/1/04 - 12/31/18)

Carryover period

  • (1/1/11 - 12/31/18)

Period not eligible for new credits

  • 1/1/06 - 12/31/08

Facts:

  1. Application filed September 27, 1998.
  2. Application filed for a $3,000,000 and 30 employee project for a new manufacturing facility.
  3. Applicant has a December 31 federal tax year end. The taxpayer has short tax years ending 9/23/00, 12/31/00, 6/30/06 and 12/31/06.
  4. Applicant reaches the $3,000,000 and 30 employee level in tax year end December 31, 2003.
  5. The taxpayer maintained the required levels of employment and investment for the entitlement period.

Example Timeline 5

Base year

  • (1/1/97 - 12/31/97)

Direct refunds

  • (9/27/98 - 12/31/08)

Attainment period

  • (9/27/98 - 12/31/03)
  • Maximum allowable time

Credit refunds (must be sufficient credits from prior year)

  • (1/1/04 - 12/31/16)

Entitlement period

  • (1/1/03 - 12/31/08)

Credit use for income tax (must be sufficient credits at end of year)

  • (1/1/03 - 12/31/16)

Carryover period

  • (1/1/09 - 12/31/16)
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