§209E-10  State business tax credit. 
(a)  The department shall certify annually to the department of taxation the
applicability of the tax credit provided in this chapter for a qualified
business against any taxes due the State.  Except for the general excise tax,
the credit shall be eighty per cent of the tax due for the first tax year,
seventy per cent of the tax due for the second tax year, sixty per cent of the
tax due for the third year, fifty per cent of the tax due the fourth year,
forty per cent of the tax due the fifth year, thirty per cent of the tax due
the sixth year, and twenty per cent of the tax due the seventh year.  For
qualified businesses engaged in the manufacturing of tangible personal property
or the producing or processing of agricultural products, the credit shall
continue after the seventh year at the rate of twenty per cent of the tax due
for each of the subsequent three tax years.  Any tax credit not usable shall
not be applied to future tax years.



(b)  When a partnership is eligible for a tax
credit under this section, each partner shall be eligible for the tax credit
provided for in this section on the partner's income tax return in proportion
to the amount of income received by the partner from the partnership.  Any
qualified business having taxable income from business activity, both within
and without the enterprise zone, shall allocate and apportion its taxable
income attributable to the conduct of business.  Tax credits provided for in
this section shall only apply to taxable income of a qualified business attributable
to the conduct of business within enterprise zones located within the same
county.



(c)  In addition to any tax credit authorized
under this section, any qualified business shall be entitled to a tax credit
against any taxes due the State in an amount equal to a percentage of
unemployment taxes paid.  The amount of the credit shall be equal to eighty per
cent of the unemployment taxes paid during the first year, seventy per cent of
the taxes paid during the second year, sixty per cent of the taxes paid during
the third year, fifty per cent of the taxes paid during the fourth year, forty
per cent of the taxes paid during the fifth year, thirty per cent of the taxes
paid during the sixth year, and twenty per cent of the taxes paid during the
seventh year.  For qualified businesses engaged in the manufacturing of
tangible personal property or the producing or processing of agricultural
products, the credit shall continue after the seventh year in an amount equal
to twenty per cent of the taxes paid during each of the subsequent three tax
years.



(d)  Tax credits provided for in subsection (c)
shall only apply to the unemployment tax paid on employees employed at the
qualified business' establishment or establishments within enterprise zones
located within the same county.  Any tax credit not usable shall not be applied
to future tax years. [L 1986, c 78, pt of §1; am L 1989, c 390, §5; am L 2009,
c 174, §5]



 



Attorney General Opinions



 



  Qualified businesses
located in new enterprise zone (EZ) would be eligible for state tax incentives
for seven-year period set forth in subsection (a) and §209E-11, although a
portion of that seven-year period extended beyond new EZ's five-year sunset
date.  Att. Gen. Op. 98-1.