§209E-10  State business tax credit. (a)  The department shall certify annually to the department of taxation theapplicability of the tax credit provided in this chapter for a qualifiedbusiness 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 thetax 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 duethe sixth year, and twenty per cent of the tax due the seventh year.  Forqualified businesses engaged in the manufacturing of tangible personal propertyor the producing or processing of agricultural products, the credit shallcontinue after the seventh year at the rate of twenty per cent of the tax duefor each of the subsequent three tax years.  Any tax credit not usable shallnot be applied to future tax years.

(b)  When a partnership is eligible for a taxcredit under this section, each partner shall be eligible for the tax creditprovided for in this section on the partner's income tax return in proportionto the amount of income received by the partner from the partnership.  Anyqualified business having taxable income from business activity, both withinand without the enterprise zone, shall allocate and apportion its taxableincome attributable to the conduct of business.  Tax credits provided for inthis section shall only apply to taxable income of a qualified business attributableto the conduct of business within enterprise zones located within the samecounty.

(c)  In addition to any tax credit authorizedunder this section, any qualified business shall be entitled to a tax creditagainst any taxes due the State in an amount equal to a percentage ofunemployment taxes paid.  The amount of the credit shall be equal to eighty percent of the unemployment taxes paid during the first year, seventy per cent ofthe taxes paid during the second year, sixty per cent of the taxes paid duringthe third year, fifty per cent of the taxes paid during the fourth year, fortyper cent of the taxes paid during the fifth year, thirty per cent of the taxespaid during the sixth year, and twenty per cent of the taxes paid during theseventh year.  For qualified businesses engaged in the manufacturing oftangible personal property or the producing or processing of agriculturalproducts, the credit shall continue after the seventh year in an amount equalto twenty per cent of the taxes paid during each of the subsequent three taxyears.

(d)  Tax credits provided for in subsection (c)shall only apply to the unemployment tax paid on employees employed at thequalified business' establishment or establishments within enterprise zoneslocated within the same county.  Any tax credit not usable shall not be appliedto 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 businesseslocated in new enterprise zone (EZ) would be eligible for state tax incentivesfor seven-year period set forth in subsection (a) and §209E-11, although aportion of that seven-year period extended beyond new EZ's five-year sunsetdate.  Att. Gen. Op. 98-1.