§209E-9  Eligibility; qualified business;
sale of property or services.  (a)  Any business firm may be eligible to be
designated a qualified business for purposes of this chapter if the business:



(1)  Begins the operation of a trade or business in an
eligible business activity within an enterprise zone;



(2)  During each taxable year has at least fifty per
cent of its enterprise zone establishments' gross receipts attributable to the
active conduct of trade or business within enterprise zones located within the
same county; and



(3)  Either:



(A)  Increases its average annual number of
full-time employees employed at the business establishment or establishments
within enterprise zones located within the same county by at least ten per cent
by the end of its first tax year of participation, and during each subsequent
taxable year at least maintains that higher level of employment; or



(B)  Increases its gross sales of agricultural
crops produced, or agricultural products processed within enterprise zones
located within the same county by two per cent annually.



For business firms engaged in producing or
processing agricultural products, receipts from value-added products made from
crops grown within enterprise zones located within the same county and sold at
retail pursuant to the limits of subsection (e) shall count toward the gross
receipts requirement under paragraph (2).



(b)  A business firm may also be eligible to be
designated a qualified business for purposes of this chapter if the business:



(1)  Is actively engaged in the conduct of a trade or
business in an eligible business activity in an area immediately prior to the
area being designated an enterprise zone;



(2)  Meets the requirements of subsection (a)(2); and



(3)  Either:



(A)  Increases its average annual number of
full-time employees employed at the business' establishment or establishments
within enterprise zones located within the same county by at least ten per cent
by the end of the first year of operation, and by at least fifteen per cent by
the end of each of the fourth, fifth, sixth, and seventh years of operation,
and for businesses eligible for tax credits extending past the seventh year, at
least maintains that higher level of employment during each subsequent taxable
year; provided that the percentage increase shall be based upon the employee
count at the beginning of the initial year of operation within the enterprise
zone or zones; or



(B)  Increases its gross sales of agricultural
crops produced, or agricultural products processed within enterprise zones
located within the same county by two per cent annually.



(c)  After designation of an enterprise zone,
each qualified business firm in the zone shall submit annually to the
department an approved form supplied by the department that provides the
information necessary for the department to determine if it may certify the
applicability of the tax credits and exemptions provided in this chapter for
the business firm.  The approved form shall be submitted by each business to
the governing body of the county in which the enterprise zone is located, then
forwarded to the department by the governing body of the county.



(d)  The form referred to in subsection (c)
shall be prima facie evidence of the eligibility of a business for the purposes
of this section.



(e)  Tangible personal property shall be sold
at an establishment of a qualified business within an enterprise zone and the
transfer of title to the buyer of the tangible personal property shall take
place in an enterprise zone located within the same county in which the
tangible personal property is sold.  Services shall be sold at an establishment
of a qualified business engaged in a service business within an enterprise
zone.



(f)  For any fiscal year that includes
September 11, 2001, a business may use its average annual number of full-time
employees as of August 31, 2001--rather than its average annual number at the
end of its fiscal year including September 11, 2001--if necessary to meet the
requirements of subsection (a)(3) and (4) or (b)(3).  A business may also use
its average annual number of full-time employees at the end of its fiscal year
that includes September 11, 2001, as its base number of full-time employees if
necessary to meet the requirements of subsection (a)(3) and (4) or (b)(3) in
future fiscal years. [L 1986, c 78, pt of §1; am L 1989, c 390, §4; am L 1995,
c 91, §5; am L 1996, c 286, §2; am L 1997, c 262, §3; am L 2000, c 118, §3; am
L 2002, c 146, §2; am L 2008, c 143, §4; am L 2009, c 174, §4]



 



Note



 



  The 2008 amendment to
subsection (b)(3)(A) applies to enterprise zones established pursuant to
chapter 209E after July 1, 2008. L 2008, c 143, §7.