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

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

(2)  During each taxable year has at least fifty percent of its enterprise zone establishments' gross receipts attributable to theactive conduct of trade or business within enterprise zones located within thesame county; and

(3)  Either:

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

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

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

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

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

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

(3)  Either:

(A)  Increases its average annual number offull-time employees employed at the business' establishment or establishmentswithin enterprise zones located within the same county by at least ten per centby the end of the first year of operation, and by at least fifteen per cent bythe 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, atleast maintains that higher level of employment during each subsequent taxableyear; provided that the percentage increase shall be based upon the employeecount at the beginning of the initial year of operation within the enterprisezone or zones; or

(B)  Increases its gross sales of agriculturalcrops produced, or agricultural products processed within enterprise zoneslocated 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 thedepartment an approved form supplied by the department that provides theinformation necessary for the department to determine if it may certify theapplicability of the tax credits and exemptions provided in this chapter forthe business firm.  The approved form shall be submitted by each business tothe governing body of the county in which the enterprise zone is located, thenforwarded 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 purposesof this section.

(e)  Tangible personal property shall be soldat an establishment of a qualified business within an enterprise zone and thetransfer of title to the buyer of the tangible personal property shall takeplace in an enterprise zone located within the same county in which thetangible personal property is sold.  Services shall be sold at an establishmentof a qualified business engaged in a service business within an enterprisezone.

(f)  For any fiscal year that includesSeptember 11, 2001, a business may use its average annual number of full-timeemployees as of August 31, 2001--rather than its average annual number at theend of its fiscal year including September 11, 2001--if necessary to meet therequirements of subsection (a)(3) and (4) or (b)(3).  A business may also useits average annual number of full-time employees at the end of its fiscal yearthat includes September 11, 2001, as its base number of full-time employees ifnecessary to meet the requirements of subsection (a)(3) and (4) or (b)(3) infuture 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; amL 2002, c 146, §2; am L 2008, c 143, §4; am L 2009, c 174, §4]

 

Note

 

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