These phase-in percentages also apply to the amount used as an itemized deduction. The earned income tax credit and childcare credit amounts have also been increased for low-income taxpayers. Businesses in these zones will receive an income tax credit for real property tax paid, based upon an increase in employment. The full credit is available for ten years, for tax years beginning on and after January 1, 2001. There is a state sales tax exemption on the purchase of goods and services used in these zones.
Localities have the option to match the sales tax exemption.
Finally, there is a credit against the tax liability resulting from business activities conducted in the zone. This credit is also based upon an increase in employment, and is available for ten years with a five-year phase out. For Financial Service Companies allocating business income, the receipts factor of the business allocation percentage is now based upon the customers' location, not where the work was performed. This change is effective for taxable years beginning on or after January 1, 2001. Sales Taxes Equipment used in an Internet data center is now exempt form sales tax.