Over seven years this amounts to a 35 percent employee compensation credit. Credit will be allowed for compensation paid during each year of the entitlement period that the taxpayer is at or above the required levels of employment and investment. A credit equal to 10 percent of the investment in qualified property placed in service at the project on or after the date of application until the required levels are met and for each year of the entitlement period that the taxpayer is at or above the required levels of employment and investment. To reduce or eliminate your income tax liability. The credit may be carried over for up to eight years after the end of the seven-year entitlement period.
Unused credits are nonrefundable.
Property tax exemptions, once allowed, continue through the sixteenth December 31 after the filing of the application. Failure to meet required levels of employment and investment by the end of the sixth year after the year the application was submitted or to continue the project at or above the employment and investment levels required in the agreement for the entire entitlement period, will result in recapture of benefits. Transferability of credits Any credits allowed a partnership, S corporation, or an estate or trust, or limited liability company, may be distributed to the partners, shareholders, beneficiaries or members for use against their income tax liabilities. Credits may be transferred with the project in certain situations, and may be taken by the new owner. Initial expansion of both investment and employment must occur in one taxable year.