Retailers in Monroe are eligible to utilize both the Federal Renewal Community
incentives and the State/ City Enterprise Zone Program. This allows them to benefit from some of the most
powerful business incentives that are available anywhere in the United States.
The incentives include the following:
Renewal Community
Employee Credit
- Through the end of 2009, a $1,500.00 federal tax credit for each
employee (existing and new) that lives and works in the Renewal Community.
Increased Section 179 Deduction
- A Renewal Community business can deduct an extra $35,000.00 per year on equipment purchased and placed
into service through the end of 2009.
Enterprise Zone
Entitles a retailer to both a $2,500.00 state tax credit for each new job created and
a rebate of sales tax paid on building materials and equipment purchased during construction.
A more detailed review of these incentives.
Incentive
Every year through the end of 2009, a business located in the Renewal Community will receive up to a
$1,500.00 federal tax credit for each of it's employees (existing and new) that lives and works in the
renewal
community.
The amount of the tax credit for each employee will be equal to 15% of the first
$10,000.00 earned by the employee that year.
Credits can be carried forward for 20 years or carried back
for 3 years.
Incentive
-Under Section 179 of the IRS code, any business can deduct up to $100,000.00 of the cost of new equipment in
the year that the equipment is placed into service.
-A renewal Community business can deduct an extra $35,000.00 per year ( a total allowed deduction of
$135,000.00 per year) on equipment purchased and placed into service through the end of 2009.
-To take the extra deduction in a particular year, 35% of the retailer's employees must have lived in the Renewal
Community that year (a safe assumption).
Incentive
-Generate a sales tax/use tax rebate and state tax credits for businesses that create new jobs in Louisiana.
-Participation entitles the business to a rebate of State and City sales/use tax paid on building materials purchased
and used during construction, as well as equipment purchased during the construction period that will be used exclusively
on-site.
-For each new job created, the company earns a $2,500.00 tax credit that may be used to satisfy state income and/or
franchise tax liability. Credits earned may be carried forward for up to 10 years.
-To qualify, at least 35% of all new employees must be living in an enterprise zone, receiving public assistance,
receiving employee assistance, lacking basic skills, or living with a physical handicap. Over the past 5 years
all Monroe businesses have easily met this requirement.
|
|
|
|