This bill amends the laws governing the income tax credit for major food processing and manufacturing facility expansion in the following ways.
1. It removes the requirement that an applicant's headquarters are, and have been for each of the last 5 years prior to application for a certificate of approval, located in the State.
2. It requires that an applicant employ or will employ within 12 months of the start-up of the facility at least 40 full-time employees based in the State. Current law requires that an applicant employ or will employ upon start-up of the facility at least 40 full-time employees based in the State.
3. It changes the criteria to be considered a qualified and certified applicant.
4. It increases the total value of certificates of approval that the Commissioner of Economic and Community Development may issue from $100,000,000 to $200,000,000. It also increases the cap on an individual certificate of approval from $85,000,000 to $100,000,000.
5. For a tax year beginning on or after January 1, 2027, it increases the amount of the credit a certified applicant is allowed from an amount equal to 1.8% of the certified applicant's qualified investment to an amount equal to 2% of the certified applicant's qualified investment.
6. It removes the provision that provides that a credit is not allowed for any tax year following 2 consecutive tax years during which a certified applicant did not have between $5,500,000 and $12,000,000 in ordinary business income.

Statutes affected:
Bill Text LD 1951, SP 758: 36.5219