SPONSOR: Aldridge
This bill authorizes an income tax credit equal to 50% of the amount incurred in the construction and development of a new business in a distressed community so long as the majority of the new business' employees live within the county of the distressed community. A distressed community is defined to be a census tract with a poverty rate of at least 20% or a median family income of less than 80% of the statewide average.
A taxpayer cannot claim a tax credit greater than $2.5 million per tax year. The credit is nonrefundable and nontransferable, but may be carried over three years. The total amount of credits authorized cannot exceed $25 million in any calendar year.
A taxpayer must repay all credits received plus a reasonable return on the value of the credits issued if the business leaves within five years of being issued the credits.
This bill is the same as HB 286 (2019).
Statutes affected: