«HARFORD COUNTY ENTERPRISE ZONES Zone Objectives Eligibility Business must be located within the zone and meet minimum Harford County’s focus on its ...»
HARFORD COUNTY ENTERPRISE ZONES
Zone Objectives Eligibility
Business must be located within the zone and meet minimum
Harford County’s focus on its two Enterprise Zones
requirements for job creation or for capital investment,
designated by the Maryland Department of Business &
including, but not limited to, specified design standards.
Economic Development is to:
MINIMUM CAPITAL INVESTMENT CONSTRUCTION/ REHABILITATIONInsure retention and spur expansion of resident businesses OF REAL PROPERTY Encourage the creation of well-paying new jobs Edgewood/Joppa $50,000 Promote development and occupancy of vacant, underutilized Greater Aberdeen/Havre de Grace land and buildings $75,000 (if business has 10 or less employees) $125,000 (if business has 11 or more employees) Support the County’s commitment to revitalizing older and/or industrial areas of Harford County
MINIMUM FULL-TIME JOB CREATION
Complete the Enterprise Zone Qualification Application and return to Harford County Office of Economic Development with the required site and landscape plans. The application will be reviewed and a letter confirming eligibility of benefits will be sent.
Note: Application must be submitted no later than October 1 for real property tax credit on the next July 1 tax bill.
For REAL PROPERTY TAX CREDITS, no additional paperwork needs to be completed by applicant. The Office of Economic Development will notify the Maryland Department of Assessments and Taxation and the property owner.
For STATE INCOME TAX CREDITS, submit Maryland Tax Form 500CR along with annual return filed with the Comptroller of the Treasury. Form 500CR is used to claim a credit against the income tax for certain wages paid to qualifying employees in the Enterprise Zone.
Other Programs STATE INCOME TAX CREDITS FOR HIRING ”ECONOMICALLY DISADVANTAGED” EMPLOYEES, requires the company to have such employee or potential employee certified through Maryland Department of Labor, Licensing & Regulation. For more details, contact Job Service Supervisor at the Bel Air Office, 410.836.4631.
The following minimum standards must be met by business entities located within the Greater Aberdeen/Havre de Grace Enterprise Zone (Zone) in order to apply for the real property tax
Seventy-five thousand dollars ($75,000) in capital investment above the base level for those sites capable of supporting ten (10) or fewer full-time employees OR one hundred twenty-five thousand dollars ($125,000) in capital investment above the base level for those sites capable of supporting eleven (11) or more full-time employees.
The credit for the first through fifth years is for 80% of the property taxes on the "eligible" assessment. The "eligible" assessment is defined as the difference between the base year assessment (i.e., the taxable assessment on the property in the tax year immediately preceding the first year in which the special tax credit will be applied) and the assessment for the first year in which the credit will be applied. Property must be certified to the Department of Assessments and Taxation by the Office of Economic Development during the calendar year (prior to January 1) in order to receive the tax credit for the following year. Credits will be applied to tax bills issued on July 1 for the tax year indicated in the qualification letter to the Maryland Department of Assessments and Taxation, a copy of which is sent to the property owner.
Property tax credits for the sixth through the tenth year are: 6th year - 70%; 7th year - 60%;
8th year - 50%; 9th year - 40%; and 10th year -30%.
A property is qualified by the Office of Economic Development via the use of a letter indicating the name and address of the property owner and property tax account number.
This letter, after certification of qualification by the appropriate local government(s) is sent to the State Department of Assessments and Taxation, with a copy to the local assessor and the appropriate local government.
The State of Maryland representative for this tax credit program is Robert Young, State Department of Assessments and Taxation, 301 Preston Street, 8th Floor, Baltimore, MD 21201-2305; telephone (410) 767-1191.
Qualifying businesses are eligible for State of Maryland income tax credits based on new jobs created following the zone designation date of June 15, 1996. The minimum qualifications for Income Tax Credits for businesses are: (1) two (2) new jobs created (effective 7/1/01, minimum of 35 hours per week per new job created at an hourly wage of 150% of minimum wage) above the base employment level for those businesses employing ten (10) or fewer full-time equivalent employees, OR (2) five (5) new jobs created (effective 7/1/01, minimum of 35 hours per week per new job created at an hourly wage of 150% of minimum wage) above the base employment level for those businesses employing eleven (11) or more full-time equivalent employees. These credits vary according to the type of employee used to fill the newly-created jobs.
For "economically disadvantaged" employees who have been certified by the Department of Labor, Licensing and Regulations (local job service or employment office), the maximum
(a) Effective 7/1/01, the maximum credits are $3,000 the first year, $2,000 the second year, and $1,000 the third year based on a minimum 35 hours per week per new job created, at an hourly salary of 150% of minimum wage.
(b) For a non-economically disadvantaged employee, effective 7/01/01, the credit is a one-time maximum of $1,000 based on a minimum 35 hours per week per new job created, at an hourly salary of 150% of minimum wage.
If the business hires a disadvantaged employee to replace a disadvantaged employee in the second year, the maximum credit is $2,000 (based on a minimum 35 hours per week at an hourly salary of 150% of minimum wage). If the business hires a disadvantaged employee to replace a disadvantaged employee in the third year, the maximum credit is $1,000 (based on a minimum 35 hours per week at an hourly salary of 150% of minimum wage.
Replacement of a non-economically disadvantaged employee by another such employee earns no credit.
Income tax credits are available on tax returns for the taxable years immediately following the designation of the Zone or the location of the business in the Zone, whichever is later.
The credit is available on wages paid in the taxable year only, and the employee must have worked at least six months before a tax credit can be received. The six-month qualification period begins when the employee is hired, even though the credit is not taken until the following year. Eligible employees must work at least 35 hours per week at an hourly wage of 150% of minimum wage and spend at least 50% of his or her working time in the Zone or in activities related to the business located within the Zone.
A business entity is qualified by receipt of a letter from the Office of Economic Development stating that the business has fulfilled the requirements of the local political subdivision to receive the credits.
By submission of and signature on the Qualification Application, the business creating new jobs agrees (through its owner, principal, employee or authorized agent) to provide a written report to the Harford County Office of Economic Development (specifically, to the Enterprise Zone Administrator) on the number of new full-time and new part-time jobs created for each calendar year until the end of the Enterprise Zone designation on June 14,
2016. Such information regarding new jobs created must be submitted no later than March 30 of each calendar year for the prior calendar year. This information is required for compilation of an annual report to the Maryland Department of Business and Economic Development.
Procedures for recruiting qualified Enterprise Zone applicants include:
1. Businesses submit a job order to the Maryland Department of Labor, Licensing & Regulation (DLLR), Division of Workforce Development, requesting Enterprise Zone vouchered applicants.
2. The Maryland DLLR, Division of Workforce Development vouchers applicants on a regular basis and many "walk-in" applicants may already be vouchered.
3. Businesses must send job applicants to the Maryland DLLR, Division of Workforce Development Office for vouchering prior to being hired.
In the case of businesses that can retroactively be certified, the Maryland DLLR, Division of Workforce Development will also do this. In such cases, a copy of the letter of certification from the Office of Economic Development is sent to the Maryland DLLR, Division of Workforce Development requesting this service. Retroactive vouchering can be done on employees hired on or after the zone designation date of June 15, 2006.
In all cases, the business is responsible for sending the voucher to the State by date of hire (or when vouchered for retroactive cases) and certification papers will be sent within a short period of time.
The qualifying business follows the instructions printed on Maryland Tax Form 500CR, "Enterprise Zone Tax Credit," which is available from the Income Tax Division or at www.comp.state.md.us and submits the form with its annual filing.
The income tax credit is treated as an addback modification to taxable income on the Maryland return, whereby the amount of credit is added back to taxable income. This procedure is similar to the "Targeted Jobs Tax Credit" at a federal level. The tax credit is not a refundable credit and all excess credits are carried forward five (5) years from the date the qualified employee was hired.
Employees who are re-hired after having been laid off for more than one year may be eligible for the tax credit plan. Consult the Maryland DLLR, Division of Workforce Development.
In the event of an audit, the following documents must be supplied to the auditing agency:
The State of Maryland Representative for the Jobs Credit Program is: James W. Fowler, Assistant Manager, Revenue Administration Division, 110 Carroll Street, P.O. Box 1829, Annapolis, MD 21411-0000; telephone: (410) 260-7022.
II. LOCAL INCENTIVESThe following represents the local initiatives and incentives that may be targeted to businesses
within the proposed Greater Aberdeen/Havre de Grace Enterprise Zone:
1. The Cities of Aberdeen and Havre de Grace have Revolving Loan Program funds for projects qualifying by the criteria of those programs.
2. Harford County has established and administers the Economic Development Revolving Loan Fund (RLF) and the Economic Development Opportunity Fund (EDOF). The RLF provides funds to credit-worthy businesses unable to obtain financing through traditional sources due to limited equity, collateral or cash flow. The RLF is an alternative incentive provided by Harford County together with a consortium of eight financial institutions and is designed to attract, expand and retain small businesses. Loan amounts can range from $10,000 to $100,000 and are available to for-profit businesses including manufacturers, wholesalers, retailers, service and agricultural companies.
The EDOF is designed to stimulate increased financing for new equipment and operations by complementing traditional lenders, state or federal funding programs. State and County funds are used to encourage investment, retention and job creation for working capital, equipment purchases, land or building improvements and purchases. The maximum loan amount is $100,000.
3. Assist eligible, creditworthy property owners and businesses in pursuing financing for development projects through the Maryland Economic Development Assistance Authority Funds (MEDAAF/MEDAF), the Maryland Industrial Development Financing Authority (MIDFA), the Maryland Small Business Development Financing Authority (MSBDFA), Neighborhood Business Development Program of DHCD, Community Development Block Grants (CDBG) funds, and other federal, state, or local funding sources which exist or may emerge.
4. Focus on and promote the services available through Harford County's Small Business Resource Center (SBRC). The SBRC will provide counseling and training to small businesses, particularly in the areas of business planning, marketing, technical and regulatory assistance. Additionally, financing assistance will be made available to eligible borrowers through commercial lenders and the SBA 504 and Farmer's Home Loan Programs.
5. In addition to Harford County’s “Fast Track” permitting for major industrial projects or expansions, Harford County will consider a modified permit process for the County Sites within the Greater Aberdeen/Havre de Grace Enterprise Zone which would result in an expedited review of applications in order to accelerate private-sector investment, reinvestment and job creation, and will work with both the City of Aberdeen and the City of Havre de Grace as requested to expedite any permit reviews and inspections.
6. Coordination of activities between businesses and Harford Community College, Harford Technical High School, HEAT entities, Maryland DLLR (Division of Workforce Development), Susquehanna Workforce Network, and the Open Doors Career Center to enhance the delivery of relevant educational courses, technical training, job counseling, and job placement opportunities.