(a) Definition. Any entity that locates a new business or expands an existing business within the corporate limits of Bridgeport can apply for this incentive.
(b) Tax Credit.
(1) New business. The tax credit under this section consists of a credit of 90% of assessed B&O tax on gross revenues the first year and 40% for years two and three. A year, for purposes of the tax credit, is defined as the twelve-month period beginning the first day of the quarter the business meets the qualifications for the tax credit.
(2) Expanding existing business. The tax credit under this section consists of a credit of 90% of assessed B&O tax on qualifying gross revenues resulting from the expansion the first year and 40% for years two and three. A year, for purposes of the tax credit, is defined as the twelve-month period beginning at the first day of the quarter the business meets the qualifications for the tax credit.
(c) Qualifying Requirements.
(1) Application must be submitted and approval received from the city prior to application for a building permit.
(2) Investment of $100,000.00 minimum;
(3) Determination by the City that the tax credit being offered will increase the likelihood of the business locating or expanding in the City;
(4) The real property and improvements of the business location or expansion must have a useful life of five or more years; or must have a coinciding lease of not less than five years; or must be depreciable/amortizable tangible personal property which has a useful life of not less than five years and;
(5) Creation of three (3) new jobs.
(6) Business to be located in either a BPO, B1, B2, or Il zoning district.
(7) City Council shall have the final authority on grant approval after receiving a report and recommendation from city staff and the Bridgeport Development Authority (BDA). City council shall render a decision within 45 days upon receipt of an approved application.
(d) Tax Credit Computation. Tax credits will be considered on total gross revenues of the new business. For expanding business, qualifying revenues will be determined by taking a three year average revenue base for the three years preceding the expansion (or total business revenue if business has been in operation for less than three years) and applying the credit for all revenues which exceed this average.
(e) Forfeiture. If the number of full time jobs which are realized and attributable to the tax credit falls below three, the tax credit will be forfeited for that quarter.
(Passed 3-28-16.)