(a) For purposes of determining the amount of any tax credit permitted hereunder, the qualified investment in property purchased or leased for business growth shall be equal to the cost expended for each of the following after being placed in service and use within the City.
"Qualified Investment" will include:
(1) Real property and improvements thereto, having a useful life of twenty or more years under the depreciation rules of the Internal Revenue Service;
(2) Real property and improvements thereto or tangible personal property acquired by written lease for a period of five or more years;
(3) Depreciated or amortizable tangible personal property having a useful life of five or more years under the depreciation rules and regulations of the Internal Revenue Service;
(4) Natural resources in place which are capable of sustained production for a period of ten or more years may also be included in the computation of qualified investment.
(b) The qualified investment may not include any of the following:
(1) Repair costs unless capitalized for federal income tax purposes;
(2) Vehicles and equipment purchased prior to the granting of any tax credit for use in the business.
(3) Wages and/or benefits paid to any new or existing employees.
(c) In determining the amount of the qualified investment for purchased property, the value of any property given in trade or exchange for the property purchased may not be included.
(d) In determining the amount of the qualified investment where property is damaged or destroyed by fire, flood, storm or other casualty, or is stolen, then the cost of replacement property shall not include any insurance proceeds received in compensation for the loss.
(e) The final determination as to what costs will count toward qualified investment as defined in this section is vested in Director of Finance.
(Ord. 96-18. Passed 7-18-96.)