730.01 MANUFACTURING BUSINESS.

   (a)   Any manufacturing business taxable under Section 729.06 which shall, after the passage of this section, commence manufacturing activities taxable within the corporate limits of the City, and which is subject to the City’s Business and Occupation Tax, shall be eligible for a fifty percent (50%) tax credit against the business’ normal Business and Occupation Tax liability.

   (b)   “Normal Business and Occupation Tax liability”, as used in this section means that tax computed by the application of rates contained in Section 729.06 to income generated from activities described therein, less the amount of annual exemption allowed and determined under Section 729.15.

   (c)   This tax credit shall apply only to income taxable under Section 729.06.

   (d)   Notwithstanding any of the above, a manufacturing business located in the City at the time of the passage of this section, which business is subsequently sold, would be eligible for the tax credit described above, if, in the determination of the City Clerk, such business would be eligible for a tax credit under West Virginia Code 11-13C as amended.

   (e)   Any manufacturing business which shall, after the passage of this section, increase its full-time average yearly work force by at least ten persons over base year employment, and increase its yearly gross (Section 729.06 ) taxable income by at least one million dollars ($1,000,000) shall be eligible for a fifty percent (50%) tax credit against the increase in the tax liability derived from the above-referenced activities. However, the credit shall only apply to the tax due on that incremental portion of gross income which is greater than the average gross income generated by the business over the immediately preceding three years. This tax credit shall apply only to income taxable under Section 729.06 .

   (f)   “Base year employment” for the purposes of this article, means the average employment within the City, which the manufacturing business utilizes to conduct activity taxable under Section 729.06 during the twelve-month period immediately preceding first application for this credit.

   (g)   In order for a manufacturing business to qualify for this credit, the jobs created shall be located within the City, and shall be utilized in the business’ manufacturing activity. In addition, the jobs created shall be retained for the full term of the credit in order for the credit to be applicable. That is, if the number of qualifying jobs at any time drops below the base year employment level plus ten, the credit shall be lost.

   (h)   The tax credit may be available for a period of three consecutive years from the date of first application. (Ord. 552. Passed 8-7-95.)