(a) Upon a finding by City Council pursuant to the Economic Development Incentive Program, the City may provide an inducement to a business entity in the form of a credit against the tax on net profits actually collected or which is otherwise due pursuant to Sections 181.02 et seq.
(b) All business entities shall be eligible, whether currently located in the City, whether incorporated, or otherwise.
(c) The Director of Administration of the City shall from time to time prepare and accept applications from business entities for consideration of a credit. The application shall describe among other information:
(1) The anticipated number of new employees and total employees to be located within the City;
(2) The new and total employment income generated;
(3) The tax revenue anticipated in connection with employees; and
(4) Any other information the Director of Administration deems necessary to perform under this program.
(d) Upon City Council's approval, the City shall enter into a Development and Incentive Agreement signed by the City and the business entity to receive a credit equal to a portion of the actual proceeds of the tax paid pursuant to Sections 181.02 et seq. from employees of the business entity.
(e) The tax credit may be applied against amounts that the business entity is otherwise required to remit to the City based upon its net profits, or refunded after collection by the City if, as a result of the credit, the business entity has remitted to the City an amount in excess of the tax otherwise due after application of the credit, as expressly stipulated in the Agreement. In no event shall the credit reduce the taxpayer's liability for the tax imposed by this chapter on its net profits below zero.
(f) Every Agreement shall state the maximum percentage of credit as against actual receipts to the City, which shall not be exceeded in any time period, notwithstanding any statement in the application, the Agreement, or in any other context. The Agreement shall be void and unenforceable to the extent that the tax actually collected by or remitted to the City under Sections 181.02 et seq. is insufficient to cover the tax credit or any portion thereof.
(g) No tax credit shall exceed a term of fifteen years.
(h) No tax credit shall be granted to a business entity without an express provision that the business entity will continue with the project in the City for a period of time equal to the term of the credit plus five years.
(i) Each Agreement shall contain conditions that the business entity must fulfill to receive the credit, or otherwise state that the credit is unconditional.
(j) Each Agreement shall contain provisions for reduction of the credit or refund of either a portion or the whole of the credit, upon the business entity's failure to meet the conditions required in the Agreement.
(Ord. 05-38. Passed 10-3-05.)