The Incentive Payment shall be based on the "Qualifying New Payroll" included in the Job Creation Incentive Program application. Incentive payments will be calculated as twenty-five percent (25%) of the "Qualifying New Payroll" multiplied by the current City of Loveland municipal income tax rate of one-percent (1.00%).
(a) Term of incentive payment shall be based on "Qualifying New Payroll" stated in the Job Creation Incentive Program application and awarded upon the following parameters:
(1) Qualifying New Payroll $250,000 - $499,999 = 2 years
(2) Qualifying New Payroll $500,000 - $749,999 = 3 years
(3) Qualifying New Payroll $750,000 - $999,999 = 5 years
(4) Qualifying New Payroll $1,000,000 - $1,999,999 = 6 years
(5) Qualifying New Payroll $2,000,000 - $2,499,999 = 7 years
(6) Qualifying New Payroll $2,500,000 - 2,999,999 = 8 years
(7) Qualifying New Payroll $3,000,000 - $5,000,000 = 10 years
(8) Qualifying New Payroll in excess of $5,000,000 = 12 years
(b) To the extent a Qualified Business or developer creates a Qualifying New Payroll in excess of two million dollars ($2,000,000), the City may negotiate a contract for a different Incentive Payment Individually with such "Qualified Business", subject to the approval of Council, than as otherwise outlined above. In such instance, the amount of the Incentive Payment offered to a Qualifying Business may be offered, up to a maximum award of fifty (50%) percent of the "Qualifying New Payroll" multiplied by the current City of Loveland municipal income tax rate of one-percent (1.00%).
(c) At the sole discretion of the City Manager, and as further approved by City Council, the City may elect to offer, as an additional incentive above the Job Creation Incentive Payment defined herein, an additional tax credit on Qualifying Corporate Net Earnings to a Qualified Business creating Qualifying New Payroll in excess of five million dollars ($5,000,000), as follows:
(1) The amount of the tax credit award shall be entirely discretionary and shall be based upon the total amount of Qualifying New Payrolls created by the Qualifying Business.
(2) In the case of expanding businesses already located within the City of Loveland, tax credits shall only be awarded for new earnings in excess of those earnings already subject to Corporate Net Earnings tax liability. For purposes of this section, the "baseline" earnings shall be the earnings of the tax year preceding the year in which the agreement is approved, as evidenced, and certified within the prior year corporate income tax return(s) filed with the City of Loveland.
(3) In no instance shall the amount of the Corporate Net Earnings tax credit exceed fifty (50%) percent of the total Corporate Net Earnings Tax liability owed by the business during any tax year for which a tax credit is granted.
(4) The length of the Corporate Net Earnings tax credit shall be entirely discretionary and project-specific; provided, however, that the term shall not exceed fifteen (15) years.
(5) The term of the Corporate Net Earnings tax credit shall run concurrently with the term of any other Job Creation Incentive Payment approved by City Council under the City of Loveland Job Creation Incentive Program.
(6) In the event that any portion of the awarded tax credit is unused during any tax year in which the Corporate Net Earnings credit is in effect, the credit may not be carried forward to a subsequent year unless otherwise specifically recommended by the City Manager, and approved by City Council.
(7) The granting of this additional Corporate Net Earnings tax credit shall be subject to approval by City Council, upon receipt of the City Manager's recommendation for this additional award.
(d) No contract presented for approval to City Council shall be for a term exceeding fifteen (15) years.
(Ord. 2022-125. Passed 12-13-22.)