Loading...
02.64L.01.05 General Conditions.
5.1 Property owners and businesses currently located within the boundaries of the Zone or new businesses that locate there must meet the qualification standards set forth in these Executive Regulations in order to be certified by the Administrator as eligible to receive tax credits under the Enterprise Zone Program. The following general conditions must be met:
5. 1.1 The business activity conducted on the property must constitute a legal use of the property. The property must be current with respect to payment of real property taxes and the business must be current with respect to payment of income and personal property taxes.
5.2 Any business entity located in the Zone before December 15, 1996 may not benefit from the tax credits and other incentives of the Enterprise Zone Program except with respect to any capital investment or expansion of its labor force occurring after December 15, 1996. Any new construction assessed in the tax year immediately preceding the tax year for the first credit is excluded from the tax assessment.
5.3 Property tax credits do not apply to Parking District Taxes and Urban District Taxes.
5.4 Location in the Zone or certification of eligibility for tax credit does not relieve property owners or businesses from building codes, zoning requirements and other regulations applicable to the property or business.
5.5 Since a minimum qualifying capital investment may not necessarily result in an increase in dollar value assessment, determination of eligibility by the Administrator for property tax credit shall not be deemed to create an assumption that a property tax credit will be given for a minimum qualifying capital investment in the Zone.
02.64L.01.06 Eligibility Requirements and Qualification Standards.
6.1 Employment Tax Credit Qualification Standards. Businesses seeking employment tax credits must meet the following requirements:
6.1.1 State Standards.
6.1.1.1 The new employee(s) for which tax credits are sought must have been hired after the business was located in the Zone and after December 15, 1996. If a business relocates from another location in Maryland into the Zone, its base employment remains the same as it was at the previous site.
6.1.1.2 The new employee(s) must have worked in the business for at least 25 hours each week for six months before or during the taxable year for which the credit is taken.
6.1.1.3 The new employee(s) must spend at least half of all work time in the Zone or in an activity related to the Zone.
6.1.1.4 The new employee(s) must have been hired to fill new positions. That is, the firm's number of full-time employees must increase by the number of credits taken.
6.1.1.5 In order to claim tax credit for hiring economically disadvantaged employees to fill newly created positions, the business must obtain a certification of eligibility for each employee provided by the Maryland Job Service, Department of Labor, Licensing and economically disadvantaged employee must remain in the position for three years. However, if the disadvantaged employee leaves the business and is replaced by another employee who is also qualified as disadvantaged, the business may take the remainder of the credit as if the original employee had remained.
6.1.2 Additional Local Standards.
6.1.2.1 In the event a business is exempt from the requirement to join the Silver Spring Transportation System Management District (TMD), it must demonstrate support for the County's TMD efforts through activities such as employee awareness programs in order to be eligible for the tax credits.
6.1.2.2 When claiming tax credit(s) for hiring employees or relocating into the Zone from outside the State, the business must show a net increase of at least 25 work hours per week for each tax credit sought. The business may be required to document this employment on time sheets and payroll documents.
6.1.2.3 The business must show an increase of five percent (5%) to a minimum of one (1) new employee.
6.2 Property Tax Credit Qualification Standards. Credits will apply to increased property tax based on an increase in the assessed value of the property. Benefits will be triggered by increased assessment subsequent to a minimum qualifying capital investment in property in the Zone. Property owners seeking property tax credits must meet the following requirements:
6.2.1 State Standards.
6.2.1.1 The tax credit is granted on whole taxable years only. A property owner will have to pay any partial-year levy tax bills should the property improvement be assessed as complete before July 1 of the first year of eligibility. The property owner will then receive the tax credit for ten full years. Tax credits will be calculated in accordance with Md. Code Ann., Tax Prop., Section 9-103.
6.2.2 Additional Local Standards.
6.2.2.1 Property owners must make a minimum qualifying capital investment in the property through sources other than government grants. A minimum qualifying capital investment may include improvements made with funds obtained through government loan programs.
6.2.2.2 The minimum qualifying capital investment is ten dollars ($ 10) per square foot of building floor area improved, and at least 20% of the total building floor area must be improved.
6.2.2.3 The minimum qualifying capital investment may include off-site. investment in state-of-the-art technology, such as installation of new fiber optic wiring to the building, to meet modem standards, particularly those of technology-oriented companies.
6.2.2.4 The minimum qualifying capital investment may include off-site improvements, such as streetscape improvements, and on-site improvements such as new landscaping in parking lots to implement specific objectives of the Silver Spring Sector Plan and Urban Renewal Plan. These improvements must be part of a building construction or building improvement project.
6.2.2.5 Construction of new parking facilities or improvements to existing parking facilities are not eligible for tax credit, except where such parking facility is an integral part of new building construction or improvement of an existing building.
(Administrative History: Reg. No. 5-97 (Method 1); Orig. Dept.: Economic Development)
Editor’s note—2015 L.M.C., ch. 36, §6, states, in part: Reference to the Department of Economic Development in COMCOR 02.64L.01 (Silver Spring Enterprise Zone), COMCOR 02.64L.02 (Wheaton Enterprise Zone), and COMCOR 02.64L.03 (Long Branch/Takoma Park Enterprise Zone) is a reference to the Department of Finance.
2015 L.M.C., ch. 36, §8, also states, in part: All other provisions of this Act take effect 180 days after the Montgomery County Economic Development Corporation is designated under Section 30B-2.
02.64L.02.01 Purpose.
1.0 The Wheaton Enterprise Zone is established to accomplish the following purposes:
1.0.1 Reinforce the Wheaton Marketplace by preserving the existing scale of development and retaining as much of the mix of goods and services as possible.
1.0.2 Encourage the creation of new jobs and new business investment. Efforts should be focused on encouraging retention of existing companies by improving their profitability, as well as on recruiting new businesses to Wheaton.
1.0.3 Encourage redevelopment in the Metro Center area and moderate expansion of Wheaton Plaza and in the Marketplace.
1.0.4 Encourage redevelopment in the Metro Center area with a high intensity of mixed uses and activities, including office. Wheaton Plaza, a major regional retail center, should be strengthened.
1.0.5 Improve the attractiveness of downtown Wheaton as a place to do business while protecting existing neighborhoods.
1.0.6 Promote revitalization of older properties and combine a number of programs to reduce deterioration.
1.0.7 Strengthen Wheaton as the downtown for the Mid-County Region. Encourage a mix of uses and activities that promote a 24-hour living environment by providing housing opportunities, neighborhood convenience retail alongside viable comparison shopping, community services, recreational, and cultural amenities.
1.0.8 Reinforce the County's other initiatives in Wheaton. Bringing new economic vitality to Wheaton will require a broad-based effort. While there is no single solution to the area's many challenges, the Enterprise Zone is one positive step to complement local incentives and initiatives available through the County.
1.1 Priorities for Development are as follows.
1.1.1 There has been an impressive history of public efforts over the years to maintain the economic health and viability of the Wheaton CBD. These efforts range from mass transit projects to an expansive program of streetscaping and public parking. All of these efforts have been aimed at providing incentives for businesses to remain in the downtown and to attract new businesses to the area.
1.1.2 A comprehensive revitalization effort recognizes the inter-relationship between economic development and community conservation and calls for a partnership involving the business and residential communities as well as several County agencies. Montgomery County's Wheaton Enterprise Zone is part of that comprehensive revitalization strategy.
1.1.3 Among the priorities for development of this comprehensive revitalization strategy are the following initiatives:.
1.1.3.1 Complete current revitalization efforts;
1.1.3.2 Continue vigorous building code enforcement;
1.1.3.3 Evaluate existing economic development programs and initiatives;
1.1.3.4 Consider development of new local initiatives and incentives;
1.1.3.5 Strengthen the businesses in the downtown Wheaton area;
1.1.3.6 Implement an aggressive, targeted marketing program designed to package and promote the benefits of locating or expanding a business in Wheaton;
1.1.3.7 Develop and implement a comprehensive business assistance program;
1.1.3.8 Encourage the creation of new jobs and new business investment; and,
1.1.3.9 Permit some growth-redevelopment in the Metro Center area and moderate expansion of Wheaton Plaza and in the Marketplace.
1.2 To restore Wheaton as the downtown for the Mid-County area by encouraging a mix of uses and activities that promote a living environment by providing neighborhood convenience and comparison retail as well as other businesses along with community services, recreational, and cultural amenities.
Loading...