(a) Any manufacturing, retailing, wholesaling, public service, contracting or service business taxable under Sections 757.04, 757.05, 757.06, 757.07 or 757.09 located in the City on the effective date of this section shall be eligible for a tax credit against the increase of the tax liability derived from an expansion or creation of a new business which results in increased employment. The amount of the tax credit to which such business is entitled shall be as follows:
(1) Creation of twenty-five new jobs or more: twenty percent (20%) tax credit.
(2) Creation of fifty new jobs or more: forty percent (40%) tax credit.
(3) Creation of seventy-five new jobs or more: sixty percent (60%) tax credit.
(4) Creation of 100 new jobs or more: eighty percent (80%) tax credit.
(5) Creation of 125 new jobs or more: one hundred percent (100%) tax credit.
However, the tax credit shall only apply to that incremental portion of gross income which is greater than the average gross income generated by the business over the previous three years and shall be applicable in the taxing category in which the business has paid fifty percent (50%) or greater of its business and occupation taxes to the City in the twelve month period immediately preceding the application for the credit.
(b) A "new job" for purposes of Sections 757.41 to 757.43, means the employment of an individual by a person, firm or corporation for the purpose of increasing the economic productivity of the business for an average of not less than thirty-five hours each week. "Base year employment", for the purposes of this article, means the average employment within the City which the business applying for a tax credit utilized to conduct its activities taxable pursuant to this article during the twelve month period immediately preceding the date on which the business was eligible for the tax credit provided for in this article. In the case of a new business, the base year employment for purposes of determining the availability of a tax credit pursuant to this article is zero. The Clerk/Treasurer shall be responsible for preparing regulations to be adopted by Council by resolution regarding the filing of applications for and the availability of the tax credit created by this section.
(c) The tax credit created by this section shall apply to both newly created businesses and existing businesses within the City.
(d) The tax credit created by this section shall be available for a period of five consecutive years. In the case of a new business a tax credit may be claimed for a period of five years beginning on the date the business is authorized to do business within the City. In the case of an existing business, the tax credit shall be available beginning on the first day of the quarter during which the new jobs have been created.
(e) In order for a business to qualify for a jobs credit, the jobs created shall be located within the City, and shall be utilized in the business 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 the number of jobs for which the credit was claimed, the credit shall be lost. However, if the number of qualifying jobs would allow the business to claim a smaller credit, the business shall be allowed the smaller tax credit.
(Ord. 92-24. Passed 9-21-92.)