Agenda - 05-18-2010 - 8b - Laserfiche WebLink

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period of eight (8) years. This credit expires if the property ceases to be used as a central administrative office; the credit will also lapse if the number of employees at the central administrative office decreases by forty (40) jobs or more. The NC Employment Security Commission provides certification of central headquarters status for firms seeking this credit. Research & Development Tax Credit: State of North Carolina Firms located in North Carolina are eligible for a tax credit of up to five percent (5 %) of the state - apportioned share of the expenses for increasing research activities. Eligible corporations must be registered for the federal income tax credit under Section 41(a) of the Internal Revenue Code, and the credit must be taken on the taxpayer's current yearly tax return. Research Expansion Tax Credit: United States Government Under Title 26, section 41 of U.S. Tax Code, select corporations are eligible for a research credit equal to twenty percent (20 %) of the excess qualified research expenses for the taxable year, over the base period research expenses. Base period research expenses are the average qualified research expenses for each year of the three (3) years preceding the taxable year in which the credit is being taken. This credit is applicable to both in -house and contract research activities. All research must be performed solely for the purpose of discovering information which is technological in nature; this research must also be intended for use in the development of a new or improved business component for industry, and all activities must be relegated toward a specific purpose. SBA 504 Loan: United States Government This program provides long -term, fixed -rate financing for a corporation's major assets, including land and buildings. Working in conjunction with a local Community Development Corporation (CDC), the Small Business Administration (SBA) provides financing for small area businesses. Most 504 projects involve a secured loan from a private-sector lender which covers up to fifty percent (50 %) of the project cost, as well as a loan from the CDC which covers up to forty percent (40 %) of the project cost, leaving a contribution of at least ten percent (10 %) equity from the affected business. The maximum loan amount allowed by SBA is $1,500,000 when meeting the job creation criteria or a community development goal; the maximum SBA loan is $2.0 million when meeting a public policy goal; the maximum loan for "Small Manufacturers" is $4.0 million. (For further information click the link above for the United States Small Business Administration) All proceeds from SBA 504 loans must be used for fixed asset projects. Allocated funds may not be used for working capital, the consolidation of debt, or refinancing. Eligible firms must be for - profit and fall within the SBA guidelines. Loans will not be made to businesses engaged in rental real estate development or speculation. Environmental and Historical Assistance Facade Improvement & Mural Grant Program: Downtown Durham, Inc. Properties that are located within the boundaries of Downtown Durham and are classified as either commercial or residential buildings are eligible for this city improvement program, administered by Downtown Durham, Inc. Several grants will be awarded for up to 50 percent of the project cost, not to exceed $2,500 per project (certain exceptions may receive additional funding). This program's objectives are to improve building appearances and to create a visually attractive downtown. Qualifying projects include, but are not limited to, brick surface repair, signage replacement, canopy installation, and mural painting. Federal Brownfields Tax Incentive: United States Government Through the Taxpayer Relief Act of 1997, the United States Environmental Protection Agency (EPA) has been given power to help spur the cleanup and redevelopment of brownfields sites in distressed urban and rural areas. This act gives the developers of qualified brownfields properties the ability to fully deduct from federal tax liability all cleanup - related site costs in the year in which they occur. The incentive is 421Page