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Economic Development
Technology Zone Program
Businesses qualifying as a "technology business" and locating within a certain geographic region are eligible for Technology Zone incentives. To qualify, a business must be engaged in research, design, development or manufacture of commodities, services or solutions used in factory automation, biotechnology, chemicals, computer hardware, computer software, computer systems, defense, energy, environmental, manufacturing equipment, advanced materials, medical, pharmaceuticals, photonics, subassemblies and components, test and measurement, telecommunications and transportation. In no case will a business just using computers or telecommunications in its administrative operations qualify.
An existing technology zone business must increase its average number of full-time jobs by at least 10% and make a new capital investment, resulting in an increase of at least 20% in assessed value of the firm's real estate and/or in the cost of the business' personal property.
A new technology zone business must create a minimum of three (3) full-time jobs and make a new capital investment in business personal property or real estate of at least $30,000.
Incentives
Telecommunications Connection Fee Grant - A grant awarded through the Economic Development Authority will pay for 50% of the actual cost of extending telecommunication services to the business' location. In no case, however, shall the grant exceed $1,000 per business. Grant is paid after the installation.
Capital Investment Grant - A grant awarded through the Economic Development Authority will pay 50% of the net increase in business personal property and real estate taxes actually paid by the firm in the first year following the capital investment. Grant is made after the taxes have been paid.
Application Process
Certification: A business firm seeking to become qualified as a technology business must make application to the city's Department of Economic Development for initial certification as a qualified technology zone business. All applications shall be submitted annually to the city's Economic Development Department no later than March 31 of the calendar year following the calendar year in which the business firm met the qualifications. The form TZ-C1, Technology Business Certification Form, is required.
Incentive Application: Application must be made before June 30 of the grant year, the year after the qualifying year. The Tech Business Incentive Application TZ-IN1 requires documentation demonstrating both qualification and telecommunications fees and/or tax increases due to investment be attached.
For an existing company needing to demonstrate an increase in employment, a Job Grant Template has been created to automatically determine the increase in employment from the base year to the qualifying year.
For more information, contact Chris Copenhaver, Economic Development Specialist, at (540) 853-2717.
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