Is there a corporation tax credit for a small business which is unable to increase its employment and which makes an investment in the zone, instead?
Yes. There is an alternate method by which a zone business may be qualified, even though it is unable to increase its full-time permanent employment, if the business has fewer than 50 employees and was in business in the zone at least one year prior to designation of the zone. This business may be certified for one year by entering into an agreement with the zone city to make an expenditure, approved by the Authority, which contributes substantially to the economic attractiveness of the zone. The expenditures must be at least $5,000 for a business with 10 or fewer employees, with an additional $500 per employee up to the maximum of 49. The corporation is entitled to an 8% investment credit against the Corporation Business Tax for the tax year in which the expenditure is made. The credit may be carried over (see question 26). Corporate tax benefits are unavailable to qualified businesses located within an Urban Enterprise Zone-impacted business district.
