City of Huntington Tax Incentives for Kinetic Park

Business and Occupation (B & O) Tax Rates:

$ 0.50 per $100 of sales for retailers

$ 1.00 per $100 of sales for service businesses

Investments in real estate, structure, equipment and corporate property of $2 million dollars, and creation of at least 5 new jobs and/or 20% increase in employees for existing businesses relocating to KineticPark:

75% reduction in B & O Taxes Year 1

50% reduction in B & O Taxes Year 2

25% reduction in B & O Taxes Years 3, 4, & 5

Investments in real estate, structure, equipment and corporate property of $10 million dollars and have a minimum of 150 employees and increase employment by 20%:

50% reduction in B & O Taxes Years 1 through 20

Flexible deal structure for lots including purchase, land lease and lease to purchase.

Empowerment Zone Federal Tax Incentives
(EZ Incentives in effect until 12/31/2009)

Huntington - Ironton Empowerment Zone defined: a geographic area defined by census tracts that includes areas with the City of Huntington, West Virginia (9.1 square miles, 28,000+ persons) and the City of Ironton, Ohio (0.6 square miles, 2,800+ persons). In addition to the defined census tracts are three developable sites. The three sites include KineticPark in Huntington, West Virginia, The Point Industrial Park in South Point, Ohio, and HADCO Business Park in Green Bottom, West Virginia.

If your business is located in the Huntington - Ironton Empowerment Zone (EZ):

EZ Employment Wage Credit:

The company can take up to $3,000 in wage credits per year for each employee who works and lives in the Zone.

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Credit equals 20% of wages paid to employees, up to $15,000 of employee's wages per calendar year.

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Unused credit amounts can be carried forward for up to 20 years and back one year.

If your business is located the Zone and at least 35% of your employees live and work in the Zone

EZ Employment Wage Credit (above)

Deductions - Increased Section 179 Deduction - additional $20,000 expensing per year

Bond Financing - Enterprise Zone Facility Bonds (a type of tax-exempt bond ) available for Zone businesses.

Capital Gains:

Nonrecognition of Gain on Sale of Empowerment Zone Assets (EZA) - Capital gain on EZAs (stock, partnership interests, and business property) of a business held for more than one year is not recognized (and is rolled over) if replacement EZA is acquired within 60 days.

Partial Exclusion of Gain on Sale of Empowerment Zone Stock - Exclusion of 60% of the gain on sale of small business stock of a C Corporation that is a business located in an EZ if the stock is held at least 5 years.