ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, July 11, 1996 TAG: 9607110039
SECTION: CURRENT PAGE: NRV-5 EDITION: METRO
DATELINE: PULASKI
SOURCE: PAUL DELLINGER STAFF WRITER
The town of Pulaski scored highest among 42 jurisdictions seeking 14 state enterprise zones last year, according to Dan Girouard, the state official who administers the zones.
Girouard was in town Tuesday to answer questions on enterprise zone benefits at a meeting set by the town's economic development department and the Pulaski Business Alliance. About 20 people attended.
In addition to local incentives for businesses to expand or relocate in enterprise zones, Girouard said, there are three major state incentives:
* Businesses can get a general tax credit for up to 80 percent of their state tax liability in the first year and 60 percent in the next nine years, if a business from outside Virginia locates in the zone or a new business starts. An expanding business must have increased its employment by 10 percent over the previous two tax years, with at least one new employee living in the zone or having formerly made no more than $18,700 a year.
* Real property improvement tax credits of up to 30 percent of the improvement costs, up to $125,000 over five years, are available for rehabilitation projects costing at least $50,000 and new construction of at least $125,000.
* Job grants bring cash awards for business starts or expansions amounting to $1,000 per zone resident hired and $500 for other jobs, with a maximum of $100,000 per year for three years. Unlike the other two incentives, the money from this one is taxable.
"This is the first year we ever did job grants," Girouard said.
"I've got to warn you, there's a little caveat in here. There's a fixed limitation on this program," he said. "If it exceeds $5 million [statewide], we're going to have to pro-rate it."
That is not likely to be a problem with the existing 45 zones across the state, he said. "This year, we did not hit it. We did not hit the cap. Didn't even come close."
He said an enterprise zone designation is good for 20 years. "You can wait 20 years to take advantage of this program. You don't have to rush out and take advantage of it today."
Further information is available at the town's economic development department in the municipal building, or by calling Girouard in Richmond at (804) 371-7030.
"I'll be glad to come out here," he said, to work with businesses interested in taking advantage of enterprise zone designation. "I don't care if it's a sole proprietor or a company with 200 employees."
LENGTH: Medium: 57 linesby CNB