Submitted by: Jim Chandler
Submitting Department: Community & Economic Development
Agenda Section: Consent
Item Title:
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Resolution 2020-04: State of Maryland Enterprise Zone Program Re-Designation
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Suggested Action:
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I move that the Mayor and Council introduce and adopt Resolution 2020-04, a resolution of the Mayor and City Council of the City of Hyattsville, Maryland, supporting the re-designating of the State of Maryland Enterprise Zone program which provides County and municipal real property, and County and municipal business personal property tax credits that could be instrumental in attracting new business investment to communities that have been targeted for revitalization (INTRODUCTION & ADOPTION).
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Summary Background:
The Enterprise Zone is a State designation that provides 10-year tax credit incentives for businesses to locate and expand within the Zone. Enterprise Zone benefits provide 1O year Real Property Tax Credit for increases to real property assessment resulting from qualified new construction or improvement to real property. 80% tax credit in the first 5 years and 70% to 30% tax credit in the next 5 years. State Income Tax Credits are also provided for disadvantaged employees ($6,000) and non-disadvantaged employees ($1,000). Businesses located in an Enterprise Zone Focus Area will receive a credit for 80% of the property tax on the eligible assessment for each of the 10 years.
The Prince George's County Economic Development Corporation has been designated to administer Enterprise Zone applications for the State of Maryland. A resolution by the local governing body is required to be included with the application materials submitted to the State of Maryland.
Next Steps:
A signed resolution will be submitted to the Prince George's County Economic Development Corporation for its application to the State of Maryland.
Fiscal Impact:
Businesses located in an Enterprise Zone Focus Area will receive a credit for 80...
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