SB 189

Crime

This bill creates an appropriation of federal revenues that allows moneys

received under the federal American Recovery and Reinvestment Act (ARRA) for

criminal justice programs to be used for that purpose.

economic development

Under current law, the Department of Commerce (Commerce) may designate

an area as an enterprise zone. The area designated as an enterprise zone must not

exceed 50 acres, and Commerce may designate no more than ten enterprise zones.

Commerce must consider a number of factors related to the area prior to designating

the area as an enterprise zone. These factors include the housing values and average

wages in the area, whether the area has experienced job losses or a population

decline, and whether designation as an enterprise zone would promote the creation

of jobs and economic and community development in the area.

This bill eliminates the requirement that the area to be designated as an

enterprise zone not exceed 50 acres. The bill requires Commerce to specify whether

the enterprise zone is located in a Tier I or Tier II county or municipality. Commerce

is directed to define "Tier I county or municipality" and "Tier II county or

municipality" by administrative rule. The bill also authorizes Commerce to consider

whether designation as an enterprise zone would promote the retention of jobs in the

area.

Under current law, a taxpayer who creates jobs in an enterprise zone may claim

an income and franchise tax credit equal to 7 percent of the taxpayer's payroll in the

enterprise zone that is paid to new full-time employees who earn more than $30,000,

but less than $100,000, in annual wages. In addition, the taxpayer may claim a credit

equal to the amount the taxpayer paid in the taxable year to provide certain

job-related training to the taxpayer's full-time employees in the enterprise zone.

Under this bill, a taxpayer who creates jobs in an enterprise zone located in a

Tier I county or municipality may claim an income and franchise tax credit equal to

no more than 7 percent of the taxpayer's payroll in the enterprise zone that is paid

to new full-time employees who earn more than $20,000, but less than $100,000, in

annual wages. A taxpayer who creates jobs in an enterprise zone located in a Tier

II county or municipality may claim an income and franchise tax credit equal to no

more than 7 percent of the taxpayer's payroll in the enterprise zone that is paid to

new full-time employees who earn more than $30,000, but less than $100,000, in

annual wages.

In addition, if the taxpayer is able to retain jobs in an enterprise zone, the

taxpayer may claim a credit equal to no more than 7 percent of the taxpayer's

enterprise zone payroll in a Tier I county or municipality that is paid to full-time

employees who earn more than $20,000, but less than $100,000, in annual wages,

less the amount paid to new full-time employees, or no more than 7 percent of the