Payment to the company will be made by June 30th of each year, based on the previous year's performance, provided that the company files its Annual Reconciliation of City Income Tax Withheld, Transmittal of Wage and Tax Statement by February 28th. If the company requests an extension to file the Annual Reconciliation of City Income Tax Withheld, Transmittal of Wage and Tax Statement, the City will make payment within 3 months after the extended filing date. The tax form may be downloaded from the Central Collection Agency.
If a company is not able to meet Year 1 projections due to a project start in the third or fourth quarter of the year, the first grant payment may occur in the year following the first full year of the project.
Amount of Grant Calculation
The amount of the grant will be calculated annually based on the company's performance in meeting its payroll and employment projections for the previous year. The maximum amount of grant cannot exceed 40%. The grant will be awarded according to the schedule below:
|Percent of Payroll Projections Met||Percent of Grant Awarded|
|90-100%||Full Grant (40%)|
|85-89%||Reduce grant by 5% (example: 40% grant reduced to 35%)|
|80-84%||Reduce grant by 10% (example: 40% grant reduced to 30%)|
|75-79%||Reduce grant by 15%|
|Less than 75%||No grant for that year|
The amount of the grant will be based on new payroll taxes, according to the above schedule, and employment. The company must achieve at least 75% of the job creation projection for the previous year. If payroll is within the acceptable range, but employment is less than 75% of projection, no grant shall be awarded for that year. The Tax Incentive Review Council will decide what percentage the applicant will receive on their grant amount on the new payroll taxes received by the City.
Exceeding Payroll Projection
If the company exceeds its payroll projections, the amount of new payroll used as the basis for determining the annual grant payment in any given year shall not exceed 25% above the maximum projection for the entire project. For purposes of calculating the amount of the grant each year, exercised stock options will not be included in annual payroll.