Recent Examples of enterprise zone from the Web
The Gulch is considered as a potential enterprise zone.
However, in 2016 the Hillsboro City Council made changes to its enterprise zone program that ties the tax benefits to job creation.
An argument is made by some in the legislature that projects such as this would happen without the inducement of an enterprise zone to spark its growth.
The factory is in an enterprise zone, meaning at least some of De Beers' investment will be exempt from the local property taxes other businesses pay.
So all of these prior things that have been tried—like the New Markets Tax Credit or what ultimately became enterprise zones, which was the Jack Kemp concept that President Clinton signed into law—were essentially tax credits.
Oregon's big draw for data centers is the absence of a state sales tax, which saves companies hundreds of millions of dollars on those servers, and a property tax exemption under Oregon's enterprise zone program that's worth even more.
Barbara Bush said her husband had proposed capital gains tax cuts, economic enterprise zones, and the use of individual retirement accounts to help struggling Americans buy homes — to no avail.
Typically, an enterprise zone employer must first pay workers at least $30,000 a year to qualify for jobs tax credits.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'enterprise zone.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of ENTERPRISE ZONE
What It Is
An enterprise zone is a geographical area (often a few blocks or miles in a town) with a 0% tax on gains from the sale of assets and property sold in an enterprise zone.
How It Works
For example, let's say that downtown ABCTown has decayed over the last 10 years. There are many vacant storefronts, a lot of drug activity, dead landscaping, pitted sidewalks, and abandoned houses.
The state wants people to gentrify the area so that business open, jobs come to the area, people invest in improving the area, and the resulting higher property taxes will fund improvements such as roadwork and new landscaping. This, the state believes, will turn downtown ABCTown around. So, it creates an enterprise zone in which all gains on property sales are taxed at 0%.
John and Jane Doe hear about this and start looking at houses. They form an LLC and buy a house in the enterprise zone for $55,000. They put $15,000 into improving the property. Soon they have a nice house worth $95,000 that they can rent to a college student for $450 a month. They do this for a few years, and over that time more small businesses purchase and fix up homes in the area. This increases the value of the Doe home more—to $100,000. After five years, John and Jane decide to sell the house and travel around the world. Through their business, they sell the house for a $45,000 profit and don't pay capital gains on the sale to the state, saving them, say, $3,000.
Why It Matters
Governments implement enterprise zones when they want to encourage investments in certain areas. The D.C. Enterprise Zone is one example. The idea isn't just to make an ugly neighborhood pretty again; when portions of a city are revitalized, the value of the properties in the area increases, which generates more property tax revenue later for the municipality. Thus, from a government perspective, the idea is to forgo a little tax revenue now in order to gain a lot of tax revenue later.
Learn More about enterprise zone
Seen and Heard
What made you want to look up enterprise zone? Please tell us where you read or heard it (including the quote, if possible).