Recent Examples of enterprise zone from the Web
Typically, an enterprise zone employer must first pay workers at least $30,000 a year to qualify for jobs tax credits.
Morefield has seen nothing but failure from the usual efforts to help — the enterprise zones that never seem to land a big company, the employment training programs that don’t lead to good jobs.
Last fall, lawmakers and Walker passed for Foxconn a one-time expansion of the state's enterprise zone program, which requires companies to demonstrate investments and job creation before getting state tax credits.
Some of the site sits in a tax-advantaged enterprise zone, which means the city would temporarily lose out on property tax income.
Government incentives including tax increment financing, enterprise zone tax breaks and the federal New Markets Tax Credit program could fund about one-third of the warehouse development's cost, Doig said.
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.
First Known Use of enterprise zone
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.
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