City Council Unanimously Approves Tax Incentives for KineticPark

On June 14, Huntington City Council unanimously approved an ordinance that will give a tax break to companies locating at KineticPark.

A company that qualifies could get a discount on the business and occupation taxes it would pay over the first five years of operation.

To qualify, a company needs to invest at least $2 million, have at least five employess and submit a plan to increase its employee base by 20% over five years. If these criteria are met, the company would receive a 75% discount on B&O taxes the first year, 50% the second and 25% in years three through five.

Companies that invest $10 million or more and have 150 or more employees could qualify for an annual B&O reduction of 50% over 20 years.

Tax incentives are an important economic development tool. Companies naturally locate in areas where they are most likey to operate at a profit. The B&O tax incentives at KineticPark makes it a more attractive location to companies that might otherwise locate outside of the city limits or in another area all together.

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