Tax Benefits In Four Cities

Lawrence, Kansas-Medium

El Paso,Texas- Large

Nashville,Tennessee- Medium

Moreno Valley, CA. – Medium

1.    All states, except for KS, NY, PA, MD and Iowa annually charge property tax equal to 2% of the

depreciated cost of the equipment.

2.    Assume a Sales tax rate 7.5% -for all states on all property excluding land.  Assume that the

States of TX, MD, IN, AK and TN exempt manufacturing equipment from Sales tax.

3.    States will charge 2% tax annually on the market value of land and buildings.  Assume that

original cost equal market value when computing the tax.

4.    NY and TN will provide an investment tax credit equal to 5% of the cost of the investment

excluding land in the new plant.  This will be a reduction to the income taxes in the year the

plant becomes operational.

5.    Assume income tax State rate of 8%

6.    Assume a federal income tax rate of 21%

7.    Texas will offer a $5,000 grant for each new job where the pay is at least 150% of the minimum

wage and it includes benefits.

8.    The States of GA, KS, AR, TN, NY, PA, FL, TX, MD, IN and MO will reduce the property taxes by

60% if there is a minimum of 50 new jobs.

9.    IN will provide as a grant – the refund of state income taxes on payroll wages in the year the

payroll taxes are paid.

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