The QEZE Credit for Real Property Taxes is also
calculated as a product of factors which include the Benefit Period Factor, the Employment
Increase Factor (both as defined above) and the eligible real property taxes. Eligible tax is that
tax Imposed on property In a Zone and owned by the taxpayer. It is presently still under
consideration, but anticipated that Industrial Development Agency lease back transactions and
other lease situations where the QEZE is the beneficial owner of the property will be eligible for
this credit. It Is also anticipated that payments-in-lieu-of-tax agreements, will be considered
"eligible real property taxes”. The property taxes are paid by the QEZE to the local municipal
entities, and the QEZE Is then entitled to a full refund from the State of any unused Real
Property Tax Credit on an annual basis.
Similar to that of the Tax Reduction Credit, the overall effect for a new business is that
100% of Its real property tax would be refundable for the first ten years of operation. Likewise,
an existing business which doubles its employment would receive the exact same benefit.
