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<br />Exhibit B - Proposed Incentives <br />Portsmouth's Application for Virginia Enterprise Zone #2 <br />June 2013 <br /> <br />~ Business Personal Propet1y Investment Grant (BPPIG) <br />o A cash grant from the Economic Development Authority (EDA) equal to 50% of the <br />net increase in business personal property tax paid by a qualifying company over a 5- <br />year period. <br />o Grant only paid after the company pays its taxes to the City and the City transfers the <br />grant funds to the EDA. <br />o A qualifying company must: <br />· Invest at least $100,000 in taxable tangible personal property <br />· Create 5 new jobs in Portsmouth <br />· Have a current business license <br />· Sign a performance agreement with the EDA which includes a post-incentive <br />provision pledging the company return the incentive if it leaves the VEZ <br />within 5 years of receiving its last grant <br />· Authorize the Commissioner of Revenue to release pertinent data to the Local <br />Zone Administrator <br />o If investment exceeds $500,000, grant equals 60% of the net new increase in business <br />personal property tax paid by a qualifying company over a 5-year period. <br />o Administered by Local Zone Administrator and EDA with assistance from <br />Commissioner of Revenue <br /> <br />>> Machinery & Tools Investment Grant (MTIG) <br />o A cash grant from the Economic Development Authority (EDA) equal to 50% of the <br />net increase in machinery and tools tax paid by a qualifying company over a 5-year <br />period. <br />o Grant is only paid after the company pays its taxes to the City and the City transfers <br />the grant funds to the EDA. <br />o A qualifying company must: <br />· Invest at least $500,000 in taxable machinery and tools <br />· Create at least 5 new jobs in Portsmouth <br />· Sign a performance agreement with the EDA which includes a post-incentive <br />provision pledging the company return the incentive if it leaves the VEZ <br />within 5 years of receiving its last grant <br />· Authorize the Commissioner of Revenue to release pertinent data to the Local <br />Zone Administrator <br />o If investment exceeds $1,000,000 grant equals 60% of the net new increase in <br />machinery and tools tax paid by a qualifying company over a 5-year period. <br />o If investment exceeds $2,500,000 grant equals 75% of the next new increase in <br />machinery and tools tax paid by a qualifying company over 5-year period. <br />o Administered by Local Zone Administrator and EDA with assistance from <br />Commissioner of Revenue <br /> <br />1 <br />