LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE ACT (LERTA)
Mericle Commercial Real Estate Services has obtained Local Economic Revitalization Tax Assistance (LERTA) approval for the land we own in the Corporate Center at East Mountain. This tax abatement program was approved by the Luzerne County Commissioners, the Wilkes-Barre School Board, and the Plains Township Supervisors. Every building we construct on land we own in the park will receive a 10-year, 100% real estate tax abatement on improvements. For illustration purposes, a tax rate of $1.90 per square foot on improvements was used for the first year of the 20,000 SF tax savings example below, with modest annual increases thereafter. Actual real estate taxes will vary depending upon the cost of construction required to meet a tenant's exact specifications.
STATE INCENTIVES:
The Commonwealth of Pennsylvania, through Governor Tom Corbett and the Department of Community and Economic Development (DCED), offers a wide variety of grant, low interest loan, job training and tax credit programs to help business grow. Two of the state programs more commonly used by office companies are listed below. For more information on these and other Pennsylvania programs, please visit http://www.newpa.com/.
CUSTOMIZED JOB TRAINING (CJT):
This state grant program reimburses Pennsylvania employers for specialized job training for existing or newly hired employees. CJT funds can be used for consumable materials and supplies, approved contracted services, and relevant travel costs for local education agency project coordinators. Grant maximum is 75% of eligible costs for training new or incumbent employees. Trainees must be residents of PA and be employed in PA. Participating trainees must earn more than 150% of the current minimum wage, excluding benefits. Training must be guaranteed.
JOB CREATION TAX CREDITS (JCTC):
This program offers employers a $1,000 state tax credit per full-time job, per year. A business may claim credits only after a job has been created. The Job Creation Tax Credit Program is available to eligible businesses who, within three years from a negotiated start date, create 25 or more jobs or increase employment by 20%. To be counted as new full-time employees under the JCTC program, new employees must earn an average hourly rate of at least 150% of the minimum wage, excluding benefits.
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