SB373 Summary

• Authorizes the State Industrial Development Authority to approve companies and educational institutions as "approved entities" for state income tax withholding incentives on eligible employee wages.

• Provides withholding incentive ranges of 1-90% for new or expansion projects and 1-75% for retention projects, with incentive periods not to exceed 20 years after project commencement.

• Requires approved entities to meet minimum capital investment thresholds: $2 million for projects outside favored geographic areas or $500,000 for projects within favored geographic areas.

• Establishes that eligible employees must work at least 36 hours per week fully dedicated to the qualifying project and be reported to federal and state tax authorities.

• Mandates that aggregate withholding incentives and capital credits cannot exceed 100% of a project's capital costs, and requires quarterly reporting and verification of employee counts by the Department of Industrial Relations.