HB 1275 - Enterprise Zones Summary

• Removes "pervasive poverty" as a criterion for enterprise zone designation, replacing it with "unacceptable levels of unemployment" and general distress indicators.

• Allows Lake County to apply for one enterprise zone encompassing up to 10 square miles by December 31, 2011, outside normal zone designation limits.

• Expands job definitions to include part-time employment (at least 20 hours per week) and reduces minimum hours for leased employees from 36 to 20 hours per week for tax credit eligibility.

• Eliminates tax credit enhancements and employee residency requirements that previously provided higher refunds and credits when businesses employed zone residents.

• Maintains enterprise zone tax credits and refunds for businesses creating new jobs and rehabilitating property, with a maximum refund of $10,000 for building materials and $10,000 for business property (reduced from prior amounts).