Company gets technology zone rebatePublished 11:00pm Friday, March 14, 2014
A business incentive program the city approved in 2009 got its first use this week when the Economic Development Authority heard its first application under the technology zone program.
Applied Technical Systems, which expanded last fall to a location on Harbour View Boulevard, will get a total break of nearly $5,000 on its business license and personal property taxes.
The technology zone program allows any new or expanding technology business located in the city’s northern or central development districts to get half off its business license and personal property taxes for the first year.
“We’ve been able to use it to court businesses,” Economic Development Director Kevin Hughes told the authority during its Wednesday meeting. This is the first company that has actually gone through the application process, however. Hughes said his department is working with another company on the possibility of doing so.
New tech companies must have a space of at least 2,500 square feet, and existing companies must be expanding by 2,500 square feet or 10 percent of their current space, whichever is more. Either a new or existing business must have a minimum of five employees and not be a home-based business.
There’s a maximum rebate of $50,000 — $30,000 for the business license tax and $20,000 for the personal property tax.
Through its data analytics, Applied Technical Systems provides readiness and maintenance solutions to the U.S. Navy.