CLEARFIELD -- Businesses here will continue to be eligible for tax incentives by participating in a statewide program made possible by a recently approved specialty zone.
The city council granted approval for staff to renew its state recycling development zone, which focuses on recycling as an economic tool.
The zone assists manufacturing businesses in Clearfield that collect, process, distribute or use recycled materials in their manufacturing operations or compost.
These businesses receive tax credits for qualifying machinery, equipment and manufacturing facilities. But to do this, the city must have an appropriate zone identified and approved. Businesses must then apply directly to the state to reap benefits from the zone.
The resolution approved by the council states this is in the best interest of the city because it helps with job creation and other economic benefits.
City Manager Adam Lenhard said the city wants to do anything it can to help businesses succeed, especially when it comes to realizing any available federal and state tax credits.
Two businesses are using the program right now, he said.
The city has sent information to the business owners annually, informing them of the potential for tax credits.
"We hope companies are making those contacts and taking advantage," Lenhard said. "We think it is a great incentive. We would hope that any company who can is looking into getting involved in this."
The city's involvement, though, is only on the front end, Lenhard said.
The city establishes the zone, making it possible for businesses to apply to the state to get the credit. It is up to individual businesses, however, to seek out the opportunity, apply and work with the state during the application process.
"The state determines the tax credit," Lenhard said. "It is all down to the state and the business once we approve the zone."
The application is for property within the zone, from 200 South to 1700 South, between State Street and 1000 West. Lenhard said this basically covers the Freeport Center and some other areas.
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