The City of Melfort is rolling out the welcome for big business with a planned new tax incentive.
Manager Adam Homes says there were things in place but it was time to think bigger.
“It allows for large investments to get a tax abatement over time,” he said.
Over a span of 10 years, the abatement gradually lessens until the business is paying the full rate.
The bylaw was given first reading at the council’s last meeting and not yet passed.
In order to be eligible, the property asking for the abatement must invest at least $10 million in new money including construction costs, materials, consultants, utility connection/servicing costs. The cost of buying the land is not included.
The improvements can’t have been started before the effective date of the policy.
Melfort already has incentives for smaller businesses that run for a shorter period of time, said Homes.
“This just allows us to do something for those larger projects,” he added.
Creating a new incentive usually generates some buzz with good results.
The applications will be approved by council, which will also be able to make some adjustments, such as the length of time the abatement will run.
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