(a) Each Commercial Zone Business shall qualify for the following tax credits and tax benefits:
(1) A non-refundable gross receipts tax credits or an income tax credit equal to ten percent (10%) of the actual value expended within a fiscal year for construction of a new building within the Commercial zone;
(2) A non-refundable gross receipts tax credit or an income tax credit equal to ten percent (10%) of the actual value expended within a fiscal year for rehabilitation of buildings or other real property within the Commercial Zone;
For the following activities the additional percentage indicated may be stacked, but in no event may the benefits exceed 35%.(A) Off Street Parking
(B) Entertainment
(C) New Residential 10%
(D) Retail establishments that carry predominantly cultural or locally made products 10%
(3) A gross receipts tax rate of 3% for gross receipts derived by the Commercial Zone Business, pursuant to title 33 Virgin Islands Code, chapter 3, section 43;
(4) A property tax credit against taxes imposed pursuant to title 33 Virgin Islands Code, chapter 81, section 2301 equal to the increase in property taxes assessed due to renovation, rehabilitation, or construction of property within the Commercial Zone.
(b) The Commercial Zone Business shall indicate for the fiscal year that expenditure is made whether it is taking the gross receipts or income tax credit pursuant to paragraphs (1), (2), (3) and (4) of this section for such expenditures. The credit must be taken on the appropriate tax return for the fiscal year during which the actual value was expended. A Commercial Zone Business that qualifies for more than one of the credits may elect to take one or more credits against income tax, but in no case may expenditure be used in calculating more than one credit.
(c) Any credit derived by an entity that is not taxable at the entity level, such as a limited liability company, partnership, or Subchapter S corporation, must flow through to its owners as long as they are residents of the Virgin Islands as defined in section 1017a(g) herein.
(d) Only expenditures incurred over a consecutive five-year period may give rise to tax credits under this chapter, and each Commercial Zone Business may elect the commencement date of such five-year period, the Benefit Period. Each benefit must be used to the extent possible in a five year before any balance is carried forward to the subsequent year with regard to credits and other benefits carried forward. However, a Commercial Zone Business shall make an election at the same time that it elects the commencement date of its benefits and such election cannot be subsequently changed.
(e) The property tax benefit and the reduced gross receipts tax rate apply only for the Benefit Period.
(f) Each Commercial Zone Business must obtain and maintain a valid licenses to conduct business in the territory for each year in which it receives tax benefits under this section and a Commercial Zone Business that does not have a valid license in place for one or more years for any reason is not entitled to the tax benefits under this section without further action on the part of the Enterprise Zone Commission.
(g) The Virgin Islands Enterprise Zone Commission in consultation with the Virgin Islands Bureau of Internal Revenue shall issue regulations for the administration of paragraphs (a)(1)-(4), (b), (d), (f), and (h) of this section, and the Enterprise Zone Commission in consultation with the Tax Assessor shall issue regulations for the administration of subsection (a)(5) and (e) of this section.
(h) The tax exemptions under this program are mutually exclusive of any tax credits for which an applicant may be eligible.