US VIRGIN ISLANDS TRENDS AND DEVELOPMENTS Contributed by: Marjorie (Jorie) Roberts, Sean E Foster, Renée Marie André, David Bornn, Lisa M Wisehart and Duncan J J Kessler, Marjorie Rawls Roberts PC
to finance, fund or cover the costs incurred in the renovation, reconstruction, construction, improvement and development of hotel proper - ties and related facilities or infrastructure. The amount of the ERF is the difference between the percentage rate of HROT applicable at the time of the application (currently set at 12.5%) and a percentage rate over such tax, not to exceed 7.5%, which is determined by the applicant and subject to implementation protocols. The ERF can be collected and deposited into an ERF trust account for a period of 30 years and is only avail - able to applicants applying before 31 December 2028. Any funds remaining after completion of the approved project can be used by the devel - oper for other expenditures for improving or enhancing the ERF project. Enterprise Zone Commission Program Businesses seeking to invest in historic preser - vation have additional opportunities available through the Enterprise Zone Commission (EZC) Program administered by the EDA, which offers tax incentives to businesses investing in des - ignated historic and commercial districts. The mandate of the EZC Program is to facilitate the investment of private resources in productive business enterprises located in severely dis - tressed Enterprise and Commercial Zone areas on St Croix and St Thomas, and to provide jobs for the residents of these areas. The addition of new zones in Cruz Bay on St John and along Veterans Drive on St Thomas are under consid - eration by the EZC as well, and at the time of publication are expected to be approved. The benefits available to beneficiaries under the EZC Program are an income tax credit of 90% on eligible income, a gross receipts tax exemp - tion of 100% and a property tax benefit of 100%. Applicants must have businesses/activities that are in accordance with the incentivised activities
in the plan for the zone in which the applicant is applying. For example, applicants in the Garden Street area of downtown Charlotte Amalie, St Thomas, must be engaged in “live work”, sports and entertainment, good community, experien - tial tourism or arts and restaurants. To qualify under the EZC Program, an applicant must (among other things) make a minimum capital investment of USD10,000 and employ a minimum of two full-time USVI resident employ - ees, either directly or through a contractor. The application process requires the submission of a description of the history and current condi - tion of the property within the Enterprise Zone and details of the construction or rehabilita - tion efforts to be undertaken. Applications are considered by the EZC commissioners; upon approval, benefits are available for five years. Research and Technology Park Program The Research and Technology Park (RTPark) Program seeks to support the USVI’s expand - ing technology and knowledge-based sectors to promote the growth, development and diver - sification of the USVI economy. In addition, the RTPark works to broaden the capabilities of the University of the Virgin Islands (UVI) by providing it with financial support and training opportu - nities for UVI students and creating a research environment that combines the resources of UVI with those of the public sector and private industry. RTPark beneficiaries currently operate in the are - as of data analytics, web content development, interactive media management, e-commerce, software development and licensing, technol - ogy-based management and business process services, internet advertising, telecommunica - tions and information technology, application development, financial technology and medi -
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