One million and fifty thousand United States dollars is the standard figure, reduced to eight hundred thousand where the enterprise is principally doing business in a targeted employment area or is an infrastructure project. Those amounts are subject to statutory adjustment from the first of January, twenty twenty-seven.
The discount belongs to the project, not to the investor
Investors often assume the lower figure applies because they are placing money in farm country, which is not how the test works. The reduction attaches to where the new commercial enterprise principally does business, and the enterprise must evidence that its location is a rural area or an area of high unemployment at the required time. Rural means outside any metropolitan statistical area and outside any city or town with a population of twenty thousand or more, measured against the relevant census data, and high unemployment is established by a defined statistical showing.
A responsible project supplies this evidence in its offering materials, and a project that waves at it without documentation should be treated as a warning. Because the statute contemplates adjustment of both amounts from the first of January, twenty twenty-seven, Gurpreet should verify the figures against official sources close to the date he files rather than budgeting from a number quoted a year earlier.