The Jharkhand State Government provide attractive incentives for investment in the state. The incentives includes sales tax incentives, Fiscal incentives, incentive for quality certification, incentive for mega units, special incentive for IT industry and rebate for IT infrastructure, capital investment incentives, captive power generating subsidy, interest subsidy, incentive for employment generation etc.

Sales Tax Incentives :

• New and existing units allowed to opt for set of the JST paid on raw material purchases within the state
  
• Concentional sales tax on purchase of raw materials reduced to 2 percent.
  
• On thrust area items, efforts to charge sales tax at central government recommended floor rates.
  
• Simplification of sales tax Act and Rules.
  
• Purchase at concessional rates admissible to government departments, Boards and Corporation form the industries located within the state.
  
• No JST on purchase of raw materials and sale of finished goods from 100 percent exporting units.
  
• Application for JST registration will be disposed off within 15 days.

• Capital investment incentive
  
• Captive power generation subsidy.
  
• Interest subsidy.
  
• Stamp duty and registration.
  
• Employment generation based incentives.
  
• Special incentives for thrust areas/EOU and SC/ST/Women/Ex-servicemen and handicapped persons.
  
• Feasibility study - Project report cost. Reimbursement subsidy.
  
• Pollution control equipment subsidy incentive for quality certification.

• Exemption form environmental clearance
  
• Exemption from zoning regulations for purposes of location.
  
• Self - certification on compliance of several Acts.
  
• 0.25 percent rebate in allotted land cost per job created.
  
• Rebate on registration charges and stamp duty for sale/lease of space for establishing IT infrastructure.
  
• At least 30 percent employment for Jharkhand residents.

• 90 percent rebate for facilities established and sale/leased during 2001 - 2003.
  
• 70 percent rebate during 2003 - 2004
  
• 50 percent rebate during 2004 - 2005

For small and medium scale industries
For 'A' Category - maximum incentive 15 percent and financial limit 15 lakhs
For 'B' Category - maximum incentive 20 percent and financial limit 20 lakhs
For 'C' Category - maximum incentive 25 percent and financial limit 25 lakhs
Special benefits include 5 percent additional incentive over and above, with a cap of 5 lakhs in thrust areas, 100 percent EOU, SC/ST & Women Entrepreneurs, Handicapped persons and ex-servicemen.

Captive Power Generating Subsidy :

For categories A, B, C with maxi incentives 15 percent, 20 percent and 25 percent, financial limits 2.25, 3.00 and 3.75 lakhs respectively. Also include special benefits for EOU, SC/ST & Women Entrepreneurs, Handicapped persons and ex-servicemen.

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Interest Subsidy :

For Category 'A', 'B', and 'C' the maximum incentive are 25, 50 and 60 percents respectively. The financial limit is limited to a sum of Rs. 100 lakhs per annum with the total interest subsidy not exceeding 2 percent of total sales. This subsidy shall be admissible for a period of 5 years for all categories.

Incentives for Quality Certification :

Reimbursement up to 75 percent subject to a maximum of Rs. 75,000/- of the expenses incurred by units for acquiring ISO 9000 or equivalent certification.

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Incentive for Employment Generation :

Admissible to the following industries

• Khadi and village
  
• Farm based - Horticulture, Floriculture, Sericulture
  
• Medicinal & Aromatic plants based
  
• Forest based - shellac, Bamboo

State shall bear 50 percent premium on Group insurance of workers in such industries

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Feasibility Study Project Report Cost Subsidy :

Feasibility study project report cost reimbursement subsidy @ 50 percent of the cost incurred upto maximum of Rs. 50,000/-

Pollution Control Equipment Subsidy :

Capital investment subsidy up to 20 percent subject to ceiling of Rs. 20 lakhs to new and existing units, for installation of pollution control and monitoring equipment.

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Incentive for Mega Units :

• Special packages for new projects with investment of more than Rs. 50 crores.
  
• Encouragement of Foreign investment and technological collaboration for OCBs and NRIs in selected sectors

50 percent exemption on stamps duty and registration fee for registering documents within the state pertaining to purchase/acquisition of land and building for setting up a project.

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