< Previous96 JANUARY 2024 SITE SELECTION Arkansas ED Commission 1 Commerce Way, STE 601 Little Rock, AR 72202 Clint O’Neal E XEC . D IR . 501-682-7350 arkansasedc.com “It’s time for the whole world to learn what Arkansans already know: there’s never been a better time to invest in the Natural State and call it home.” — Gov. Sarah Huckabee Sanders, in a statement released June 14 ahead of her first overseas trade trip GDP 34 th 2022 GDP (in millions of current US$) $137,356 -2 -1 0 1 2 3 4 5 6 20222021202020192018 Arkansas Pop. (2023): 3,055,695 Pop. growth 2023–2028: 0.23% Median household income (2023): $54,990 Median age (2023): 39.4 Credit Rating: AA / Stable Right-to-work state: Yes LEGISLATIVE UPDATE In September, after tax cuts already had been made during the regular session earlier in the year, Gov. Sanders signed into law a bill passed during a special session that cuts Arkansas’ top individual income tax rate from 4.7% to 4.4% and cuts the state’s top corporate income tax rate from 5.1% to 4.8% eff ective January 1, 2024. Acting on the recommendation of a tax reform task force, Gov. Sanders in April approved a bill to phase out the “throwback rule” that requires multi-state corporations operating in Arkansas to “throw back” taxes foregone in other states to Arkansas. The gradual elimination is to culminate in 2030. In March, lawmakers passed the LEARNS Act, a sweeping package of education reforms introduced by Gov. Sanders. The law sets minimum starting salaries for public school teachers at $50,000, awards raises to veteran teachers, provides for incentive-based bonuses and allows the state to pay student loans of teachers that agree to work in struggling districts. “Education Freedom Accounts” will allow families to use public dollars to attend non-public schools. The law prohibits teaching Critical Race Theory in public schools and bans classroom instruction on gender identity and sexual identity before fi fth grade. Higher Ed. R&D Expenditure in $000s: 419,028 Number of NCRCs: 106,474 | Percent Improvement 2022–2023: 12.56% Business Tax Climate Rank Change 2023–2024: +2 Industrial power cost per kWh: $7.38 Total Revenue as Share of Total Expenses, FY 2007-2021: 102.1% 2023 Workers’ Comp Index Rate: 0.65 GDP Growth Rate Trend PROJECT WATCH D assault Falcon announced plans in December for a $100 million expansion of its facility in Little Rock that’s to create 800 new jobs. State offi cials say Gov. Sanders signaled support for the project during a meeting with Dassault U.S. and French leadership at the Paris International Air Show in June. At an announcement ceremony, Dassault offi cials said Little Rock had been selected for an expanded completion center for the development and delivery of the new Dassault Falcon 6X business jet and future Falcon programs. The expansion is to receive $12 million from a state incentives fund and $6 million in customized training funds from the Arkansas Offi ce of Skills Development. Opened in 1975, Dassault’s Little Rock facility employed 1,400 workers prior to the announced expansion. Dassault Falcon’s 6X Photo courtesy of Dassault Falcon98 JANUARY 2024 SITE SELECTION GDP Growth Rate Trend LEGISLATIVE UPDATE In June, Gov. Hobbs signed into law HB 2809, a bill to increase the amount the state can reimburse cities for infrastructure improvements to support major manufacturing projects. Backed by manufacturers, cities and economic development offi cials, the law increases the amount cities can receive to $200 million from a previous cap of $100 million. It updates a law adopted in 2012 that directs construction sales taxes generated by major manufacturing projects into surface roads, water and wastewater infrastructure. Signed into law in May, Arizona’s $17.8 billion FY 2024 budget includes $15.5 million to expand access to “dual enrollment” classes taken in high school that also earn college credits. Supporters say the measure will enhance workforce development. Leveraging a newly created fund, students can receive reimbursements of $50 per credit hour upon passing dual enrollment courses, with a $300 per student cap for ninth and tenth graders and $600 for students in 11th and 12th grades. The provision provides fi nancial incentives for teachers and schools that off er the courses. The budget package also includes a $300 million increase in funding for K-12 education. In November, Gov. Hobbs ordered state agencies to conduct a childcare needs study to identify gaps, with a specifi c focus on supporting workers in the semiconductor industry. Arizona Commerce Authority 100 N 7th Avenue Suite 400 Phoenix, Arizona 85007 Sandra Watson P RESIDENT & CEO 602-845-1200 azcommerce.com “I’m confi dent that Arizona will continue to be a leader in semiconductor manufacturing for decades to come, creating thousands of jobs and bringing billions of dollars in investments.” — Gov. Katie Hobbs, touring facilities of Taiwan Semiconductor Manufacturing Company in Taipai, Sept. 18, 2023. TSMC has committed to over $40 billion worth of investments in Arizona. Higher Ed. R&D Expenditure in $000s: 1,690,904 Number of NCRCs: 9,919 | Percent Improvement 2022–2023: 4.81% Business Tax Climate Rank Change 2023–2024: +5 Industrial power cost per kWh: $7.86 Total Revenue as Share of Total Expenses, FY 2007-2021: 104.4% 2023 Workers’ Comp Index Rate: 0.87 GDP 18 th 2022 GDP (in millions of current US$) $403,474 -1 0 1 2 3 4 5 6 7 20222021202020192018 Arizona Pop. (2023): 7,427,991 Pop. growth 2023–2028: 0.53% Median household income (2023): $73,135 Median age (2023): 38.1 Credit Rating: AA / Stable Right-to-work state: Yes SITE SELECTION JANUARY 2024 99 Total Revenue as Share of Total Expenses, FY 2007-2021: 95.2% LEGISLATIVE UPDATE Signed in June, Connecticut’s two-year state budget provides for what Gov. Lamont says is the largest reduction in state income tax ever enacted. The law provides an income tax cut to Connecticut’s middle class, increases the Earned Income Tax credit for low-income workers and benefi ts seniors by expanding exemptions on certain pension and annuity earnings. The income tax cut provided for in the budget reduces from 3% to 2% the rate on the fi rst $10,000 earned by individuals and the fi rst $20,000 by couples. The 5% rate on the next $40,000 earned by individuals and the next $80,000 by couples will decrease to 4.5%. Benefi ts are capped at individual fi lers who earn $150,000 and couples who earn $300,000. It is estimated that 1 million tax fi lers will benefi t from the rate cuts, according to the governor’s offi ce. The increase in the Earned Income Tax Credit for low-income workers is projected to deliver an additional $44.6 million in state tax credits to an estimated 211,000 low-income fi lers. The rate will increase from the earlier 30.5% of the federal credit to 40%. The budget allows for a phase-out of specifi ed pension and annuity and IRA distribution deductions against the personal income tax. Connecticut Dept. of Econ. & Cmty. Dev. 450 Columbus Blvd. Hartford, CT 06103 Alexandra Daum C OMMISSIONER 860-500-2300 ct.gov/ecd “We targeted these tax cuts and credits specifi cally for middle-class and working-class taxpayers because we want to enact the broadest- based relief possible to those who need it.” — Gov. Ned Lamont, signing tax cut legislation June 12, 2023 Higher Ed. R&D Expenditure in $000s: 1,595,477 Number of NCRCs: 3,660 | Percent Improvement 2022–2023: 5.54% Business Tax Climate Rank Change 2023–2024: 0 Industrial power cost per kWh: $15.07 2023 Workers’ Comp Index Rate: 1.64 GDP 23 rd 2022 GDP (in millions of current US$) $276,669 -7 -5 -3 -1 1 3 5 20222021202020192018 Connecticut Pop. (2023): 3,610,650 Pop. growth 2023–2028: -0.10% Median household income (2023): $86,611 Median age (2023): 42.0 Credit Rating: AA- / Stable Right-to-work state: No GDP Growth Rate Trend Delaware Prosperity Partnership The Mill, Suite 731 1007 N. Orange St. Wilmington, DE 19801 Kurt Foreman P RESIDENT & CEO 302-576-6586 choosedelaware.com “The competition for the best teachers in this region is more intense than ever. So, we need to pay our teachers more to win the competition with surrounding states.” — Gov. John Carney, from his State of the State address, Jan. 19, 2023 GDP 42 nd 2022 GDP (in millions of current US$) $75,173 -4 -3 -2 -1 0 1 2 3 4 20222021202020192018 Delaware Pop. (2023): 1,021,276 Pop. growth 2023–2028: 0.56% Median household income (2023): $73,894 Median age (2023): 41.3 Credit Rating: AAA / Stable Right-to-work state: No LEGISLATIVE UPDATE In April, Delaware became the 22nd state to legalize recreational use of marijuana. HB 1 legalizes possession of up to 1 oz. of cannabis by adults 21 years of age and older. HB 2 regulates and taxes cannabis sales. License applications are expected to be available in April, according to the Marijuana Policy Project. In June, Gov. Carney signed two bills to expedite job-creating projects. HB 102 expedites the issuance of a temporary entrance permit for commercial and economic development projects. HB 104 exempts certain economic development projects from Delaware’s pre-application process for land use. Delaware’s 2024 budget, signed by Gov. Carney on June 30, provides a 9% increase for classroom teachers, invests $21 million for early childhood education programs and $30 million in increased funding for mental health for K-12 students. The governor’s offi ce says the $30 million approved for new housing is the largest such investment in state history. Delaware’s $1.4 billion capital budget invests in school construction, roadway improvements, clean water projects, state building renovations and economic development. The capital budget contains a $71.9 million package of grants providing funding to nonprofi ts. Higher Ed. R&D Expenditure in $000s: 397,123 Number of NCRCs: 430 | Percent Improvement 2022–2023: 0.47% Business Tax Climate Rank Change 2023–2024: -5 Industrial power cost per kWh: $8.79 Total Revenue as Share of Total Expenses, FY 2007-2021: 99.6% 2023 Workers’ Comp Index Rate: 1.34 GDP Growth Rate Trend100 JANUARY 2024 SITE SELECTION LEGISLATIVE UPDATE Upgrades to the ports of Los Angeles and Long Beach head the list of projects approved under a $1.5 billion package of infrastructure investments announced by Gov. Newsom July 6. The investments direct $450 toward zero-emission infrastructure, locomotives, vessels and other zero-emission vehicles. According to the governor’s offi ce, the projects are to create an estimated 20,000 jobs. An “infrastructure streamlining package” signed by Newsom July 10 contains provisions designed to accelerate construction timelines on green energy projects, chiefl y by accelerating permitting and judicial review processes. In October, Gov. Newsom signed legislation addressing California’s dire housing crisis. SB 423 extends and strengthens a largely successful 2017 law that strips local governments of the power to block high-density housing projects, except under specifi ed occupancy and labor standards. Known as the “Yes in God’s Backyard” bill, SB 4 permits construction without environmental or administrative challenge of aff ordable housing on the properties of churches, synagogues, mosques and other places of worship. A UC Berkeley study found the legislation would open tens of thousands of acres to housing construction. Also signed in October, AB 1373 directs the state legislature to allocate $6 million to study the potential impacts of fl oating off shore wind projects. Governor’s Offi ce of Business & ED 1325 J Street, Suite 1800 Sacramento, CA 95814 Chris Dombrowski C HIEF D EPUTY D IRECTOR 877-345-4633 business.ca.gov “California is America’s gateway to the Asia-Pacifi c — we’re a state of dreamers and doers, entrepreneurs and innovators. We don’t tolerate our diversity; we celebrate our diversity — that’s our strength. It’s central to who we are as Californians.” — Gov. Gavin Newsom, welcoming Asia-Pacific Economic Cooperation (APEC) summit leaders to San Francisco, Nov. 16 Higher Ed. R&D Expenditure in $000s: 12,111,505 Number of NCRCs: 27,105 | Percent Improvement 2022–2023: 15.49% Business Tax Climate Rank Change 2023–2024: 0 Industrial power cost per kWh: $17.09 Total Revenue as Share of Total Expenses, FY 2007-2021: 100.5% 2023 Workers’ Comp Index Rate: 2.26 GDP 1 st 2022 GDP (in millions of current US$) $3,167,461 -3 -2 -1 0 1 2 3 4 5 6 7 8 20222021202020192018 California Pop. (2023): 39,877,642 Pop. growth 2023–2028: 0.13% Median household income (2023): $89,455 Median age (2023): 37.0 Credit Rating: AA- / Positive Right-to-work state: No GDP Growth Rate Trend PROJECT WATCH A utomaker Stellantis, in August, announced an investment of more than $100 million in California’s Controlled Thermal Resources, a lithium extraction venture in Southern California. Controlled Thermal (see California Dreamin’, Site Selection, Sept 2022) is investing more than $1 billion to separate lithium from geothermal brines from Southern California’s Salton Sea. The Stellantis investment, Controlled Thermal CEO Rod Colwell told Reuters, “goes a long way toward developing this key project.” Rod Colwell, CEO of Controlled Thermal Resources Photo courtesy of Controlled Thermal Resources102 JANUARY 2024 SITE SELECTION Colorado Offi ce of Econ. Dev. & Intl. Trade 1600 Broadway, Suite 2500 Denver, CO 80202 Eve Lieberman E XECUTIVE D IRECTOR 303-892-3840 choosecolorado.com “From our world-class institutions of higher education to our highly talented and educated workforce, we continue to position ourselves as a leader in the industries of the future.” — Gov. Jared Polis, announcing a public-private initiative to establish Colorado as a federal tech hub under the CHIPS and Science Act. GDP 15 th 2022 GDP (in millions of current US$) $416,114 -3 -2 -1 0 1 2 3 4 5 6 20222021202020192018 Colorado Pop. (2023): 5,971,129 Pop. growth 2023–2028: 0.63% Median household income (2023): $85,656 Median age (2023): 38.1 Credit Rating: AA / Stable Right-to-work state: No LEGISLATIVE UPDATE In June, Gov. Polis signed bills designed to address Colorado’s severe housing crisis. HB1255 bars cities from setting arbitrary growth limits. Supporters of the legislation said growth caps imposed by cities such as Boulder served to push housing away from employment centers, leading to higher costs. HB1189 off ers tax credits to employers who contribute to worker savings accounts to purchase homes. Earlier, Polis signed SB1, which bolsters the state’s ability to support public-private partnerships to develop workforce housing. In May, Polis signed bills that that support workforce development by expanding Colorado’s successful zero-cost credentials program and off ering scholarships to new high school graduates to help fi ll jobs in growing industries. HB23-1246 invests $45 million over two years to support zero-cost training toward associate degrees and industry certifi cates in high-demand fi elds including education, law enforcement, nursing and construction. SB23-205 provides $1,500 scholarships to seniors in the class of 2024 who can use the funds on associate degrees, skill academies and apprenticeship programs. Higher Ed. R&D Expenditure in $000s: 1,901,835 Number of NCRCs: 42,828 | Percent Improvement 2022–2023: 31.36% Business Tax Climate Rank Change 2023–2024: -6 Industrial power cost per kWh: $8.63 Total Revenue as Share of Total Expenses, FY 2007-2021: 102.2% 2023 Workers’ Comp Index Rate: 0.93 GDP Growth Rate Trend PROJECT WATCH T hrough a $150 million partnership announced in August, Colorado State University and Munich- based Marvel Fusion will support the construction of high-power laser and fusion research center on the CSU Foothills campus. Marvel says it will be “the world’s most advanced short pulse laser facility.” In December, the U.S. Dept. of Energy announced $16 million in funding for an inertial fusion science and technology hub named RISE on the CSU campus. Photo courtesy of Colorado State University News104 JANUARY 2024 SITE SELECTION PROJECT WATCH S aint-Gobain North America announced plans in July to invest $235 million over two years to expand its CertainTeed gypsum manufacturing facility in Palatka. The 100- plus jobs investment is to more than double the current production capacity. The project, the company said in a release, is supported with more than $7 million in cash benefi ts and high-impact investment tax credits, including a State of Florida Capital Investment Tax Credit, a Career Source Florida Quick Response Training Grant, a grant from Putnam County, and a Clay Cooperative Economic Development Rate. LEGISLATIVE UPDATE On May 31, Gov. DeSantis signed House Bill 5, which rebrands Florida’s previous Department of Economic Opportunity as the Department of Commerce and consolidates under its purview, according to a statement, “the responsibilities and resources of Enterprise Florida,” the state’s business recruitment agency since 1996. A “direct support” nonprofi t, Select Florida — open to state and private funding — is to spearhead new recruitment eff orts. House Bill 3, signed May 2, targets what the governor’s offi ce termed “government and corporate sanctioned activism.” Among other measures, the bill prohibits the use of Environmental Social and Governance (ESG) factors by state and local governments when issuing bonds; prohibits all state and local entities from “considering or giving preference to ESG as part of the procurement and contracting process”; and prohibits banks that engage in “corporate activism” from holding public deposits as a Qualifi ed Public Depository. Signed into law June 6, House Bill 1209 is designed to expand the scope of state grants supporting rural infrastructure improvements by increasing awards through Florida’s Rural Infrastructure Fund and by removing certain barriers to qualifi cation. SelectFlorida 201 Alhambra Circle, Ste. 610 Coral Gables, FL 33134 J. Alex Kelly S ECY . OF C OMMERCE 305-808-3660 selectfl orida.org “Florida’s success is proof positive that when you establish a foundation for governing on conservative principles and protect the freedom of your residents, success will follow.” — Gov. Ron DeSantis, unveiling his FY 2024-2025 budget proposal, Dec. 5, 2023 Higher Ed. R&D Expenditure in $000s: 3,053,820 Number of NCRCs: 116,388 | Percent Improvement 2022–2023: 0.30% Business Tax Climate Rank Change 2023–2024: 0 Industrial power cost per kWh: $9.16 Total Revenue as Share of Total Expenses, FY 2007-2021: 104.9% 2023 Workers’ Comp Index Rate: 1.26 GDP 4 th 2022 GDP (in millions of current US$) $1,218,430 -4 -2 0 2 4 6 8 10 20222021202020192018 Florida Pop. (2023): 22,381,338 Pop. growth 2023–2028: 0.63% Median household income (2023): $65,081 Median age (2023): 42.9 Credit Rating: AAA / Stable Right-to-work state: Yes GDP Growth Rate Trend Saint-Gobain’s investment is to more than double production in Palatka. Photo courtesy of Saint-Gobain North AmericaNext >