< Previous116 JANUARY 2024 SITE SELECTION Louisiana Economic Development 617 North Third Street Baton Rouge, LA 70802 Don Pierson S ECRETARY ED 225-342-3000 opportunitylouisiana.com “We, the people of this state, are going to expect more of our government from here on out.” — Governor-elect Jeff Landry, on October 14, 2023, following his gubernatorial election win GDP 27 th 2022 GDP (in millions of current US$) $231,262 -7 -5 -3 -1 1 3 20222021202020192018 Louisiana Pop. (2023): 4,673,107 Pop. growth 2023–2028: -0.02% Median household income (2023): $53,362 Median age (2023): 38.1 Credit Rating: AA- / Positive Right-to-work state: Yes LEGISLATIVE UPDATE Mary L. Robinson, Policy & Legislative Aff airs Specialist at tax consulting fi rm Advantous, has compiled a thorough summary of tax measures passed by Louisiana’s 2023 regular legislative session. According to her summary, “SB 1 modifi es current provisions in law pertaining to the reduction of the corporate franchise tax and provides that the tax will be reduced over a six-year period by 25% in each year that certain revenue collection thresholds are met. The bill’s tied legislation, SB 6, will reduce the capital expenditure and sales tax rebate portions of Louisiana’s Quality Jobs Program up to 50% as a “pay for” for any potential reduction of the corporate franchise tax.” The full summary includes measures passed pertaining to income and franchise tax, sales and use tax, property tax, tax credits and incentives and severance tax. It can be found at www.advantous.com. Higher Ed. R&D Expenditure in $000s: 945,938 Number of NCRCs: 265,015 | Percent Improvement 2022–2023: 14.08% Business Tax Climate Rank Change 2023–2024: -1 Industrial power cost per kWh: $7.54 Total Revenue as Share of Total Expenses, FY 2007-2021: 100.7% 2023 Workers’ Comp Index Rate: 2.13 GDP Growth Rate Trend PROJECT WATCH S LB is turning the former General Motors assembly plant in Caddo Parish into a manufacturing facility it says “will leverage the global technology company’s capabilities in contract manufacturing, system integration and industrialization of digital infrastructure equipment that support its core mission of energy innovation for a balanced planet.” The $18.5 million investment is expected to create 596 new direct jobs with an annual payroll of more than $50 million over the next three years, according to a release. Louisiana Economic Development estimates the project will result in an additional 749 new indirect jobs, for a total of 1,345 new jobs in the Northwest Region. “It’s hard to express just how much the former GM plant means to the people of northwest Louisiana,” said former governor John Bel Edwards at the SLB announcement. “Bringing it back into commerce with new manufacturing jobs in a new sector is a historic milestone for economic growth, diversifi cation and job creation in our state. SLB’s investment will breathe new life into this once-thriving business park and provide hundreds of new, high-paying jobs for our state’s skilled manufacturing workers.” Photo courtesy of Louisiana Economic Development118 JANUARY 2024 SITE SELECTION PROJECT WATCH A report released in November by Climate Power said Michigan was the No. 3 state nationwide for clean energy investments, with $21.3 billion of investments and 16,699 jobs secured since the passage of President Biden’s Infl ation Reduction Act in August 2022. Those investments, said a release from the governor’s offi ce, include a healthy share of electric vehicle and EV battery projects in 2022 from the likes of GM, LG Energy Solution, Ford Motor Company, Our Next Energy and Gotion. In 2023 the projects included a $3.5 billion investment from Ford, creating 2,500 jobs at a new EV battery manufacturing facility in Marshall; and a $400 million, 500-job project from Nel Hydrogen to build an automated gigawatt electrolyzer manufacturing facility. Ford Motor Company Executive Chairman Bill Ford in February 2023 announced a $3.5 billion investment plan for a lithium iron phosphate (LFP) battery plant in Marshall, Michigan, during an event held at Ford Ion Park in Romulus. As of that day, Ford and its battery tech collaborators had announced $17.6 billion in investments in EV and battery production and added more than 18,000 jobs in the United States since 2019. Photo courtesy of Ford Motor Co. Michigan Economic Development Corporation 300 N. Washington Square Lansing, Michigan 48913 Quentin Messer, Jr. C HIEF E XECUTIVE & E CONOMIC C OMPETITIVENESS O FFICER 517-241-1400 michiganbusiness.org “Today’s bills will lower household utility costs by an average of $145 a year, create 160,000 good-paying jobs, and bring nearly $8 billion of federal tax dollars home to Michigan for clean energy projects.” — Gov. Gretchen Whitmer, on signing clean energy legislation, November 28, 2023 GDP 14 th 2022 GDP (in millions of current US$) $539,898 -6 -4 -2 0 2 4 6 8 20222021202020192018 Michigan Pop. (2023): 10,098,040 Pop. growth 2023–2028: -0.04% Median household income (2023): $65,287 Median age (2023): 41.1 Credit Rating: AA / Stable Right-to-work state: Yes LEGISLATIVE UPDATE A summary of the Michigan Legislature’s fall 2023 session from the Southeast Michigan Council of Governments noted the passage of bills that would quadruple the state’s renewable energy mandate to 60% by 2035, create a new clean energy standard and move siting decisions for large-scale solar and wind projects to the Public Service Commission. In January, the governor signed a bill that provides $150 million in Housing and Community Development Funds, $100 million in Revitalization and Placemaking Grants, $75 million in SmartZones, and additional support for apprenticeship expansion. The signing marked the earliest a bill had been signed in a new term since 1947. In August, Gov. Whitmer signed Executive Directive 2023-04, which aims to make state permitting processes more predictable, transparent and effi cient and require state government to reimburse applicants for missed deadlines, where possible. “The bipartisan budget I recently signed also included resources to further reduce permitting wait times and improve the permitting process,” she said. “I will keep working hard to lower the cost of doing business and make Michigan more competitive for projects that create good-paying jobs and transform communities.” Higher Ed. R&D Expenditure in $000s: 3,087,007 Number of NCRCs: 648,987 | Percent Improvement 2022–2023: 0.47% Business Tax Climate Rank Change 2023–2024: +1 Industrial power cost per kWh: $8.33 Total Revenue as Share of Total Expenses, FY 2007-2021: 101.9% 2023 Workers’ Comp Index Rate: 1.00 GDP Growth Rate Trend120 JANUARY 2024 SITE SELECTION LEGISLATIVE UPDATE Maine’s budget was signed into law on by Governor Janet Mills on July 11, 2023, Among other measures, according to a summary from her offi ce, it: • includes a new paid family and medical leave program to include more fl exibility for businesses and provides $25 million in one-time start- up funding; • establishes the Dirigo Business Incentive Program, a replacement for the Pine Tree Development Zone program, that provides tax credits to businesses to train workers and invest in capital; and • allocates $15 million to continue providing up to two years of free community college education for all students from the high school graduating classes of 2024 and 2025 who enroll in a Maine community college. Maine Dept. of Econ. & Community Dev. 59 State House Station Augusta, ME 04333 Heather Johnson C OMMISSIONER 207-624-9800 maine.gov/decd “From establishing a paid family and medical leave program to strengthening education, housing, childcare, our workforce, and delivering tax relief for seniors, this budget makes transformative investments in Maine people.” — Gov. Janet Mills, on July 11, 2023, commenting on the budget bill she signed that day Higher Ed. R&D Expenditure in $000s: 193,272 Number of NCRCs: 454 | Percent Improvement 2022–2023: 24.04% Business Tax Climate Rank Change 2023–2024: +1 Industrial power cost per kWh: $11.03 Total Revenue as Share of Total Expenses, FY 2007-2021: 103.0% 2023 Workers’ Comp Index Rate: 1.67 GDP 43 rd 2022 GDP (in millions of current US$) $72,414 -2 0 2 4 6 8 20222021202020192018 Maine Pop. (2023): 1,377,216 Pop. growth 2023–2028: 0.10% Median household income (2023): $68,320 Median age (2023): 45.6 Credit Rating: AA / Stable Right-to-work state: No GDP Growth Rate Trend Maryland Department of Commerce 401 East Pratt Street Baltimore, MD 21202 Kevin Anderson S ECRETARY 410-767-6300 commerce.maryland.gov “The state’s Global Gateway program is truly an innovative tactic for attracting new businesses to Maryland. While going through this soft landing trial, companies will quickly learn the benefi ts of doing business in Maryland. Six of these participants have already registered to do business in the state and we are excited to see more positive results from the program.” — Gov. Wes Moore, on October 12, 2023, discussing Maryland’s plan for placing international companies with 18 partnering incubators and accelerators in the state GDP 16 th 2022 GDP (in millions of current US$) $412,283 -5 -4 -3 -2 -1 0 1 2 3 4 5 20222021202020192018 Maryland Pop. (2023): 6,259,408 Pop. growth 2023–2028: 0.23% Median household income (2023): $93,432 Median age (2023): 39.8 Credit Rating: AAA / Stable Right-to-work state: No LEGISLATIVE UPDATE From the Offi ce of Governor Wes Moore: H.B. 552, The Innovation Economy Infrastructure Act of 2023, establishes the Build Our Future Grant Pilot Program in the Department of Commerce to provide funding for certain costs for infrastructure projects in eligible technology sectors. H.B. 548, The Access to Banking Act, establishes the Maryland Community Investment Venture Fund as an instrumentality of the state for purposes of developing opportunities for banking institutions and credit unions to better serve the needs of low-to moderate-income tracts. S.B. 452, The Film Production Activity Income Tax Credit, will expand eligibility for the credit against the state income tax for certain fi lm production activities to include documentaries and talk, reality, and game shows. H.B. 200, The Budget Bill, will provide historic investments in education, including a record $8.7 billion investment in Maryland’s K-12 public schools, a record $393 million for Maryland’s 15 local community colleges; and over $420 million in state support for Maryland’s historically black colleges and universities. Higher Ed. R&D Expenditure in $000s: 5,171,692 Number of NCRCs: 2,189 | Percent Improvement 2022–2023: 18.07% Business Tax Climate Rank Change 2023–2024: +1 Industrial power cost per kWh: $10.01 Total Revenue as Share of Total Expenses, FY 2007-2021: 98.8% 2023 Workers’ Comp Index Rate: 1.04 GDP Growth Rate Trend SITE SELECTION JANUARY 2024 121 LEGISLATIVE UPDATE The budget signed in May invests $500 million in the Minnesota Forward Fund, described as “a toolbox that will be used to match federal investments in infrastructure and large-scale economic development projects in existing, new, and emerging industries made possible by President Biden’s Infl ation Reduction Act and the CHIPS and Science Act. The bill invests in the Drive for 5 Workforce Fund, a workforce training program which creates a pipeline of workers who are skilled and prepared to enter high-growth and high-wage industries. The bill establishes the Offi ce of New Americans, which will explicitly focus on supporting immigrant and refugee integration, reducing barriers to employment, and improving connections between employers and job seekers.” The Higher Ed Omnibus Bill funds the North Star Promise Program, which provides free college for students with a family income under $80,000. The bill also provides additional funding for the state’s tribal colleges by expanding the Tribal College Supplemental Grant Assistance program. Gov. Walz signed an executive order eliminating the four-year degree requirement from over 75% of state government jobs. Walz said doing so for about 25,000 government jobs will open the professions to a wider pool of applicants. Minnesota Dept. of Employment & Econ. Dev. Great Northern Building 180 E. 5th St., Ste. 1200 St. Paul, MN 55101 Matt Varilek C OMMISSIONER 651-259-7114 positivelyminnesota.com “Minnesota has long been an internationally recognized hub for academic medicine, research and cutting-edge medical technology. Now, Mayo Clinic is making a multi-billion-dollar investment to build on that foundation.” — Gov. Tim Walz, November 28, 2023, on Mayo Clinic’s announced $5 billion expansion investment involving 6,000 new jobs and 2.4 million sq. ft. of new buildings in its hometown of Rochester Higher Ed. R&D Expenditure in $000s: 1,248,954 Number of NCRCs: 28,232 | Percent Improvement 2022–2023: 1.01% Business Tax Climate Rank Change 2023–2024: +1 Industrial power cost per kWh: $9.25 Total Revenue as Share of Total Expenses, FY 2007-2021: 103.1% 2023 Workers’ Comp Index Rate: 1.55 GDP 20 th 2022 GDP (in millions of current US$) $379,112 -4 -2 0 2 4 6 20222021202020192018 Minnesota Pop. (2023): 5,798,827 Pop. growth 2023–2028: 0.34% Median household income (2023): $80,483 Median age (2023): 39.3 Credit Rating: AAA / Stable Right-to-work state: No GDP Growth Rate Trend122 JANUARY 2024 SITE SELECTION Mississippi Development Authority 501 North West Street Jackson, MS 39201 Bill Cork E XECUTIVE D IRECTOR 601-359-3449 mississippi.org “The all-time high graduation rate serves as another reminder that when someone says, ‘Mississippi is 50th in education,’ they just don’t know what they’re talking about.” — Gov. Tate Reeves, January 19, 2023, on the state’s 2021-22 high school graduation rate of 88.9% GDP 36 th 2022 GDP (in millions of current US$) $114,153 -2 -1 0 1 2 3 4 20222021202020192018 Mississippi Pop. (2023): 2,964,164 Pop. growth 2023–2028: -0.07% Median household income (2023): $50,633 Median age (2023): 38.3 Credit Rating: AA / Stable Right-to-work state: Yes LEGISLATIVE UPDATE Gov. Reeves in May announced the state was investing $3.5 million into Northwest Community College’s Concourse Workforce Training Center for new programs focused on areas such as robotics, automation and controls engineering, mechatronics and industrial maintenance. Since Reeves signed legislation creating the Offi ce of Workforce Development, also known as Accelerate Mississippi, the offi ce has awarded almost $44 million to 84 new and expanding programs.. House Bill 1642 authorizes over $1.4 billion into the Mississippi Department of Transportation (MDOT). Senate Bill 3120 is a supplemental appropriation of $450 million to MDOT which gives the department additional funding to tackle a range of major improvements across Mississippi, including $30 million for a new multimodal fund (ports, airports, and rail). Senate Bill 3021 provides a $12 million appropriation to expand the existing career coaching program by an estimated 50 additional coaches across the state. Senate Bill 3113 provides a $25 million appropriation for expansion and support of Allied Health Training Programs and $3 million for the new Accelerate Mississippi Physician Residency and Fellowship Start-Up Grant Program. Higher Ed. R&D Expenditure in $000s: 566,358 Number of NCRCs: 217,720 | Percent Improvement 2022–2023: 18.87% Business Tax Climate Rank Change 2023–2024: +10 Industrial power cost per kWh: $6.71 Total Revenue as Share of Total Expenses, FY 2007-2021: 103.6% 2023 Workers’ Comp Index Rate: 0.98 GDP Growth Rate Trend PROJECT WATCH P rogress continued in late 2023 at the largest economic development project in state history, a $2.5 billion investment from Steel Dynamics in Columbus for a new aluminum manufacturing complex from a new entity called Aluminum Dynamics that will create approximately 1,000 jobs with an average salary of almost $100,000. Aluminum Dynamics anticipates begin production will begin in the summer of 2025. “By then, they expect to be close to 750 total employees,” said a release from Gov. Reeves’ offi ce. “Once the plant is staff ed, the company will continue to work with the local colleges on programs geared to metal manufacturing- related work.” The overall investment also includes a biocarbon production facility. The investment will be supported by an initial $54 million state incentives package, which will increase as operations begin for a total of over $246 million. Additionally, the company has pledged to pay the college tuition of children of employees at each of the facilities. As reported by Ron Starner in the Mississippi Development Guide 2023 produced by Site Selection publisher Conway Data, the Columbus site “was chosen for strategic reasons, including its proximity to one of SDI’s largest electric-arc-furnace steel mills, which will use a signifi cant amount of the biocarbon as a replacement for anthracite. The site is also close to abundant fi ber raw material resources in the region. Other pivotal location factors included ‘excellent logistics provided by on-site access to a Class I railroad, proximity to the major U.S. highway systems, and access to the Tennessee-Tombigbee Waterway,’ according to a statement by the company. The fi rm added that plentiful supplies of natural gas, renewable power and water resources were critical to sealing the deal.” Steel Dynamics’ groundbreaking ceremony took place in Columbus, Mississippi, in March 2023. Photo courtesy of Mississippi Development Authority124 JANUARY 2024 SITE SELECTION LEGISLATIVE UPDATE A summary from the Missouri Press Association when the legislature’s session adjourned in May reported that among the major items to pass was $2.8 billion in funding to expand I-70 from outside Kansas City to St. Louis to three lanes in each direction. Gov. Parson in September signed SB 20, which reauthorizes the employee stock ownership plan (ESOP) 50% income tax deduction on the proceeds business owners receive when they sell their companies to their employees. House Bill 417 creates a new workforce training program called “Upskill Credential” that will reimburse employers through competitive grants for upskilling employees with short-term, industry-recognized credentials. A $15 million appropriation supports eff orts to onshore high-tech manufacturing industries that are vital to national security. As part of the budget the Missouri Department of Economic Development awarded $75 million through the Industrial Site Development Grant Program for 15 projects across the state. Missouri Dept. of Econ. Dev. Box 1157 Jeff erson City, MO 65102 Michelle Hataway A CTING D IRECTOR 573-751-4962 ded.mo.gov “While there are plenty of things we do agree on, we understand that there are plenty that we don’t too. As the 2024 election cycle heats up, we want to show the people of Missouri and Kansas that even when we disagree, we can disagree better.” — Gov. Mike Parson, November 14, 2023, at a meeting at BBQ restaurant Q39 Midtown in Kansas City with Kansas Gov. Laura Kelly to announce their participation in the National Governors Association’s Disagree Better initiative Higher Ed. R&D Expenditure in $000s: 1,711,076 Number of NCRCs: 170,010 | Percent Improvement 2022–2023: 7.54% Business Tax Climate Rank Change 2023–2024: -1 Industrial power cost per kWh: $7.67 Total Revenue as Share of Total Expenses, FY 2007-2021: 102.5% 2023 Workers’ Comp Index Rate: 1.54 GDP 21 st 2022 GDP (in millions of current US$) $336,626 -3 -2 -1 0 1 2 3 4 5 20222021202020192018 Missouri Pop. (2023): 6,208,310 Pop. growth 2023–2028: 0.10% Median household income (2023): $63,390 Median age (2023): 39.8 Credit Rating: AAA / Stable Right-to-work state: No GDP Growth Rate Trend PROJECT WATCH T wo Missouri locations in November were designated by the Biden Administration as Tech Hubs. First, the Critical Minerals and Materials for Advanced Energy Tech Hub at Missouri S&T University in Rolla aims to position south-central Missouri as a global leader in critical minerals processing to provide the materials needed to support battery technology. The second tech hub will be located in Kansas City and led by BioNexus KC. “Known as the Inclusive Biologics and Biomanufacturing Tech Hub (KCBioHub), more than 60 partner organizations plan to ramp up life-saving vaccine production and other preventative technologies to become a global leader in biomanufacturing and life sciences,” said a release from the governor’s offi ce. Missouri lawmakers appropriated $16 million in the state budget for fi scal year 2024 to the Missouri Department of Economic Development to support Missouri S&T research on mining and refi ning critical minerals. The money will be used to equip a demonstration facility and demonstrate feasibility of a Missouri-based supply chain for lithium-ion cathode materials for the manufacture of batteries in Missouri, known for its historic support of and resources for battery manufacturing. Missouri is home to 29 of the 50 critical minerals identifi ed by the USGS needed to advance the green economy. “At S&T, our researchers propose to extract critical minerals from conventional and unconventional sources,” said Missouri S&T Chancellor Mohammad Dehghani, “such as the leftover piles of materials from mining operations that have accumulated for over 100 years in Missouri and other mining-rich regions of the United States.” Missouri S&T campus in Rolla Photo courtesy of Missouri S&TNext >