< Previous118 JANUARY 2025 SITE SELECTION LEGISLATIVE & POLICY UPDATE In November, Gov. Newsom hailed the completion of a statewide economic framework that his offi ce called “a fi rst-of-its kind, bottom-up strategy for creating good-paying jobs and regional economic development.” To produce the California Jobs First Economic Blueprint, the state’s 13 economic regions engaged more than 10,000 residents and experts to collectively identify regional industrial sectors as key to driving local economies into the future. The complete Economic Blueprint is to be released in early 2025, along with $120 million over three years in competitive funding to support “ready-to-go” job creating projects aligned to 10 priority sectors. On October 14, Gov. Newsom signed ABX2-1, a bill to help prevent spikes in the price of gasoline. The law allows the state to require oil refi ners to maintain a minimum inventory of fuel to avoid supply shortages that create higher gasoline prices for consumers and higher profi ts for the industry. It also authorizes the California Energy Commission to require refi ners to plan for resupply during refi ner maintenance outages. In late September, Governor Gavin Newsom signed the Cannabis Cafe Bill (AB 1775). The law is geared toward fostering consumption lounges such as those found in abundance in Amsterdam. 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 https://business.ca.gov “Each region of California has its own strengths. We’re helping build out each local economy with a bottom-up approach that’ll connect more good-paying jobs with California families. From agriculture to clean energy to manufacturing and everything in between, these blueprints will foster growth and expansion throughout every community in California.” — Gov. Gavin Newsom, unveiling the California Jobs First Economic Blueprint, Nov. 21, 2024 Higher Ed. R&D Expenditure in $000s: $12,867,611 Number of NCRCs: 30,278 | Percent Improvement 2023–2024: 12.97% Business Tax Climate Rank Change 2024–2025: 0 Industrial power cost per kWh: $18.64 Total Revenue as Share of Total Expenses, FY 2008-2022: 100.91% 2024 Workers’ Comp Index Rate: 2.26 GDP 1 st 2023 GDP (in millions of current US$) $3,248,657 -3 -2 -1 0 1 2 3 4 5 6 7 8 20232022202120202019 California Pop. (2024): 39,530,491 Pop. growth 2024–2029: 0.09% Median household income (2024): $97,646 Median age (2024): 38.4 Credit Rating: AA- / Stable Right-to-work state: No GDP Growth Rate Trend PROJECT WATCH ovartis, a leading developer of radiopharmaceuticals, announced plans in September for a $40 million manufacturing facility in Carlsbad, between Los Angeles and San Diego. The Switzerland-based company said the facility, which is to create 30 new jobs, will create resiliency in its manufacturing network and improve the delivery of medicines to patients in the California market. The company’s Pluvicto and Lutathera radiopharmaceuticals treat prostate and digestive tract cancers, both high-growth opportunities. Photo courtesy of Novartis120 JANUARY 2025 SITE SELECTION Colorado Offi ce of Econ. Dev. & Intl. Trade 1600 Broadway, Suite 2500 Denver, CO 80202 Eve Lieberman E XECUTIVE D IRECTOR 303-892-3840 https://choosecolorado.com “We are saving Coloradans money on property taxes, cutting the income and sales tax, moving closer to the reality of passenger rail in Colorado, making historic investments in educational opportunity including fully funding our schools — and so much more.” — Gov. Jared Polis, June 11, 2024 GDP 15 th 2023 GDP (in millions of current US$) $437,056 -3 -2 -1 0 1 2 3 4 5 6 20232022202120202019 Colorado Pop. (2024): 6,009,761 Pop. growth 2024–2029: 0.81% Median household income (2024): $94,820 Median age (2024): 38.0 Credit Rating: AA / Stable Right-to-work state: No LEGISLATIVE & POLICY UPDATE In May, Gov. Polis signed House Bill 24-1313 into law, incentivizing transit-oriented development by providing $35 million in grants to transit-oriented communities to upgrade infrastructure. The new law aims to alleviate Colorado’s housing crisis and reduce greenhouse gas emissions. To qualify as a transit-oriented community, a city must be within one of Colorado’s fi ve metropolitan planning organizations, have a population of over 4,000 and at least 75 acres of transit area. New provisions to advance multi-modal transportation are to raise up to $200 million annually for rail projects and expanded transit services. Supporters hailed Senate Bill 24-184 as a long-awaited green light for passenger rail service along Colorado’s Front Range. It requires the state’s Regional Transportation District, Front Range Passenger Rail and the Colorado DOT to coordinate eff orts to secure funding for passenger rail service from Denver to Fort Collins. Front Range Passenger Rail is a proposed intercity rail service that would connect major cities, also including Colorado Springs and Pueblo. The new law is to raise an estimated $58 million annually with a new $3 per day fee on rental cars. HB24-1340 introduces a tax credit for low- and middle-income residents enrolled in public postsecondary institutions. Higher Ed. R&D Expenditure in $000s: $1,988,403 Number of NCRCs: 51,298 | Percent Improvement 2023–2024: 24.31% Business Tax Climate Rank Change 2024–2025: -5 Industrial power cost per kWh: $8.50 Total Revenue as Share of Total Expenses, FY 2008-2022: 102.14% 2024 Workers’ Comp Index Rate: 0.93 GDP Growth Rate Trend PROJECT WATCH P hilip Morris International in July announced an investment of $600 million over the next two years to open a plant in Aurora to produce ZYN, its popular smoke-free nicotine product. The facility, the company said in a release, is expected to create 500 direct jobs with an ongoing annual economic impact of $550 million and an additional 1,000 indirect jobs. The new facility is expected to begin preliminary operations by the end of 2025, with regular production beginning in 2026. The Aurora facility is to join existing ZYN locations in Owensboro, Kentucky, and Wilson, North Carolina. Photo courtesy of Philip Morris International122 JANUARY 2025 SITE SELECTION PROJECT WATCH I n December L3Harris Technologies announced it had negotiated a High Impact Business Performance grant for $2 million from the State of Florida for the company’s two new facilities in Palm Bay, Florida The space vehicle and satellite manufacturing faciolity and an advanced microelectronics facility will create 200 jobs between them at average salaries over $100,000. The Melbourne-based company, headquartered in Florida since 1978, the company employs 9,000 employees at 27 Florida locations across Florida with an annual economic impact of approximately $470 million through work with suppliers and vendors. The direct wages of L3Harris employees based in Florida exceed $1 billion. LEGISLATIVE & POLICY UPDATE HB 7073, signed in May, off ers a $1.07 billion tax cut for Florida residents and businesses that builds upon similar cuts delivered since 2019 by Gov. DeSantis. Those now total more than $6 billion. The current round of cuts includes a one- year exemption on taxes for residential property and fl ood insurance premiums; state tax holidays such as a one-week exemption for certain tools, equipment and safety clothing; a Child Care Tax Credit and Railroad Tax Credits. SB 328 allocates $100 million to Florida’s Hometown Hero Housing Program, which provides down payment assistance to fi rst-time homebuyers who meet certain income thresholds. It provides zero-interest loans of up to 5% of the fi rst mortgage loan. New laws pertaining to public education include SB 1264, which requires the teaching of the dangers of Communism; a School Safety Bill (HB 1473) that includes requirements for all school doors and entries to be locked when not staff ed; and HB 1285, which limits challenges to the authority of school districts to regulate educational materials. Florida posted a third-quarter estimate of 4.6 million visitors, the highest visitation on record for a third quarter. SelectFlorida 201 Alhambra Circle, Ste. 610 Coral Gables, FL 33134 J. Alex Kelly S ECY . OF C OMMERCE 305-808-3660 https://selectfl orida.org “The Free State of Florida continues to break records for tourism. It is a testament to our model, and we will continue to operate our state with common sense, fi scal responsibility, environmental stewardship and a penchant for freedom.” — Gov. Ron DeSantis, announcing a third consecutive quarter of record visitation to Florida, Nov. 12, 2024 Higher Ed. R&D Expenditure in $000s: $3,149,828 Number of NCRCs: 116,596 | Percent Improvement 2023–2024: 0.19% Business Tax Climate Rank Change 2024–2025: 0 Industrial power cost per kWh: $9.39 Total Revenue as Share of Total Expenses, FY 2008-2022: 106.20% 2024 Workers’ Comp Index Rate: 1.26 GDP 4 th 2023 GDP (in millions of current US$) $1,292,788 -4 -2 0 2 4 6 8 10 20232022202120202019 Florida Pop. (2024): 22,779,514 Pop. growth 2024–2029: 0.93% Median household income (2024): $74,715 Median age (2024): 43.5 Credit Rating: AAA / Stable Right-to-work state: Yes GDP Growth Rate Trend Photo courtesy of L3Harris Technologies124 JANUARY 2025 SITE SELECTION Georgia Dept. of Econ. Dev. Technology Square 75 Fifth Street N.W., Ste. 1200 Atlanta, GA 30308 Pat Wilson C OMMISSIONER 404-962-4000 https://georgia.org “While bad policies coming out of Washington, D.C. are still hurting America’s families, here in Georgia we’re working to give our people relief.” — Gov. Brian Kemp, announcing a tax rebate proposal in October GDP 8 th 2023 GDP (in millions of current US$) $678,201 -4 -2 0 2 4 6 8 20232022202120202019 Georgia Pop. (2024): 11,128,319 Pop. growth 2024–2029: 0.61% Median household income (2024): $77,086 Median age (2024): 38.1 Credit Rating: AAA / Stable Right-to-work state: Yes LEGISLATIVE & POLICY UPDATE On Oct. 22, Gov. Kemp announced plans to return over $1 billion to the taxpayers of Georgia via another in a series of special tax rebates. The proposed one-time, special refund would mirror two previous rebates, returning $250 to single tax fi lers, $375 to head-of-household fi lers, and $500 to married couples fi ling jointly. An amended 2024 budget signed in February included an additional $102.5 million for K-12 classrooms; $1.5 billion for Georgia Department of Transportation Projects, $50 million to expand the rural workforce housing program; $100 million for rural economic development projects through the OneGeorgia Authority; and $250 million within the Georgia Environmental Finance Authority for local water and sewer projects. HB 1015, signed in May, reduced the state income tax rate from 5.49% to 5.39%. Companion legislation similarly cut the corporate tax rate and increased the state tax deduction for dependents. SB 233 established a “Georgia Promise Scholarship,” to provide a $6,500 voucher for students attending the lowest performing public schools to use to attend private schools. Critics cited concerns that it could siphon funding from public schools. Higher Ed. R&D Expenditure in $000s: $3,439,094 Number of NCRCs: 348,725 | Percent Improvement 2023–2024: 0.34% Business Tax Climate Rank Change 2024–2025: +6 Industrial power cost per kWh: $6.88 Total Revenue as Share of Total Expenses, FY 2008-2022: 104.02% 2024 Workers’ Comp Index Rate: 1.15 PROJECT WATCH A t the start of Thanksgiving week, the Biden Administration announced a $6 billion loan to Rivian to help revive plans to build an electric vehicle plant east of Atlanta. The move was viewed as part of an eff ort to lock in Democratic climate policies before the second inauguration of Donald Trump as president. Hailed upon its announcement in late 2021 as the largest economic development deal in Georgia history, the Rivian project had survived concerted public challenges, only to have been put on hold in March amid the EV maker’s inability to reach profi tability. “This loan,” said Rivian founder and CEO R.J. Scaringe, “will help create thousands of American jobs and further strengthen U.S. leadership in EV manufacturing and technology.” Rivian is to produce its RX3 crossover east of Atlanta. Image courtesy of Rivian GDP Growth Rate Trend126 JANUARY 2025 SITE SELECTION LEGISLATIVE & POLICY UPDATE HB 1827 addresses the pressing need for a robust health care workforce in Hawaii. This legislation focuses on implementing new and expanding existing programs to attract, train and retain health care professionals in the state. HB 1827 includes initiatives utilizing a public-private investment and partnership model including support for the High School Health Care Workforce Certifi cate Program, classroom renovations for health care training, and the Glidepath Program for Certifi ed Nurse Aides. HB 2404 amends two key components of Hawaii’s tax code over a seven-year period. In odd years, the legislation increases the standard deduction, which benefi ts low- and medium-income households. In even years, the legislation amends the tax brackets by eliminating the lowest brackets and lowering the tax rates for all brackets. As a result of these changes, the state income taxes paid by working class families will fall by 71% by 2031. Hawaii Dept. of Business ED & Tourism No. 1 Capitol District Building 250 South Hotel Street Honolulu, HI 96813 James Kunane Tokioka D IRECTOR 808-586-2355 https://dbedt.hawaii.gov “I will sign into law any bill the Legislature sends me that will help move short-term rentals and vacant investment properties owned by non- residents into our local housing market — to increase supply and bring down prices for our families.” — Gov. Josh Green, M.D., during his State of the State address on January 22, 2024 Higher Ed. R&D Expenditure in $000s: $335,554 Number of NCRCs: 655 | Percent Improvement 2023–2024: 0.92% Business Tax Climate Rank Change 2024–2025: 0 Industrial power cost per kWh: $35.28 Total Revenue as Share of Total Expenses, FY 2008-2022: 96.93% 2024 Workers’ Comp Index Rate: 2.27 GDP 40 th 2023 GDP (in millions of current US$) $88,614 -12 -10 -8 -6 -4 -2 0 2 4 6 8 20232022202120202019 Hawaii Pop. (2024): 1,460,442 Pop. growth 2024–2029: 0.16% Median household income (2024): $98,599 Median age (2024): 41.4 Credit Rating: AA+ / Stable Right-to-work state: No GDP Growth Rate Trend Idaho Dept. of Commerce 700 W. State St. Boise, ID 83720 Tom Kealy D IRECTOR 208-334-2470 https://commerce.idaho.gov “Idaho has the strongest economy in the nation, putting us in the enviable position of being able to change the unemployment insurance tax formula to save employers money while maintaining a solvent trust fund. We are on pace to deploy $3.7 billion in tax relief since I took offi ce in 2019, with even more on the way.” — Governor Brad Little on March 6 , in Nampa, signing House Bill 428 into law GDP 38 th 2023 GDP (in millions of current US$) $95,898 -1 0 1 2 3 4 5 6 7 20232022202120202019 Idaho Pop. (2024): 2,005,612 Pop. growth 2024–2029: 1.46% Median household income (2024): $77,008 Median age (2024): 37.4 Credit Rating: AA+ / Stable Right-to-work state: Yes LEGISLATIVE & POLICY UPDATE Governor Little and the Legislature fully funded Idaho LAUNCH to ensure the new workforce training grants are awarded to up to 10,000 Idaho graduates. Grants may be used at any Idaho college, career technical program or workforce training provider of their choice for an in-demand career. Governor Little and the Legislature have returned $3.7 billion to Idahoans’ pockets over the past fi ve years, with relief on income taxes and property taxes and an expanded grocery tax credit, providing more tax relief per capita than any other state. In addition, Idahoans will get back an additional $60 million in ongoing income tax relief by lowering the individual and corporate income tax from 5.8% to 5.695%. The state budget prepares Idaho for economic uncertainty by maintaining a structurally balanced budget over a fi ve-year horizon using a fi scal stress test that accounts for the probability of a recession. The budget leaves a surplus in excess of $180 million in both budgeted years to provide greater cushion against economic uncertainty. House Bill 428 cuts unemployment insurance taxes another 20% for Idaho businesses. It was forecast to save Idaho businesses $44 million in 2024 and an estimated $117 million over fi ve years. Higher Ed. R&D Expenditure in $000s: $195,999 Number of NCRCs: 203 | Percent Improvement 2023–2024: 4.10% Business Tax Climate Rank Change 2024–2025: +5 Industrial power cost per kWh: $7.17 Total Revenue as Share of Total Expenses, FY 2008-2022: 107.93% 2024 Workers’ Comp Index Rate: 1.43 GDP Growth Rate Trend SITE SELECTION JANUARY 2025 127 Indiana Economic Development Corporation One North Capitol, Suite 700 Indianapolis, IN 46204 David Rosenberg, S ECRETARY OF C OMMERCE 317-232-8800 https://iedc.in.gov “I want to make sure we’re spreading economic development out around the state. I hear that often — that we don’t see it being more broadly pursued. I’m going to try to really fertilize the fi eld of small business and entrepreneurs … if we can grow them organically, it costs us a lot less than trying to fi sh in the biggest of companies.” — Then-gubernatorial candidate Mike Braun , Indianapolis Business Journal, September 13, 2024 GDP 19 th 2023 GDP (in millions of current US$) $404,290 -3 -2 -1 0 1 2 3 4 5 6 20232022202120202019 Indiana Pop. (2024): 6,907,141 Pop. growth 2024–2029: 0.24% Median household income (2024): $70,604 Median age (2024): 38.6 Credit Rating: AAA / Stable Right-to-work state: Yes LEGISLATIVE & POLICY UPDATE Excerpted from “Unpacking Indiana’s 2024 Legislative Session: What Comes Next for Governments” by Sarah Inglehart, Managing Director, Government Consulting, at KSM CPAs and Advisors, Indianapolis: The most signifi cant piece of economic development legislation emerging from this legislative session is Senate Bill 256. The legislation expands the Indiana Economic Development Corporation’s (IEDC) ability to designate innovation development districts (IDDs), which are designed to attract advanced industry businesses and support the high-technology economy through reinvestment of certain tax dollars. The legislation makes two key changes: It removes the sunset date for establishing IDDs, which would have been in 2025, and it allows the IEDC to establish IDDs on top of existing tax increment fi nancing (TIF) allocation areas, subject to budgetary review and consent from relevant authorities. This means creating a TIF district will no longer prohibit a site from being designated as an IDD. If an allocation area already exists, establishing an IDD on top of the area prohibits the community from extending or renewing the allocation area until the term of the IDD expires. While large-scale “mega sites” — sites over 1,000 acres — are the most likely candidates for IDD designation, any site with signifi cant development could be a potential target for an IDD. Higher Ed. R&D Expenditure in $000s: $1,954,293 Number of NCRCs: 142,942 | Percent Improvement 2023–2024: 0.47% Business Tax Climate Rank Change 2024–2025: 0 Industrial power cost per kWh: $8.24 Total Revenue as Share of Total Expenses, FY 2008-2022: 103.95% 2024 Workers’ Comp Index Rate: 0.77 GDP Growth Rate Trend LEGISLATIVE & POLICY UPDATE Governor JB Pritzker signed a package of bills in June to incentivize corporate development and increase Illinois’ competitive edge for attracting new businesses and capital investments. The omnibus bills, HB5005, include investments in tax credit programs for the fi lm industry and R&D projects across the state, as well as for the Economic Development for a Growing Economy (EDGE) and Reimagining Energy and Vehicles (REV) programs. The omnibus also includes: • Recodifi cation of eligibility for the Manufacturing Illinois Chips for Real Opportunity (MICRO) program: This law codifi es quantum computing, semiconductor, and microchip companies in the R&D phase as eligible for the program while reducing initial investment requirements to allow smaller businesses to enter the market. • Creation of a Quantum Enterprise Zone (QEZ): Designed to help position Illinois’ proposed quantum campus — funded through a $500 million bonded capital request introduced in the FY25 budget — to attract up to $11 billion in CHIPS and related federal funding and an estimated $20 billion in private investment. Illinois Dept. of Commerce & Economic Opportunity 555 W. Monroe St, 12th Floor Chicago, IL 60661 Kristin Richards D IRECTOR 312-814-7179 https://dceo.illinois.gov “Since day one of my administration I have been laser-focused on ensuring businesses that uplift Illinoisans and our economy see the many benefi ts this state can off er — and that has paid off many times over.” — Gov. JB Pritzker on June 26, upon signing business development omnibus legislation Higher Ed. R&D Expenditure in $000s: $3,307,153 Number of NCRCs: 162,000 | Percent Improvement 2023–2024: 0.61% Business Tax Climate Rank Change 2024–2025: 0 Industrial power cost per kWh: $8.20 Total Revenue as Share of Total Expenses, FY 2008-2022: 95.29% 2024 Workers’ Comp Index Rate: 1.39 GDP 5 th 2023 GDP (in millions of current US$) $885,651 -6 -4 -2 0 2 4 6 8 20232022202120202019 Illinois Pop. (2024): 12,544,951 Pop. growth 2024–2029: -0.38% Median household income (2024): $81,015 Median age (2024): 39.4 Credit Rating: A- / Stable Right-to-work state: No GDP Growth Rate TrendNext >