From Site Selection magazine, November 2003
Expanded Bonus Web Edition
U.S. LEGISLATIVE UPDATE


Department of Commerce
Steve Kelly, Dir. of Bus. Dev., 785-296-5298

Kansas

        Special legislation was passed authorizing the Kansas Development Finance Authority to issue up to $500 million in bonds to support the Boeing 7E7 project's possible location in Wichita.
        Chambers of commerce statewide clamored in April for reform to workers compensation and simplification of the state's sales tax system. They got the latter in the form of the Streamlined Sales and Use Tax Agreement, which makes payment easier for businesses paying them in more than one state. A plan for the former did pass the Senate near the end of the session, but the House did not have time to consider it and no special session was deemed necessary.
        To the relief of prospects, introduced bills calling for complete repeal of sales tax exemptions and income tax credits never emerged from committee.
        Statewide, cities can now issue sales tax and revenue bonds, similar to tax increment financing, for redevelopment districts. Projects must involve a minimum $50-million investment and have minimum projected annual sales of $50 million.
        As part of the state budget, $1 million was appropriated to support the National Institute for Aviation Research at Wichita State University.


Cabinet of Economic Development
Marvin E. Strong, Secretary, 502-564-7670

Kentucky

        Locating companies now have two years to activate their tax credits related to the Kentucky Job Development Act.
        Existing automotive assembly companies employing at least 1,000 people are now eligible to receive credits against income and license taxes for facility and equipment investments of at least $100 million. Credits for approved costs are limited to 10 percent of the total eligible investment expenditures.
        Lame duck Gov. Paul Patton vetoed legislation preserving and expanding the scope of a tax deduction for the cost of subsidiary license fees. But the state's attorney general (gubernatorial candidate Ben Chandler) declared the veto unconstitutional, and a group of businesses has filed a lawsuit to overturn the veto, which affects around $80 million a year in tax deductions for approximately 500 companies that do business in the state.
        The 16-district, 62-campus Kentucky Community and Technical College System serves about 180,000 workers and citizens a year, plus 68,000 students enrolled in credit courses. The system is partnering with regional universities to operate or soon open regional postsecondary education centers in five communities - Elizabethtown, Glasgow, London/Corbin, Hopkinsville and Prestonsburg.


Department of Economic Development
Don J. Hutchinson, Secretary, 225-342-3000

Louisiana

        The lead component of Gov. Mike Foster's Vision 2020 plan, the Louisiana Major Projects Authority allows the state to move quickly and with flexibility in assessing and preparing sites for mega projects.
        The Quality Jobs program has broadened its scope to a wider variety of industries.
        Tax credits have been established for biotech, technology commercialization, R&D, customized software development and film and video production.
        The Enterprise Zone program now will double its tax credits for automotive and aerospace manufacturers.
        The Incumbent Worker Training Program has been renewed to the tune of $50 million, and modified to provide more "off-the-shelf" options and be more accessible to small business. Workers receiving this training have averaged pay increases of 12.8 percent.


Dept. of Economic & Community Dev.
Jack Cashman, Commissioner, 207-287-2656

Maine

        As documented in the September 2003 issue of Site Selection, the state created PineTree Zones, an enterprise zone program that will designate its zones this winter.
        The scope of the state's technical college system has been expanded to that of a community college system.


Dept. of Business & Econ. Dev.
Aris Melissaratos, Secretary, 800-541-8549

Maryland

        Prince George's County has received an approval from the State of Maryland to expand its Enterprise Zone to create additional industrial and commercial acreage. New and existing area companies will be eligible for substantial state and local incentives.
        Anne Arundel Community College was named 2002 Community College of the Year by the National Alliance of Business, in part for its continuing work with Northrop Grumman since 1997. The process drills down further into the state's educational infrastructure, by serving as the catalyst for the school's Teacher Technology Training (T3) project, which trains public school teachers in the effective use of technology in the classroom.

Continue to: Massachusetts . . .




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