 From Site Selection magazine, November 2003 
U.S. LEGISLATIVE UPDATE
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New Mexico
The Invest New Mexico program was launched, providing for $200 million in private equity to invest in new and expanding businesses. Personal income taxes have been reduced by 40 percent to a rate of 4.9 percent. In addition, the state has enacted a 50-percent reduction in capital gains taxes. Gov. Bill Richardson is championing a $1.4-billion highway construction program to be carried out over the next eight years. Most of the financing will be accomplished through the refinancing of about $900 million in outstanding transportation department bonds. With the infusion of $17 million, the state's work force training program has been expanded to include service industries as well as manufacturing.
New York
The Build Now-NY Program now features a new Shovel Ready Site Certification component, designed to pre-permit and market industrial sites.The program follows the model employed by the state in its successful attraction of semiconductor sector locations. In the wake of the massive power outage experienced by the Northeast in the summer of 2003, a new law expedites the review and approval process for proposals to upgrade existing electric transmission facilities, and provides additional sources of financing for electric generating and transmission facilities. The state's tax-free Empire Zone roster was expanded to 72 with the addition of six new zones. At press time, a comprehensive brownfield cleanup bill was still being considered by the General Assembly. A number of economic development-related measures were in committee. The Ford Motor Co. stamping plant in Buffalo is launching a new training program for its 1,800 workers with the help of a $1.3-million work force training grant from the state's labor department.
North Carolina
In July 2003, the North Carolina Senate approved a bill that would refund sales tax on construction materials and fixtures when more than $100 million is invested in an aircraft, motor vehicle, pharmaceutical, semiconductor or biotechnology manufacturing facility. North Carolina Moving Ahead is a $700-million transportation improvement bill that's estimated to create a $4-billion impact on the state's economy and 30,000 jobs. But lawmakers didn't stop there. They extended the State Ports Credit for five years, approved multi-jurisdictional revenue sharing, extended the Qualified Business Venture Credit for three years, froze the unemployment tax rate, and enacted a Job Development Investment Grant incentive program to provide targeted incentives to businesses based on withholding taxes paid for new jobs. Lawmakers approved $60 million in seed money for growing high-tech industries in North Carolina by authorizing development of a statewide Biomanufacturing Center and Biotechnology Training Center. The biomanufacturing facility will be at North Carolina State University; the biotech center will be at North Carolina Central University.
North Dakota
The income tax has been simplified and reduced, from 10.5 percent to 7 percent. A blend of federal and state dollars has created the $15-million Venture Fund to support early-stage business formation. Renaissance Zones have been expanded from 20 square blocks to 35 square blocks. A total of $5.25 million has been allocated toward centers of excellence at North Dakota universities.
Ohio
The latest series of new measures related to Gov. Bob Taft's $1.6-billion Third Frontier economic development program was signed into law in July. The revolving Research and Development Investment Fund will provide low-interest loans to companies that relocate to or expand in Ohio. The Ohio Research Commercialization Grant Program will help finance commercialization and pilot production. The Technology Investment Tax Credit Program was re-authorized, and funded with $20 million for state tax credits equal to 25% of an investment up to $250,000 used to offset the risk of investment in small, technology-oriented Ohio firms. The budget signed into law by Gov. Taft in June included a mixed bag of measures for the corporate community. They include provisions that simplify the municipal income tax system; increase the corporate tax minimum and eliminates some corporate tax avoidance opportunities; make telecom service providers subject to sales, corporate franchise and municipal taxes; align Ohio with the multi-state streamlined sales tax; and accelerate the phase-out of the inventory tax. Other measures in the bill extended the Job Creation and Retention Tax Credit; continued funding for the Development Contingency Fund, giving the Ohio Department of Development discretion to assist the state in competing for new jobs; and provided $1.5 million to help communities with a defense installation to prepare for impending federal base realignment and closure. Graduate students in higher sciences will be partnered with businesses through the new Third Frontier Graduate Internship program.
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