 From Site Selection magazine, November 2004 
U.S. LEGISLATIVE UPDATE
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Kansas
The Kansas Economic Growth Act establishes the Bioscience Authority and the Bioscience Development Investment Fund. All incremental state taxes generated by growth of bioscience companies and research institutions, evaluated annually for the next 15 years, will go toward the fund. The Authority will also manage a range of R&D vouchers, start-up incentives and matching funds. The Act also establishes the Kansas Center for Entrepreneurship, following a similar model, as well as tax incentives related to downtown redevelopment, rural business development and angel investors in Kansas-based businesses. The franchise tax rate was lowered from 0.2 percent of shareholder equity or net worth to 0.125 percent. At the same time, the maximum liability cap of $5,000 was increased to $20,000. The Kansas Development Finance Authority has been authorized to cooperate with out-of-state entities in issuing bonds for projects both within and outside the state's boundaries, provided they are of benefit to Kansas or to an owner/operator with a presence in Kansas. A new definition of "food processing plant" brings a broader cross-section of food products under the regulation of the state dept. of agriculture, including those of water and beverage bottlers. Within tax increment financing districts (TIFs), a city, with local board approvals, may now extend the period for remediation of contaminated property from 20 years to 30 years. A separate measure allows TIFs to continue to receive funds from transient guest, sales and use taxes, even if revenues from such taxes do not go to the city. It also mandates that a city that uses eminent domain to acquire a property must pay the property owner 125 percent of the highest appraised valuation over the preceding three years.
Kentucky
Corporate tax reform was debated, with several measures and amendments introduced that would variously reduce the rate to either 7.5 percent or 6 percent with one option eliminating net operating loss carrybacks. The measures did not get out of committee. Neither did a state budget. And the House speaker threatened to immediately adjourn any special session called by Gov. Ernie Fletcher. Meanwhile, corporate income and license tax receipts in the April-June 2004 quarter increased by 8.3 percent over the previous year's quarter, and are projected by the state budget office to increase 10.9 percent between July 2004 and March 2005. In late 2003, Gov. Fletcher reorganized the executive branch of state government, with the commerce cabinet incorporating 17 different departments and commissions. A new measure increases certain incentives available to projects, making as much as 75 percent of certain approved costs recoverable, limiting the wage assessment to 5 percent, and allowing up to 100 percent of the license tax to be recovered. Broadband service has been deregulated, a measure thought to open the door to increased technology investment in the Commonwealth's rural counties.
Louisiana
The state's river pilot program will be restructured in a move to make state's ports more attractive to industry. Legislation was passed to phase out the corporate franchise tax on debt and to allow new exclusions on sales tax on manufacturing machinery.
Maine
Lawmakers enhanced incentives offered through the Pine Tree Development Zone program by enacting a new law allowing utility companies to sell power at reduced rates to qualified businesses in the state's eight zones.
Maryland
An anti-outsourcing bill was passed, but vetoed by Gov. Robert Ehrlich. State extended by three years the termination date for a job creation tax credit and the day by which a business must commence operations in order to qualify for a job creation tax credit. The Smart Growth Economic Development Infrastructure Fund authorizes financial assistance in qualified distressed counties for specific economic development projects.
Continue to: Massachusetts . . .
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