 From Site Selection magazine, November 2005
U.S. LEGISLATIVE UPDATE
|
Also passed in that session was a state unemployment tax act (SUTA) dumping prevention bill closing a loophole in Alabama unemployment tax law that allowed some companies to lower their tax rate artificially by ascribing laid-off employees to affiliates or to reorgnaized entities. Federal legislation to stop SUTA dumping passed in 2004, and all states are required to pass similar legislation by January 2006. In July, the Alabama legislature approved tax relief starting in October 2008 for the proposed Hudson-Alpha Institute for Biotechnology in Huntsville and for businesses locating on its premises. The tax break is conditional on a $50-million private investment, at least 100 new jobs and the cooperation of the institute in assisting the state in developing biotech educational programs. Return to the top of the page. The legislature followed its four-month regular session with an immediate two-week special session in May. The state's first reworking of workers' compensation law since 1988 establishes a Workers' Compensation Appeals Commission, simplifies and speeds up the process for determining injured workers' eligibility for retraining benefits, caps compensation paid to out-of-state residents at the same rate paid Alaskans, and requires the Workers' Compensation Division to begin investigating fraudulent claims and practices.The state's "Roads to Resources" funding includes more than $28 million for gas pipeline support work and $3.3 million for various industrial road projects. Other traffic infrastructure projects include a mid-town Anchorage project receiving $26 million and Glenn Highway work that will receive $30.5 million. Return to the top of the page. In May, the legislature offered companies significant state income tax savings if they made an investment of $1 billion or more in a new project, allowing them to calculate taxes based purely upon in-state sales. A US$3-billion wafer fabrication facility to be built at Intel's complex in Chandler, Ariz., quickly followed, with company leaders giving significant credit to the new law. Separate tax reform will reduce business taxes by 20 percent over the next 10 years.A measure was passed limiting the ability of municipalities to use taxpayer dollars to induce businesses to locate to specific cities. Return to the top of the page. A "superproject" assistance framework was established for the issuance of bonds in connection with projects that involved more than $500 million in investment and the creation of more than 500 jobs.Greater flexibility was added to the Consolidated Incentive Act of 2003 in order to allow for more types of businesses and programs to be eligible for tax credits. A separate incentives act expanded the pool of businesses eligible for tax credits equal to 30 percent of tuition paid for employees, and also doubled to $100,000 the per project amount available for technology development support through the Arkansas Science and Technology Authority. New tax refunds and payroll rebates were created to encourage nonprofits with more than $1 million in payroll to locate in Arkansas. Gov. Mike Huckabee took the reins as chair of the National Governors Association in July 2005, serving until July 2006. Return to the top of the page. Last year's workers' comp reform has brought the system's overall cost down from $29 billion to just under $20 billion, according to the governor's office, with premiums dropping by an average 30 percent.Proposition 42, a 2002 law requiring gas taxes to be spent on transportation, was fully funded after being suspended for two consecutive budgets, pouring $1.3 billion into various transportation and congestion relief projects. Return to the top of the page. An "Interbasin Compact Committee" was formed to address regional water management issues among the state's seven river basins and its metro areas. Up to $1.2 billion in bonds will be issued for road and bridge work if voters approve Referendum D in November 2005. A new airport development zone program provides for $1,200 income tax credits for aviation manufacturing jobs created in designated zones. In the name of jobs and the economy, Gov. Bill Owens vetoed measures that would have expanded unemployment compensation eligibility and expanded employee access to company documents, among other actions.Return to the top of the page. An act requiring annual review of all business tax credit programs and their beneficiaries by the state's department of revenue services would have exempted company information in the review from statutory confidentiality requirements covering tax return information. The measure has passed in and out of committee and is now tabled.An innovation network was formed involving economic development agencies and the Univ. of Connecticut. The Stem Cell Research Fund authorizes $100 million over 10 years for grants to institutions for stem cell research. According to the Connecticut Business & Industry Assocation, the state budget includes a two-year corporate tax surcharge "that will cost businesses more than $110 million dollars." A new law increases the state's minimum hourly wage from $ 7.10 to $ 7.40 on January 1, 2006, and to $ 7.65 on January 1, 2007. Up to $10 million has been appropriated to improve infrastructure at the U.S. Navy's Groton Submarine base that just escaped the BRAC axe. Return to the top of the page. In July, the state's gross receipts tax was cut by 20 percent for all businesses, and 25 percent for automotive plants. The measure also increases from $50,000 to $80,000 the monthly exclusion for businesses, which means that about 1,200 small businesses will no longer be subject to the gross receipts tax.The "Student Excellence Equals Degree" (SEED) scholarship program was signed into law in September, awarding free college tuition to full-time students pursuing an associate's degree at Delaware Technical and Community College or the Associate of Arts program at the University of Delaware. High school graduates who maintain a 2.5 grade point average are eligible for the program. Return to the top of the page. Gov. Jeb Bush in June renewed the state's Qualified Targeted Industry (QTI) and Qualified Defense Contractor (QDC) tax refund programs until 2010. That month he also signed three bills that establish a "pay-as-you-grow" plan for infrastructure development and growth management, funded by $1.5 billion initially and $700 million annually thereafter. Among the provisions of the set of laws are regulatory incentives to develop within urban service boundaries and urban infill and redevelopment areas, and permitting and financial incentives to local water suppliers if they choose an alternative water supply project (e.g. desalination or re-use) from the regional water supply plan.The state will invest $114.9 million in economic stimulus programs next year, including a 3.8-percent increase in economic development incentives to attract and retain jobs in the state. Return to the top of the page. Georgia has new packages of film industry and tourism tax incentives. In addition, Gov. Sonny Perdue has signed into law the Strategic Industries Tax Credit, which allows for a $500 per job tax credit bonus for each new full-time position created by existing business enterprises that have been headquartered in the state for three or more years. The Entrepreneur and Small Business Growth Initiative also provides tax relief, and the Corporate Tax Reform Bill has restructured the state's corporate tax system to encourage investment.Return to the top of the page. Gov. Linda Lingle in June signed into law a measure to increase the conveyance tax paid on real estate transactions over $600,000, allocating a higher percentage of the conveyance tax to the Rental Housing Trust Fund and allocating 10 percent of the tax to a new Land Conservation Fund. The Hawai'i Tourism Authority will see a higher percentage of the state's transient accommodations tax support tourism. Special purpose bonds up to $25 million were issued to PLK Air Services Group LLC to establish a Kona coffee and macadamia manufacturing facility and air cargo logistics and ordering center at Kona International Airport. Return to the top of the page. Targeted toward Micron technology, a new incentive program gives a property tax break to any company that employs more than 1,500 people and spends at least $25 million a year in new property or equipment. Micron is considering the state for a new chip plant. A separate bill, applicable to all companies, provides for a sales tax exemption for R&D.Gov. Dirk Kempthorne signed into law a new two-part incentive package: The first part applies to corporations that relocate their headquarters to Idaho or existing corporations that undertake a major expansion in Idaho. "If those companies make a minimum $50-million investment in new facilities and bring in at least 500 jobs averaging $60,000 each, they will be rewarded with major reductions in business income, sales and property taxes through 2009," read the governor's press release. "The other package of incentives also gives a number or lesser tax incentives to businesses that create at least 10 new jobs paying $40,000 a year or more with an accompanying investment in headquarters or administrative facilities equal to $50,000 for each of those new employees." Return to the top of the page. Tort reform to help contain a medical liability lawsuit crisis was signed into law by Gov. Rod Blagojevich in August. For the first time in 20 years, the workers' compensation system was reformed, which leaders hope will reduce the state's ranking as the 19th most expensive state in workers' comp premiums.A new land use and transportation agency for Northeast Illinois was created, combining Chicago and regional agencies into one regional planning board. Southern Cook County has a new TIF-driven program to attract intermodal rail development projects. Return to the top of the page. Gov. Mitch Daniels signed into law an economic growth package that included modest tax incentives for small businesses, modernization of the tax code, restoration of brownfields, and energy incentives that will help promote investment in clean coal, ethanol and biodiesel production. Incentive highlights included an increase of the R&D tax credit to 15 percent of the first $1 million of qualified expenses; a headquarters relocation tax credit equal to 50 percent of moving costs; a property tax deduction for all businesses investing in job-creating or job-retaining projects; and a 3-percent R&D sales tax exemption that rises to 6 percent after two years. A separate provision allows a 20-percent venture capital credit for investors in motor sports businesses.Return to the top of the page. Iowa's venture capital "fund of funds" received a major boost when the legislature removed a five-year waiting period for investors to collect tax credits related to investment losses. Meanwhile, the $700-million Iowa Values Fund - a package including tax breaks, research funds and other incentives to attract business - was extended. The High Quality Job Creation Act replaces two previous programs and offers tax credits and refunds for project investments over $10 million. Officials with the Iowa Association of Business and Industry continue to call for reform of property taxes, workers' comp and unemployment reform and tort reform.Return to the top of the page. The Qualified Manufacturer Act was signed into law by Gov. Kathleen Sebelius in April, which will allow the Secretary of Commerce to enter into an agreement to pay back 100 percent of the withholding from Kansas wages paid to employees at the qualified manufacturer for 3 to 4 years, not to exceed 1 million dollars to a qualified manufacturer engaged in the production of cellulose in Shawnee County (Innovia Films). A commission was created to address government consolidation in Topeka and Shawnee County. The city annexation law has been amended to expand the scope of review by courts, and to require cities to consider 16 different factors when annexing land unilaterally.Return to the top of the page. In March 2005, Gov. Ernie Fletcher signed into law legislation that will reform Kentucky's tax system, including reducing the top corporate income tax rate, currently 8.25 percent, to 7 percent this year and down to 6 percent in 2007. The legislation eliminated some business tax loopholes, including the exemption for corporations that do business but have no physical presence in the state. It also eliminated the "constitutionally flawed" corporate license tax and the "intangible property" tax on accounts receivable and bonds.The legislation also provided for tax credits for brownfield development, and an environmental stewardship incentive as part of an effort to attract hybrid vehicle production to the state. The Kentucky Enterprise Initiative Act makes sales tax refunds available to any new facility or expansion project for manufacturing, service, technology, tourism or retail end users. The amount available for all projects per fiscal year is capped at $20 million for building and construction materials and $5 million for R&D equipment. Return to the top of the page. Lawmakers changed the corporate income tax structure for multi-state companies to apportion corporate income solely based on sales and eliminated the state tax on corporate income from interest and dividends and enabled apportionment of capital gains. The state also created an Angel Investor Tax Credit to encourage investment into early-stage Louisiana companies. A state R&D tax credit for firms with fewer than 500 Louisiana employees was passed and the 8 percent R&D tax credit was extended. A $10 million Economic Development Rapid Response fund was created and the Louisiana Major Projects Authority legislation was refined to target major projects creating more than 1,000 jobs and representing more than $100 million in capital investment.Return to the top of the page. Maine lawmakers, while cutting state spending by more than $600 million, made several moves related to economic development including the creation of a biomedical research triangle involving entities including the University of Maine and Jackson Laboratory.The state also strengthened its Pine Tree Zones program and created renewable energy incentives for solar energy. Return to the top of the page. Legislators re-established the Maryland Research & Development Tax Credit, which expired at the end of 2004. It was extended to 2012. The state gave the nod for new tax credits for individuals, corporations or venture capital firms that invest in qualified biotech companies in Maryland. Also approved was a bill that will rebate 50 percent of certain film production companies that do business in Maryland. Gov. Robert Erlich Jr. vetoed the "Wal-Mart Bill," which would have required employers in the state with more than 10,000 employees to spend at least 8 percent of payroll on healthcare benefits. Erlich said the bill threatened jobs and economic development in the state.Return to the top of the page. Gov. Mitt Romney has proposed creation of a sales force to attract Fortune 1000 companies to the state and an industry-driven work force training program. He has also proposed the streamlining of permitting and increased investment in emerging technologies. The governor's spending bill calls for more than $200 million for new science centers for the state's university system.Return to the top of the page. Michigan received a $60-million federal tax credit allocation from the latest round of New Markets Tax Credit allocations, the largest statewide allocation in the country. The state made adjustments to its Brownfield Redevelopment Finan-cing Act. Twenty-nine projects were given Cool Cities Neighborhood designations aimed at retraining and attracting jobs.Return to the top of the page. The state is phasing in corporate income tax changes. The new formula, to be phased in through 2014, will eventually be based just on sales. Currently, it is based on the proportion of sales, property and payroll in Minnesota. An International Economic Development Zone program designed to entice international air cargo shipping operations, was created. The area, within an hour of the Minneapolis-St. Paul International Airport, will be free of corporate, sales and property tax for facilities that engage in international air cargo shipping.Return to the top of the page. Momentum Mississippi Legislation, which includes $27 million in development bonds, establishes a state income tax credit of up to $1 million per project to encourage investment in buildings and equipment. The law also provides loans to existing industries to maintain global competitiveness. Momentum also deals with alternative energy, providing income tax credits for up to 20 years of $1,000 for every job created by alternative energy projects that use a majority of products or resources produced in the state. Projects must create at least 15 jobs. The Jobs Protection Act section will provide grants and loans for job retention and to improve productivity and competitiveness.Return to the top of the page. Missouri Quality Jobs Program provides incentives to businesses in return for new tax revenues and other economic stimulus. Categories include small and expanding business projects, technology projects, high-impact projects creating at least 100 jobs and job retention projects.State port authorities will be allowed to acquire, own, build, develop, lease, maintain and conduct land reclamation with respect to unimproved land, residential, commercial and mixed-use developments. Under previous law, port authorities could only develop industrial property. Return to the top of the page. New legislation increases work force training and makes healthcare benefits available to small business. The cap on taxable business equipment was increased from $5,000 to $20,000, easing the tax burden on more than 13,000 state businesses. Legislature tabled an ethics bill and did not approve a plan by Gov. Schweitzer for a government ethics review. Public utilities are now required to produce a percentage, rising from 5 percent in 2008 to 15 percent by 2015, of their retail electricity sales from renewable sources. Lawmakers reinstated the "Made in Montana" program to promote state products and allocated $2 million for work force training.Return to the top of the page. Nebraska Customized Training Advantage, a $15-million job training program, will train employees for new jobs crated by companies expanding or locating in Nebraska. Funds may also be used to retrain current employees. The funds will be added to the state's existing training program. The Nebraska Advantage Act eliminates the sales tax on manufacturing equipment and machinery. The overall Nebraska Advantage package targets a wide-ranging list of businesses and industries, and provides tax credits equal to 3 percent for qualifying businesses conducting R&D activities; tax credits for businesses with five or fewer employees that make up to $10,000 new investment in economically challenged areas; a separate tier for qualified businesses (non-retail/local service businesses) with refundable tax incentives for projects that create two new jobs and invest $125,000 in counties with less than 15,000 residents.Return to the top of the page. About $10 million in economic development money has been made available to the primary economic development entities of southern Nevada and northern Nevada — the Nevada Development Authority and the Economic Development Authority of Western Nevada, respectively. State will spend nearly $1 billion for highway improvements. Nevada residents will share a $300 million tax rebate based on vehicle registration. Property tax limit approved keeps increases limited to 8 percent a year on commercial property.Lawmakers killed a resolution that would have let voters decide on a state lottery. Return to the top of the page. Plan by Gov. John Lynch creates a new Web site, www.nhmanufacturing.com, aimed at helping manufacturers discover available resources. Plan also includes a work force training fund coordinated through the state's Workforce Opportunity Council. Legislature repealed the use of geography and health status as factors in determining health insurance rates and established a re-insurance pool for high-risk patients.Return to the top of the page. Acting Gov. Richard J. Codey signed an eclectic mix of bills with economic development ramifications. These include legislation that requires that only American citizens and persons authorized to work in the U.S. shall provide services under a state contract or subcontract. New Jersey is one of a growing number of states to enact legislation or executive action on outsourcing. New Jersey's minimum wage will rise to $7.15 per hour over the next two years.Return to the top of the page. Gov. Bill Richardson signed the state's largest capital investment bill, designating nearly $470 million for 3,310 projects across the state. These include school and university construction projects, roads and highways projects and water and environment projects. Legislature approved creation of a "Smart Money" initiative, which encourages cooperation between the state, businesses and bank lenders to attract new business. Under the plan, the state will work with banks and businesses in a public/private partnership, providing loans or loan guarantees. The loan fund will grow to an estimated $30 million in 10 years.Return to the top of the page. State leaders agreed on a "Marshall Plan" for Lower Manhattan. It includes initiatives to promote commercial space occupancy, including a $5-per-sq.-ft. incentive for the first 750,000 sq. ft. (69,675 sq. m.) of commercial space leased anywhere on the World Trade Center site and a $3.80-per-sq.-ft. incentive for the first 750,000 sq. ft. of commercial space leased at World Trade Center Seven. It also permanently eliminated the Commercial Rent Tax (CRT) for all Ground Zero tenants and a five-year exemption of the CRT for all of Lower Manhattan. Gov. George Pataki signed a law that allows direct interstate shipment of wine in New York State. The new law opens up the state's wineries to the national market.Return to the top of the page. Lawmakers okayed a two-year extension to two of the state's prime incentive programs. New legislation extends the William S. Lee Quality Jobs & Business Expansion Act and the Job Development Investment Grant Program (JDIG) through the end of 2007. Both programs were set to expire at the end of 2005. The Lee Act provides tax credits to companies creating new jobs, putting new machinery and equipment in place and investing in R&D activities and training workers. JDIG awards up to 25 grants annually to new and expanding businesses and industrial projects. State officials say JDIG is responsible for bring 10,000 jobs to the state since 2003. Gov. Mike Easley signed into law an education lottery that will provide funding for pre-kindergarten, smaller class sizes, school construction and college scholarships for disadvantaged students. North Carolina will be the 41st state with a state lottery.Return to the top of the page. The Legislature committed to a $50-million Centers of Excellence program designed to pursue academic excellence and spur research and development, new technology and job creation. Lawmakers also expanded the Trade Office, and passed a package of renewable energy and agriculture initiatives. They also authorized more than $100 million in funding for water development projects.Return to the top of the page. Gov. Bob Taft signed into law on June 30th a comprehensive reform of Ohio's tax code. The legislation (1) cuts personal income tax by 21 percent across the board over five years; (2) cuts the sales tax to 5.5 percent; (3) phases out the corporate franchise tax over five years; (4) phases out the tangible personal property tax over four years (new machinery and equipment purchases are exempt); and (5) phases in new, broad-based low-rate commercial activities tax (0.26 percent) on business receipts in Ohio - the first $1 million in sales are exempt.Ohio's new system of taxation is based on gross receipts of goods destined for Ohio, instead of profits, which is particularly beneficial to manufacturers, small businesses and exporters. It reduces the burden on manufacturers, because it applies to all sectors of Ohio's economy, as well as companies located outside Ohio that sell into the state. Return to the top of the page. Workers' comp reform passed in 2005 will save Oklahoma businesses at least $100 million on attorney and medical fees, among other areas. The state now offers an expanded incentive to existing Oklahoma Quality Jobs businesses that add new jobs that pay at least 150 percent of the average wage of the company's current work force. The legislation provides an incentive payment of up to 6 percent of newly created payroll to qualifying companies. Flight safety has been added to the industries eligible for this incentive. Also benefiting the state's aerospace industry is a repeal of the sales tax on parts and services associated with aircraft maintenance and repair operations, making that industry more competitive with other states.The state is investing $500 million in campuses and economic development strategies designed to create a more highly skilled work force with which to attract higher-wage jobs. Return to the top of the page. Gov. Ted Kulongoski signed House Bill 2127 into law in June. The measure reduces unemployment insurance taxes by 12 percent, which will make Oregon more attractive to site seekers. Another bill, HB 2094, helps businesses that qualify for extended duration licenses reduce paperwork and regulatory burdens by authorizing state agencies to offer extended-term license renewals with terms of two, three, four and five years.The governor also signed legislation that enhances protections for injured workers who have or may qualify for permanent total disability. And a new law, known as the Greenlight Oregon program, will offer incentives to the film and video industry for production that tkes place in the state. Return to the top of the page. The legislature passed Gov. Edward Rendell's Job Ready Pennsylvania package aimed at improving the skills of the commonwealth's work force. A $91 million investment of state funds will leverage $2 billion in state and federal work-force development spending. The program aligns local work-force spending with high priority industries and occupations, gearing education and training funding to employer needs. Also, $5 million will be invested in industry partnerships that will make Pennsylvania more competitive.Manufacturing Innovation is a new strategy to enhance the competitiveness of Pennsylvania's manufacturers. The plan has seven components: capital and business finance via the economic stimulus package, manufacturing training funds, technical support, communications and research, business tax reform, health care cost control and regulatory reform. The governor's economic stimulus package leverages $2.3 billion in grants, loans and guarantees through 19 programs over the next three years. Return to the top of the page. Gov. Donald Carcieri signed a $6.35-billion budget into law in July that reforms the Rhode Island's state pension system and begins a phase out of the motor vehicle excise tax. The pension reform will save taxpayers $44 million in fiscal year 2006. The budget will phase out the car tax by increasing the exemption from $4,500 to $5,000.Return to the top of the page. Tort reform legislation was signed into law in March that will make South Carolina more competitive with states that already have passed such legislation. Part of Gov. Mark Sanford's Contract for Change, the legislation caps non-economic damages at $300,000; caps punitive damages to three times actual damages if there is evidence of willful misconduct or fraud; eliminates joint and several liability; requires lawsuits to be tried in counties with a reasonable connection to the dispute, to curb venue shopping; and allows seatbelt use to be introduced into evidence in litigation.Return to the top of the page. Legislation passed in 2005 that allows new business projects to obtain refunds on three South Dakota business taxes. The first is the sales tax, which is applied to the gross receipts of any business or organization engaged in retail sales if the products or services are not intended for resale. The second is the use tax, which is based on where the product or service is used; the purchaser or consumer is responsible for this tax. The third is the contractors' excise tax, which is imposed on the gross receipts of contractors engaged in construction services or realty improvements in the state. Just one application is necessary when applying for the refunds.Return to the top of the page. A Jobs Package Initiative was passed that gives Tennessee new resources with which to fund work-force training and retraining programs. The new Tennessee Leadership Center will equip communities with economic-development tools, such as educational seminars and training programs, curriculum development and technical assistance.With respect to taxation, the sunset provision for the jobs tax credit was extended from January 2008 to January 2011. The same credit was expanded to high-wage jobs in high-tech sectors, emerging occupations and other areas. A new statute limits the franchise tax base of any manufacturer to the first $2 billion of apportioned net worth or real and tangible personal property owned or used in Tennessee. Also, a qualified headquarters facility relocation expense credit was adopted that creates a franchise and excise tax credit equal to the amount of qualified relocation expenses incurred by a taxpayer in connection with the establishment of a qualified headquarters facility. Also, there has been a change of 1 percent of purchase price of qualified industrial machinery against corporate excise tax for manufacturers and an increase in the jobs tax credit to $2,000 per job, or $4,500 per job in economically distressed counties. Return to the top of the page. Texas' legislature renewed the Texas Enterprise Fund, used to close project deals, at $180 million for the next biennium. Another $200 was earmarked for the Texas Emerging Technology Fund, which is meant to grow the state's economy by expediting development of new technologies, commercializing them and creating jobs in technology fields that one day will be central to Texas' economy. Also, the state's Skills Development Fund will see an increase in funding from $25 million to $40.5 million in the 2006-07 biennium.Gov. Rick Perry signed House Bill 7 into law, which will lower workers' comp costs for Texas employers, control medical costs, expand access to care and improve benefits. Legislators also renewed enterprise zone legislation that simplifies the process of granting automatic enterprise zone status to certain areas of the state. Return to the top of the page. House Bill 11 establishes an economic development tax increment financing incentive that allows local governments to create economic development zones to promote growth. In July, the legislature established the Governor's Office of Economic Development, which restructures the state's economic development operations so that business recruitment and tourism are handled by the same office. Gov. Jon Hunstman, Jr., is in the midst of implementing a 10-point economic revitalization plan.Return to the top of the page. In June, Gov. Jim Douglas announced a $1.6-million grant for the Dept. of Labor to train workers for careers in the information technology industry through the governor's IT Training Initiative. Along the same lines, funding for the Vermont Training Program was increased to $1.8 million.The Dept. of Employment and Training and the Dept. of Labor and Industry were merged in July to form the new Dept. of Labor. The department will consist of three divisions: a division of workers' compensation and safety, a division of work-force development and a division of unemployment insurance and wages. Return to the top of the page. The General Assembly passed several measures that will improve Virginia's transportation and infrastructure capabilities. HB 2793 creates the Transportation Partnership Opportunity Fund of $50 million to encourage the development of design-build transportation projects under the Public-Private Transportation Act and to provide funds to address the transportation aspects of economic development opportunities. SB 746 expands the type of projects that can be financed by the Virginia Resources Authority to include road and transportation facilities.HB 2033 expands Virginia's incentive program for semiconductor manufacturers. HB 2732 expands the Virginia Investment Partnership incentive program to include basic employers and R&D employers creating high-wage jobs. Virginia's enterprise zone program was renewed and revised to shift incentives from tax credits to grants for job creation. Return to the top of the page. Gov. Christine Gregoire signed a $3.3-billion construction budget in May that will create more than 24,000 construction jobs and will significantly improve facilities infrastructure at K-12 schools and higher education institutions. The governor also signed transportation legislation that will improve several key Interstates and bridges, making the movement of freight safer and more efficient. Among the areas that will benefit directly from the legislation are Pierce, King and Snohomish Counties and the metro Seattle area.Return to the top of the page. The West Virginia legislature passed a workers' compensation bill that reduces the premium businesses pay by up to 15 percent in 2006, which should result in cost savings of $160 million. The bill gives the state the ability to bond out the state's existing $3 billion in unfunded workers' comp debt while also transferring the current state-operated workers' compensation program to a private mutual company.Return to the top of the page. In June, Gov. Jim Doyle signed Senate Bill 124, which encourages towns to use tax incremental financing for economic development purposes. The bill will help turn under-developed areas between cities and towns into viable, tax-generating properties. Until now, towns did not have the authority to create TIF districts.In July, the governor announced inclusion in the state budget of $5 million for bio-based industry development, specifically for agricultural businesses and the forestry industry. The budget also expands Wisconsin's Enterprise Development Zone Program, making available $120 million in existing tax credits to help create and retain jobs and investment in the state. Return to the top of the page. Revised Business Ready Communities rules were adopted, which mainly pertain to grant application filing. The Business Ready Community Grant & Loan Program funds publicly owned infrastructure projects that benefit corporate investors and local communities. For more on the program, visit the Web site above.Return to the top of the page. While various tax reform measures are debated internally, the chief legislative news affecting Puerto Rican economic development took place in Washington, D.C., in August, when the Central American Free Trade Agreement was signed by Pres. Bush. Until now, exports from Puerto Rico to the Dominican Republic have been subject to duties. That will change when CAFTA is implemented on January 1, 2006. Puerto Rico's exports to countries belonging to CAFTA-DR totaled $879 million inn 2004.License Plate Images are from the David Nicholson collection (www.15q.net)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Site Selection Online |
SiteNet |
Feedback |
Search SiteNet |©2005 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and is not warranted to be accurate or current.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
