OH Statewide Economic Development Agencies

OH Utilities

OH Regional Economic Development Agencies

OH County Economic Development Agencies

OH City Economic Development Agencies

Ohio State Incentives

Ohio JOB CREATION TAX CREDIT: Provides corporate franchise or state income tax credit for businesses that expand or locate in Ohio for companies that incur tax liability under ORC Sections 5733.06 or 5747.02. Program will provide a tax credit against the Commercial Activity Tax (CAT) . Insurance companies that pay the annual franchise tax under ORC Sections 5725.18/5729.03 are eligible for the tax credit.

Ohio JOB RETENTION TAX CREDIT: Provides corporate franchise or state income tax credit for businesses that commit to retain a significant number of full-time jobs. Program will provide a tax credit against the Commercial Activity Tax (CAT).

Ohio RESEARCH AND DEVELOPMENT INVESTMENT TAX CREDIT: Provides a nonrefundable tax credit against the corporate franchise tax and is designed to encourage Ohio’s corporations to invest in increased research and development activities. The credit equals 7 percent of the excess amount of Qualified Research Expenses.

RESEARCH AND DEVELOPMENT SALES TAX EXEMPTION: Provides an exemption from the usual state and county sales tax for companies that purchase equipment for research and development activities. Exempts business from entire state and county sales tax for purchases of machinery and equipment used primarily for research and development.

RESEARCH & DEVELOPMENT INVESTMENT LOAN FUND: Provides loan financing of between $1 million and $5 million for projects primarily engaging in R&D activity. Rates are fixed (at or below market rates) with terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, non-refundable Ohio commercial activity tax credit for all principal and interest payments during the year.

MANUFACTURING MACHINERY & EQUIPMENT SALES TAX EXEMPTION: an exemption from state and county sales tax for companies that purchase machinery and equipment for manufacturing activities. Exempts business from entire state and county sales tax for purchases of machinery and equipment used primarily for manufacturing.

WAREHOUSE MACHINERY & EQUIPMENT SALES TAX EXEMPTION: Exempts business from entire state and county sales tax for purchases of eligible machinery and equipment. Includes machinery and equipment used primarily (51 percent) in storing, transporting, mailing or handling inventory in a warehouse, distribution center or similar facility if the inventory handled by the facility is primarily distributed outside Ohio to retail stores owned by the business or affiliated group that owns the Ohio facility or distributed by means of direct marketing.

TECHNOLOGY INVESTMENT TAX CREDIT: Offers a variety of benefits to Ohio taxpayers who invest in small, research and development and technology-oriented forms. This incentive provides a tax credit for taxpayers that invest in small, Ohio-based technology companies. The amount of the tax credit is 25 percent (or 30 percent in some limited cases) of the amount invested by the taxpayer. The maximum investment to which this credit may be applied is $250,000 (or $300,000). The credit may be claimed against personal income tax, corporate franchise tax, public utility excise tax or the dealers in intangibles tax.

ENTERPRISE ZONES: Provides real property tax incentives for businesses that expand or locate in Ohio (may provide personal property tax incentives for those qualifying businesses that continue to pay personal property tax).

OHIO HISTORIC PRESERVATION TAX CREDIT: Provides a tax credit for the rehabilitation expenses to owners of historically significant buildings. Funding is provided through competitive rounds based on economic benefit and regional distributive balance. The tax credit subsidy is 25 percent of qualified rehabilitation expenditures (QRE) not to exceed the QRE estimates in the application, with an application cap of $5 million.

COMMUNITY REINVESTMENT AREAS: Provides local real-property tax incentives for residents and businesses that invest in designated areas of Ohio—up to 100 percent exemption of the improved real property tax valuation for up to 15 years depending on the project.

RAPID OUTREACH GRANT: Funds are used for the acquisition of machinery and equipment, new building construction, building acquisition, on- or off-site infrastructure improvements and other fixed asset investments, manufacturing, research and development, high technology, corporate headquarters, and distribution. Given the demand for limited grant funds, qualified projects must involve substantial job creation or retention.

ROADWORK DEVELOPMENT (629) ACCOUNT: Available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, R&D, high technology, corporate headquarters and distribution activity. Projects must typically create or retain jobs. Grants are usually provided to the local jurisdiction and require local participation.

INNOVATION OHIO LOAN FUND: Provides loans for acquisition, construction and related costs of technology, facilities and equipment purchase. It was created to assist existing Ohio companies in developing next-generation products and services within Targeted Industry Sectors.

OHIO ADVANCED ENERGY FUND: Administered by the Ohio Energy Office, connects companies and communities with financial and technical resources to deploy energy efficiency and renewable energy technologies, and to support advanced energy economic development.

OHIO ENTERPRISE BOND FUND: Provides revenue bond financing through an S&P rated fund whereby proceeds from the sale of bonds is loaned to companies for fixed-rate, long-term capital asset financing. Rates are fixed prior to funding, depending on the type of bond issued, with terms between seven to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the Program.

OHIO JOB READY SITES PROGRAM: Created to bolster Ohio’s inventory of available facility locations served by utility and transportation infrastructure. Sites improved under the program are kept ready for future business prospects seeking locations for new or expanded operations. The grants may be used to offset costs traditionally incurred in industrial and commercial site development, from acquisition of real property to utility upgrades to construction build-out of speculative facilities.

RURAL INDUSTRIAL PARK LOAN: Provides direct loans to rural, distressed local communities and applicants committed to creating well-planned industrial parks.

URBAN REDEVELOPMENT LOAN: Provides low-interest loans to municipalities or designated nonprofit economic development organizations to acquire real estate for assembly into developable parcels and remediate any Brownfield contamination site to entice private business investment in distressed urban locations.

WORKFORCE DEVELOPMENT FUNDING WORKFORCE GUARANTEE PROGRAM: Supports companies that are making investments in facilities, equipment and training that result in the retention and creation of jobs for Ohioans. It provides direct financial support to employers for training, paying for a portion of instructor salaries, materials, travel and special needs.

INVEST OHIO: Provides a non-refundable personal income tax credit to investors that infuse new equity (cash) into Ohio small businesses to acquire an ownership interest in the company. The small business is required to reinvest that infusion of cash into one of five categories of allowable expenses within six months of its receipt. The investor must retain his or her ownership interest for a two-year holding period before the tax credit may be claimed. The small business must similarly retain the property that it purchased from the cash infusion for the entire two-year holding period.

LOCAL GOVERNMENT INNOVATION FUND (LGIF): Established to provide financial assistance to Ohio political subdivisions for planning and implementing projects that are projected to create more efficient and effective service delivery within a specific discipline of government services for one or more entities. Through this program, the Ohio Department of Development seeks to promote efficiency, collaboration, merger and shared services among local governments. Projects are also expected to facilitate improved business environments and promote community attraction.

The LGIF program will award up to $100,000 in grant funds per feasibility study, up to $100,000 in loan assistance per entity for demonstration projects and up to $500,000 in loan assistance for collaborative demonstration projects. Award amounts for applicants with collaborative partners are limited to $100,000 per applicant and $100,000 for each collaborative partner up to $500,000. Grant funds will be awarded biannually and loan funds will be awarded quarterly through a competitive and open selection process.

OHIO NEW MARKETS TAX CREDIT PROGRAM: Provides investors with state tax credits in exchange for delivering below-market -rate investment options to Ohio businesses, sparking revitalization in Ohio’s low-income communities.

OHIO MOTION PICTURE TAX CREDIT: Provides a refundable credit against the corporation franchise or income tax for various Ohio productions. The tax credit is available to applicants making eligible productions as certified by the Director of Development. The tax credit is equal to 25 percent of non-wage and nonresident wage Ohio production expenditures and 35 percent of Ohio resident wage production expenditures.

VOLUME CAP: Provides a federal tax benefit by allowing eligible issuers to issue tax exempt Private Activity Bonds up to a state limit known as the “Volume Cap.” The State of Ohio’s allocation of Volume Cap is determined annually by the Internal Revenue Service on a per capita basis, and may be used for projects consisting of multi-family housing, single-family housing, exempt facilities, manufacturing and student loan bonds.

The post Ohio Economic Development Directory appeared first on Business Facilities.

OH Statewide Economic Development Agencies

OH Utilities

OH Regional Economic Development Agencies

OH County Economic Development Agencies

OH City Economic Development Agencies

Ohio State Incentives

Ohio JOB CREATION TAX CREDIT: Provides corporate franchise or state income tax credit for businesses that expand or locate in Ohio for companies that incur tax liability under ORC Sections 5733.06 or 5747.02. Program will provide a tax credit against the Commercial Activity Tax (CAT) . Insurance companies that pay the annual franchise tax under ORC Sections 5725.18/5729.03 are eligible for the tax credit.

Ohio JOB RETENTION TAX CREDIT: Provides corporate franchise or state income tax credit for businesses that commit to retain a significant number of full-time jobs. Program will provide a tax credit against the Commercial Activity Tax (CAT).

Ohio RESEARCH AND DEVELOPMENT INVESTMENT TAX CREDIT: Provides a nonrefundable tax credit against the corporate franchise tax and is designed to encourage Ohio’s corporations to invest in increased research and development activities. The credit equals 7 percent of the excess amount of Qualified Research Expenses.

RESEARCH AND DEVELOPMENT SALES TAX EXEMPTION: Provides an exemption from the usual state and county sales tax for companies that purchase equipment for research and development activities. Exempts business from entire state and county sales tax for purchases of machinery and equipment used primarily for research and development.

RESEARCH & DEVELOPMENT INVESTMENT LOAN FUND: Provides loan financing of between $1 million and $5 million for projects primarily engaging in R&D activity. Rates are fixed (at or below market rates) with terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, non-refundable Ohio commercial activity tax credit for all principal and interest payments during the year.

MANUFACTURING MACHINERY & EQUIPMENT SALES TAX EXEMPTION: an exemption from state and county sales tax for companies that purchase machinery and equipment for manufacturing activities. Exempts business from entire state and county sales tax for purchases of machinery and equipment used primarily for manufacturing.

WAREHOUSE MACHINERY & EQUIPMENT SALES TAX EXEMPTION: Exempts business from entire state and county sales tax for purchases of eligible machinery and equipment. Includes machinery and equipment used primarily (51 percent) in storing, transporting, mailing or handling inventory in a warehouse, distribution center or similar facility if the inventory handled by the facility is primarily distributed outside Ohio to retail stores owned by the business or affiliated group that owns the Ohio facility or distributed by means of direct marketing.

TECHNOLOGY INVESTMENT TAX CREDIT: Offers a variety of benefits to Ohio taxpayers who invest in small, research and development and technology-oriented forms. This incentive provides a tax credit for taxpayers that invest in small, Ohio-based technology companies. The amount of the tax credit is 25 percent (or 30 percent in some limited cases) of the amount invested by the taxpayer. The maximum investment to which this credit may be applied is $250,000 (or $300,000). The credit may be claimed against personal income tax, corporate franchise tax, public utility excise tax or the dealers in intangibles tax.

ENTERPRISE ZONES: Provides real property tax incentives for businesses that expand or locate in Ohio (may provide personal property tax incentives for those qualifying businesses that continue to pay personal property tax).

OHIO HISTORIC PRESERVATION TAX CREDIT: Provides a tax credit for the rehabilitation expenses to owners of historically significant buildings. Funding is provided through competitive rounds based on economic benefit and regional distributive balance. The tax credit subsidy is 25 percent of qualified rehabilitation expenditures (QRE) not to exceed the QRE estimates in the application, with an application cap of $5 million.

COMMUNITY REINVESTMENT AREAS: Provides local real-property tax incentives for residents and businesses that invest in designated areas of Ohio—up to 100 percent exemption of the improved real property tax valuation for up to 15 years depending on the project.

RAPID OUTREACH GRANT: Funds are used for the acquisition of machinery and equipment, new building construction, building acquisition, on- or off-site infrastructure improvements and other fixed asset investments, manufacturing, research and development, high technology, corporate headquarters, and distribution. Given the demand for limited grant funds, qualified projects must involve substantial job creation or retention.

ROADWORK DEVELOPMENT (629) ACCOUNT: Available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, R&D, high technology, corporate headquarters and distribution activity. Projects must typically create or retain jobs. Grants are usually provided to the local jurisdiction and require local participation.

INNOVATION OHIO LOAN FUND: Provides loans for acquisition, construction and related costs of technology, facilities and equipment purchase. It was created to assist existing Ohio companies in developing next-generation products and services within Targeted Industry Sectors.

OHIO ADVANCED ENERGY FUND: Administered by the Ohio Energy Office, connects companies and communities with financial and technical resources to deploy energy efficiency and renewable energy technologies, and to support advanced energy economic development.

OHIO ENTERPRISE BOND FUND: Provides revenue bond financing through an S&P rated fund whereby proceeds from the sale of bonds is loaned to companies for fixed-rate, long-term capital asset financing. Rates are fixed prior to funding, depending on the type of bond issued, with terms between seven to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the Program.

OHIO JOB READY SITES PROGRAM: Created to bolster Ohio’s inventory of available facility locations served by utility and transportation infrastructure. Sites improved under the program are kept ready for future business prospects seeking locations for new or expanded operations. The grants may be used to offset costs traditionally incurred in industrial and commercial site development, from acquisition of real property to utility upgrades to construction build-out of speculative facilities.

RURAL INDUSTRIAL PARK LOAN: Provides direct loans to rural, distressed local communities and applicants committed to creating well-planned industrial parks.

URBAN REDEVELOPMENT LOAN: Provides low-interest loans to municipalities or designated nonprofit economic development organizations to acquire real estate for assembly into developable parcels and remediate any Brownfield contamination site to entice private business investment in distressed urban locations.

WORKFORCE DEVELOPMENT FUNDING WORKFORCE GUARANTEE PROGRAM: Supports companies that are making investments in facilities, equipment and training that result in the retention and creation of jobs for Ohioans. It provides direct financial support to employers for training, paying for a portion of instructor salaries, materials, travel and special needs.

INVEST OHIO: Provides a non-refundable personal income tax credit to investors that infuse new equity (cash) into Ohio small businesses to acquire an ownership interest in the company. The small business is required to reinvest that infusion of cash into one of five categories of allowable expenses within six months of its receipt. The investor must retain his or her ownership interest for a two-year holding period before the tax credit may be claimed. The small business must similarly retain the property that it purchased from the cash infusion for the entire two-year holding period.

LOCAL GOVERNMENT INNOVATION FUND (LGIF): Established to provide financial assistance to Ohio political subdivisions for planning and implementing projects that are projected to create more efficient and effective service delivery within a specific discipline of government services for one or more entities. Through this program, the Ohio Department of Development seeks to promote efficiency, collaboration, merger and shared services among local governments. Projects are also expected to facilitate improved business environments and promote community attraction.

The LGIF program will award up to $100,000 in grant funds per feasibility study, up to $100,000 in loan assistance per entity for demonstration projects and up to $500,000 in loan assistance for collaborative demonstration projects. Award amounts for applicants with collaborative partners are limited to $100,000 per applicant and $100,000 for each collaborative partner up to $500,000. Grant funds will be awarded biannually and loan funds will be awarded quarterly through a competitive and open selection process.

OHIO NEW MARKETS TAX CREDIT PROGRAM: Provides investors with state tax credits in exchange for delivering below-market -rate investment options to Ohio businesses, sparking revitalization in Ohio’s low-income communities.

OHIO MOTION PICTURE TAX CREDIT: Provides a refundable credit against the corporation franchise or income tax for various Ohio productions. The tax credit is available to applicants making eligible productions as certified by the Director of Development. The tax credit is equal to 25 percent of non-wage and nonresident wage Ohio production expenditures and 35 percent of Ohio resident wage production expenditures.

VOLUME CAP: Provides a federal tax benefit by allowing eligible issuers to issue tax exempt Private Activity Bonds up to a state limit known as the “Volume Cap.” The State of Ohio’s allocation of Volume Cap is determined annually by the Internal Revenue Service on a per capita basis, and may be used for projects consisting of multi-family housing, single-family housing, exempt facilities, manufacturing and student loan bonds.

The post Ohio Economic Development Directory appeared first on Business Facilities.

MI Statewide Economic Development Agencies

MI Utilities

MI Regional Economic Development Agencies

MI County Economic Development Agencies

MI City Economic Development Agencies

Michigan State Incentives

BUSINESS TAX REFORM: The unpopular Michigan Business Tax (MBT) will be replaced effective January 1, 2012 with a simpler and competitive corporate income tax. What does this mean? All industries are in line for significant tax cuts. Lower rates will tax C corporations at 6 percent on federal taxable income apportioned to Michigan. Other entities—individuals, partnerships and LLCs—have income flow to their personal income tax. It is expected that 100,000 businesses will pay no business taxes. The personal income tax rate remains 4.35 percent and is scheduled to decline to 4.25 percent in 2013. The new simplified tax system eliminates a laundry list of MBT credits and deductions. The alternative business income tax for small business remains intact. When the 2012 tax changes take effect, Michigan is projected to rank #13 in the Tax Foundation’s U.S. overall business tax climate ranking, and #22 for corporate taxes, up from #48.

PURE MICHIGAN BUSINESS CONNECT: Michigan businesses now have new ways to buy and sell, raise capital and connect with one another. Pure Michigan Business Connect is a $3 billion public-private economic gardening initiative matching people with resources and strengthening relationships to fuel economic growth, including:

• venture capital, debt financing, collateral support, other funding assistance
• customized market research
• executive and professional talent search assistance
• training support
• customized site searches
• ombudsman services
• entrepreneur services
• export assistance
• legal services
• matchmaking with Michigan suppliers

NEW INCENTIVE PROGRAMS FOR BUSINESS, COMMUNITY DEVELOPMENT: New economic development and community revitalization programs will provide $100 million in incentives for highly competitive projects in Michigan.

The Michigan Business Development and Michigan Community Revitalization Programs replace the state’s previous MEGA, Brownfield and Historic tax credit programs that were features of the old Michigan Business Tax.

The Michigan Business Development Program will provide grants, loans or other economic assistance of up to $10 million to businesses that are creating qualified new jobs and making new investments in Michigan. Factors to be considered in making these awards include: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.

The Michigan Community Revitalization Program will provide grants, loans, or other economic assistance of up to $10 million to projects that will revitalize regional urban areas, act as a catalyst for additional investment in a community, reuse vacant or historic buildings and promote mixed use and sustainable development.

NEW TALENT PORTAL: Through the MEDC Job Portal, employers can register to post openings and work closely with the MEDC’s Talent Acquisition team to devise strategies to meet their talent needs. Companies posting on the Job Portal will also have access to the MEDC’s other talent acquisition services, including targeted marketing and social media outreach, career events, assistance with identifying relocation services and a triage approach to addressing hard-to-fill positions and hiring challenges. The portal also allows job seekers to search for positions around the state, create profiles and add their resumes to the talent database. The MEDC Job Portal is currently being used in concert with the Michigan Talent Bank. Both systems are working together to effectively connect Michigan’s businesses and job seekers.

COST-CUTTING & OMBUDSMAN SERVICES: The MEDC helps companies save money through Workers’ Compensation Cost Control Service. Companies are also assisted in finding property for expansions. The Business Ombudsman Office provides impartial, independent and confidential assistance in resolving disputes and investigating business complaints against state government agencies.

FEDERAL CONTRACT ASSISTANCE: With the growing need for qualified defense contractors, the Michigan Defense Center strategically connects defense industry buyers and prime contractors with Michigan based-companies. In addition, Procurement Technical Assistance Centers assist companies throughout the entire government procurement process from pre-award to post-award. MEDC also tracks federal grant programs and makes companies aware of opportunities and offer letters of support where applicable.

PATENT/TRADEMARK WORK: In conjunction with Michigan law firms and the Small Business Technology Development Center network, the MEDC is launching an initiative to make available pro bono services in the IP sectors of patents, trademark and copyright laws.

The post Michigan Economic Development Directory appeared first on Business Facilities.

IL Statewide Economic Development Agencies

IL Utilities

IL Regional Economic Development Agencies

IL County Economic Development Agencies

IL City Economic Development Agencies

Illinois State Incentives

The ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY (EDGE) incentive program encourages companies to locate or expand operations in Illinois when there is active consideration of a competing location in another state. The program can provide tax credits to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in the newly created jobs. The non-refundable credits can be used against corporate income taxes to be paid over a period not to exceed 10 years.

The EMPLOYER TRAINING INVESTMENT PROGRAM (ETIP) supports companies in retraining their employees to stay competitive. Through the program, Illinois companies are reimbursed for up to 50 percent of eligible training costs. Potential reimbursements include trainers, tuition, trainee wages and fringes, new technology or processes, new machinery, regulatory compliance, and a continuous improvement system.

The LARGE BUSINESS DEVELOPMENT PROGRAM (LBDP) is for companies undertaking a major expansion or relocation. Funds may be used by large businesses for bondable business activities including financing the purchase of land or buildings; building construction or renovation; and certain types of machinery and equipment.

The COMMUNITY DEVELOPMENT ASSISTANCE PROGRAM FOR ECONOMIC DEVELOPMENT (CDAP-ED) is a federally funded program designed to provide grants to units of local government for economic development activities related to private business retention or expansion. Local governments can make their grant funds available as loans to businesses growing or moving to their community. Funds may be used for machinery and equipment, working capital, and building construction and renovation.

Illinois is receiving an allotment of funds to accelerate private investment and ease the credit crunch for small businesses through the federal STATE SMALL BUSINESS CREDIT INITIATIVE of the Small Business Jobs Act of 2010. Illinois’ program is expected to feature three programs to spur institutional lending to businesses up to 750 employees, and one program to leverage private venture capital in start-ups and high-growth businesses.

The ANGEL INVESTMENT CREDIT PROGRAM offers a tax credit to interested firms or persons who make an investment in one of Illinois’ innovative, qualified new business ventures. The tax credit may equal 25 percent of up to a $2 million investment made by the private investor.

REVOLVING LINE OF CREDIT PROGRAM (RLOC): Provides qualifying businesses with a subordinated line of credit through banks and other convention lending institutions at affordable interest rates. It is appropriate for businesses with 500 or fewer employees having seasonal or variable working capital demands. A revolving line of credit allows a business to borrow the amount of money needed to meet the demand for its product/service sales and to repay the loan from the sales revenues.

DCEO COMMUNITY DEVELOPMENT FUND: Part of the Governor Quinn’s Neighborhood Recovery Initiative, started in November and available until funds are depleted. The Department of Commerce and Economic Opportunity (DCEO) is partnering with financial institutions with strong small business lending backgrounds to distribute $5 million in micro loans to start-ups and existing small businesses through the Community Development Fund.

ILLINOIS CAPITAL ACCESS PROGRAM (CAP): Designed to encourage financial institutions to make loans to small and new businesses that do not qualify under conventional lending policies. CAP is a form of loan portfolio insurance, which provides additional reserve coverage to the lender on loan defaults. The borrower and DCEO each contribute a percentage of the loan amount into a reserve fund located at the lender’s bank. This reserve fund enables the financial institution to make loans beyond its conventional risk threshold and is available to draw upon to recover losses on loans made under the program.

ENTERPRISE ZONE PARTICIPATION LOAN PROGRAM (EZ/PLP): A variation of the conventional PLP Program, in that DCEO subordinates the loans through participating lending institutions, but the EZ/PLP may be able to provide small businesses located in an enterprise zone a more attractive loan rate than a conventional PLP. Funds can be used for a number of business activities, such as purchase and installation of machinery and equipment, working capital, purchase of land, construction or renovation of buildings. Funds cannot be used for debt refinancing or contingency funding. Any for-profit small business operating in Illinois which has, including its affiliates, fewer than 500 full-time employees, and is located within an Illinois designated enterprise zone, is eligible for participation in this program.

MANUFACTURING MODERNIZATION LOAN PROGRAM: Designed to provide manufacturers with access to adequate and affordable financing for upgrading and modernizing their manufacturing equipment and operations. Existing Illinois manufacturing companies that employ less than 500 full-time workers, and are retooling, upgrading their equipment, or expanding their business are eligible for this program. Examples of eligible projects include: acquisition and development of land, building costs, fixtures, machinery, new and used equipment.

PARTICIPATION LOAN PROGRAM (PLP): Designed to work through banks and other conventional lending institutions, to provide subordinated financial assistance to Illinois small businesses that employ Illinois workers. A business with 500 or fewer employees may apply for a PLP loan of not less than $10,000 nor more than $750,000. Loans shall not exceed 25 percent of the total project and may not be used for debt refinancing or contingency funding.

COMMUNITY SERVICE BLOCK GRANT (CSBG) LOAN PROGRAM: Administered jointly by the Illinois Department of Commerce and Economic Opportunity, statewide Community Action Agencies and Illinois Ventures for Community Action, it provides long-term, fixed-rate financing to new or expanding small businesses in exchange for job creation and employment for low-income individuals. CSBG funds usually make up between 20-49 percent of the entire loan project and have a low interest rate of 5 to 7.5 percent.

MINORITY, VETERAN, WOMEN AND DISABLED PARTICIPATION LOAN PROGRAM (MVWD/PLP): A variation of the conventional PLP, in that DCEO may subordinate the loans through participating lending institutions, but the MVWD/PLP program can provide Illinois small businesses that are 51 percent owned and managed by persons who are minorities, veterans, women, or disabled, with loans up to loans up to $100,000 or 50 percent of the total project.

ILLINOIS DEPARTMENT OF AGRICULTURE AgriFIRST GRANT PROGRAM: Designed to provide grants to persons and agribusinesses in Illinois for the purpose of developing projects that enhance the value of agricultural products or expand agribusiness in Illinois.

BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE PROGRAM (BDPIP): Designed to provide grants to units of local government for public improvements on behalf of businesses undertaking a major expansion or relocation project that will result in substantial private investment and the creation and/or retention of a large amount of Illinois jobs. The infrastructure improvements must be made for public benefit and on public property and must directly result in the creation or retention of private sector jobs. The local government must demonstrate clear need for financial assistance to undertake the improvements. Grant eligibility and amounts are determined by the amount of investment and job creation or retention involved.

ENTERPRISE ZONE PROGRAM: Designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. This is accomplished through state and local tax incentives, regulatory relief and improved governmental services.

HIGH IMPACT BUSINESS (HIB): Designed to encourage large-scale economic development activities by providing tax incentives (similar to those offered within an enterprise zone) to companies that propose to make a substantial capital investment in operations and that will create or retain an above average number of jobs. Businesses may qualify for: investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility. The project must involve a minimum of $12 million investment causing the creation of 500 full-time jobs or an investment of $30 million causing the retention of 1500 full-time jobs. The investment must take place at a designated location in Illinois outside of an Enterprise Zone.

NEW MARKETS DEVELOPMENT PROGRAM: Provides supplemental funding for investment entities that have been approved for the Federal New Markets Tax Credit (NMTC) program. It will support small and developing businesses by making capital funds more easily available and will make Illinois more attractive to possible investors

The NMTC program provides state and federal tax credits to investors that make investments into approved funds, which will make investments in eligible projects located in low-income census tracks throughout Illinois.

The program provides non-refundable tax credits to investors in qualifying Community Development Entities (CDE’s) worth 39 percent of the equity investment made into the CDE over a 7-year credit allowance period.

RIVER EDGE REDEVELOPMENT ZONE: Designed to revive and redevelop environmentally challenged properties adjacent to rivers in Illinois through the use of several incentives authorized by State law. Sales tax exemption and property tax abatement (if offered in the zone) are administered by the local zone administrators and the others involve tax incentives that may be claimed on Illinois Income Tax filing.

TAX INCREMENT FINANCING DISTRICT (TIF) Illinois law allows units of local governments the ability to designate areas within their jurisdiction as TIF districts. They are used by local governments as a way to spur economic growth by dedicating the sales tax revenues and additional property tax revenues generated with in the TIF for improvements within the district with the hope of encouraging new economic development and jobs.

More details on these programs are available through the Illinois Department of Commerce and Economic Opportunity at www.ildceo.net.

The post Illinois Economic Development Directory appeared first on Business Facilities.

IN Statewide Economic Development Agencies

IN Utilities

IN Regional Economic Development Agencies

IN County Economic Development Agencies

IN City Economic Development Agencies

Indiana State Incentives

CORPORATE TAX RATE: Indiana’s corporate tax rate was reduced from 8.5 percent to 6.5 percent. This will be phased in from July 1, 2012 to July 1, 2015. The legislature reduced this tax in order to improve upon Indiana’s existing business climate and bring it more in line with rates in other states.

VENTURE CAPITAL INVESTMENT (VCI) TAX CREDIT: The $200 filing fee was eliminated for two years until June 30, 2013. The VCI tax credit cap per qualifying business was raised from $500,000 to $1 million. This change provides greater opportunities for young companies to attract capital and grow in Indiana.

PROPERTY TAX ABATEMENT: The law was changed to allow local governments the flexibility to structure the property tax abatement schedules however they wish over ten years. The previous statute defined the schedule. This will give local economic development leaders more control over the incentive packages they offer to companies.

INDUSTRIAL RECOVERY TAX CREDIT: The General Assembly reduced the statutory thresholds in order to allow more vacant buildings in the state to be eligible for this program. The minimum in-service period for building was reduced from 20 to 15 years. The minimum vacancy period was reduced from two to one year. The minimum square footage for building requirement was reduced from 250,000 square feet (50,000 square feet from 2011 to 2014 and 100,000 square feet starting in 2015). These changes may help bring more vacant facilities back into service by providing an incentive to companies for rehabilitation expenses.

INDUSTRIAL DEVELOPMENT GRANT FUND: Provides money to local governments for off-site infrastructure projects associated with an expansion of an existing Indiana company or the location of a new facility in Indiana. State funding through the IDGF program must be matched by a combination of local government and company financial support.

CERTIFIED TECHNOLOGY PARK PROGRAM: Created as a tool to support the attraction and growth of high-technology business in Indiana. Designation as a Certified Tech Park allows for the local recapture of certain state and local tax revenue which can be invested in the development of the park.

SKILLS ENHANCEMENT FUND (SEF): A tool to encourage companies to invest in their existing workforce and train new employees. It provides reimbursement for eligible training expenses over a two-year term. Companies may reapply for additional SEF Funds after their initial two-year term.

HOOSIER ALTERNATIVE FUEL VEHICLE MANUFACTURER TAX CREDIT: Established by IC 6-3.1-31.9, it provides a credit up to 15 percent of the qualified investment for the manufacture of alternative fuel vehicles. An applicant must compensate its employees at least 150 percent of the state’s hourly minimum wage and agree to maintain operations for at least 10 years.

HOOSIER BUSINESS INVESTMENT TAX CREDIT (HBITC): Established to encourage capital investment in Indiana by providing a credit against a company’s Indiana tax liability. The credit amount is based on a company’s qualified capital investment with the final credit amount determined by the IEDC based on an analysis of the economic benefits of the proposed investment.

ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY (EDGE): Created to reward companies creating new jobs and contributing to the growth of Hoosier income. Credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs and may be awarded for a term of up to ten years. EDGE is a refundable tax credit that can be offered in situations where Indiana is competing against another state or country for a company’s site location investment. The company must commit to maintaining operations in Indiana for at least two years beyond the term of its EDGE award.

HEADQUARTERS RELOCATION TAX CREDIT: When a business relocates its corporate headquarters (defined as the location of the principal office of the principal executives) to Indiana, it is entitled to a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. A company must have a worldwide annual revenue of at least $100 million to qualify and after relocation, the corporation must have 75 employees in Indiana.

MEDIA PRODUCTION EXPENDITURE TAX CREDIT (MPETC): Established by IC 6-3.1-32, it provides individuals and companies a credit of up to 15 percent on the amount spent in Indiana for qualified production expenditures. The MPETC is refundable; therefore, if the amount of the MPETC exceeds the taxpayer’s state income tax liability for that taxable year, the taxpayer is entitled to a refund of the excess of the credit amount over their state income tax liability. The total amount of tax credits certified by the IEDC for any fiscal year may not exceed $2.5 million, but there is no cap per project.

RESEARCH AND DEVELOPMENT (R&D) TAX CREDIT: Authorized by IC 6-3.1-4-1 and administered by the Indiana Department of Revenue, it provides a credit against state tax liability for qualified company research expenses and is based on the increase in Indiana R&D over the prior three-year base. In the base year, research expenses must have been at least half of the research expenses in the current year. The credit equals 15 percent of qualified research expenses on the first $1 million of investment. The tax credit is applied against income tax liability and may be carried forward 10 years. There is no carry back, and the credit is nonrefundable.

RESEARCH & DEVELOPMENT (R&D) SALES TAX EXEMPTION: Authorized by IC 6-2.5-5-40, it provides a refund of 50 percent of the Indiana sales taxes paid on purchases of eligible R&D equipment purchased after June 30, 2007. Taxpayers may also file a claim for the refund for tax paid on retail transactions that occur after June 30, 2005

INDIANA SHOVEL READY PROGRAM: Reduces potential costs of site development for businesses and enhances the marketability of certified sites. The goals of the program are to:

• Certify sites and existing buildings to expedite the location and permitting processes for business development
• Help local communities identify and prepare sites and existing buildings for economic development
• Identify and fast track the state and local permits necessary for a specific site (dependent on the end user)

SMALL BUSINESS INNOVATION RESEARCH INITIATIVE and SMALL BUSINESS TECHNOLOGY TRANSFER (STTR) programs stimulate technological innovation and provide opportunities for Indiana small businesses to participate in federally funded research and development programs.

The post Indiana Economic Development Directory appeared first on Business Facilities.

WI Statewide Economic Development Agencies

WI Utilities

WI Regional Economic Development Agencies

WI County Economic Development Agencies

WI City Economic Development Agencies

Wisconsin State Incentives

DAIRY 2020 INITIATIVE: Includes two programs to help dairy producers make improvements and increase production.

• The Dairy 2020 Early Planning Grant (EPG) program helps encourage and stimulate the start up, modernization and expansion of Wisconsin dairy farms. It provides grants to dairy producers to pay for professional services such as the preparation of a business plan. The award can be for up to 75 percent of the professional services with a maximum grant of $3,000.
• The Milk Volume Production program allows dairy producers who plan to increase milk production by expanding their dairy herds to obtain equity gap financing.

FOCUS ON ENERGY: Offers financial incentives to eligible Wisconsin business for installing qualifying energy efficiency and renewable energy measures such as energy efficient lighting, compressed air, HVAC equipment and residential solar energy systems. It also includes custom projects such as system or building upgrades or process improvements. Focus information, resources and financial incentives help implement projects that otherwise would not be completed, or to complete projects sooner than scheduled. Its efforts help businesses manage rising energy costs, promote in-state economic development, protect the environment and control the state’s growing demand for electricity and natural gas.

COMMUNITY DEVELOPMENT BLOCK GRANT FOR ECONOMIC DEVELOPMENT REVOLVING LOAN FUND (CDBG-ED/RLF): Funded through the federal Small Cities CDBG Program, provides grants to communities to promote local job creation and retention. Local governments then lend the funds to businesses for start-up, retention and expansion projects through grant funding. Funding levels depend on the number of jobs to be created or retained.

BUSINESS EMPLOYEES’ PROGRAM (BEST): Established by the Wisconsin Legislature to help small businesses in industries that are facing severe labor shortages upgrade the skills of their workforce. Under the BEST program, Commerce can provide applicants with a tuition reimbursement grant to help cover a portion of the costs associated with training employees. Eligible applicants include for-profit businesses that have 25 or fewer full time employees or annual sales of less than $2.5 million and are in one of the following Industrial Clusters: Automation, Agriculture/Food Products, Biotechnology, Information Technology, Manufacturing, Medical Devices, Paper/Forest Products, Printing, Tourism, or Childcare (does not include in-home childcare).

CUSTOMIZED LABOR TRAINING FUND: Provides training grants to businesses that are implementing new technology or production processes. The program can provide up to 50 percent of the cost of customized training if it is not available from the Wisconsin Technical College System. The program’s primary goal is to help Wisconsin manufacturers maintain a workforce that is on the cutting edge of technological innovation.

EARLY PLANNING GRANT PROGRAM (EPG): Helps individual entrepreneurs and small businesses throughout Wisconsin obtain the professional services necessary to evaluate the feasibility of a proposed start up or expansion. It provides grants to entrepreneurs and small businesses to help offset a portion of the cost of hiring an independent third party to develop a comprehensive business plan.

ENTERPRISE DEVELOPMENT ZONE PROGRAM: Promotes a business start-up or expansion on a particular site in any area of the state that suffers from high unemployment, declining income and property values and other indicators of economic distress. The program offers tax credits for such activities as hiring disadvantaged workers and undertaking environmental remediation. Tax credits can be taken only on income generated by business activity in the zone. The maximum amount of tax credits per zone is $3 million.

TAX INCREMENT FINANCING (TIF): Helps cities in Wisconsin attract industrial and commercial growth in underdeveloped and blighted areas. A city or village can designate a specific area within its boundaries as a TIF district and develop a plan to improve its property values. Taxes generated by the increased property values pay for land acquisition or needed public works.

INDUSTRIAL REVENUE BONDS (IRBs): A means of financing the constructing and equipping of manufacturing plants and a limited number of non-manufacturing facilities. The municipality is not responsible for debt service on IRBs, nor is it liable in the case of default. IRBs are also exempt from federal income tax. More than $265 million is available to assist small manufacturers with expansion projects through low-interest financing. The Department of Commerce grants the bonding authority (volume cap allocation) to cities, villages, counties and towns to issue the bonds on behalf of a business. This site provides business representatives, municipal officials, bond counsel and others with up-to-date information on the IRB program, the process of applying for volume cap, the availability of volume cap and the latest forms.

RURAL ECONOMIC DEVELOPMENT (RED) PROGRAM: Makes individual awards up to $30,000 for feasibility studies and other professional assistance to rural businesses with fewer than 25 employees. Businesses that have completed their feasibility evaluations are eligible for individual micro loans up to $25,000 for working capital and the purchase of equipment.

TECHNOLOGY DEVELOPMENT FUND: Established to help Wisconsin businesses research and develop technological innovations that have the potential to provide significant economic benefit to the state, it helps businesses finance Phase I product development research. Firms completing Phase I projects can receive Phase II product-commercialization funding.

WISCONSIN TRANSPORTATION FACILITIES ECONOMIC ASSISTANCE AND DEVELOPMENT PROGRAM: Funds transportation facilities improvements that are part of an economic development project. It provides 50 percent state grants to governing bodies, private businesses and consortiums for road, rail, harbor and airport projects that help attract employers to Wisconsin, or encourage business and industry to remain and expand in the state.

ANGEL INVESTMENT TAX CREDIT: Angel investors and angel investor networks that invest in Qualified New Business Ventures may be eligible to claim an income tax credit on that investment, up to 25 percent of the investment amount. Angel investors are accredited (sophisticated) investors, for the purposes of this program, as determined by the Department of Commerce, whose cash investment in a Qualified New Business Venture is made in exchange for common stock, a partnership or membership interest, preferred stock or an equivalent ownership interest that is acceptable to Commerce. An angel investment network is a group of accredited (sophisticated) investors organized for the sole purpose of investing in a single Qualified New Business Venture.

EARLY STAGE SEED INVESTMENT CREDIT: Designed to encourage investment in small, high-technology businesses that have high growth potential and is for payments made to certified fund managers to invest in qualified new business ventures.

Wisconsin’s FILM TAX CREDIT PROGRAM provides two types of tax credits with a total of $500,000 in credits available each fiscal year. All credits are refundable and non-transferable:

1. FILM PRODUCTION SERVICES CREDIT: Provides tax credits for hiring Wisconsin residents to work on an accredited production, and also for incurring certain production expenditures. To qualify, the production must be pre-accredited by the department.
2. FILM PRODUCTION COMPANY INVESTMENT CREDIT: Provides tax credits to new and existing film production companies in Wisconsin that expand.

WISCONSIN MEAT PROCESSING FACILTY INVESTMENT CREDIT: A refundable tax credit for taxpayers who have invested to modernize or expand meat processing facilities in the state during taxable years that begin after December 31, 2008, and before January 1, 2017. Businesses engaged in processing livestock into meat products or processing meat products for sale commercially may be eligible to apply for the tax credits. “Livestock” means domesticated food animals, other than fish and wild game animals. “Meat product” means a value-added, saleable and edible stand-alone product resulting from processing meat or another meat product by a USDA- or state-inspected facility and does not include sandwiches, spreads, appetizers, soups, salads, dinners, pizzas, pasties or any other product that uses meat in any manner other than as the predominant ingredient. “Process” means to cut, grind, manufacture, compound, intermix or prepare meat or meat products for human consumption.

FOOD PROCESSING PLANT & FOOD WAREHOUSE INVESTMENT CREDIT: A refundable tax credit for businesses that have invested to modernize or expand food processing plants or food warehouses in Wisconsin.
“Used exclusively” means used to the exclusion of all other uses except for use not exceeding 5 percent of total use. Businesses can earn up to 10 percent of the eligible expenses spent in the taxable year with the maximum amount a claimant can receive over the life of the program being $200,000. The Department has $700,000 for each fiscal year. The Department may prorate some or all of the allocations in order to broaden the potential for promoting economic development.

DAIRY MANUFACTURING FACILTY INVESTMENT CREDIT: Provides refundable credits for businesses that have invested to modernize or expand dairy manufacturing facilities in Wisconsin. Businesses can earn up to 10 percent of the amount spent in a taxable year. The maximum lifetime amount a business can receive is $200,000 for each of the entity’s manufacturing facilities. The Department has $657,100 available annually for eligible businesses other than dairy cooperatives. A total of $700,000 is available annually for dairy cooperatives. Businesses that are engaged in the processing of milk into dairy products or processing dairy products for sale commercially are eligible to apply for tax credits under this program.

WOODY BIOMASS HARVESTING & PROCESSING INVESTMENT CREDIT: A refundable tax credit for businesses that have invested to modernize or expand Woody Biomass Harvesting and Processing Operations in Wisconsin. Woody biomass means “trees and woody plants, including limbs, tops, needles, leaves, and other woody parts, grown in a forest or woodland or on agricultural land.” Businesses can earn up to 10 percent of the eligible expenses with the maximum amount a claimant can receive over the life of the program being $100,000. The Department has $900,000 for each fiscal year. The Department shall allocate $450,000 in tax credits to businesses that individually have no more than $5,000,000 in gross receipts from doing business in Wisconsin for the taxable year in which the credit is claimed.

The MINORITY BUSINESS DEVELOPMENT PROGRAM: Designed to generate and foster the growth of minority businesses in Wisconsin. The WEDC provides services to minority business owners, entrepreneurs and resource organizations.

The post Wisconsin Economic Development Directory appeared first on Business Facilities.