Coping with job losses and working to strengthen their economy, states have turned up the heat on business incentives geared to stimulate growth.
Despite the budgetary shortfalls experienced across the country, state and local governments have unveiled incentive programs geared at helping locations cope with job loss, with a renewed focus on making the business environment more user-friendly and facilitating the development of new green industries.
These types of incentives are a win-win for business and the community because they help to create new taxable property and income tax revenues, as well as increased economic activity and jobs.
Each year, we give you a state-by-state overview of the newest, most innovative incentives being offered. These benefits can cover corporate tax reduction, sales tax exemptions, jobs development, employment training and education, R&D, green manufacturing and sustainable energy, digital media, financial services, foreign trade zones, general business taxes, and manufacturing.
An exhaustive list and full explanation of every incentive offered by each state might fill an entire issue of Business Facilities. Our goal with this guide is rather to give you a brief overview of several of the most important incentives in each state that we have come across during the past year.
ALABAMA
The ALTERNATIVE AND RENEWABLE ENERGY ACT provides tax credits and abatements for various energy-related expenditures. The plan allows business owners with fewer than 25 employees to deduct 150 percent of the amount they pay for employee health insurance premiums from their state income taxes. The plan also allows employees of small businesses earning $50,000 or less annually to deduct 150 percent of what they pay for health insurance from state income taxes.
INDUSTRIAL DEVELOPMENT BONDS are issued locally by cities, counties or their agents. In Alabama, Industrial Revenue Bonds (IRBs) may be used as long-term financing of up to 100 percent of a project for the following:
• Acquisition of land, buildings, site preparation and improvements
• Construction of buildings
• Acquisition and installation of furnishings, fixtures, and equipment
• Capitalizable soft costs (e.g., architectural and engineering, interest incurred during construction, cost associated with bond issuance, etc.)
Alabama’s ECONOMIC DEVELOPMENT LOAN FUND can be used for the purchase of land, buildings, machinery, equipment and working capital. Loans are normally used as subordinated gap financing and they are restricted for use to manufacturing and warehousing operations.
The ALABAMA INDUSTRIAL DEVELOPMENT TRAINING (AIDT) program provides a total delivery system for screening and selecting trainees and for designing and implementing training for any new or expanding manufacturer. Training is specifically designed for each company’s job requirements and startup schedule, at no cost to the company. There is also a new 20 percent tax credit for costs of basic skills training for employees, not limited to new employees or relocating or expanding new firms.
ARKANSAS
Arkansas COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM: Funds may be loaned to manufacturers for fixed-asset financing on projects that create jobs for low- to moderate-income families. Examples of eligible activities for this set-aside loan program include acquisition of property, purchase of equipment, leasehold improvements, and construction or expansion of buildings or physical plants.
The EXISTING BUSINESS RESOURCES PROGRAM provides intensive pre-employment training for Arkansas workers to meet the increasing technical employment needs of the state’s new and expanding businesses. Additionally, financial assistance to Arkansas’s businesses and eligible consortia of businesses for upgrading the skills of existing workers is available. Skills upgrade training is defined as instruction conducted in a classroom environment at a work site, an educational institution or a neutral location that provides an existing, full-time employee with the new skills necessary to enhance productivity, improve performance and/or retain employment.
The SEED CAPITAL INVESTMENT PROGRAM (SCIP) fosters the development of innovative technology-based businesses and projects that will stimulate economic growth and industrial competitiveness in Arkansas. The SCIP can provide working capital to help support the initial capitalization or expansion of technology-based companies located in Arkansas. The program is a $1.9 million revolving investment fund that can provide working capital up to $500,000 of the company’s total financing needs. Investments made by the SCIP fund can be repaid through a variety of instruments, including direct loans, participations and royalties.
The ADVANTAGE ARKANSAS program offers a state income tax credit for job creation based on the payroll of the new employees hired as a result of the project. The benefits under this program are determined in relation to the tier in which the business locates. The state is segmented into four tiers based on poverty rate, population growth, per capita income and unemployment rate. Benefits range from four percent of payroll per year for five years in a Tier 4 county, to one percent of payroll per year for five years in a Tier 1 county.
The INVESTARK program is available to businesses established in Arkansas for two years or longer investing $5 million or more in a new construction, expansion or modernization project. The incentive offered by this program is a sales and use tax credit based upon a percentage of eligible project expenditures equal to one-half percent above the state sales and use tax rate in effect at the time the project is approved by AEDC. The credit may be used to offset 50 percent of the businesses’ state sales and use tax liability. The credit can be applied against the businesses’ state sales and use tax liability in the year following the year of the expenditure. If the entire credit cannot be used in the year earned, the remainder may be carried forward for five years, or until the credit is entirely used. Total project expenditures must be incurred within four years of the project plan certification.
The EQUITY INVESTMENT INCENTIVE program is a discretionary incentive and is targeted toward new, technology-based businesses that pay wages in excess of the state or county average wage. If offered, this program allows an approved business to offer an income tax credit to investors purchasing an equity investment in the business. The income tax credits issued under this program are equal to 33 1/3 percent of the approved amount invested by an investor in an eligible business. Any unused credit may be carried forward for 9 years.
The SMALL BUSINESS LOAN program stimulates small business by providing up to one-half the amount of participation loans referred by approved community lenders. A small business is one with fewer than 50 full-time employees and less than $1 million in annual gross sales, excluding agricultural production. AEDC’s share cannot exceed 50 percent of the total loan amount, and cannot be less than $2,500 or more than $40,000. The business must provide the lender with a sound business plan, proof of creditworthiness, collateral, and a demonstrated need. Proceeds may be used to purchase machinery and equipment, to stabilize working capital, and/or to purchase, construct or renovate commercial real estate.
CALIFORNIA
California’s R&D TAX CREDITS are designed to encourage businesses to increase their basic research and development activities in California. The credit allows companies to receive a 15% credit against their bank and corporation tax liability for qualified in-house research expenses, and a 24% credit for basic research payments to outside organizations. Qualified research expenses generally include wages, supplies and contract research costs. To qualify, a taxpayer’s research must be conducted within California and include basic or applied research of scientific inquiry, or original investigation for the advancement of scientific or engineering knowledge or improved function.
INDUSTRIAL DEVELOPMENT REVENUE BONDS (IDBs) are tax-exempt securities issued up to $10 million by a governmental entity to provide money for the acquisition, construction, rehabilitation and equipping of manufacturing and processing facilities for private companies. IDBs can be issued by the I-Bank, local Industrial Development Authorities, or by Joint Powers Authorities.
The CALIFORNIA EMPLOYMENT TRAINING PANEL (ETP) is a business and labor supported state agency that assists employers in strengthening their competitive edge by providing funds to off-set the costs of job skills training necessary to maintain high-performance workplaces.
DESIGNATED INCENTIVES:
• Enterprise Zones (42 statewide)
• Recycling Market Development Zones
• Foreign-Trade Zones
• Manufacturing Enhancement Areas
• Local Area Military Base Recovery Areas (LAMBRAs)
SMALL BUSINESS AND DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) program: 5% bid preference on applicable state solicitations for small businesses and 25% small business participation goal on state contracts.
CONNECTICUT
The SMALL BUSINESS ASSISTANCE REVOLVING LOAN PROGRAM: Connecticut-based businesses with less than fifty employees are eligible for loans and lines of credit of up to $500,000. The rate of loans and lines of credit is 4% and the term can be up to 10 years based on cash flow needs of the business. Eligible uses of funds include the purchase of new or used machinery and equipment, real estate acquisition, new facility construction, rehabilitation of existing facility, leasehold improvements, inventory, and working capital (including training, R&D, and marketing). No refinancing of existing debt is allowed.
The QUALIFIED SMALL BUSINESS JOB CREATION TAX CREDIT PROGRAM is a three-year tax credit (taxable years 2010-2012). The tax credit is $200 per month for each new employee. To qualify, small businesses must meet the following criteria:
• Have less than 50 employees
• At least one new full time job must be created
• Full time job must be at least 35 hours per week and does not include temporary or seasonal
• New employees must reside in Connecticut
• Applies to all business structures
The VOCATIONAL REHABILITATION JOB CREATION TAX CREDIT PROGRAM is a three-year tax credit (taxable years 2010-2012). The tax credit is $200 per month for each new employee. To qualify, small businesses must meet the following criteria:
• At least one new full time job must be created
• New employee must be a person that is receiving vocational rehabilitation services from the Bureau of Rehabilitation Services within the Department of Social Services or from the Board of Education and Services for the Blind
• New employee must work at least 20 hours per week for not less than 48 weeks in a calendar year and does include temporary or seasonal
• Applies to all business structures
The ANGEL INVESTOR TAX CREDIT PROGRAM is a tax credit for angel investors with cash investment of $100,000 or more in a qualified Connecticut business. The credit shall be equal to 25% of the investor’s cash investment. Total tax credits allowed shall not exceed $250,000 for any angel investor. Tax credit must be claimed in the taxable year in which the investment was made. To qualify, businesses must apply to Connecticut Innovations and meet the following criteria:
• The business must be principally located in Connecticut and be engaged in bioscience, advanced materials, photonics, information technology, clean technology or any other emerging technology as determined by the Commissioner
• The business must have annual gross revenues of less than $1 million in the most recent income year; have fewer than 25 employees, not less than 75% of whom reside in the state; have been operating in the state for less than 7 consecutive years; be primarily owned by the management of the business and their families; and received less than $2 million in cash investments eligible for the tax credits.
Connecticut Innovations is establishing a program to provide PRESSEED FINANCING for businesses. This program is including, but not limited to, financial assistance for the development of proof of concepts and support services. Financial assistance shall not exceed $150,000 per business. An eligible business must be principally located in Connecticut with not less than 75% of its employees working in state. An eligible business must also demonstrate private investment dollars not less than 50 cents for every dollar of financial assistance sought from the program.
DECD is establishing a $500,000 GREEN MANUFACTURING PILOT PROGRAM to help manufacturers convert their facilities into green operations or implement energy efficiency measures by using lean manufacturing strategies. Manufacturers must be principally located in Connecticut and have fewer than 250 employees, at least 75% of whom work in the state.
The INSURANCE REINVESTMENT TAX CREDIT PROGRAM was recently amended under Public Act 10-75. The new provisions of the program provide a 100% insurance premiums tax credit to insurance companies that invest with approved fund managers who will provide financing to eligible Connecticut business, including 25% committed to green technology businesses and 3% to preseed investments. Beginning on or before July 1, 2010 any new or existing fund manager is required to submit an application, business plan, and funding commitments for review and approval by the DECD Commissioner to earn an allocation of tax credits. A total of $200 million in tax credits has been set aside for this purpose.
New Zones Eligible for ENTERPRISE ZONE LEVEL benefits:
• Bradley Airport Development Zone—This zone establishes tax incentives for manufacturers and certain related businesses that build or substantially renovate facilities in the area and create new jobs. Enterprise Zone level benefits will be available to businesses that manufacture, process or assemble raw materials or parts; perform manufacturing-related research and development; or significantly service, overhaul or rebuild industrial machinery and equipment.
• Bioscience Enterprise Corridor Zone—This zone is for eligible businesses which has not more than three hundred employees at any time during the preceding twelve months and is engaged in bioscience, biotechnology, pharmaceutical or photonics research, development or production in the state.
• Defense Plant Zone—This zone is intended for a municipality that has been severely impacted by a prime defense contract cutback or major aerospace or defense plant closure with not less than eight hundred employees. Any eligible project taking place in such a designated facility will be eligible for the same benefits, and subject to the same conditions, as those qualifying for benefits in an Enterprise Zone.
FLORIDA
The RESEARCH COMMERCIALIZATION MATCHING GRANT PROGRAM was approved in May 2010 with a $3 million budget appropriation. The program is designed to give a funding match to Florida firms that have received a Phase I or Phase II award from the federal Small Business Innovation Research (SBIR) program and/or the Small Business Technology Transfer (STTR) program. This matching grant program will contribute to strengthening Florida’s foundation for the growth of innovative companies. It will be administered by the Florida Institute for the Commercialization of Public Research.
The QUALIFIED TARGET INDUSTRY TAX REFUND is available for companies that create high-wage jobs in targeted high value-added industries. It includes refunds on corporate income, sales, ad valorem, intangible personal property, insurance premiums, and certain other taxes. The program was reenacted in 2010 and will sunset in 2020 (ten year term, rather than the usual five-year period). Three new bonuses were added to the QTI statute. They are as follows:
• $1,000/job if local financial support is equal to the base QTI award;
• $2,000/job if project is in a designated high impact sector; OR
• $2,000/job for businesses increasing tonnage or volume through Florida’s ports or airports by at least 10% per year.
Florida Opportunity Fund’s CLEAN ENERGY INVESTMENT PROGRAM was created to promote the adoption of energy efficient or renewable energy (EE/RE) products and technologies in Florida by providing funding to businesses to increase the use of EE/RE technologies, equipment and materials in the State. Funding opportunities afforded under the Program may consist of debt and other instruments, so long as the proposed activities are consistent with the Focus Areas described below. Examples of possible structures for funding opportunities include project financing, asset-based lending, mezzanine financing and equity investments. The Program may invest alongside additional private capital that will allow funding for activities beyond those permitted by the Program. The Program will target funding opportunities ranging from $500,000 to $5 million.
2010/2011 FLORIDA FILM & ENTERTAINMENT INDUSTRY FINANCIAL INCENTIVE PROGRAM: The purpose of this program is to encourage the use of this state as a site for filming, for the digital production of films, and to develop and sustain the workforce and infrastructure for film, digital media, and entertainment production. The program includes $242 million in transferable tax credits over 5 years; $53.5 million transferable tax credits authorized for the 2010/2011 fiscal year; and a 20%-30% transferable tax credit. The priority for qualifying/certifying projects for tax credit awards is determined on a first-come, first-served basis within its appropriate queue.
HIGH-IMPACT PERFORMANCE INCENTIVE GRANTS are negotiated and used to attract and grow major high-impact facilities in Florida. In order to participate in the program, the project must operate within designated high impact portions of the following sectors—clean energy, biomedical technology, financial services, silicon technology, and transportation equipment manufacturing; create at least 50 new full-time equivalent jobs (25 for R&D) in Florida in a three-year period; and make a cumulative investment in the state of at least $50 million ($25 million for R&D) within a three-year period.
THE ECONOMIC RECOVERY EXTENSION (ERE): The Economic Stimulus Exemption has been changed to the ERE and has been extended until July 1, 2010. The Extension allows a business affected by the economic downturn to request a one or two year extension of its job creation schedule. The business must demonstrate a downturn in its industry and explain how this downturn has specifically affected its Florida operations.
The QUICK ACTION CLOSING FUND (QACF) awards of $2 million or less do not have to be approved by the Legislative Budget Commission. These projects must still follow the approval process outlined in Chapter 216, Florida Statutes, including approval by the Governor and consultation with legislative leadership. Awards above $2 million must still be reviewed by the Legislative Budget Commission.
The JOBS FOR THE UNEMPLOYED TAX CREDIT encourages the hiring of qualified employees who were previously unemployed. The business will receive a tax credit for employees hired after July 1, 2010. Employees must have been unemployed for 30 days preceding hire and may not have previously worked for the company. Only new hires that remain employed after a 12 month period with an average of 36 working hours a week are eligible for this tax credit.
The MANUFACTURING AND SPACEPORT INVESTMENT INCENTIVE encourages capital investment and job creation in manufacturing and spaceport activities in Florida. The program will accept applications from July 1, 2010 thru June 30, 2012.
The LOCAL GOVERNMENT DISTRESSED AREA MATCHING GRANT PROGRAM stimulates investment in the state’s economy by providing grants to match demonstrated business assistance by local governments to attract and retain business in the state.
GEORGIA
The ANGEL INVESTOR TAX CREDIT was signed into law June 2010. This incentive provides an income tax credit for angel (or private) investors who invest in a qualified business venture in Georgia in calendar year 2011, 2012 and 2013. The income tax credit is 35 percent of the investment, with an individual investor cap of $50,000 per year. The investor would be able to claim the credit against Georgia income tax liability two years following the investment made, as long as the business who receives the investment remains in the state of Georgia for the full two years before the credit is claimed. The aggregate annual cap for this program is $10 million. The program is scheduled to sunset at the end of 2013.
In 2010, the Georgia legislature committed an additional $3.5 million for the REGIONAL ECONOMIC BUSINESS ASSISTANCE GRANTS, nearly tripling the amount of funding from the previous year for a total of $5.4 million. Regional Economic Business Assistance (REBA) funds provide crucial deal-closing money for competitive projects in metro communities in Georgia. Funds are used to finance various fixed-asset needs of a company, including infrastructure, real estate acquisition, construction, or machinery and equipment. A local development authority must be the applicant for a REBA application, which must be supported by a recommendation letter from a state agency.
SENIOR INCOME TAX CUT: Eliminates taxes on retirement income for senior citizens and eliminates the state portion of homeowner’s property taxes. The tax cut benefits more than 300,000 Georgians and makes Georgia a more attractive location for retirees.
ILLINOIS
The ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY (EDGE) program is designed to offer a special tax incentive to encourage 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. To qualify a company must provide documentation that attests to the fact of competition among a competing state, and agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full time jobs in Illinois. For a company with 100 or fewer employees, the company must agree to make a capital investment of $1million and create at least 5 new full time jobs in Illinois.
INDIANA
PERSONAL PROPERTY TAX EXEMPTION FOR DATA CENTERS: Defines qualified “enterprise class IT equipment” (includes generators and other equipment used to ensure uninterrupted power in the definition). Only qualified businesses are eligible to receive an exemption on investment made after July 1, 2009. Requires a minimum capital investment of $10,000,000. This includes all investment but only the IT equipment will be exempt. Requires local government to pass a declaratory resolution establishing length of exemption and penalties, if any. Includes a sunset date of 2013 (exemptions awarded before that date are grandfathered in and remain in effect). Provides for transfer of ownership of a facility and its equipment.
KANSAS
The PROMOTING EMPLOYMENT ACROSS KS (PEAK) program offers qualified companies the ability to retain 95 percent of their payroll withholding tax for up to five to seven years. PEAK is available to new operations in Kansas as well as relocated operations to the state. Companies need to create at least 10 new jobs within two years in metropolitan areas or five new jobs within two years in all other counties of the state. High-impact projects that create 100 new jobs within two years can retain 95 percent of payroll withholding tax for up to seven to 10 years. The number of years that the withholding tax can be retained depends on how much the annual median wage of the jobs at the Kansas worksite will exceed the current county median wage and the discretion of the Secretary of the Kansas Department of Commerce.
The WIND AND SOLAR BOND FINANCING PROGRAM allows for up to $5 million in bond financing per project for eligible wind and solar energy manufacturers. The bonds are paid off from the payroll withholding tax of the new jobs. To qualify, a project must create at least 200 new jobs within five years, pay at least a $32,500 average salary and generate a minimum capital investment of $30 million.
KENTUCKY
The KENTUCKY BUSINESS INVESTMENT (KBI) program provides income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, and non-retail service or technology related companies that locate or expand operations in Kentucky. Projects locating in certain counties may qualify for enhanced incentives.
The KENTUCKY REINVESTMENT ACT (KRA) provides tax credits to any existing Kentucky company engaged in manufacturing and related functions on a permanent basis for a reasonable period of time who will be investing in eligible equipment and related costs of at least $2,500,000.
The KENTUCKY ENTERPRISE INITIATIVE ACT (KEIA): For new or expanded service or technology, manufacturing, or tourism attraction project in Kentucky. KEIA provides a refund of Kentucky sales and use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It is also available for Kentucky sales and use tax refunds for eligible equipment used for research and development and data processing equipment.
LOUISIANA
LOUISIANA FASTSTART™ is a workforce development program, providing workforce recruitment, screening and training to new and expanding companies—all at no cost. Any manufacturing, corporate headquarters, warehouse and distribution, research and development or other strategic facility must create at least 15 jobs. Service providers must create at least 50 jobs.
The QUALITY JOBS PROGRAM provides a 5 percent or 6 percent rebate on annual payroll expenses for up to 10 years, and either a 4 percent sales/use tax rebate on capital expenditures or an investment tax credit equal to 1.5 percent of qualifying expenses. A project must create at least 5 jobs, and there are no minimum investment requirements. The program is eligible to businesses that fall within one of the state’s target industries or have total annual out-of-state sales of at least 50 percent.
The DIGITAL MEDIA INCENTIVE provides a 25 percent tax credit on qualified production expenditures and a 35 percent tax credit for Louisiana resident labor expenditures. There are no minimum investment requirements and no cap on costs. The incentive is eligible to digital interactive media productions in Louisiana, excluding largely static Internet sites and products regulated under the Louisiana Game Control Law.
The MEGA-PROJECTS DEVELOPMENT FUND provides grants of up to 30 percent of the total cost of a project that creates or retains at least 500 direct jobs or that provides a major investment in the state. A project must create 500 direct jobs, create or save at least 500 direct jobs at a facility that has been closed or a facility that risks closure, or provide a minimum initial investment of $500 million through the creation of a new facility or the expansion of an existing facility. In addition, the project must provide a substantial return on the investment by the state as measured by projected tax revenues.
The RESEARCH & DEVELOPMENT TAX CREDIT provides a refundable tax credit of up to 40% to businesses that conduct research and development activities (or secure certain federal SBIR/STTR grants) within Louisiana. The tax credit depends on the number of Louisiana resident employees. Companies who incur research and development expenses may be able to receive credits against state income and corporate franchise taxes. Companies whose research and development tax credits exceed their tax liabilities receive a refund from the state.
MAINE
The COMMERCIAL LOAN INSURANCE PROGRAM insures up to 90 percent of a loan to a maximum loan insurance exposure of $4,250,000. 100 percent insurance available for loans to veterans, oil storage facility projects, clean fuel vehicle projects, and waste oil disposal site cleanup projects. Loan proceeds may be used for purchase of —and improvements to—real estate, machinery, and equipment.
The ECONOMIC RECOVERY LOAN PROGRAM is a direct lending program designed to help small businesses remain viable during difficult economic times. Existing businesses may apply. In considering loan applications, the Finance Authority of Maine (FAME) looks to support creditworthy projects demonstrating substantial public benefit that have utilized other sources of capital.
PINE TREE DEVELOPMENT ZONE PROGRAM: This program uses a combination of tax incentives to spur economic development in targeted areas of the state where unemployment is relatively high and wages are relatively low. The state will offer to qualified new and expanding businesses (1) an enhanced employment tax increment financing that returns 80 percent of the state income taxes withheld from qualified net new employees for up to 10 years; (2) a 100 percent refund of corporate income tax and insurance premium tax for years one through five, and 50 percent for years six through 10; (3) a 100 percent sales tax exemption for construction materials and equipment purchases; (4) a 100 percent sales tax reimbursement on real property purchased and/or physically incorporated.
The GOVERNOR’S TRAINING INITIATIVE program seeks to promote a globally competitive work force for Maine industry by directly linking Maine’s education and training resources to employer-driven work force needs. The program reimburses qualifying Maine employers for a portion of their training and/or retraining costs. Some reimbursable costs include specialized recruitment, training for high-performance skills, customized technical training, workplace safety, on-the-job training, and competitive retooling of a business’ current work force.
The MAINE APPRENTICESHIP PROGRAM is a customized, systematic training program designed to meet the needs of Maine employers through on-the-job training and related classroom instruction. The program may reimburse the apprentice (or employer if the company is providing tuition assistance) for up to 50 percent of tuition for college credit courses. At the end of the program, an employer has a certified, skilled journeyperson.
MARYLAND
MARYLAND ECONOMIC DEVELOPMENT ASSISTANCE AUTHORITY FUND (MEDAAF): There are five financing capabilities offered through this MEDAAF program. The assistance is provided to the business community and political jurisdictions with a variety of funding alternatives. To qualify for assistance from MEDAAF, all applicants are restricted to businesses located in a priority funding area and eligible industry sectors. Eligible industry sectors include: agriculture and forestry; aerospace; biotechnology; transportation, distribution, and warehousing; environmental technology; financial services; healthcare technology and services; telecommunications; manufacturing; information technology and businesses with U.S. or regional headquarters located or to be relocated in Maryland.
The ECONOMIC DEVELOPMENT OPPORTUNITIES FUND (SUNNY DAY) is designed to help promote Maryland’s participation in extraordinary economic development opportunities that provide significant returns to the state through creating and retaining employment as well as the creation of significant capital investment. Financial assistance can be in the form of a loan, conditional loan, or grant. A Sunny Day project is defined as an extraordinary economic development opportunity by the following criteria:
• The recipient must maintain a strong financial condition and a minimal risk profile
• The recipient is capable of accessing alternative sources of financing through financial institutions or capital markets
• Minimum of 5:1 capital investment by the recipient for each $1.00 of Sunny Day funds
• The recipient’s project is consistent with the strategic plan of the state for economic development
• The recipient creates or retains substantial employment, particularly in areas of high unemployment.
CHALLENGE INVESTMENT PROGRAM: This incentive provides capital investments for small start-up companies to cover a portion of the initial costs associated with bringing a new product to market. The amount of the equity is up to $150,000 with an initial investment of up to $50,000. Additional investments are made based on performance and the achievement of specific milestones.
MARYLAND ECONOMIC ADJUSTMENT FUND (MEAF) assists small business entities in the state to modernize manufacturing operations, develop commercial applications for technology, or explore and enter new markets. The program is administered in accordance with the guidelines imposed by the federal government’s Economic Development Act (EDA). Businesses must be in a state-designated jurisdiction. The maximum amount of the loan to any one borrower is $500,000. The uses include most business applications such as the acquisition of fixed assets, leasehold improvements, and working capital.
MASSACHUSETTS
The ECONOMIC DEVELOPMENT INCENTIVE PROGRAM (EDIP) is a tax incentive program designed to foster job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state and local tax incentives in exchange for job creation, manufacturing job retention and private investment commitments. As of January 1, 2010, the Economic Assistance Coordinating Council (EACC) may certify three categories of project for expanding companies that generate substantial sales outside of Massachusetts and are seeking the EDIP Investment Tax Credit (ITC).
The MASSACHUSETTS GROWTH CAPITAL CORPORATION, signed into law August 2010, will help create jobs, provide small business assistance and access to capital, streamline statewide economic development efforts and provide sales tax holiday for consumers. The bill contains a number of provisions, including:
• $35 million capitalization of the Massachusetts Growth Capital Corporation (MGCC) which will create and preserve jobs, as well as promote economic development in communities by serving as a one stop resource for small businesses seeking capital and advice.
• The $50 million recapitalization of the Growth District Initiative which allows for infrastructure investments in areas identified as poised for significant new growth consistent with the Commonwealth’s sustainable development principles, throughout all regions of the Commonwealth.
• A sales tax holiday weekend on Aug.14, 15.
• A two year permitting extension provision for existing permits issued within the last two years, allowing developers to continue to move forward with development projects when the market supports their construction.
• The $5 million recapitalization of the Massachusetts Technology Development Corporation (MTDC).
• The creation of a market rate Housing Development Incentive Program designed to promote increased residential growth, expanded diversity of housing supply, neighborhood stabilization and economic development within gateway municipalities by providing local and state tax incentives to rehabilitate buildings into market rate housing.
MICHIGAN
ADVANCED BATTERY CREDITS: Starting January 1, 2010 this first-in-the-nation incentive has given birth to an entirely new advanced battery industry in the state, one that did not exist a year ago. It has played a major role in attracting $1.35 billion of federal funding in July 2009 for advanced battery and electric vehicle manufacturing and development. Since then, 16 advanced battery technology companies have committed to projects in Michigan expected to create some 62,000 jobs by 2010. The advanced battery tax and photovoltaic tax credits are among the steps Michigan is taking to leverage its strengths in traditional manufacturing and highly skilled workforce, part of a broader strategy to position Michigan as the alternative energy capital of North America.
CENTERS OF ENERGY EXCELLENCE (COEE): Supports the development and commercialization of alternative-energy technologies by matching companies with universities, national labs and training centers to accelerate research, workforce training and commercialization in next-generation battery technologies, waste-to-energy and production of biofuels from natural feedstocks. In 2010, two new COEEs were announced for wind manufacturing companies Energetx Composites and Astraeus Wind Energy. The first six Centers of Energy Excellence, a $43 million initiative, were established in 2008. A second phase of the COEE program, allowing for up to $30 million for additional centers, was launched in January 2010.
MINNESOTA
The ANGEL INVESTOR TAX CREDIT provides incentives to investors or investment funds that put money into startup and emerging companies focused on high technology or new proprietary technology. The credit provides a 25-percent individual income tax credit for qualified investors; is refundable (non-transferable); allows a maximum credit of $125,000 per year per individual; and allows a maximum credit of $250,000 for those married and filing jointly. Of the $11 million in tax credits available for the year 2010, $9,485,826 remains available as of September 17, 2010. We will update this figure regularly as credits are allocated. Funding for the years 2011-2014 is set at $12 million per year.
The INCREASED RESEARCH AND DEVELOPMENT TAX CREDIT will benefit eligible manufacturers across the state. The credit is now refundable and is 10% on first $2 million in qualified expenditures and 2.5% thereafter.
Minnesota’s SINGLE SALES FACTOR APPORTIONMENT moves closer to 100% sales in 2011. Apportionment formulas are important features of state corporate income taxes. They determine how much of a business’s income is taxable and affect the incidence and competitiveness of the tax. Minnesota apportions corporate income using the Minnesota proportions of the corporation’s sales, payroll, and property factors to determine corporate franchise tax.
The INNOVATIVE BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE (BDPI) program provides grants to local governmental units on a competitive basis statewide for up to 50 percent of the capital cost of the public infrastructure necessary to expand or retain jobs. Local governmental units (city, county, townships, special district, or other political subdivision or public corporation) are eligible to apply for a grant. The minimum requirement applies to cities, which must provide a 50-percent match of the project capital costs.
The PROPERTY ASSESSED CLEAN ENERGY (PACE) program allows property owners to borrow money from newly established municipal financing districts to finance energy retrofits (efficiency and renewable energy measures) and repay the loan through an annual special tax on their property bill. Financing includes on-demand bond financing for small projects and pooled or interim financing structures. Qualifying projects can be energy efficiency, renewable energy, HVAC or electrical upgrades.
MISSOURI
The 2010 MISSOURI AUTOMOTIVE MANUFACTURING JOBS ACT will allow qualified manufacturing facilities or suppliers that bring next generation production lines to Missouri to retain withholding taxes typically remitted to the state. To be eligible for these incentives, manufacturers would be required to make a substantial capital investment in production capacity and put people back to work. Incentives would be triggered only after a company had made a firm commitment for that investment and workers were on the job. Strict requirements would force a company to repay the incentives if that commitment were not upheld. The total amount of incentives under the act is capped at $15 million a year.
NEVADA
A SALES AND USE TAX ABATEMENT on eligible machinery and equipment is available to businesses with operations consistent with Nevada’s state plan for economic diversification and development. Qualifying criteria include a commitment to doing business in Nevada, minimum job creation, capital investment, employee heath plans, and wage requirements.
SALES TAX DEFERRAL: The state of Nevada offers a sales & use tax deferment program to qualified industries that purchase capital equipment in excess of $100,000. Taxes can be deferred interest free for up to five years.
An abatement of PERSONAL PROPERTY TAX is available to businesses with operations consistent with Nevada’s state plan for economic diversification and development. Qualifying criteria include a commitment to doing business in Nevada, minimum job creation, employee health plans, minimum capital investment, and wage requirements. Taxes may be abated for up to 50% for up to ten years.
RENEWABLE AND ENERGY STORAGE ABATEMENTS are available for companies involved in the production of energy from renewable sources such as wind, solar, and others, or a facility for the production of an energy storage device. The package of abatements includes sales/use tax and real and personal property tax.
MODIFIED BUSINESS (PAYROLL) TAX ABATEMENTS provide partial abatement from the payroll tax for new and expanding businesses. Statutory requirements, which must be met to qualify, include a minimum number of jobs created, a minimum capital investment, and wage and employee health plan requirements. Taxes may be abated by 50% for four years.
TRAIN EMPLOYEES NOW (TEN): Nevada offers a customized job training program to qualified businesses that meet established criteria. This program may be used prior to a plant opening and up to 90 days following.
Nevada is authorized to use tax-exempt INDUSTRIAL DEVELOPMENT BONDS (IDBs) to provide low-interest financing of new construction, improvements, rehabilitation, or redevelopment of qualified projects, which include manufacturing facilities and certain other projects organized under Section 501 of the Internal Revenue Service code.
NEW JERSEY
The PARTNERSHIP FOR ACTION PROGRAM consolidates the State’s economic development efforts into a single body. The partnership will operate with three interconnected and synergistic organizational elements to attract and retain businesses in New Jersey. The three elements of the Partnership include:
• Choose New Jersey, a privately funded, not-for-profit corporation that will undertake state marketing efforts and help position New Jersey as a world-class leader in the competitive global marketplace
• Business Action Center (BAC), a team reporting directly to Lt. Gov. Guadagno that will bring a customer service approach to coordination and navigation across State and local government agencies for businesses looking to remain, expand or locate in New Jersey.
• The New Jersey Economic Development Authority (EDA) to support the Partnership as the State’s “bank for business.”
The ECONOMIC REDEVELOPMENT AND GROWTH (ERG) grant is an incentive for developers, businesses and owners to address redevelopment project financing gaps. The program utilizes up to 75% of the incremental increase in certain state and local revenue sources attributed to the project to provide gap financing of up to 20% of the total project cost, paid out over a period of up to 20 years. Redevelopment projects in qualifying areas that have secured a municipal ordinance and demonstrated sufficient net benefits may be eligible for assistance.
URBAN TRANSIT HUB (HUB): A developer, owner or tenant making a qualified capital investment within a designated HUB may be eligible for tax credits equal up to 100% of the investments made within an eight-year period. Taxpayers may apply 10% of the total credit amount per year over a ten-year period against their corporate business tax, insurance premiums tax or gross income tax liability. Developers or owners must make a minimum $50 million capital investment in a single business facility, and at least 250 full-time employees must work at that facility. Tenants in a qualified business facility can represent at least $17.5 million of the capital investment in the facility, and up to three tenants may aggregate to meet the 250 employee requirement.
BUSINESS EMPLOYMENT INCENTIVE PROGRAM (BEIP): Companies seeking to relocate to, or expand, in New Jersey may be eligible for BEIP grants based on the number of new jobs created. By adding at least 25 qualified jobs (10 for qualifying technology companies) within two years, eligible companies can be reimbursed for up to 80% of gross withholding tax paid by new employees for up to 10 years, to a maximum of $50,000 per employee over the course of the grant. Companies must demonstrate that the BEIP grant is a material factor in the decision to relocate to or expand in New Jersey.
The BUSINESS RETENTION & RELOCATION ASSISTANCE GRANT (BRRAG) provides corporate business tax credits to companies that are relocating operations within New Jersey and retaining at least 50 full-time jobs. Companies may benefit from up to $1,500 per job retained, payable as a tax credit against a company’s corporate tax liability. Companies must demonstrate that the grant is a material factor in the decision to stay in New Jersey.
The SALES AND USE TAX EXEMPTION PROGRAM (STX) is often used in conjunction with BRRAG. STX allows companies to make purchases for construction and renovation of their new business location without having to pay state sales tax. Eligible companies must have 1,000 or more employees in New Jersey and relocate 500 or more to a new business location. Life sciences, pharmaceutical and manufacturing companies may be eligible if they relocate 250 or more employees to a new research and development facility, a new headquarters or a new manufacturing facility.
NEW YORK
SMALL BUSINESS REVOLVING LOAN FUND: A $50 million fund designed to create economic activity by providing greater access to capital for main street everyday small businesses. The program is targeted to minorities, women and other New Yorkers who have difficulty accessing regular credit markets. The 2010-11 State Budget provided $25 million in state funds and will leverage at least $25 million in private matching funds. Program funds used to finance an applicant loan will not be more than 50 percent of the principal amount and no greater than $125,000. There will be two categories of loans: Micro-Loans – principal amount less than $25,000 and Regular Loans—principal amount greater than $25,000
Signed June 22, 2010, the EXCELSIOR JOBS PROGRAM will provide job creation and investment incentives to firms in such targeted industries as biotechnology, pharmaceuticals, high-tech, clean technology, green technology, financial services, agriculture and manufacturing. Firms in these strategic industries that create and maintain new jobs or make significant financial investments will be eligible for up to four new tax credits. The program will encourage businesses to expand in and relocate to New York while maintaining strict accountability standards to guarantee that businesses deliver on job and investment commitments. Program costs are capped at $250 million annually to maintain fiscal affordability and ensure that New Yorkers realize a positive return on their investment.
Launched October 2010, the NY FIRST WEBSITE is an innovative business-focused website that is geared toward companies within New York State and those who choose to relocate here: www.nyfirst.ny.gov. The new site features an all-encompassing “Business Resource Center:” a catalog of the state’s full complement of business incentives; browsable menus allowing for freeform exploration while only displaying resources relevant to the user’s self-selected needs; dual navigation track allows visitors to peruse the site thematically or by identity for quicker access to customized resources; all-inclusive list of economic development resources by region, created in partnership with the non-profit www.Buzgate.org, the industry gold standard for small business resources.
NORTH CAROLINA
TAX CREDITS FOR GROWING BUSINESS:
• Enhances the film production tax credits by increasing the per production cap from $7.5 million to $20 million, by increasing the credit amount from 15% to 25% of a company’s qualifying expenses, and by clarifying that qualifying expenses are subject to audit by the Secretary.
• Creates a new tax credit for interactive digital media. A taxpayer that develops IDM in NC is allowed a credit against allowable expenses over $50,000. The percentage is 20% for expenses paid to a participating community college or research university for services performed in NC and 15% for all other allowable expenses.
• Extends the sunset for the credit for recycling oyster shells from 1/1/11 to 11/1/13.
• Creates economic development incentives and favorable tax treatment for Eco-Industrial Parks located in counties that are not required to perform motor vehicle emission inspections.
• Exempts certain wood chippers from the sales tax.
The KEEPING NC COMPETITIVE ACT expands of the sales tax exemption available to an Internet datacenter for electricity and business property used at its facility. The current exemption applies to a facility engaged in Web search portals; the bill would expand the exemption to include a facility engaged in software publishing. In addition, it allows annual refund of sales and use tax paid on building materials, supplies, fixtures, and equipment to construct a paper-from-pulp manufacturing facility and a turbine manufacturing facility.
The MODIFY RENEWABLE ENERGY PROPERTY CREDIT promotes the use of renewable energy by extending the credit for constructing renewable fuel facilities and the credit for biodiesel producers to 2013 and revises the tax credit for investing in renewable energy property. The credit also reinstates and expands the tax credit for a renewable energy property facility and clarifies the authority of local governments to finance energy programs and clarifies that real property donated for a conservation purpose can be used only for that purpose.
OHIO
The OHIO JOB READY SITES PROGRAM bolsters 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 State of Ohio awarded more than $138.4 in the first three funding rounds during Fiscal Years 2006-2011, with more than $29.9 million being awarded during Fiscal Years 2010-2011. 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.
The ALTERNATIVE ENERGY TAX EXEMPTION applies to renewable energy resources (i.e. solar, wind, biomass) as well as clean coal technology, advanced nuclear technologies, and cogeneration energy facilities. This tax exemption will apply for the life of the facility, but can be revoked if the project owner fails to comply with programmatic requirements. Boards of County Commissioners are granted the authority to approve or reject projects that generate more than 5 megawatts.
Launched in 2010, the ENERGIZING CAREERS PROGRAM supports companies that are manufacturing components for Ohio’s expanding wind, solar, and biomass industries. The advanced energy manufacturing sector requires specialized skills, and the Energizing Careers Program assists businesses in developing and implementing customized training programs that will enable them to grow. The program is made possible through a $6 million grant from the American Recovery and Reinvestment Act, and gives preference to companies located within Ohio’s 44 auto-impacted counties.
The JUMPSTART LAUNCH 100 INITATIVE was launched on March 25, 2010 in Northeast Ohio to provide intensive business assistance and access to growth capital to selected minority-owned firms with high growth potential. Selected companies receive specialized technical assistance from seasoned advisors with specific experience in growing large-scale firms, and assisting in accelerated job creation and wealth for minority populations and ultimately all Ohio citizens. This new initiative will identify early-stage companies and assist in the development of business plans and strategies, as well as cover a broad array of industries.
OHIO THIRD FRONTIER: One of the state’s most successful job creation tools, this program was renewed in May 2010, extending the program through Fiscal Year 2015. Ohio Third Frontier works to expand Ohio’s technology-based research capabilities and promote innovation and new company formation to create and retain high-wage jobs for future generations. Since its inception, more than 375 awards have been distributed throughout the state.
At the direction of the Governor, the Governor’s Workforce Policy Advisory Board and its Credential Committee have worked over the past year to develop a statewide Manufacturing Certificate Program for individuals who wish to pursue a career in the manufacturing industry. The program will begin with a certificate aimed at the entry-level job seeker, but is planned to grow into a system of certificates that will help workers map a career in the manufacturing industry. The program will also establish a standardized and reliable indicator of workplace skill levels that can be recognized and used by manufacturing employers throughout the State. A pilot program is expected to be launched in the fall of 2010.
Last August, the State of Ohio received $1.8 million in funding through the American Recovery and Reinvestment Act from the U.S. Environmental Protection Agency for BROWNFIELD REVITALIZATION efforts. Up to $200,000 in funding is available to eligible nonprofit and local government entities for remediating asbestos in historic buildings, which contributes to the economic revitalization of communities, vibrant neighborhood centers, and health and safety for occupants and visitors of these buildings. The Brownfield Revolving Loan Fund offers below-market rate loans and sub-grants to assist with the remediation of a brownfield property to return it to a productive economic use in the community. Properties receiving assistance from the Brownfield Revolving Loan Fund must have been contaminated by hazardous substances. In Fiscal Year 2010, the Brownfield Revolving Loan Fund awarded $950,000, leveraging $8 million.
PENNSYLVANIA
BUSINESS IN OUR SITES: A $300 million statewide loan and grant pool was created by the issuance of bonds. This money was made available to communities statewide to help them develop shovel-ready sites to accommodate expanding businesses, thus building the local and regional economy and ultimately creating jobs.
NEW PENNSYLVANIA VENTURE GUARANTEE PROGRAM guarantees to top-tier venture capital partnerships for investments in growth-stage Pennsylvania companies. The goal of this program is to increase the amount of equity financing available to businesses throughout the Commonwealth.
FIRST INDUSTRIES FUND: A loan guarantee and grant program aimed at strengthening Pennsylvania’s agriculture and tourism industries. The program is administered by both the Commonwealth Financing Authority (CFA) and the Department of Community and Economic Development.
MAIN STREET PROGRAM: Grants to municipalities to help a community’s downtown economic development effort through the establishment of a local organization dedicated to downtown revitalization and the management of downtown revitalization efforts by hiring a full-time professional downtown coordinator.
KEYSTONE INNOVATION ZONE (KIZ) PROGRAM: Provides grant funds to community/university partnerships to generate job growth through tech transfer and entrepreneurship. Focused around campuses and property around colleges and universities.
JOB CREATION TAX CREDITS: A $1,000 per job tax credit to create new jobs in the Commonwealth within three years.
SMALL BUSINESS FIRST: Funding for small businesses, including low-interest loan financing for land and building acquisition and construction, machinery and equipment purchases, and working capital.
BEN FRANKLIN TECHNOLOGY PARTNERS: Provides entrepreneurial support and financial assistance to technology firms and early-stage technology companies in Pennsylvania.
PENN TECHNICAL ASSISTANCE PROGRAM (PennTAP): Supports technology-based economic development by engaging, guiding and empowering companies throughout the commonwealth by advocating objective and experience-based technical and workforce solutions that enable clients to succeed and thrive, stimulating economic growth for Pennsylvania.
SOUTH CAROLINA
The JOB TAX CREDIT is a statutory incentive offered to companies, both existing and new, that create new jobs in South Carolina. The credit is available to companies that establish or expand manufacturing, distribution, processing, warehousing, research and development, corporate office, tourism and technology intensive facilities. Agribusiness operations are eligible effective January 1, 2011. In certain limited instances, service and retail facilities may also be eligible. The company must create a monthly average of 10 net new full-time jobs at the facility in a single taxable year. If a company has fewer than 99 employees worldwide, it may be eligible for a job tax credit if it creates a monthly average of two or more net new full-time jobs in a single taxable year. In most instances, companies can expect to receive from $1,500 to $8,000 per job depending on the development tier of the county. Credits can be used to offset up to 50% of South Carolina income tax in a single year, and unused credits may be carried forward for 15 years.
SINGLE FACTOR SALES APPORTIONMENT: Companies whose primary business in the state is manufacturing, distribution, or selling or dealing in tangible personal property will apportion its income by multiplying the net income remaining after allocation by a fraction consisting of a company’s sales made in South Carolina divided by its total number of sales. This new formula eliminates property and payroll from the equation and is advantageous for a company whose majority of sales occurs outside South Carolina. The new method is being phased in over a five-year period with a 20% reduction each year of income attributable to South Carolina which began in 2007. In 2011, the new formula will be fully applicable.
SALES TAX EXEMPTION: South Carolina offers a number of sales tax exemptions for manufacturers including manufacturing production machinery and applicable repair parts; manufacturing materials that become an integral part of the finished product; industrial electricity and other fuels used in manufacturing tangible personal property; research and development equipment; manufacturers’ air, water and noise pollution control equipment; material handling equipment for manufacturing or distribution projects investing $35 million or more; packaging materials; long distance telecommunication services, including 800 services; and parts and supplies used to repair or condition aircraft owned or leased by the federal government or commercial air carriers. An exemption for construction materials used in manufacturing or distribution facilities, investing at least $100 million over 18 months, is being phased in and will be fully implemented July 1, 2011.
PRE-JOB TRAINING PROGRAM: The readysc™ program, offered through the S.C. Technical College System, provides pre-job training at little or no cost for eligible new or expanding companies with curricula tailored to meet a company’s workforce requirements. The comprehensive program includes recruiting, screening, testing, developing customized instruction material along with coordinating and upfitting training space.
INFRASTRUCTURE GRANTS: Infrastructure grants are offered at the discretion of the South Carolina Coordinating Council for Economic Development.
• The Economic Development Set-Aside Program assists companies in locating or expanding in South Carolina through road or site improvements and other costs related to business location or expansion.
• The Rural Infrastructure Fund assists qualified counties in the state’s rural areas by providing financial assistance for infrastructure and other projects that enhance economic growth and development.
• Tourism Infrastructure Development Grants support new or expanding tourism or recreation facilities or designated development areas primarily through infrastructure projects.
ADDITIONAL INCENTIVES: Depending on the type of business establishment, number of jobs, capital investment, location of the project, and other factors affecting the project, additional incentives may be available from either the state or local government. For additional information: www.SCcommerce.com.
SOUTH DAKOTA
The EDFA (ECONOMIC DEVELOPMENT FINANCE AUTHORITY) is designed for more capital-intensive projects. This incentive is eligible for projects that operate an industrial, processing, storage, distribution or manufacturing enterprise and offers permanent financing for land, building, machinery, equipment and associated installation costs. It also provides small businesses access to the public bond market. Bonds may be tax-exempt on projects that are less than $20 million in total project costs. A lower interest rate is available to the borrower as a result of “A” rating by Standard and Poors.
The WORKFORCE DEVELOPMENT PROGRAM provides matching grants to assist companies with up to 50 percent of eligible training expenses and assists with new and current employee training. Companies must pay trainees $10.50 per hour and provide health insurance as part of the benefit package and training must focus on the technical aspects of the job. Funding is released on a reimbursement basis upon the completion of the training.
TENNESSEE
Through the FASTS TRACK INFRASTRUCTURE DEVELOPMENT PROGRAM (FIDP), funds are allocated to assist local governments in providing infrastructure to support new or expanding industry. The following types of activities are eligible: water systems, wastewater systems, transportation projects, site improvement, or other specific infrastructure improvements required to support economic growth. Grants are limited to a maximum of $750,000 with amounts determined for individual projects.
The SMALL BUSINESS ADMINISTRATION 504 LOAN PROGRAM provides long-term, fixed-asset financing of 40 percent of a project, not to exceed $750,000 for businesses whose net worth does not exceed $6 million and average net profits do not exceed $2 million. The loan cannot be used for working capital, debt consolidation repayment, refinancing, or venture capital.
The TENNESSEE SMALL BUSINESS ENERGY LOAN PROGRAM is designed to assist in the identification, installation, and incorporation of approved energy-efficiency measures for existing Tennessee businesses. Businesses of fewer than 300 employees or $3.5 million in annual gross sales or receipts can receive loans of up to $300,000. These loans are repaid at 3 percent interest over a period of time not to exceed seven years.
The FASTTRACK JOB TRAINING ASSISTANCE PROGRAM (FJTAP) provides training assistance as an incentive to attract new investment and to encourage existing business and industry to make additional investments in Tennessee. The training assistance is customized to each company’s individual training needs. Levels of training assistance are determined by the amount of the company’s investment, number of new hires, and the skills and knowledge that must be possessed by the prospective or newly hired employees. A customized training plan can be developed in direct coordination with company personnel. The training can be both pre-employment and post employment, including classroom and on the job. Reimbursement of instructional cost by company personnel and selected vendors is eligible for support. The expense of travel, for the purpose of training, is a viable option for the training of new hires and persons who will serve as company instructors.
TENNESSEE JOB SKILLS (TJS) is a work force development program giving priority to the creation and retention of existing jobs while focusing on employers in industries that promote high-skill, high-wage jobs in high-technology, demand and emerging occupations. Training grants can be awarded to employers as an incentive for investing in new technologies, with the training being focused on the performance skills of their present employees affected by the introduction of the new technology. Training assistance can also be awarded to employers who certify that a specific job or job openings exist and at the completion of the training project those participants in the project will fill such job openings. The starting wage for a new job created through the project will be equal to or greater than the prevailing starting wage for that occupation in the local labor market.
TEXAS
The TEXAS EMERGING TECHNOLOGY FUND is a fund that is used for research and development activities in emerging technology industries to aid in the development, production and commercialization of new or improved products within the state. Eligible industries are those that will lead to immediate or long term creation of high-quality new jobs in Texas, and/or could lead to medical or scientific breakthroughs. Preference for funding will be given to the state’s defined industry clusters within emerging technology fields including semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace.
The TEXAS ENTERPRISE FUND, the largest “deal-closing” fund of its kind in the nation, can be used for a variety of economic development projects, including infrastructure development, community development, job training programs and business incentives.
The TEXAS ENTERPRISE ZONE PROGRAM is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state. Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.
TEXAS CAPITAL FUND REAL ESTATE DEVELOPMENT PROGRAM: This program provides financial resources to non-entitlement communities for public infrastructure needed to assist a business that commits to create and/or retain permanent jobs, primarily for low and moderate income persons. This program encourages new business development and expansions. The minimum award is $50,000 and the maximum is $750,000 inclusive of administration costs. The award may not exceed 50% of the total project cost.
The TEXAS LEVERAGE FUND (TLF) provides an additional source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to support job retention or creation. Available for interim, long-term, or gap financing, TLF loans provide flexible financing terms to match the unique needs of communities, with maturities of up to 15 years available. Generally, economic development agencies can borrow four to five times annual sales tax revenues, up to $5 million.
VIRGINIA
The GOVERNOR’S OPPORTUNITY FUND (GOF) is designed as a “deal closing” fund to be employed at the governor’s discretion when necessary to secure a company location or expansion in Virginia. The GOF serves as a final resource for Virginia in the face of serious competition from other states or countries. Awards are made with the expectation that the grant to a locality will result in a favorable decision for the commonwealth. Grants are awarded to localities on a local matching basis. Capital is provided for site acquisition and development, transportation access, training, construction or build-out of publicly owned buildings.
VIRGINIA INVESTMENT PARTNERSHIP GRANT AND MAJOR ELIGIBLE EMPLOYER GRANT FUND: A discretionary performance incentive designed to encourage continued capital investment by Virginia companies, resulting in added capacity, modernization, increased productivity, or the creation, development and utilization of advanced technology. The program is targeted to companies that have operated in Virginia for at least five years, and that are proposing expansion projects that meet certain criteria.
VIRGINIA ECONOMIC DEVELOPMENT INCENTIVE GRANT: A discretionary investment performance grant program designed to assist and encourage companies to invest and create new employment opportunities by locating significant headquarters, administrative or service sector operation in Virginia. Eligible projects must meet minimum requirements for capital investment and job creation.
The VIRGINIA JOBS INVESTMENT PROGRAM: (VJIP) offers customized recruiting and training to companies that are creating new jobs or are substantially retraining existing employees. VJIP offers funding and services through three distinct incentive programs that fit a spectrum of training and retraining needs that include the New Jobs Program, the Small Business New Jobs Program and the Retraining Program.
TECHNOLOGY ZONES: Virginia cities, counties and towns have the ability to establish, by ordinance, one or more technology zones to attract growth in targeted industries. Qualified businesses locating or expanding operations in a zone may receive local permit and user fee waivers, local tax incentives, special zoning treatment or exemption from ordinances. Once a local technology zone has been established, incentives may be provided for up to 10 years. Each locality designs and administers its own program.
