Business Facilities - January 2008 - (Page 6) By Business Facilities Editorial Staff Financial incentives to expand or relocate your business can make the difference in where you choose to grow. Once again, we present to you our 50-state guide to the most crucial and unique incentive tools available in the nation. E very state plays the game a little differently, but nonetheless it’s a rarity to find a community in America that doesn’t have a basket of grants, loans, rebates, tax credits, and worker training options to encourage you to choose it over the competition. An exhaustive list and full explanation of every incentive offered by each state might fill an entire issue of ALABAMA 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. We asked the lead economic developers from each state to give us the names of up to five incentives they want our readers to know about; what you’ll read below are the basic details of each of the incentives provided in the states’ responses, edited for length. (An unabridged version ALASKA The AGRICULTURAL REVOLVING LOAN FUND offers low interest rate loans for product development in the agriculture industry. Loan funds may only be used for agricultural production or processing operations in Alaska. Loans may not exceed 75% of the value of the collateral, less existing liens. ALASKA GROWTH CAPITAL provides financing for all business needs, including construction lending, working capital facilities, equipment purchases, and leasehold improvements. Loans range from $100,000 to over $7.5 million, and normally have terms from three to 25 years. Interest rates depend on the risk level of the business and each financing package is customized to meet the needs of the business. The BUSINESS AND EXPORT LOAN GUARANTEE PROGRAM provides financial institutions up to an 80% guarantee of the loan, not to exceed $1 million. The Alaska Industrial Development and Export Authority’s guaran- can be found online at our Web site, www.BusinessFacilities.com.) Please note that although we strive to provide the most accurate information possible, changes in legislation throughout 2008, as well as fine print not reproduced here, may affect the application of any of these incentives to your particular company. Contact the economic developers listed in this issue for a full explanation and details. tee covers acquisition of real or personal property, refinancing, working capital, and export transactions. ARIZONA The MILITARY REUSE ZONE PROGRAM (MRZ) offers three types of benefits: • Transaction Privilege Tax Exemption, which is an exemption from transaction privilege tax on contracts for certain types of construction at an MRZ. • Arizona income/premium tax credits for up to five years for each net new job created, totaling up to $10,000 per employee. • Both real and personal property can be reclassified from class one (25% assessment ratio) to class six (5% assessment ratio), which may result in property tax savings of up to 80% for a period of five years. The TRADE ADJUSTMENT ASSISTANCE PROGRAM provides grants tailored to the specific needs of manufacturing and producing companies that have experienced declines in sales and employment partially due to foreign ALABAMA’S CAPITAL INVESTMENT TAX CREDIT allows an income tax credit of up to 5% of initial capital costs of qualifying projects to new and expanding companies. The credit is available annually for 20 years. The current rate of taxation in Alabama for corporations is 6.5%. The SITE PREPARATION GRANT PROGRAM is available for activities that provide rehabilitation of buildings and other structures (such as accessing, excavating, and surveying) and/or other necessary and appropriate site preparation. The size of the grant depends upon the amount of capital investment. The EMPLOYER EDUCATION CREDIT is a tax credit that is available to employers who provide basic skills education programs to Alabama resident employees. The credit is 20% of the actual costs limited to the employer’s income tax liability. The program must receive written approval from the Alabama Department of Education. 6 JANUARY 2008 http://www.BusinessFacilities.com
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