Business Facilities - August 2008 - (Page 35)

enzyme production facility in Blair, just north of Omaha. “This is exciting news for our state,” Heineman says. “It’s what I’ve emphasized all along. There are two issues that are interrelated: education and the economic vitality of your state. Continue to give your young people the best education you can to prepare them for a global free-market economy and a technology-driven society, and create jobs to keep young people in the state and expand middle-class job opportunities: That’s what the Nebraska Advantage is doing for us.” Initially, the tax incentives were available to companies in four sectors — biotechnology, telecommunications, financial services and manufacturing. While biotech-related firms entering the program have invested the greatest amount of money thus far, the majority of projects have been in the manufacturing and processing industry. In April, Heineman signed the Nebraska Super Advantage, adding a sixth tier of incentives specifically to reward all non-retail companies that create higher-paying jobs. To qualify, the new jobs must pay at least 150 percent of the state average wage, or 200 percent of the county average, whichever is greater (the state average salary is $33,800, so the new jobs would have to pay at least $50,700 to qualify). Companies that create 75 new jobs and make a $10-million capital investment — or 50 new jobs and a $100-million investment — can receive a sales and use tax refund on capital purchases; a 10-percent wage credit on new employee compensation; a 15-percent investment tax credit, and a 10-year exemption on all personal property. NEBRASKA IS THE SECOND LARGEST ETHANOL PRODUCER “The results have exceeded expectations for all of us who were involved in the development of the package,” says Rod Moseman, vice president of economic development for the Greater Omaha Economic Development Partnership. “Some [of those projects] are up, done and operating, and others are multi-year, even in the construction. We are definitely seeing the results.” According to Moseman, the capital investment component of the Super Advantage is helping to draw data centers, a targeted industry for the greater Omaha area, and one that can take advantage of the state’s public energy rates, which are among the nation’s lowest. With the new higherwage criteria, Heineman says the program is aimed at retaining the next generation of workers by providing more high-tech, information technology, and financial service jobs. “We’re saying to potential businesses that if you will create jobs that pay twice the current average salary of any county in the state, we will provide you with more benefits, more incentives than ever before to do that,” Heineman says.” In Omaha, Moseman notes, employers added 4,700 net new jobs during the 12-month period ending in May, and unemployment there has remained at 3.4 percent. While roughly half the Nebraska Advantage applications have been for projects in the greater Omaha area, Heineman says the program has allowed smaller communities to compete for business interest. In June, Katana Summit opened a facility in Columbus to manufacture wind turbines, a $20million investment that created 200 jobs. Biotech firms and renewable energy facilities continue to spring up throughout the state. According to Heineman, Nebraska recently surpassed Illinois as the second-largest producer of ethanol in the U.S. Novozymes, based in Denmark, conducted a global search for a new location and honed in on several Midwest states before picking Nebraska. The company, which will sell enzymes to corn-based ethanol makers, wanted to be near current fuel ethanol customers and welllocated for future cellulosic ethanol plants, says Mark Paige, Novozymes’ vice president of technical operations, adding that the company also was drawn by “a quite attractive city” and the state’s tax incentive package. Another economic initiative has the state providing matching grants to companies for customized job training in areas from welding skills to ethanol system operations. Meanwhile, Heineman in April also signed legislation to lower taxes for Nebraska businesses, adjusting the state’s corporate income tax bracket so that businesses will now pay a 5.58-percent tax on earnings of up to $100,000, eliminating a $50,000 cap. Earnings above $100,000 are taxed at 7.81 percent. The governor also is aiming to expand international trade. More than 350 businesses in the state are foreign-owned, employing more than 19,000 workers. As a whole, international trade creates more than $5 billion in annual new revenue for the state. In September, the state will host a “reverse trade mission” for international companies to explore business opportunities first-hand. Nebraska, as Heineman says, is “open for business.” BUSINESS FACILITIES 35

Table of Contents Feed for the Digital Edition of Business Facilities - August 2008

Business Facilities - August 2008 Contents First Word Snapshots Corporate Moves: Florida Economic Development 2.0 Everything's Big in Texas Aerospace Sites: Poised for Takeoff The Nebraska Advantage Metro Spotlight: Cullman, Alabama Special Focus: Louisiana Industry Focus: Financial Centers Advertiser Index Inside LiveXChange

Business Facilities - August 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.