Business Facilities - January 2009 - (Page 14)

Program is designed to provide up to 90% financing to these types of companies in conjunction with a conventional lender for the purchase of equipment or real estate required for recycling or re-use purposes. WORKFORCE TRAINING FUND (WTF): Through WTF, businesses and labor organizations are eligible to receive matching grants of up to $250,000 (in some cases up to $1 million) to help pay for critical employee training for up to two years. credits to spur private development and investment on brownfield sites. MINNESOTA The MINNESOTA INVESTMENT FUND provides grants focused on industrial, manufacturing, and technology-related industries. Grants are awarded to local units of government who provide loans to assist expanding businesses. All projects must meet minimum criteria for private investment, number of jobs created or retained, and wages paid. There is a maximum of $500,000 per grant. At least 50% of total project costs must be privately financed through owner equity and other lending sources. The BORDER-CITIES ENTERPRISE ZONE PROGRAM: This program’s purpose is to provide business tax credits to qualifying businesses that are the source of investment, development, and job creation or retention in the Border-Cities Enterprise Zone cities of Breckenridge, Dilworth, East Grand Forks, Moorhead, and Ortonville. JOB OPPORTUNITY BUILDING ZONE (JOBZ): This initiative is Minnesota’s marquee rural economic development stimulus program, providing substantial tax relief to companies that start up or expand in targeted areas of Greater Minnesota. The JOBZ program offers substantial financial benefits in the form of tax savings including corporate franchise tax, income tax for operators or investors, including capital gains tax, sales tax on goods and services used in the zone if the goods and services were purchased during the duration of the zone, property tax on commercial and industrial improvements but not on land, wind energy production tax, and employment tax credit for high paying jobs. The SMALL BUSINESS DEVELOPMENT LOAN PROGRAM provides loans for business expansions. Those eligible for loans through this program include industries located or intending to locate in Minnesota, as defined by the Small Business Administration size and eligibility standards (generally, those with 500 employees or fewer). Loans up to a maximum of $5 million may be made for any one business. Generally 20% of the project costs must be privately financed through equity or other sources. Interest rate is the market rate of interest for similar securities at the time bonds are sold; rates are fixed for the term of the loan. Real estate loans are for a maximum of 20 years; equipment is 10 years. MISSISSIPPI ADVANTAGE MISSISSIPPI capitalizes on Mississippi’s university-based research in polymer science, engineering, acoustics, and other areas to assist related business development. Incentives include tax credits and taxfree zones, employee training and support, payroll rebates, solid infrastructure, high-speed data and broadband access, university resources and research, and government support. The RURAL ECONOMIC DEVELOPMENT (RED) TAX CREDITS are taken against Mississippi corporate income tax. RED credits are used in conjunction with industrial revenue bonds issued by the Mississippi Business Finance Corporation. The credits are based on the amount of bond-related debt service and can be used to offset up to 80% of the state corporate income tax liability attributable to the project each year for the life of the bonds. The GROWTH AND PROSPERITY PROGRAM (GAP) designates specific counties as GAP counties and provides incentives to companies that locate or expand in these areas of the state. Companies that are approved for GAP will be exempt for a period of 10 years. Included in this full exemption are sales and use taxes on all equipment and machinery purchased during the initial construction of an approved facility. FREIGHT RAIL SERVICE GRANT PROGRAM: This program is designed to make grants available to counties and municipalities to assist them in defraying expenses relating to the upgrading of railroad services to promote industrial development and public safety. The maximum grant amount is $250,000 per project; funding is derived from the issuance of state general obligation bonds. MICHIGAN INDUSTRIAL PROPERTY TAX ABATEMENTS reduce property tax on buildings, machinery, and equipment by roughly 50% for new facilities and 100% for renovation projects for up to 12 years. The MICHIGAN ECONOMIC GROWTH AUTHORITY (MEGA) enables the state to offer tax credits for companies creating or retaining high-wage, high-quality jobs to locate/expand in Michigan rather than competing locations. Manufacturing, R&D, wholesale trade, and headquarters projects, or those in one of the state’s targeted high technology industries, are eligible categories. ECONOMIC DEVELOPMENT JOB TRAINING (EDJT): The employer works with one of 18 state Technical Education Centers or other education providers to design and implement a training plan best suited to the company’s needs. Since its inception in 1994, a total of $347 million in EDJT grants has been awarded to train or re-train 537,652 current employees and 82,791 new hires. TAX-FREE RENAISSANCE ZONES: Michigan has a total of 155 geographic areas designated as free of nearly all state and local taxes for any business or resident presently in or moving into a zone. They consist of urban, rural, and agricultural areas, and former military bases scattered around the state. BROWNFIELDS REDEVELOPMENT: Michigan’s brownfields incentives are designed to promote the redevelopment of contaminated, blighted, or functionally obsolete properties by assisting developers who want to return the property to productive use. The program incorporates the use of Tax Increment Financing and Michigan Business Tax 14 JANUARY 2009 MISSOURI The MISSOURI QUALITY JOBS PROGRAM provides tax incentives for businesses that

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Business Facilities - January 2009 Contents First Word Cover Story: State Incentives Guide Mexico Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Virginia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming No label Canada Alberta British Columbia Manitaba New Brunswick Nova Scotia Ontario Québec Saskatchewan Asia/Pacific International Caribbean Cental/South America Europe Advertiser Index

Business Facilities - January 2009

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