Business Facilities - January 2009 - (Page 9)

stage companies to assist in working capital, development of technology, and operational capital during research and development. Companies must become Delaware-based prior to funding. The DELAWARE STRATEGIC FUND: For businesses considering locating in the state, financial assistance may be provided in the form of low-interest loans, grants, or other creative instruments to support the attraction of businesses that pay sustainable wages. Assistance terms are negotiated specific to each firm’s individual needs and situation. The Delaware Strategic Fund also represents the primary funding source used by for SBIR Bridge Grants and Brownfield Grants. CORPORATE INCOME TAX CREDITS (TARGETED INDUSTRY & TARGETED AREAS): Firms within targeted industries qualify for corporate income tax credits of $400 for each new employee and $400 for each new $100,000 investment. Firms within targeted industries that also locate in a targeted area qualify for $650 for each new employee and $650 for each new $100,000 investment. Firms must invest a minimum of $200,000 and create a minimum of five new positions. The NEW ECONOMY JOBS PROGRAM is designed to provide an innovative tool to bring high-wage jobs to Delaware, while allowing the state to effectively recruit and establish headquarters, research and development jobs, and specialized financial services firms. The legislation provides businesses up to a 65% rebate on withholding taxes. To qualify, an employer must add at least 50 net new jobs for new Delaware taxpayers with each having an annual salary of at least $100,000. WORKER’S COMPENSATION INSURANCE REQUIREMENTS: Updated May 2007 for contractors, independent contractors’ partners and sole proprietors, this measure lowers workers compensation insurance premiums. The reforms are designed to reduce premiums by 15% to 25%. The anticipated savings come from the creation of a fee schedule for medical reimbursements and development of health care practice guidelines or medical protocols for the treatment of injuries. The NEIGHBORHOOD ASSISTANCE ACT encourages firms paying Delaware corporate tax to invest in communities considered impoverished under the act by offering a tax credit. If a business invests in an impoverished community either directly by providing services or projects to low-income individuals, or indirectly by contributing money or goods and services to a neighborhood organization that provides services in this community, then it may be eligible for a tax credit of up to 50% of the investment or donation up to a maximum of $100,000. DELAWARE COMPETITIVENESS FUND: The purpose of the Delaware Competitiveness Fund is to induce Delaware legacy manufacturers to make capital investments to preserve and expand productivity, competitiveness and jobs at existing Delaware plant sites that face decline due to national and global competition. Grants from the Competitiveness Fund may equal up to 3% of the project's total capital investment. Loans may equal up to 95% of the total project cost. CITIZEN’S BANK OF DELAWARE’S MACHING LOAN PARTNERSHIP PROGRAM: Citizens Bank has formed a partnership with the state to create the Citizens Business Bank, featuring the Citizens Competitiveness Fund, a $12.5 million low-interest loan program making one-time investments to create and retain jobs and expand business at existing Delaware companies.. THE CLEAN ENERGY PARTNERSHIP: The purpose of the Clean Energy Center Partnership is to support the work and research conducted at the University of Delaware and Delaware State University, and to build a nationally recognized Clean Energy Center based on the strength of these institutions’ existing programs. The state is offering matching grants for research initiated and paid for by the industry which must be conducted by the University of Delaware and/or Delaware State University. Eligible companies can be from Delaware or surrounding states. FLORIDA 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 cer- tain other taxes. Pre-approved applicants who create jobs in Florida receive tax refunds of $3,000 per new full-time job created, and $6,000 in an Enterprise Zone or rural county. For businesses paying 150% of the average annual wage, add $1,000 per job; for businesses paying 200% of the average annual salary, add $2,000 per job. There is a cap of $5 million per single qualified applicant in all years, and no more than 25% of the total refund approved may be taken in any single fiscal year. 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—biomedical technology, financial services, silicon technology, and transportation equipment manufacturing; create at least 100 new full-time equivalent jobs (if a research and development facility, create at least 75 new full-time equivalent jobs) in Florida in a threeyear period; and make a cumulative investment in the state of at least $100 million (if a research and development facility, at least $75 million) within a three-year period. QUALIFIED DEFENSE CONTRACTOR TAX REFUND: This tax refund may be up to $5,000 per job created or saved in Florida through the conversion of defense jobs to civilian production, the acquisition of a new defense contract, or the consolidation of a defense contract that results in at least a 25% increase in Florida employment or a minimum of 80 jobs. CAPITAL INVESTMENT TAX CREDIT: This is an annual credit, provided for up to 20 years, against the corporate income tax. Eligible projects are those in designated high-impact portions of the following sectors: biomedical technology, financial services, information technology, silicon technology, and transportation equipment manufacturing. Projects also must create a minimum of 100 jobs and invest at least $25 million in eligible capital costs. GEORGIA Recently, Georgia became the first state in the Southeast to adopt A SINGLE FACTOR BUSINESS FACILITIES 9

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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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