Business Facilities - February 2009 - (Page 14)

FEATURE STORY Growth Magnets develop business incentives that are helping companies reduce their costs and mitigate the risk of doing business in that particular community,” Hickey says. According to Hickey, it is critical for companies to recognize that every state has a standard toolbox of incentives; however, companies must look beyond that. “Companies need to recognize incentives that are of high value versus those that seem high value, but are not necessarily to that particular company. High-value incentives include cash grants, training grants, infrastructure support, property tax abatements, sales tax exemptions—the ones that really do reduce costs. What may not be of great value is the corporate income tax because it always depends on the type of industry, how much they pay in taxes, and whether that is of significant value or not to that company,” he explains. Specific industries, including high-tech and alternative energy, will most likely reap the benefits of many new incentives. These industries are fast becoming a treasured target for economic officials because they Mike Hickey, Owner and Founder Hickey Associates, LLC recognize incentives that are of high value versus those that seem high value, but may not be to that particular company. “ promise the development of new technology, immediate job creation, higher paying salaries, and continued growth. “No matter where you are doing business today, companies from big to small are looking at ways to enhance revenues and cut costs, so they are very bottom-line oriented in terms of making the decision about where they are going to stay and do business,” says Caren Franzini, CEO of New Jersey’s Economic Development Agency. “It’s critical for all states to lower the costs of businesses to stay in the state, and to make incentives attractive for other companies to come into the state for the first time.” GREEN ENERGY: WAVE OF THE FUTURE President Obama’s goal is to double alternative energy production in the next three years. This is good news for green business, as incentives will provide much-needed tax breaks to help spur environmental industry growth. Green businesses are a rising sector in the national economy. According to the business trade association New Energy Finance of Washington, Companies need to ” —Mike Hickey GREEN INCENTIVES: $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ • A bill introduced in Maryland will provide tax breaks to companies in Prince George’s County that provide services with minimal pollution. The proposed bill would establish special zones where green businesses can get a break on property taxes. • The Massachusetts Department of Energy Resources (DOER) has released regulations expanding support for green technologies mandated by the Green Communities Act, energy reform legislation enacted by the state last year. This law calls for changes in the state’s Renewable Energy Portfolio Standards (RPS) that would double the rate of increase in the use of new renewable energy. • Kansas Governor Kathleen Sebelius has unveiled a new energy proposal that requires 20% of Kansas’ energy production to come from renewable sources by 2010. Under the proposed legislation, financial incentives will be available for companies that make renewable energy components, such as wind turbines, to locate in Kansas. Gov. Sebelius’ energy proposals include an innovative method of financing new renewable energy plants: bonds that would be paid off with the state income taxes paid by the employees of those businesses. 14 FEBRUARY 2009 PHOTO CREDIT: HICKEY ASSOCIATES, LLC

Table of Contents Feed for the Digital Edition of Business Facilities - February 2009

Business Facilities - February 2009 Contents First Word Snapshots Corporate Moves: Ohio Governor's Report Growth Magnets Industry Focus: Automotive International Report: Luxembourg Corporate Moves: Tennessee Cream of the Crop in North Carolina Advertiser Index Ask the Expert

Business Facilities - February 2009

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