Business Facilities - February 2009 - (Page 16)

FEATURE STORY Growth Magnets The BEIP helped Swiss-based Octapharma USA relocate its corporate headquarters and 25 jobs from Virginia to Hoboken, NJ. The program also helped Fraba, a seller of medical diagnostic and industrial automation products, to establish its U.S. corporate headquarters in Hamilton Township, NJ. The agreements were worth an estimated $517,500 and $75,000, respectively. New Jersey’s Edison Fund provides increased access to early-stage capital and specialized assistance to existing mid-size and large tech and life science businesses. In 2008, the program provided nearly $84 million to 108 early-stage and established technology and life science busi- UNIQUE, NEW SMALL BUSINESS INCENTIVES • Newly elected Missouri Governor Jay Nixon’s “Show Me Jobs” plan will expand tax credits for business and tap another state fund to make loans to small companies. • Minnesota Governor Tim Pawlenty’s 2009 budget proposes boosting financing available for small business by creating a $50million package for tax credits that he says will create over $100-million in new investments. The proposal also includes a 25% refundable tax credit for small business owners that reinvest their businesses quickly to stimulate the economy; a capital gains exemption for investments in small businesses and a 100% up-front exemption on equipment purchases that would be depreciated fully right away. nesses in the state, leveraging more than $129.6 million in total project costs and creating more than 900 new jobs. New Jersey’s Technology Transfer Program allows qualified businesses to sell tax losses or R&D tax credits to raise cash to finance their growth operations. In 2008, 80 companies were approved to participate in the program and share the $60-million allocation available under this program. A unique new incentive package recently announced in New York also will benefit high-technology and biotech companies. “In an effort to encourage 21st century business and build upon our state’s tremendous workforce, the Governor is seeking to provide targeted grants or loans within the manufacturing, financial services, agribusiness or high-tech industries that demonstrate substantial job creation unlikely to occur without state assistance,” says Dennis Mullen, upstate president, Empire State Development. The Growth, Achievement and Investment Strategy Fund is a $50million loan and grant fund targeted at job creation. A key component for high-tech and biotech companies is a provision that seeks to spend $5 million to expand eligibility for the state’s existing R&D Tax Credit in 2010 to life science and technology businesses with fewer than 100 employees in New York but more than 100 staffers worldwide. SMALL BUSINESS GROWTH, URBAN REVITALIZATION Small businesses are a major part of the economy in every community across the country, providing revenue and household-supporting jobs. Today, however, many businesses are finding that they don’t have enough resources to get by without layoffs and down-sizing. To help weather the economic turndown, federal and state economic development leaders have created stimulus packages. The Obama Administration’s economic recovery plan calls for at least $300 billion in tax cuts that include letting companies write off their 2008 losses against profits earned in the past five years, instead of in the most recent two years. This will provide immediate tax refunds to companies struggling with both a credit crunch and the impact of the recession. But state leaders can’t just sit by and wait while the plan is negotiated in Congress. Many say that small businesses need help now, and it is important to expand and develop new incentives geared at stimulating growth within small- to mid-size businesses to put money into their pockets. New Jersey Gov. Jon Corzine recently unveiled a multifaceted plan to provide immediate assistance for businesses and ease the financial burden on small- to mid-size businesses. The plan includes two new and innovative programs, including the $120-million InvestNJ Business Grant Program and the $50-million Main Street Business Assistance Program, which provides the state’s small businesses the incentives and liquidity they need to stay afloat in the economic crisis. According to NJEDA’s Franzini, the new plan eliminates the “throw out” rule, “regular place of business” standards and the alternative minimum assessment from its tax laws (Continued on page 37) 16 FEBRUARY 2009

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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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