Business Facilities - February 2009 - (Page 33)

a small number of tax credits are directly attributed to job-creation activities, according to the study. The vast majority of credits have been used for machinery and equipment investment. Also, though job creation and capital and training investments generated the potential for $2 billion in tax credits in 2006, only $632 million were claimed. Scott Hamilton, president of the North Carolina Economic Developers Association, says the fact that many companies are not claiming their tax credits does not mean they are not helpful in the recruiting process. He likened it to a shopper buying a product because of the rebate, but never getting around to filling out the paperwork and mailing it in. “The report indicates that the tax credits may not be as effective, but in our conversations with companies and clients we also see that there is a benefit that’s hard to scale, that goes to providing a quality business climate,” Hamilton says. “We think those tax credits being available across all of our 100 counties provide North Carolina with the rankings that [show the state has] a positive business climate. When you go back and look at all the different rankings that North Carolina gets, we’re historically ranked in the top three states as having a pro-business climate.” The report’s authors surveyed companies receiving Lee Act tax credits and found that incentives ranked low on the list of priorities for business executives. Similar surveys by national magazines, the authors note, demonstrate that “incentives are generally less important than a skilled, well-educated workforce, adequate infrastructure, state tax rates and regulatory climate.” Finally, the authors suggest that North Carolina may be better off giving more cash grants through its discretionary incentive funds and lowering its corporate tax rate. An analysis showed that had statutory tax credits been abolished in recent years, the corporate tax rate could have been reduced from 6.9% to 6.25% in 2005; 6.24 % in 2004; and 6.19% in 2003. “Currently, North Carolina has one of the high- BLADEN COUNTY NON-PROFIT GARNERS NATIONAL ECONOMIC DEVELOPMENT AWARD he U.S. Department of Commerce recently awarded its 2008 Excellence in Economic Development Award to Bladen’s Bloomin’ Agri-Industrial, Inc., a private non-profit real estate company operated in conjunction with the Bladen County Economic Development Commission. The Excellence in Innovation award, one of eight award categories for which the federal government considers nominations each year, cites Bladen’s Bloomin’s marketdriven strategy for helping to grow the local economy. Sandy K. Baruah, U.S. Assistant Secretary of Commerce for Economic Development, delivered the award to Bladen County leaders. T 3M Caterpillar Coty Moen Pilgrim’s Pride Static Control Tyson Wyeth The world’s best-known companies thrive at the southern base of the famed Research Triangle Region. You can, too. PHOTO CREDIT: NORTH CAROLINA DEPARTMENT OF COMMERCE U.S. Economic Development Administration (EDA) director of Legislative and Intergovernmental Affairs Division, Patty Sheetz, joined U.S. Representative Mike McIntyre in Elizabethtown, NC, recently to present EDA’s Excellence in Economic Development Award 2008 in the category of Excellence in Innovation to Bladen’s Bloomin’ Agri-Industrial, Inc. Pictured (from left): McIntyre; Robert Hester, president, Bladen’s Bloomin’ Agri-Industrial, Inc.; Sheetz; and Chuck Heustess, executive director, Bladen’s Bloomin’ Agri-Industrial. LEE COUNTY Southern Base of the Research Triangle Region Call now. We’ll tell you more. 919.774.8439 info@lcedc.com #1414 at www.BusinessFacilities.com (Continued on page 35) BUSINESS FACILITIES 33 http://www.BusinessFacilities.com

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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