Alabama
New legislation includes the Alabama Voluntary Cleanup Act, which brings brownfield and greenfield sites on a more equal competitive level for economic development.
Alabama Works was signed in November 2000. Legislation added $1 million in the education budget to establish a technical scholarship program. Federal funding sources will also contribute $3 million.

Alaska
The Alaska State Legislature passed a resolution to support the sale of a portion of the state’s royalty on natural gas from Alaska’s North Slope, at a competitive, reasonable rate to allow for electrical generation within the North Slope Borough to nearby power data centers that would service the demands of the Internet. The state is developing a Web site to present economic information at the regional and state level.

Arkansas
2001 legislation includes improvements to existing incentives for emerging technology, biotechnology, e-commerce, computer-related, and manufacturing companies, as well as office sector businesses and corporate headquarters. There is also Tax Increment Funding, that lets local governments finance improvements in redevelopment districts via bonds backed
by increase in property tax due to improvements.

Colorado
Colorado has a new Certified Capital Company economic development program, providing financing and long-term equity capital for new or growing, small businesses. Twenty-five percent of the new funding is earmarked for investments in rural Colorado.

Connecticut
Year 2000 legislation included Tax Credits for Brownfields Redevelopment that authorizes up to $500 million in business tax credits for developing new facilities in designated towns, or cleaning up and redeveloping contaminated or potentially contaminated sites anywhere in the state. Effective Jan. 1, 2000, Connecticut’s corporate income tax rate was reduced for the third and final time in a three-year plan to 7.5 percent.

Delaware
The Delaware Biotechnology Institute officially opened in April 2001 in Newark. Part of a statewide initiative to position Delaware as a center of excellence in biotechnology and life sciences, its mission is to lead scientific discovery, provide biotechnology-based education, promote economic development and create quality jobs.

Florida
New legislation relates many areas of Enterprise Zones, including a $5,000 per unit threshold to Enterprise Zone business equipment. There is also a Jobs Tax Credit for enterprise zones.

Georgia
The Job Tax Credit relaxes wage restrictions and allows Tier 1 counties (least economically developed) to take credits against income tax withholdings. The Ports Activity Job Tax & Investment Tax Credit, simplified in January 2001, allows a $1,250 increase for each tier. Wage restrictions related to Georgia’s Job Tax Credit have been relaxed and a provision is made to allow Tier 1 counties to take credit against income tax withholdings.

Hawaii
Recently passed legislation, Acts 297 and 221, passed during the 2000 and 2001 legislative sessions relate to the new economy and taxation. Act 297 allows a qualified high-technology business to sell its unused net operating loss carryover or unused tax credits to another taxpayer in an amount equal to at least 75 percent of the amount of the surrendered tax benefit, with approval of the department of taxation. Act 221 provides a technology infrastructure renovation and construction income tax credit for taxable years beginning Dec. 31, 2000, to Dec. 31, 2005.

Idaho
A $3.9 million rural development package is part of the Idaho Department of Commerce’s budget for 2002. The package, which presents the largest budget increase to the department since 1987, contains $3 million for building roads, sewers, water and other public facilities necessary to encourage business expansion into rural Idaho.

Illinois
In May 2001, Illinois legislation passed and expanded several initiatives. The Corporate Headquarters Relocation Act expands Edge Tax Credits from 10 years to 15 years for businesses with $25 billion in annual worldwide revenues and at least 250 headquarters employees that relocate their corporate headquarters to Illinois.

Indiana
The $50 million 21st Century Research and Technology Fund provides venture capital to state-based technology companies and research institutions to boost partnerships.

Iowa
The New Jobs and Income Program (NJIP) has been expanded to include up to 10 percent of the cost of land and existing buildings. Investment tax credits have been expanded for companies using NJIP to make significant investments that create quality jobs.

Kansas
New legislation provides tax incentives for the construction of electric power generating plants and transmission lines. The incentives include a property tax exemption for up to 12 years.

Louisiana
As a well-defined strategy, the Louisiana Department of Economic Development’s new structure is being built around 15 highly-skilled cluster and service professionals whose experience, motivation, and leadership will be complemented by eight regional allies.

Maine
New or continued funding for economic development programs include $4.5 million in capital grants for the establishment of a business incubator system for Maine’s targeted technologies (biotech, marine science, agriculture & forestry, composites, precision manufacturing, information technology and environmental technology).

Maryland
New initiatives extend a loan program for Maryland’s small businesses, allow economically distressed counties to establish local revolving loan funds, and expand the Maryland Small Business Development Financing Authority and the Enterprise Zone programs.

Massachusetts
The Capital Access Program (CAP) assists small businesses throughout the Commonwealth in obtaining loans to start, expand or continue operating profitably. Its purpose is to gain access to capital where none currently exists. The state offers an Investment Tax Credit (ITC), a 3 percent credit against the corporate excise tax for the purchase and lease of qualified tangible property.

Michigan
Eleven Smart Zones have been designated to stimulate growth of technology-based businesses and jobs by creating recognized clusters of technological businesses and research institutions. The Core Communities Initiative aims to revitalize traditional regional centers of commerce by assisting them to more effectively compete for development.

Minnesota
The Labor Force Assessment Grant Program, a state pilot grant program, awards grants to regional projects to identify and evaluate the underemployed work force, and to use the data to support business development and job creation initiatives throughout Minnesota.

Mississippi
The Advantage Mississippi Initiative fuels innovation and a sense of urgency to maximize all resources to meet the needs of business and industries considering relocation or expansion in Mississippi. The plan combines tax credits, incentives, customized job training and other specialized programs.

Missouri
The Basic Industry Retraining Program was expanded to support all new investment. Other bills passed but awaiting the governor’s approval include the Brownfield Redevelopment Program. SB 500 (New Jobs Training Bonds) removes restrictions on professional and health services in new jobs training programs.

Montana
Legislation has resulted in a new Office of Economic Development that will oversee and coordinate all economic development policies and activities across the state.

Nebraska
The Nebraska Legislature in 2001 passed the Invest Nebraska Act and the Nebraska Venture Capital Forum Program. The Invest Nebraska Act allows businesses to receive tax credits that can be applied against either corporate income tax liability or income withholding tax liability.

Nevada
Nevada will begin providing some incentives July 1, 2001 to companies generating electricity from renewable sources. These incentives include sales and use tax abatement and property tax abatement.

New Hampshire
The state has unveiled a telecommunications planning and development initiative overseen by an advisory board comprised of economic development and telecommunications representatives.

New Mexico
Legislation changes involve a new gross receipts tax exemption for space related activity for companies that manufacture in New Mexico.

New York
Tax changes in Year 2000 include the Petroleum Business Tax (PBT), Corporation Franchise Tax, Empire Zones Program Act, Low-Income Housing Tax Credit, and other changes that reduce the differential tax imposed on S-corporations.

North Carolina
The Rural Redevelopment Authority will create and administer the Rural Investment Fund, a revolving loan fund that will finance loans and grants for economic development projects. The William S. Lee Act was revised to include wage tests for the Industrial Recruitment Competitive Fund and Industrial Development Fund, and a five-year extension of the carry-forward period for companies investing $50 million to $150 million.

North Dakota
The Department of Commerce has been created to combine Economic Development & Finance, Division of Community Services, Tourism Department, and Workforce Development to strengthen, streamline and improve economic development and build tourism. New and additional tax credits include a 30 percent investment tax credit to encourage investment in the primary business sector; investment tax credits for value added agriculture, and investment tax credits for wind energy. Tax credits were increased for renaissance zones.

Ohio
Ohio offers a Technology Investment Tax Credit to promote private investment in small R&D and technology-oriented firms. Ohio investors may reduce their state taxes by up to 25 percent of the amount they invest in qualified Ohio companies.

Oklahoma
The Oklahoma Quality Jobs Act expands geographic areas that automatically receive a 5 percent cash back incentive. The Rural Venture Capital Act creates a 30 percent tax credit for investment in quality, rural small business ventures. Enterprise Zones make targeted investment in land or buildings eligible for tax credits.

Oregon
Long-term enterprise zone programs for community, income and property tax abatement have been extended up to 15 years.

Pennsylvania
Pennsylvania welcomed the 21st century with the largest tax cut in its history: $735 million. Pending legislation includes $56.4 million to provide innovative financing for small- and medium-sized technology firms to attract high-tech jobs; a $10 million Brain Gain initiative to encourage retention and attraction of young talent in Pennsylvania; and $74 million to develop infrastructure and provide incentive grants to employers wishing to expand or relocate in the Commonwealth.

Rhode Island
The Rhode Island Economic Development Corp. is setting up the revolving loan fund with an EPA grant to finance brownfield cleanups for redevelopment.

South Carolina
South Carolina passed legislation related to the attraction of technology-intensive industries to the state. Jobs tax credits may be claimed against South Carolina state income tax for companies involved in technology-intensive industries.

Tennessee
Tennessee’s Network for High Performance Manufacturing Program seeks to give manufacturers across the state a look at other leading manufacturing companies and their techniques and practices. Participating manufacturers learn from one another by interactive discussions of processes and systems.

Texas
The following bills were passed by the Texas legislature during its recent session: a bill relating to the enhancement/improvement of Enterprise Zones; a bill creating the Office of Rural and Community Affairs; a bill relating to tax abatements by school districts; and a bill providing for grants for Defense Department-dependent communities.

Utah
Utah’s governor is leading a new high-technology initiative that includes several components. The first is to double the number of engineers graduating from Utah’s universities in the next five years. The second is to establish “Smart Sites” in rural parts of the state. These sites will include the infrastructure and trained employees necessary for companies to outsource high-tech work.

Vermont
Vermont has invested a great deal of effort into the SBIR (Small Business Innovation Research) program in the past year with dramatic results.

Virginia
Virginia continues to promote its technology sector. At this time, every available site and building in the Commonwealth can be found at www.YesVirginia.org through the VirginiaScan™ feature. Virginia has also launched an aggressive television campaign in California. A new 30-second spot is running on a variety of cable stations through the end of July in the Bay Area, Silicon Valley, San Diego, and Los Angeles. It highlights Virginia’s energy advantages.

Washington
Washington has implemented a multi-agency Statewide Strategic Plan for Economic Vitality.

West Virginia
West Virginia’s business partners and a private-sector council formulated an economic development strategy, “West Virginia: A Vision Shared.” The plan led to the passage of key legislation designed to facilitate capital formation, encourage regional cooperation and strengthen the link between education and economic development.

Wisconsin
Initiatives and legislation involve the single sales factor apportionment for multi-state corporations to be phased in beginning in 2003; exemption from the sales tax for electricity sold to utilities by merchant power plants; a property tax exemption for air carrier hub facilities; and 20 technology zones to promote the development and expansion of high-technology business.

Wyoming
Year 2001 legislation includes the Workforce Training Funds, administered by the Wyoming Department of Employment in conjunction with the Wyoming Business Council, which has increased monies to help new and existing businesses meet their training needs; and the Partnership Challenge Loan Program, amended to provide for bridge financing for up to 35 percent of the project cost.

Karen Thuermer is a Devon, Pa.,-based freelance writer