From Site Selection magazine, November 2000
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Hawaii
The Technology Omnibus Bill signed into law by Gov. Ben Cayetano provides new tax incentives for companies investing in Hawaii's high-tech industries and empowers the High Technology Development Corp. to market and promote high-tech development. "With this bill, we're moving Hawaii to the forefront of the nation as one of the best places to do business in high technology," the governor said. "House Bill 2901 encourages the continued growth of Hawaii's rapidly developing high-tech industry by positioning it as an attractive investment site for technology businesses and related industries."
Among the new tax incentives, qualified high-tech businesses can sell at least 75 percent of the amount of their unused net operating loss carryover and get a possible refund. The new law also extends the exemption of the state income tax on royalties reserved for qualified tech businesses for database, biotechnology and performing arts products developed by software. The bill further allows the High Technology Development Corp. to establish a technology revolving loan fund and provide seed capital for companies in the form of convertible debt.
Governor: Benjamin J. Cayetano (D) 808-586-0034
Gov. Dirk Kempthorne continued Idaho's recent economic expansion efforts by signing into law bills that invest new dollars into economic development, enhance education and promote trade. On May 12, the governor signed a bill awarding $4 million to the Regional Development Alliance (RDA). The RDA will use the funds to create 120 jobs over a five-year period in eastern Idaho. Incorporated in 1997, the RDA was established to promote economic diversification and expansion activities in the seven counties surrounding the Idaho National Engineering and Environmental Laboratory. Since its inception, the alliance has received $14.5 million and created 2,600 jobs.
Kempthorne also signed into law the largest public schools budget in Idaho's history. The $873 million education budget will be invested in new and creative instructional methods, a statewide reading initiative and teacher incentives. In addition, the governor signed an historic trade agreement with Alberta. The pact commits Idaho and Alberta to work together in areas such as agriculture, forestry, transportation, trade, technology, education, tourism and the environment.
In other action affecting Idaho's economy, the governor signed a broad-based $29 million tax-cut package into law, including the complete elimination of the marriage tax penalty in the state. The bill also includes an increase in the investment tax credit, affecting some 16,000 businesses and individuals in Idaho.
Governor: Dirk Kempthorne (R) 208-334-2100
Tax relief and high-tech investment were the themes of Illinois Gov. George Ryan this year as he signed into law bills giving businesses significant tax breaks and providing millions of dollars for technology research and development. The EDGE (Economic Development for a Growing Economy) Tax Credit provides an income tax credit to companies locating in Illinois that create at least 25 jobs and make a minimum investment of $5 million. The tax credit may equal up to the total amount of the employees withholding tax. Another program administered through the Illinois Dept. of Commerce and Community Affairs is the $32 million Prime Sites initiative, which provides essential infrastructure upgrades and prepares sites for new businesses and redevelopment in distressed communities.
The most far-reaching program launched by Ryan is the Illinois VentureTECH Initiative. A five-year, $1.9 billion program, VentureTECH is a comprehensive strategy for investing resources in higher education and advanced research and development. Among the programs to be funded will be health sciences and biotechnology, information technology and needed infrastructure and facility support. In addition, the Illinois Technology Venture Council will be charged with raising more than $800 million in venture capital by 2004. This money will be used to fund start-up firms in various high-tech fields across the state. Ryan also gave approval to spending $34 million in state money to build the DuPage County Research Park, where academic, government and private sector leaders will work together to develop new technology and bring it to the marketplace. The project on a parcel of the DuPage Airport in West Chicago is receiving $13.4 million in federal funds.
Governor: George H. Ryan (R) 217-782-6830
E-business and taxes continued to dominate the Indiana scene as Gov. Frank O'Bannon signed legislation providing for greater technology infrastructure and giving businesses some relief on unemployment insurance taxes. On Aug. 10, the state began soliciting bids to use the right of way along the Indiana Toll Road as the pathway for high-speed broadband telecommunications infrastructure. O'Bannon said that adding fiber optic routes along the 157-mile (253-kilometer) highway would improve communications throughout the region. In addition to providing greater Internet access for businesses in Indiana, the high-tech communications lines will enable the Toll Road to install electronic toll collection facilities and provide other high-tech services. It will also enable the Indiana Dept. of Transportation to deploy more technologically advanced transportation initiatives along the Toll Road.
In other pro-business activity, Gov. O'Bannon launched a pilot program designed to help Indiana companies keep their high-tech machinery humming. The creation of the $1 million Technology Enhancement Certification for Hoosiers Fund will make grants available to Indiana companies for training information technology workers in such fields as software development, systems networking, engineering and other advanced e-business applications.
On taxation policy affecting businesses, the governor signed a bill reducing the unemployment insurance taxes paid by employers. Over the next two years, Indiana businesses will receive a tax cut of $105 million. Meanwhile, the governor vetoed certain research and development tax credits that would have amounted to $5.2 million a year in savings for Indiana businesses. He also vetoed a bill that would have made more money available to the Local Economic Development Organization.
Governor: Frank O'Bannon (D) 317-232-4567
Gov. Tom Vilsack's $336 million economic development package this year includes $300 million to help local governments build new attractions and repair schools and $35 million in tax breaks for investment in new businesses. The governor also launched a "smart growth" initiative designed to provide a model for local communities in land-use planning.
Iowa's new Brownfield Redevelopment Program and Fund provides financial and technical assistance in the acquisition, remediation or redevelopment of contaminated sites. Iowa also extended the period a qualified city or county may apply for Enterprise Zone designation from July 1, 2000 to July 1, 2003. The bill further allows an eligible business to have any tax credit in excess of the tax liability for the taxable year refunded.
Vilsack also signed into law a bill giving employers participating in the Accelerated Career Education Program a tax credit of 10 percent of the withholding gross wages owed. To streamline permitting, the Iowa Dept. of Economic Development has formed the Regulatory Assistance Team composed of representatives of IDED, Dept. of Natural Resources, Dept. of Commerce, Dept. of Work-force Development, Dept. of Revenue and Finance, and Dept. of Transportation.
Governor: Tom Vilsack (D) 515-281-5211
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