Monday, February 21, 2011

EDC Tracking Several Bills of Interest to Economic Development in the 2011 Kentucky General Assembly Session

The Greater Owensboro Economic Development Corporation is working closely with counterparts around the state on several bills in the Kentucky General Assembly in Frankfort this session.

Two bills of interest would provide additional tools for job attraction and retention.  House Bill 448 would create an individual angel investor tax credit program to attract investment capital to small and startup companies to spur job creation.  A similar program already exists in 27 states.  The program would provide incentives to investors or investment funds that put money into startup and emerging companies focused on high technology or new proprietary technology.

"This bill would benefit companies, investors, and all Kentuckians," said EDC President Nick Brake.  " A transferable tax credit like this would kick-start emerging companies and help them create jobs," said Brake.  Companies such as the small biotech or other startup firms attracted to Owensboro's life science efforts or the Centre for Business and Research would be prime targets for this type of program.

The second is House Bill 462 which broadens and expands the job retention efforts that were part of the Kentucky Revitalization Act (KRA) to headquarters, office, service, and technology companies.  Currently the KRA is applicable only to manufacturing jobs.

"Our competition is enhancing job retention efforts through tax credits to preserve tax and employment base in the state," said Brake.  "This enhanced tool for job retention can spur reinvestment and even job growth through consolidation.  The goal of job retention should apply to segments of the state economy in addition to manufacturing such as headquarter, service and technology companies with 200 or more employees," said Brake.

Brake and EDC Executive Vice President and Emerging Ventures Director Madison Silvert will be in Frankfort twice this week advocating legislation that benefits job growth and retention.

For more information about this or other economic development legislation, click on the bills above or visit the Kentucky Legislature Home Page.

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