Alabama. Governor Kay Ivey signed House Bill 391, sponsored by Rep. Steve Clouse (R – HD93) and Sen. Tom Butler (R – SD2), into law, providing relief from the business privilege tax for Alabama small businesses. When fully implemented, the exemption is projected to save the state’s small businesses an estimated $23 million a year. Beginning in tax year 2023, this new law cuts the $100 minimum business privilege tax in half to $50 for small businesses, and it completely exempts small businesses from the minimum tax beginning in 2024. The exemption will provide relief to more than 230,000 small businesses across Alabama and further demonstrates Governor Ivey is delivering real results to Alabamians and making this state the best place to do business.[1]
Georgia. Governor Brian P. Kemp and the Georgia Department of Economic Development (GDEcD) announced that through the third quarter of fiscal year 2022 (July 1, 2021 – March 31, 2022), job creation and investments resulting from economic development projects have already surpassed fiscal year 2021 year-end totals. These 251 project locations supported by GDEcD’s Global Commerce team will result in the creation of more than 35,400 new jobs and $12.9 billion in investment for the state. Additionally, there was a recorded increase of 54% in total investment compared to the same time period last year. Delivering on a promise Governor Kemp made to Georgians to strengthen economic opportunity in rural Georgia, nearly 78% of both projects and investments were outside the 10-county metro Atlanta area, and over half of the jobs created were outside the 10-county metro Atlanta area.[2]Kentucky. Hill’s Pet Nutrition Inc., a global leader in science-based pet nutrition, will expand its operations in Bowling Green. The Kentucky Economic Development Finance Authority in February preliminarily approved the company for up to $4.5 million in tax incentives through the Kentucky Reinvestment Act. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability assessments. The $15 million project is expected to create 25 jobs over the next three years.[3] Gov. Andy Beshear noted the continued growth of Kentucky’s distribution and logistics sector, as he announced G&J Pepsi-Cola Bottlers Inc. will invest $8.9 million toward a new facility in Maysville, creating approximately 73 jobs with at least 45 of those positions allocated to Kentuckians. The investment will include a new 124,000-square-foot warehouse in Mason County that will run 12 routes daily and help facilitate 4.5 million cases of beverages across Kentucky and Ohio each year. To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.125 million in tax incentives based on the company’s investment of $8.9 million and annual targets of: creation and maintenance of 45 Kentucky-resident, full-time jobs across 15 years; and paying an average hourly wage of $29.84 including benefits across those jobs. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates.
The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, G&J Pepsi-Cola Bottling Inc. can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.[1] Gov. Andy Beshear announced the expansion of Bardstown Bourbon Co.’s distillery in Nelson County, a $28.7 million investment creating 29 full-time jobs and increasing the operation’s annual capacity by approximately 55,000 barrels. The project will include an expansion of over 15,000 square feet to the existing distillery, bringing the total square-footage of the facility to over 390,000. The operation will add space to one of the fermenter buildings, 16 new fermenters, a new distillation column and necessary equipment to accompany it, a hot water processing tank, grain handling equipment, chemical treatments and glass towers to hold the still that will be seen from the parkway. KEDFA preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $750,000 in tax incentives based on the company’s investment of $28.7 million and annual targets of: creation and maintenance of 29 Kentucky-resident, full-time jobs across 10 years; and paying an average hourly wage of $38.08 including benefits across those jobs. Additionally, KEDFA approved Bardstown Bourbon Co. for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, Bardstown Bourbon Co. can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.[2] Gov. Andy Beshear announced F&E Aircraft Maintenance LLC (FEAM AERO), a provider of aircraft maintenance and engineering services, will locate a new three-bay hangar at the Cincinnati/Northern Kentucky International Airport (CVG), creating nearly 250 full-time positions, including at least 124 Kentucky-resident jobs, with a $40.2 million investment. FEAM AERO will construct a 150,000-square-foot, three-bay hangar at CVG to house Boeing 767 aircraft, with work expected to begin in June of this year and completed by the end of 2023. The location will include 15,000 square feet of back shop space, 5,000 square feet of office space and 175,000 square feet of ramp access. Jobs created at the new hangar will include aircraft mechanics and technicians, ground support equipment mechanics, administrative personnel and management positions. KEDFA preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.75 million in tax incentives based on the company’s investment of $40.2 million and annual targets of: creation and maintenance of 124 Kentucky-resident, full-time jobs across 10 years; and paying an average hourly wage of $38.50 including benefits across those jobs. Additionally, KEDFA approved FEAM AERO for up to $300,000 in tax incentives through KEIA. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. Also, FEAM AERO can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.[1]
Michigan. Bulk Ag Innovations, dba West Michigan Tool & Die, a contract tool and die shop, is expanding its operations in Benton Harbor Township. The project is being supported by an $88,000 Micro Michigan Business Development Program performance-based grant. The Micro MBDP provides grants, loans, or other economic assistance to businesses for highly-competitive projects in Michigan that have fewer job creation numbers than required by the original MBDP guidelines. The $3.4 million project is expected to create 22 jobs.[1] Duncan Aviation, a family-owned aircraft maintenance and repair company, plans on expanding at its facility in Battle Creek. The project is being supported by a $488,000 Michigan Business Development Program performance-based grant. In addition, Battle Creek Tax Increment Finance Authority and city of Battle Creek have offered $2.5 million to assist with the addition of a tarmac around the hangar. The $30 million project is expected to create 61 jobs.[2] Governor Gretchen Whitmer and the Michigan Economic Development Corporation (MEDC) have announced two business expansion projects expected to create 77 new jobs and generate a total private investment of more than $34 million in Battle Creek and Benton Harbor Township have received support from the Michigan Strategic Fund. First, Duncan Aviation must expand in order to maintain its market share and plans on expanding at its Battle Creek facility, where it will add one hangar, three support buildings and a new vehicle maintenance building. The project is expected to generate a total capital investment of more than $30 million and create at least 61 high-wage jobs, supported by a $488,000 Michigan Business Development Program performance-based grant. Michigan was chosen for the project over competing sites in Nebraska and Utah. The Battle Creek Tax Increment Finance Authority and city of Battle Creek have offered $2.5 million to assist with the addition of a tarmac around the hangar. Second, West Michigan Tool & Die (WMTD) is expanding its existing footprint in Benton Harbor Township, including adding a bay and reconfiguring its machining building. The project is expected to generate a total capital investment of $3.4 million and create 22 jobs, supported by a $88,000 Micro Michigan Business Development Program performance-based grant. Michigan was chosen for the project over a competing site in Chicago. The West Michigan Tool & Die project was supported through the Micro MBDP tool. The Micro MBDP provides grants, loans, or other economic assistance to businesses for highly-competitive projects in Michigan that have fewer job creation numbers than required by the original MBDP guidelines.[3] LG Energy Solution plans to quintuple capacity to produce battery components at its site in Holland. The plant will use the most advanced and efficient battery cell manufacturing processes. The Michigan Strategic Fund approved a package of incentives to support the company’s new battery manufacturing facilities, which include: $10 million Michigan Business Development Program performance-based grant for the creation of up to 1,200 jobs; $10 million Jobs Ready Michigan performance-based grant to assist with job-related training; 20-year Renaissance Zone to the city of Holland, valued at an estimated $132.6 million; Up to $36.5 million in Community Development Block Grant funds to Allegan County to reimburse the company for the purchase of machinery and equipment, with an additional $50,000 for grant administration. Local support includes an Economic Development Incentive Rider from the Holland Board of Public Works that will provide significant savings. Allegan County is also acting as applicant for the CDBG program application and process, and the city of Holland is supportive of a property tax abatement. Lakeshore Advantage helped connect the company with local and state resources to help make this project a reality.[1] Recreational vehicle manufacturer BRP Inc. will increase manufacturing and warehousing capacity in St. Johns and expand its Manitou pontoon boat plant in Lansing. With the assistance of the Lansing Economic Area Partnership (LEAP), BRP received performance-based workforce training credits and grants. The package includes workforce development support from local colleges, and Capital Area Michigan Works, as well as job creation incentives from the Michigan Economic Development Corporation. The projects combined are expected to create roughly 200 jobs.[2] Governor Whitmer signed House Bill 4833 and House Bill 4834, which together will support Michigan businesses and working people by simplify taxes for heavy equipment rental industry whose equipment is used for road and bridge construction projects.[3]
Missouri. Governor Mike Parson announced that Meta Platforms, Inc. (Meta), formerly known as Facebook, Inc., will locate a nearly one million-square-foot data center in Kansas City, investing more than $800 million and supporting up to 100 jobs. Meta’s data center will be located in Kansas City’s Golden Plains Technology Park, a 5.5 million-square-foot data center campus. The site will be supported by 100 percent renewable energy, ranking it among the most sustainable data centers in the world, and add additional renewable energy to the region’s local grid. Among other factors, Meta chose to locate the facility in Kansas City for its central location, which offers improved network connectivity between coastal data centers. The Kansas City region also provides greater security, decreased risk of natural disasters and other threats, competitive energy prices, and options for renewable energy. Due to these and other advantages, the area is the third fastest-growing technology market in the nation. Kansas City has already ranked among the best cities for startups in the country and provides a wide talent pool with the skills needed for technology jobs. The data center is expected to be operational in 2024.[1]
Mississippi. Global medtech company Baxter International Inc. will locate its new U.S. distribution operation hub in Byhalia. As an incentive, the Mississippi Development Authority (MDA) provided assistance for equipment relocation and installation and building construction. Marshall County and the Tennessee Valley Authority also are assisting with the project. The $11.6 million project is expected to create 105 jobs in Marshall County.[1]
North Carolina. Nucor, the largest producer of steel in the United States, will locate a new micro mill steel plant in the city of Lexington in Davidson County. Nucor’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. The JDIG agreement authorizes the potential reimbursement to the company of up to $3,335,400, spread over 12 years. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company. Because Nucor chose a site in Davidson County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $370,600 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities across the state finance necessary infrastructure upgrades to attract future business. The company will create at least 180 jobs and invest $350 million to establish the manufacturing site for producing steel bar and rebar.[1] Macy’s, Inc. will invest more than $584 million to build its first automated fulfillment center in the Town of China Grove. Macy’s expansion to North Carolina will locate a new 1.4 million square-foot automated fulfillment center to ship orders directly to customers nationwide, accounting for nearly 30% of the retailer’s digital supply chain capacity once fully operational. Macy’s expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Using a formula that takes into account $564 million of the company’s investment as well as the new tax revenues generated by 230 JDIG-qualified jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $2,313,000 spread over 12 years. Payments for all JDIGs only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company. Macy’s is locating to Rowan County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $257,000 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities across the state finance necessary infrastructure upgrades to attract future business. Once fully operational, the company says it plans to employ 2,800 new jobs in Rowan County.[2] Service Offsite Solutions, a supplier of offsite homebuilding solutions, will build a new manufacturing facility in Sanford. The expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of the grant, the project is estimated to grow the state’s economy by more than $452 million. Using a formula that considers the new tax revenues generated by the 137 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $2,051,250 spread over 12 years. Payments for all JDIGs only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company. he $11.8 million project is expected to create 235 new jobs in Lee County.[3] Spotit, a Belgium-based company that offers cybersecurity technologies and services, will locate its first U.S. location at NC State’s Centennial Campus in Raleigh. NC State’s Partnerships Office collaborated with the Economic Development Partnership of North Carolina (EDPNC), Wake County Economic Development, Wake Technical Community College, Research Triangle Regional Partnership and the Raleigh Chamber of Commerce to support Spotit’s expansion. The project is expected to create 100 jobs over the next five years.[1]
Ohio. Ohio Governor Mike DeWine and Lt. Governor Jon Husted announced the approval of assistance for eight projects set to create 1,884 new jobs and retain 838 jobs statewide. During its monthly meeting, the Ohio Tax Credit Authority (TCA) reviewed economic development proposals brought to the board by JobsOhio and its regional partners. Collectively, the projects are expected to result in more than $129 million in new payroll and spur more than $1 billion in investments across Ohio. Projects approved by the TCA include:[1]
- Axuall Inc.
- The TCA approved a 1.770 percent, eight-year Job Creation Tax Credit for this project.
- Zin Technologies Inc.
- The TCA approved a 1.913 percent, nine-year Job Creation Tax Credit for this project.
- Ice Industries Inc.
- The TCA approved a 1.317 percent, seven-year Job Creation Tax Credit for this project.
- Glidepath Holdings Inc.
- The TCA approved a 1.928 percent, nine-year Job Creation Tax Credit for this project.
- SEMCORP Manufacturing USA LLC
- The TCA approved a 2.095 percent, 15-year Job Creation Tax Credit for this project.
- Behr Process Corporation
- The TCA approved a 1.380 percent, seven-year Job Creation Tax Credit for this project.
- Ortal USA Inc.
- The TCA approved a 1.259 percent, six-year Job Creation Tax Credit for this project.
- Orveon Global US LLC
- The TCA approved a 2.057 percent, 10-year Job Creation Tax Credit for this project.
South Carolina. Concentrated Active Ingredients & Flavors Inc., a supplier of innovative naturally sourced ingredients, will establish operations in West Columbia. Founded in 2016, CAIF specializes in the procurement, custom production and distribution of a thoughtfully curated portfolio of premium, science-backed superfoods and health-promoting ingredients. The Coordinating Council for Economic Development has approved a $75,000 Set-Aside grant to Lexington County to assist with costs related to the project. The $5 million is expected to create 20 new jobs in Lexington County.[1] Concentrated Active Ingredients & Flavors, Inc. (CAIF), a
supplier of innovative naturally sourced ingredients, announced its plans to establish operations in Lexington County. CAIF’s new facility will increase the company’s capacity to meet growing demand. Additionally, the office and state-of-the-art lab will accommodate the logistics, quality, finance, human resources and research and development departments. The Coordinating Council for Economic Development has approved a $75,000 Set-Aside grant to Lexington County to assist with costs related to the project. The $5 million investment will create 20 new jobs.[1] Daye North America, a subsidiary of Ningbo Daye Garden Machinery Company, announced plans to expand operations in Charleston County. The $3.5 million investment will create 131 new jobs. The Coordinating Council for Economic Development has awarded Charleston County a $250,000 Set-Aside grant to assist with the cost of building improvements.[2] U.S. Strapping Company, Inc., a division of FROMM Group, plans to expand its operations in Lancaster. The expansion will allow U.S. Strapping to significantly increase its polyester strap manufacturing capacity. The company has received support from the Lancaster County Department of Economic Development and the South Carolina Department of Commerce.[3]
Virginia. Certified Origins, an Italy-based company focused on providing fresh and authentic extra virgin olive oil, will establish its first U.S. production facility at Oakland Industrial Park in Newport News. The Virginia Economic Development Partnership (VEDP) worked with the City of Newport News and The Port of Virginia to secure the project for Virginia. Governor Youngkin approved a $125,000 grant from the Commonwealth’s Opportunity Fund to assist the City of Newport News with the project. Certified Origins is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development, and funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program. The $25 million project is expected to create 30 new jobs.[1] Perdue AgriBusiness, a leading U.S. agriculture products and services company, will invest $59.1 million to expand its operation in Chesapeake. The Virginia Economic Development Partnership (VEDP) and the Virginia Department of Agriculture and Consumer Services worked with the City of Chesapeake to secure the project for Virginia. The Governor approved a performance-based grant of $500,000 from the Virginia Investment Performance Grant, an incentive that encourages continued capital investment by existing Virginia companies, as well as a $450,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund to assist the City of Chesapeake with the project. The company is also eligible to apply for the Railroad Industrial Access Program through the Virginia Department of Rail and Public Transportation, subject to approval by the Commonwealth Transportation Board.[2]
Wisconsin. Gov. Tony Evers, together with the Wisconsin Department of Transportation (WisDOT) and Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), announced Harbor Assistance Program grants totaling $9.4 million for six harbor projects in Wisconsin that improve waterborne freight and promote economic development.[3] Gov. Tony Evers awarded more than $86 million in grants to support small businesses in communities disproportionately impacted by the pandemic that have historically had difficulty accessing credit and capital. $57.6 million in grants were awarded through the Diverse Business Assistance Grant Program to 24 chambers of commerce and nonprofit organizations providing assistance to small businesses. These grants will support the work of chambers of commerce across the state in providing coaching and mentoring, technical assistance, equipment and internet services, digital literacy, online marketing and social media training, financial aid, and financial literacy support, as well as networking and educational opportunities for new business owners and emerging entrepreneurs. Another $28.8 million in grants were awarded through the Diverse Business Investment Grant Program to nine Community Development Financial Institutions (CDFIs). These CDFIs support micro and small businesses not only through lending and providing access to capital and credit, but many also support programs that provide additional technical assistance, coaching and mentoring, and credit counseling. These grants will help these institutions continue to bolster and ignite economic and business growth in Wisconsin.[1]
