CoreNet Global Economic Development Leadership and Innovation Award Commonwealth of Pennsylvania Presented by: Rebecca Wingenroth, Executive Director Economic Development Marketing Office March 16, 2005

Overview of Economic Stimulus Package What is it? $2.3 billion in grants, loans and loan guarantees, generating approximately $5 billion in private sector investment Created cooperatively by Governor Edward G. Rendell and the Legislature. Signed into law in April of new and expanded programs addressing short and long- term community, business and infrastructure needs

Economic Stimulus Package Over $150 million in DCED funding has already been approved for new Stimulus Programs The Stimulus package has sparked much enthusiasm and helped contribute to a 65% increase in successfully completed projects and a 76% rise in offers to business Five of the Eight Stimulus programs requiring oversight by the Commonwealth Financing Authority are fully operational. Remaining programs are 90% operational Enthusiasm led by aggressive marketing efforts

Key Elements of Innovation Business In Our Sites $300 million funding pool of grants and loans Funding for development of ready-to-build sites Special emphasis on communities lacking resources necessary to invest in site preparation and on renovating Brownfield sites in order to prevent urban sprawl

Key Elements of Innovation Business In Our Sites Lehigh Valley Industrial Park Inc. –Using $15 million funds, with $53 million additional state, federal and private funds to create 3,000 jobs –Infrastructure development at former Bethlehem Steel Company site 45 Additional Approved Loans and Grants to Date 32 Projects; 28 are Brownfield sites $75 million state investment - $183.5 million private investment

Key Elements of Innovation The Keystone Innovation Zones (KIZ) Seed money to create Innovation Zones in and around universities. Brings the research talent and entrepreneurial spirit of Pennsylvania’s quality colleges and universities together with business and community in a unique way Offers Pennsylvania graduates an incentive to stay in Pennsylvania by creating an environment where opportunities are abundant, help is accessible and innovation is not only encouraged, but supported and rewarded 12 certified zones throughout state

Key Elements of Innovation The Keystone Innovation Zones (KIZ) Signs of Success 500 new and retained jobs anticipated 26 companies to locate in proposed zones Company locations in zones already happening SuperVision Technologies, Inc. to develop new product with Lehigh University Professor and students. Located in Southside Bethlehem Keystone Innovation Zone.

Key Elements of Innovation Research & Development Tax Credits “Providing our young start-up companies with valuable new sources of funding will assist them in their efforts to become leaders in their industry. The R&D Tax Credit program will aid in the enhancement of current technologies and create an opportunity for the advancement of our research-focused companies. These companies will play a crucial part in the growth and future of Pennsylvania’s economy..” - Governor Edward G. Rendell “Reforming the business tax structure in Pennsylvania is key to economic growth, and by increasing the R & D Tax Credit and implementing recommended changes, we will improve the business tax climate in the Commonwealth.” - Gregory Fajt,Secretary of Pennsylvania Dept of Revenue

Key Elements of Innovation Research & Development Tax Credits Tax Credits allow Research and Development companies to apply a credit equal to the increase in qualified R&D expenditures from one tax year to the next Economic Stimulus Package increased the number of credits to $30 million, and added a tradability component that allows young, start-up companies to sell their unused credits to qualified, profitable businesses in Pennsylvania for immediate cash after one year Signs of Success – 3 applications already received for transfer of credits since December

Key Elements of Innovation The Community Action Team (CAT) Created specifically to help communities plug into new stimulus resources and channel development funding from multiple Commonwealth resources Patterned after the successful Governor’s Action Team (GAT), which develops similar funding packages for business An interagency effort to focus on the Commonwealth’s community and economic development resources to help revitalize Pennsylvania’s municipalities

Key Elements of Innovation The Community Action Team (CAT) Wilkes-Barre, Luzerne County –$15.6 million of Commonwealth funds invested by Governor Rendell –$81.3 million in federal, state and private funds of new development and infrastructure occurring in downtown Wilkes-Barre Bradford, McKean County –$8.8 million of Commonwealth funds invested by Governor Rendell 25 more revitalization projects to be announced in 2005

Economic Stimulus Package Marketing Dedicated Web site ,000 views in first 3 months, nearly 500,000 views to date 500 direct telephone inquiries specific to Stimulus Package CoreNet, San Antonio –Eagles vs Steelers Football game –Limousine rides from airport to the conventions New York Stock Exchange/Fortune 500 Event Print and TV ad campaign

Succeed in Pennsylvania!!