Governor’s Commission on Job Creation and Economic Development – An Update Chris Lloyd July 22, 2010

Origins of the Commission Governor McDonnell’s first executive order Led by Lt. Governor Bolling and Bob Sledd 63 member commission 9 subcommittees – Energy, Small Business, Business Development, Business Recruitment, Workforce Training, Tourism, Economically Distressed Communities, Manufacturing and Technology

Virginia Snapshot SRI study outlined Virginia’s strengths and weaknesses Virginia poorly positioned for industries of the future Underinvestment in higher education/R&D hurting Virginia’s competitiveness Virginia has been absent from the advertising market for 10 years Other states are angling for our #1 ranking

2010 Legislation Review Reduction of MBFJTC threshold to 50 jobs Significant new funding for GOF, VJIP, VEDP marketing Authorization of new overseas trade offices New “tranche” of funding for VEDIG Green jobs tax credit - $500 Expanded film production incentives Increased funding for tourism

Our Competition North Carolina – adopted HB 1973 “Keeping North Carolina Competitive Act of 2010” – significant new incentives for data centers, large manufacturing projects, clean up of Article 3J tax credit provisions, new film incentives South Carolina – HB 4476 expanded FILOT to 30 years, allows nuclear facilities to be eligible for all state programs, cleaned up tax credit programs

Our Competition Florida – enacted SB significant additional money for state-local matching incentives, expansion of QTI tax credits, $15 million contingent appropriation for Quick Action Deal Closing Fund Tennessee – significant new flexibility in administration of existing programs (relocation expenses credits, etc.), new energy related programs

Our Competition Midwestern states – Broad adoption of the Indiana EDGE model (reimbursement of employee withholdings) Western states – significant new incentives for energy projects Maryland – defunded most programs

Issues Under Consideration Examination/reform of taxes impacting corporations – corporate income tax, BPOL, machinery and tools Incentives for regional cooperation Texas Enterprise Fund Effective use of the Mega-Employers Incentive Commission Better tracking of SBIR/other technology grants to keep recipients in Virginia

Issues Under Consideration Review effectiveness of existing tax credit programs Small business program funding Better integration of existing workforce development programs to focus on needs of business New incentives for renewable energy projects – but not mandatory RPS

Next Steps Commission meets July 26, final report by October 15 VEDA members should provide comments by July 30 Review website for presentations Talk to legislators and local elected officials

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