McDonnell outlines further investments
- January 26, 2010
Gov. Bob McDonnell further outlined his plans for job creation and economic development investment Tuesday, saying they could create more than 29,000 jobs in the next two years.
The proposals include budget amendments outlined in his address to the General Assembly last week and 20 pieces of legislation.
McDonnell’s plans include lowering the threshold for the job tax credit, creating tax credits for green jobs and the development of Historically Underutilized Business (HUB) Zones program.
McDonnell’s plans are contained in the following bills:
- HB380 and SB475: Outlines criteria for awarding grants and loans from the Governor’s Opportunity Fund to include job creation, investment, and expected state and local tax revenue.
- SB554 and HB1244: Allows governor to require a local match to receive funds from the Governor’s Opportunity Fund.
- HB555: Increases eligibility to receive enterprise zone job grants in state regions with an unemployment rate that is 1.5 times or more above the state average by allowing jobs paying at least 150 percent of the federal minimum wage. Currently, jobs paying less than 175 percent are not eligible for the grants.
- SB658 and HB1228: Creates HUB Zones program, requiring that at least 15 percent of the state’s procurement contracts go to businesses in HUB zones.
- SB472 and HB624: Lowers threshold for $1,000-per-job tax credit. Currently the Major Business Facility Job Tax Credit provides a tax credit for businesses creating at least 100 full-time jobs. This bill would lower the requirement to 50 full-time jobs.
- SB481 and HB853: Lowers threshold for $1,000-per-job tax credit in economically distressed areas and enterprise zones to 25 jobs.
- SB428 and HB523: Grants income tax exemption on capital gain after Jan. 1 that is related to a qualified investment of technology and science startup.
- SB257 and HB861: Creates income tax credits to film production company that incurs at least $250,000 in qualifying expenses in Virginia. The tax credit will equal 15 percent of the qualified expense, or 20 percent of the qualified expense in an economically distressed area.
- HB677 and SB644: Creates a Specialized Biotechnology Research Performance Grant Program for nonprofit entities in Fairfax engaged in research or development of molecular diagnostics of drug development that enter into a memorandum of understanding with the state before June 30. Companies that are eligible must make a capital investment of at least $200 million and create at least 415 new full-time jobs.
- SB181: Allows state agencies and state authorities to enter into public-private partnership agreements with private entities with approval of the governor, where the private entity would receive grants from state taxes generated specially from the project.
- SB455 and HB262: Waives administrative fees for veterans applying to start a business.
- SB473 and HB604: Adds lieutenant governor and secretary of commerce and trade (or designees) to the board of trustees of the Center for Rural Virginia.
- SB326 and HB 928: Creates the Virginia Universities Clean Energy Development and Economic Stimulus Foundation to administer funding for research and development of alternative fuels, clean-energy productions and related technologies, and to support economic development in economically disadvantaged rural areas.
- SB601 and HB756: Requires that 80 percent of royalties associated with drilling for natural gas and oil off Virginia’s coast be used for transportation and that 20 percent be used for renewable energy research and development.
- SB623 and HB803/HB1132: Creates a $500 income tax credit for the creation of “green jobs” for up to 350 jobs.