WORLD TRADE
ORGANIZATIONG/SCM/N/48/USA/Suppl.1
G/SCM/N/60/USA/Suppl.1G/SCM/N/71/USA/Suppl.1
29 October 2002
(02-5954)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating and New and Full Notification Pursuant to Article XVI:1 of the
GATT 1994 and Article 25 of the SCM Agreement
UNITED STATES
Supplement
The following communication, dated 25 October 2002, has been received from the Permanent
Mission of the United States.
_______________
Enclosed please find a revision to the US Upda ting and New and Full Notification Pursuant to
Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing
Measures, circulated under the triple citation G/SCM/N/48/U SA-G/SCM/N/60/USA-
G/SCM/N/71/USA (2 July 2002).  The chart, which appears in Annex III, as “Notification of
State-Level Measures”, is being updated with this revision.  There are no other changes to the
notification.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 2Attachment III (revised)
Notification of State-Level Measures
State Programme Title Programme
AuthorityForm of
SubsidyPolicy Objective To Whom Amount
Alabama Property Tax
AbatementTax Exemption
(state/county/
municipalproperty tax)To encourage
economic
growth.Manufactures of
aluminum, aluminum
products, or calciumcyanamide.The maximum period of an abatement of
non-educational property taxes is ten
years.
Alabama Poultry
Environmental
Enhancement
ProjectAgricultural
Development
AuthorityLoans To support
environmental
projects.Poultry Industry $750,000 environmental enhancement
programme.  Project provides low-interest
loans for construction of poultry compost
structures and installation of freezer units
to be used for the disposal of dead birds.
Alabama State Enterprise
Zone IncentivesAlabama
Department of
RevenueTax credit To encourage
economic growth
in areas
considered tohave depressed
economies.SIC Codes 20-42, 44-
49; major warehousing,
distribution centers, or
prospects of significanteconomic impact.The maximum tax credit available to any
private employer locating in an enterprise
zone is $2,500 per new permanent
employee hired.  80% -1st year, 60% -2ndyear, 40% -3rd year, 20% -4th & 5th year.
Tax credit for investment in zone: 10% on
first $10,000 invested, 5% on next $90,000
invested, 2% on remaining investment.
$1,000 tax credit for training newemployees. Tax credit and exemptions for
sales and use tax, and income and
corporate franchise tax.
Alabama Swine Industry
Development
ProjectAgricultural
Development
AuthorityLoan To assist
integrated swine
producers with
construction
costs of new
facilities.Swine industry $1m low-interest loan programme in
support of developing integrated swine
industry.  Provides funding at 3% for
seven years.G/SCM/N/48/USA/Suppl.1
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Page 3Alabama Free land, block
grant for site,
grading,
excavation; taxincentives, below
market interest
and bond to
finance plant and
equipment. New minimill in
Decatur (joint
venture between
LTV, SumotoMetals and
British Steel with
LTV owning
50%)Trico Steel Company Amount totaled $39 million or higher. Tax
incentives 10-20 years duration.
Alaska Commercial
Fishing RevolvingLoan FundDepartment of
Commerce andEconomic
DevelopmentLoan To promote
economicdevelopment, as
well as the
development of a
predomi-nantly
resident fishery,and continued
maintenance of
commercial
fishing vessels
and gear for thepurpose of
improving the
quality of Alaska
seafood
products.Commercial fishermen
or applicants who lacktraining or economic
opportunities other than
in commercial fishing
in their area of
residence.The interest rate is 2% above the
commercial prime rate, not to exceed10.5%.   Interest rate will be fixed at time
of loan approval.  Maximum loan term is
15 years.  Maximum lending limit is
$100,000. Applicant pays $100 application
fee, 1% loan origination fee and all directapplication processing costs. Use of vessel
governed by state and federal fishery
management restrictions.  This programme
has been self-financing since its inception
in 1972.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 4Arizona Defense
Restructuring
ProgrammeDepartment of
Commerce
A.R.S. § 41-1508Tax credit/tax
incentive
No new
certifications to
the Department
of Revenue after
June 30, 2001.To assist defense
contractors in the
state in
maintaining andattracting
contracts with
the Department
of Defense
(DOD); and toencourage
defense
contractors to
diversify into
commercial
markets, adopt
newmanufac-turing
processes and
technologies, and
consolidate
facilities into thisstate.Defense contractors
(manufacturer,
assembler or
fabricator).A credit allowed against corporate income
taxes for up to 40% of the real and
personal property taxes paid based on jobs
retained and created; corporate andindividual income tax credits for increases
in net employment above an established
baseline.  The credit is a dollar amount
allowed for each new employee equaling
$7,500 over five years; and depreciation oramortization costs of capital investments
may be subtracted from Arizona gross
income equal to one-half of the time
period allowed under the U.S. Internal
Revenue Code.
Arizona Enterprise Zone
ProgrammeDepartment of
Commerce and
Revenue
A.R.S. § 41-1525
A.R.S. §41-1525.01Tax credit To aid in the
development of
economically
disadvantaged
areas around the
state.Benefits apply to
businesses located in a
designated state
enterprise zone.Tax credit for net increases in qualified
employment positions. These credits may
be up to $3,000 per qualified employment
position over three years. In addition,
qualified manufacturing businesses
locating or expanding within these zonescan apply for a “class six” property tax
classification for assessment purposes.G/SCM/N/48/USA/Suppl.1
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Page 5Arizona Military Reuse
Zone (MRUZ)Department of
Commerce
A.R.S. § 41-1532
et. seq.Tax credit
(income and
property tax
credits)To ease the
restrictions on
the designation
and renewal of aclosed military
facility as a
military reuse
zone by allowing
the Governor todesignate the
zone upon either
the execution of
a long-term lease
or title transfer.Any company which is
a manufacturer,
assembler, or fabricator
of aviation or aerospaceproducts.Companies’ real and personal property
classified as “class six” property for
assessment purposes.
In addition, tax credits based upon new net
employees and payroll are available.  The
credit is a dollar amount allowed for each
new employee, equaling $7,500 over five
years to regular employees and $10,000over five years to displaced military base
employees.  There is also an exemption of
the Transaction Privilege Tax available for
a prime contractor having  a contract with
a qualified MRUZ business for work in the
zone.
Arizona Motion Picture
Production Tax
RefundDepartment of
Commerce
A.R.S. § 42-5015Tax refund To attract
investment in the
motion pictureproduction.Motion picture
production companies.A 50 percent transaction privilege and use
tax refund to qualifying production
companies for motion picture,television/video and commercial
advertising productions filmed in Arizona.
Arizona Soundstage
Equipment &
Machinery Tax
ExemptionDepartment of
CommerceTax exemption To promote and
attract capital
investment in
soundstage
construction in
Arizona.This exemption applies
only to soundstage
complexes constructed
after June 30, 1996 and
before January 1, 2001
when the exception
expires.Exempts machinery and equipment
purchased for use in film production in a
soundstage complex of multiple stages
from the transaction privilege and use tax.
Arkansas Enterprise Zones
(AdvantageArkansas)Department of
EconomicDevelopmentTax credits To create new
jobs as a result o f
location,
expansion, or
facility
modernization.The following
businesses located intargeted areas:
manufactures (SIC
20-39); computer
firms; motion picture
production companies;distribution centers;
coal or lignite
extraction firms.The income tax credit is equal to 100 times
the average hourly wage paid per net newpermanent employee, with a maximum cap
of $3,000 per employee. If the business is
located in a “high-unemployment” county,
the multiplier increases to 400 times the
average hourly wage, with a $6,000per-employee cap.  Participating projects
are also eligible for certain sales and use
tax refunds.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 6Arkansas Motion Picture
IncentiveDepartment of
Economic
DevelopmentTax Refund To attract
investment in the
motion picture
production.Qualifying motion
picture production
businesses spending
more than $500,000within six months or
$1,000,000 within one
year.Refund of sales and use taxes paid on
qualifying expenditures in conjunction
with the project.
Arkansas Emerging
Technology
DevelopmentDepartment of
Economic
DevelopmentTax Credits Encourage
high-growth
technologies.Facilities that design,
develop or produce
photovoltaic cells,
electric vehicle
components, fuel cells,
micro-turbines, Stirlingengines, and
nanotechnology.State income tax credit, with a
carry-forward of 14 years, of 50% of the
cost of purchasing or constructing a
facility.
Arkansas Biotechnology
Development and
TrainingDepartment of
Economic
DevelopmentTax credits Encourage
biotechnology
growth in the
state.Eligible developing
biotechnology
businesses.Income tax credits for (1) 5% credit
applied to building and equipment costs;
(2) 30% credit for eligible training costs
and for contracts with state-supported
institutions (not to exceed $10,000 peremployee); (3) 20% credit of the cost of
research over the base year’s research
costs.  Up to $50,000 of income tax
liability may be offset during the credit
year.G/SCM/N/48/USA/Suppl.1
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Page 7California Enterprise Zones Trade and
Commerce AgencyTax credits The programme
targets
economically
distressed areasthroughout
California. The
purpose of the
programme is to
provide taxincentives to
businesses and
allow private
sector market
forces to revive
the economy.Companies locating to
or located in an
Enterprise Zone.(1) Tax credits for sales or use taxes paid
on up to $20 million of qualified
machinery purchased per year; (2) a hiring
credit for wages paid to qualifiedemployees during the employees' first 60
months on the job; (3) a 15-year carryover
of up to 100 percent of net operating
losses; (4) expensing up to $40,000 of
certain depreciable property; (5) lenderinterest income deductions for loans made
to zone businesses; and (6) preference
points on state contracts.  In addition, local
incentives may be available that include
reduction or elimination of local permit
and construction-related fees, expeditious
processing of plans and permits, reducedutility rates, reduced land costs, assistance
in employee hiring, low-cost financing and
low-interest revolving loans.
California Local Agency
Military Base
Recovery AreaTrade and
Commerce
Agency, Local
Agency MilitaryBase Recovery
Area (LAMBRA)
legislation (AB
693), signed into
law 1993Tax credits To re-employ
workers, both
civilian and
military, wholost jobs as a
result of Base
Realignment and
Closure Act from
1988 through1995.Companies locating in
a LAMBRA zone.The designations allow communities to
extend California Enterprise Zone tax
credits to companies locating in a
LAMBRA Zone.  As with Enterprise Zonecommunities, LAMBRA communities also
have community incentives as a part of the
business attraction package.  In addition,
hiring tax credits are available to
encourage employers to hire disadvantagedworkers.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 8California Repair
Underground
Storage Tank Loan
ProgrammesCalifornia Trade
and Commerce
AgencyLoans To help small
business owners
who want to
repair, replace,remove or
upgrade
underground
storage tanksSmall businesses. $ 4 million available for loans of up to
$350,000 per borrower or $50,000 per
tank; loan can be used to finance up to
90% of project costs.
California Targeted Tax Area
IncentivesTrade and
Commerce AgencyTax credits To encourage
business in the
targeted areas.Available only to
companies located in
the targeted tax area
and engaged in a trade
or business within thefollowing SIC codes:
2000-2099; 2200-3999;
4200-4299; 4500-4599;
4700-5199.Tax credits for sales and use taxes paid on
certain machinery, machinery parts, and
equipment; tax credits for hiring qualified
employees; fifteen year net operating loss
carry-forward, and accelerated expensingdeduction.
Colorado Enterprise Zone Office of
Economic
Development,Urban and Rural
Enterprise Zone
Act of 1986Tax credit To encourage
employment and
investment inspecific zones.Any business locating
or expanding anywhere
within a designatedenterprise zone is
potentially eligible.
Specific programmes,
however, target
agricultural processing,
manufacturing, and
R&D. An investment credit of 3% for
investments in equipment used exclusively
in the zone.  25% income tax credit (not toexceed $50,000) to rehabilitate vacant
buildings. 10% credit for employer job
training expenses.  $500 tax credit for each
new full-time employee and an additional
$500 credit for each full-time employee
engaged in agricultural processing or
manufacturing. $200 per employee taxcredit for employer-paid health insurance
coverage (at least 50% covered by
employer). A 3% tax credit is granted for
increases in R&D expenditures.  Also, a
tax credit of 25% (not to exceed $100,000)for private contributions to local zones for
enterprise zone development projects and
for promoting child care within zones.
Local jurisdictions also have the option of
refunding local property tax and/or salesand use tax on equipment and supplies.G/SCM/N/48/USA/Suppl.1
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Page 9Colorado Biotech Sales Tax
RefundDepartment of
Revenue
CRS39-26-402Sales and Use
Tax RefundTo encourage
research and
development in
biotechnologyColorado businesses
engaged in
biotechnology research
and developmentState sales and use tax paid on tangible
personal property used in research and
development of biotechnology.
Connecticut Apprenticeship
Training Tax
CreditDepartment of
LaborTax credit To encourage
firms to train
Connecticut
workers in themanufac-turing
trades.The manufacturing
trades of machine tools,
plastics, or metals.A firm may apply for a credit of up to
$4800 per apprenticeship.  The amount of
the credit is limited to the lesser of 50% of
the actual wages paid or the total numberof working hours during the year
multiplied by $4, or $4,800.
Connecticut Machine Tool and
Metal Trade
ApprenticeshipCredit To encourage
employment.Machine tool and metal
trades. Credit is
provided to employers
creating additional
apprenticeships.Credit is provided for training during the
first half of the apprenticeship programme
in the amount of $2.50 per hour, up to the
lesser of 50% of the wages paid during the
year for each apprenticeship or $3,000.
Connecticut Capital Access
Growth Fund:UrbanDevelopment
AuthorityLoan Special emphasis
on minority andwomen-
owned
businesses.
Small business
assistance loans
available for
businesses with100 or fewer
full-time
employees.Businesses located in
New London orWindham counties or
one of 25 designated
municipalities are
eligible for targeted
business loans.Maximum loan $500,000.  Maximum
15-year term.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 10Connecticut Enterprise
Corridor ZoneDepartment of
Economic and
Community
DevelopmentTax credit Promotion of
good business
development,
residentialdevelopment,
and the creation
and retention of
jobs.Manufacturers and
firms in certain
qualifying service
sectors in the targetedinvestment
communities, with
employment
requirements.1) Five-year, 80% abatement of local taxes
on real estate improvements and personal
property acquisitions: 2) Ten-year, 25%
credit on corporate business taxes, 50% ifat least 5% of all new employees are from
the enterprise zone or from the
municipality's disadvantaged population.
3) $2,250 grant (to a maximum of
$75,000) for each new job (minimum ofthree) created within a 24-month period for
qualified manufacturing firms; service
firms may be eligible for a $750 grant per
new job created; 4) Low-cost loans and
free technical assistance; 5) Job-training
and placement assistance; 6) Exemptions
on both state real estate conveyance taxesand sales taxes on machinery replacement
parts.
Connecticut Enterprise Zone Department of
Economic and
Community
DevelopmentTax credit Promotion of
good business
development,
residential
development,and the creation
and retention of
jobs.Manufacturers and
firms in certain
qualifying service
sectors in the targeted
investmentcommunities.
Programme geared
toward manufacturing
and certain service
sector businesses aswell as research and
development related to
manufacturing and
distributors of
manufactured products.1) Five-year, 80% abatement of local taxes
on real estate improvements and personal
property acquisitions: 2) Ten-year, 25%
credit on corporate business taxes, 50% if
at least 5% of all new employees are fromthe enterprise zone or from the
municipality's disadvantaged population.
3) $2,250 grant (to a maximum of
$75,000) for each new job (minimum of
three) created within a 24-month period forqualified manufacturing firms; service
firms may be eligible for a $750 grant per
new job created; 4) Low-cost loans and
free technical assistance; 5) Job-training
and placement assistance; 6) Exemptions
on both state real estate conveyance taxes
and sales taxes on machinery replacementparts.G/SCM/N/48/USA/Suppl.1
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Page 11Connecticut Enterprise Zone or
Entertainment
District Tax CreditDepartment of
Economic and
Community
DevelopmentTax credit Promotion of
good business
development,
residentialdevelopment,
and the creation
and retention of
jobs.Manufacturers, R&D,
warehousing and
certain services and
entertainment relatedbusiness as defined by
regulations located in
an Enterprise Zone or
Entertainment District.Allows a business 25 or 50% of their
allocable State Corporate business tax as a
credit.  Corporations may claim this credit
for 10 years beginning with the first yearfollowing certification.
Connecticut Manufacturing
Credits to
Facilities Located
in Distressed
Municipalities andEnterprise ZonesDepartment of
Revenue ServicesTax credit Promotion of
good business
development,
residential
development,and the creation
and retention of
jobs within the
distressed areas.Corporations (including
manufacturing
facilities) that are
located in designated
distressedmunicipalities and
enterprise zones. Tax credits up to 50%.
Connecticut Manufacturing
Facility in a High
UnemploymentArea Tax CreditDepartment of
Economic and
CommunityDevelopmentTax credit An incentive for
businesses
located indistressed
locations.Manufacturing
businesses operating in
a designated area ofhigh unemployment.A credit may be applied against the portion
of the corporation business tax allocable to
a manufacturing facility located in adistressed municipality.  The credit period
lasts for ten years beginning with the first
year following certification.
Connecticut Urban Jobs
ProgrammeDepartment of
Economic and
Community
DevelopmentTax incentives Provides
incentives to
manufacturing
businesses to
encourage the
location andexpansion of
industrial
facilities in
targeted
investmentcommunities
within the state.Manufacturers
relocating to or
expanding in the
targeted investment
communities,  geared
toward manufacturingoperations or research
and development
facilities relating to
manufacturing and
non-retail distributorsof manufactured
products.1) An 80% local property tax abatement
for five years for both real and personal
property; 2) A corporate business tax
reduction of 25% for ten years; 3)
Working capital loans for small business;
4) A 0.5% reduction in charges for stateindustrial mortgages guarantees; 5) A 1%
reduction in interest rates for industrial
expansion loans from the state. Facility
owners are entitled to the property tax
incentives; all other incentives are reservedfor facility occupants.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 12Delaware Corporate Income
Tax CreditsDepartment of
FinanceTax credit To encourage
new and
expanded
facilities withintargeted
industries in
Delaware.Firms within targeted
industries,  including:
manufacturers;
wholesalers;laboratories used for
scientific, agricultural,
or industrial research,
development or testing;
computer processors;engineering firms,
consumer credit
reporting services;
wholesale of computer
software;
telecommunications
and aviation services.Firms within targeted industries qualify for
corporate income tax credits of $400 for
each new employee and $400 for each new
$100,000 investment. Firms withintargeted industries who also locate in a
targeted area qualify for $650 for each new
employee and $650 for each new $100,000
investment. Firms must invest a minimum
of $200,000 and create a minimum of fivenew positions. Total credits in any taxable
year cannot exceed 50 percent of the pre-
tax liability. Unused credits can be carried
forward during the ten-year programme.
Selected commercial and retail businesses
which locate in one of the 30 targeted
census tracts and meet the minimuminvestment/employment criteria, qualify
for credits of $400/new employee and
$400/$100,000 investment.
Delaware Enterprise Zones Bonds To promote
investment for
first-time
farmers andpollution control
facilities.Manufactures,
first-time farmers, and
pollution control
facilities in targetedinvestment
communities.
Florida Enterprise Zones Enterprise Florida,
Inc.Tax incentives Increased
opportunities forentrepreneurial
initiatives and
small business
expansion in
targeted areasaround the state.Businesses located in
designated areas foundin both urban and rural
communities.Enterprise Zone Jobs Tax Credit (Sales &
Use Tax), Enterprise Zone Jobs Tax Credit(Corporate Income Tax), Enterprise Zone
Property Tax (Corporate Income Tax),
Sales Tax Refund for Building Materials,
Sales Tax Refund for Business Machinery
and Equipment, Sales  Tax Exemption forElectrical Energy, and Community
Contribution Tax Credit. (Listed below)G/SCM/N/48/USA/Suppl.1
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Page 13Enterprise Zone
Jobs Tax Credit
(Corporate Income
Tax) Enterprise Florida,
Inc.Corporate
income tax creditTo encourage
growth and
development
within theenterprise zone.New employees who
are residents of a
Florida enterprise zone.The credit amounts to 10% of wages paid
to new employees who are residents of a
Florida enterprise zone.  If 20% or more of
the permanent, full-time employees areresidents of a Florida enterprise zone, the
credit is 15%.  The credit is available for
up to one year per new employee.  New
employees who reside in a zone and earn
$1,500 or more per month are eligible for acredit of 5% of the first $1,500 of monthly
wages.  A five-year carry-forward
provision is available for unused portions
of past credits.
Enterprise Zone:Jobs Tax Credit
(Sales & Use Tax)Enterprise Florida,
Inc.Sales and use tax
creditTo encourage
growth and
development
within the
enterprise zone.New employees who
are residents of a
Florida enterprise zone. Credit amounts to 10% of wages paid to
new employees who are residents of a
Florida enterprise zone.  If 20% or more of
the permanent, full-time employees are
residents of a Florida enterprise zone, thecredit is 15%.  The credit is available for
up to one year per new employee.  New
employees who reside in a zone and earn
$1,500 or more per month are eligible for a
credit of 5% of the first $1,500 of monthlywages.
Enterprise Zone
Property Tax
CreditEnterprise Florida,
Inc.Property tax
creditTo encourage
growth and
developmentwithin the
enterprise zone.Corporate income tax credit equal to 96
percent of ad valorem taxes paid on the
new or improved property.  Up to amaximum of $25,000 annually, and may
be carried forward for five years.
Enterprise Zone,Sales Tax
Exemption for
Electrical Energy
Used in anEnterprise ZoneEnterprise Florida,
Inc.Sales tax
exemptionTo encourage
growth and
development
within the
enterprise zone.Businesses that are
located within the
enterprise zone.50% exemption from the municipal utility
tax, if the municipality has enacted an
ordinance for the exemption of the utility
taxes in an enterprise zone. In addition,
businesses are  exempted from 50% of thestate sales tax on utilities. (If 20% of the
firm's employees are zone residents, the
business is totally exempt from the tax.)G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 14Enterprise Zone
Sales Tax Refund
for Building
Materials Used inan Enterprise ZoneEnterprise Florida,
Inc.Sales tax refund To encourage
growth and
development
within theenterprise zone.Businesses that are
located within the
enterprise zone.Sales tax refund must be at least $500 but
no more than the lesser of $5,000 or 97%
of the tax paid per parcel of property.
Maximum amount is increased to thelesser of $10,000 or 97% of the tax paid
per parcel if 20% of the permanent
employees of the business are residents of
the enterprise zone.
Enterprise ZoneSales Tax Refund
for Business
Machinery and
Equipment Usedin an Enterprise
ZoneEnterprise Florida,
Inc.Sales tax refund To encourage
growth and
development
within the
enterprise zone.Businesses that are
located within the
enterprise zone.The refund is based on 97 percent of sales
tax (6%) paid on qualified equipment.  The
minimum refund is $100.  Purchases of
qualified business equipment must be
made within a 60-day period. Themaximum amount of refund a business
may receive is $5,000 (or $10,000 if at
least 20 percent of the permanent
employees of the business are residents of
an enterprise zone).G/SCM/N/48/USA/Suppl.1
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Page 15Florida High Impact
Performance
Incentive GrantEnterprise Florida,
Inc.Grant To attract and
grow high
impact
businesses inFlorida.A qualified high impact
business, including:
Silicon technology is
the first designatedhigh impact industry.
Aviation/aero-space is
expected to be
designated, and other
industry sectors areexpected to be selected
and designated in the
future.A qualified high impact business making a
cumulative investment of $100 million and
creating 100 jobs may be eligible for a
total grant of $1 to $2 million; if the
business makes a cumulative investment o f
$800 million and creates 800 jobs it maybe eligible for a total grant award of $10 to
$12 million.  A qualified high impact
business engaged in research anddevelopment which makes a cumulative
investment of $75 million and creates 75
jobs may be eligible for a grant of $2 to $3
million; if the business makes a
cumulative investment of $150 million and
creates 150 jobs it may be eligible for a
total grant award of $3.5 to $4.5 million.Once certified, the high impact business
would be awarded 50% of their eligible
grant upon commencement of operations
and the balance of the awarded grant once
the full employment and capitalinvestment goals are met.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 16Florida Qualified Target
Industry Tax
RefundEnterprise Florida,
Inc.Tax refund To encourage
quality job
growth in
targeted highvalue-added
businesses.Qualified Target
Industries: Corporate
headquarters;
manufacturers of food,apparel, furniture,
paper, printing and
publishing, chemicals,
rubber,
primary/fabricatedmetals, industrial
machinery, electronic
equipment,
transportation
equipment;
communications,
security/commoditybrokers; insurance
carriers; business
services.Tax refunds to pre-approved applicants of
up to $5,000 per new job created; $7,500
in an Enterprise Zone. New or expanding
businesses in selected targeted industriesor corporate headquarters are eligible.  The
applicant may receive refunds on taxes it
pays including corporate income, sales, ad
valorem, intangible personal property,
insurance premia, and certain other taxes.There is a cap of $5 million per single
qualified applicant in all years, and no
more than 25 percent of the total refund
approved may be taken in any single fiscal
year.   The local community provides a
match equalling 20 percent of the tax
refund. If located in a Rural EconomicDevelopment Initiative county, the
business may elect to be exempt from the
local match and accept a refund equal to
80 percent of the refund for which they
would otherwise qualify.
Florida Silicon
Technology SalesTax Refund
ProgrammeEnterprise Florida,
Inc.Tax refund To reduce the tax
liabilityassociated with
the purchase of
replacement
research and
developmentequipment
employed by
silicon
technology-
based industries.Silicon technology-
based facilitiesFor silicon technology-based facilities, any
sales and use taxes paid for replacementand research equipment purchased are
eligible for a full refund.  A certified
silicon technology-based company may
elect to receive all or a portion of the
refund or, at the option of the companyand with the agreement of the university or
community college, a portion of the refund
may be directed to a state university or
community college.  If the university or
community college agrees to receive the
funds, it must further agree to match them
equally and use the proceeds to delivereducational and research services that
provide direct benefit to the company and
its employees.G/SCM/N/48/USA/Suppl.1
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Page 17Georgia Appalachian
Region Business
Development
Revolving LoanFundDepartment of
Community
AffairsLoans To attract
businesses to the
Appalachian
region.Private, for-profit
businesses in the
Appalachian region$3m pool.  Loans equal $200,000 per
qualifying business, or 50% of total project
cost.  Loans are usually made “below
market rate.”
Georgia Enterprise Zone Department of
Industry, Trade
and TourismTax credit Economic
development and
expansion State legislation was
enacted in 1983,
pertaining to Atlantaonly.   Legislation
allows other
communities to create
"development districts"
which are similar toAtlanta's Enterprise
Zones.Companies locating within the zones
receive 100% exemption on inventory for
25 years.  Industrial: Ad valorem taxreductions on property taxes on Freeport-
eligible inventory for 25 years, with a
100% property tax reduction in the first
five years and 80, 60, 40, and 20%
reductions in subsequent five year periods;a 100% exemption exists for inventory for
25 years.   Housing and Commercial:
Zone created for ten years with exemptions
for real property being 100% for 5 years;
80% for 6 and 7 years; 60% for 8yr; 40%for 9 years; 20%  for 10 years.  Non-
exempt real property is taxed by the city.
Georgia Investment Tax
CreditGeorgia
Department of
RevenueTax incentive
(credit against
income tax
liability)Economic
development and
expansion.Based on the same tiers
as mentioned in
connection with the job
tax credit.Tier one: 5%-8% credit if company invests
$1 million. Tier two: 3%-5%
Tier three: 1%-5%G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 18Georgia Job Tax Credit Georgia
Department of
Community
AffairsTax Incentive
(tax credit)To promote
employment, job
skills and
training withinthe state of
Georgia.All counties in state are
divided into one of the
three tiers, according to
four (economic)factors. The tiers each
provide a different
level of benefits,
thereby providing
regional difference.Based on the tier of an
area, businesses
engaged in
manufacturing,
warehousing and
distribution,
processing, tourism andR&D receive tax
credits accordingly.Tier one (least developed): $2,500 tax
credit for each new job created. Tier two:
$1,500 and Tier three: $500.
Georgia Sales Tax
ExemptionDepartment of
Industry, Trade
and TourismTax exemption Manufacturing,
remanufacturers of
aircraft engines, parts,
and components, and
government contractorsfor DOD or NASA.Tax exemption for machinery; sales and
use tax exemption on purchases of primary
material handling equipment; sales tax
exemption for electricity.  Other
exemptions: purchase for resale;machinery used directly in making a
product for sale; Raw materials that will
become a component of a finished product.G/SCM/N/48/USA/Suppl.1
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Page 19Hawaii Enterprise Zone Department of
Business
Economic
Development andTourismTax incentives Programme was
established to
increase business
activity andcreate jobs in
areas with above
normal
unemployment
and/or belowaverage income
levels.Qualifying businesses
include manufacturing,
wholesaling, aviation
and maritime repair,telecommunications,
medical research, data
systems and
international executive
training.General Excise Tax and Use Tax
exemptions, as well as two different types
of income tax credits.  These include a
seven-year exemption from general exciseand use taxes on gross proceeds, an excise
tax exemption for construction or major
facility renovation, an 80% first-year
income tax abatement (decreasing 10%
each year thereafter during the next sixyears), and an income tax credit equal to
80% of unemployment taxes paid during
the first year (decreasing 10% during the
next six years).  Counties also contribute
one or more incentives for each zone
designated under its jurisdiction.
Idaho Workforce
Development
TrainingFund-Rural
ComponentGrant To expand the
job training
programme tocounties in rural
Idaho that are
experiencing
high
unemploymentor low per capita
income.Counties that do not
have a city over 20,000
in population andunemployment of 6.5%
or higher.  Low per
capita income is
defined as less than
80% of the state’s percapita income level.Up to $3,000 per employee.
Idaho Rural Community
Block GrantGrant To finance and
facilitatebusiness
development in
select areas.Public owned land,
buildings,infrastructure.Grants up to $500,000.
Idaho Rural
Rehabilitation
Loan ProgrammeIdaho State
Department of
AgricultureLoan To offer
financing and
assistance for
ruraldevelopment. Individuals and
organizations in Idaho
whose agricultural
projects provide ruraldevelopment.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 20Illinois Coal
Demonstration
ProgrammeDepartment of
Commerce and
Community
AffairsMixed financing To bring a new
generation of
clean coal
techniques to thecommercial
marketplace, and
to thereby
increase the
mining of Illinoiscoal.Coal mining firms. Finances st ate-of-the-art development and
demonstration projects for advanced coal
systems with utility and industrial
applications.
Illinois Coal Technology
Development
Assistance FundDepartment of
Commerce and
CommunityAffairsFunding To bring a new
generation of
clean coaltechniques to the
commercial
marketplace.Coal industry firms. $4.5 million for a coal scrubber on the
coal-powered electric plant in Springfield
Illinois Enterprise Zones Department of
Commerce and
Community
Affairs (DCCA)Tax exemption To stimulate
economic growth
and
neighbourhoodrevitalization at
targeted
locations.Businesses located
within an enterprise
zone.Investment tax credits, a jobs tax credit,
dividend deduction, interest income
deduction to financial institutions,
contribution deduction to a qualified zoneorganization, sales tax exemption on
building materials, utility tax exemption,
and sales tax exemption for items
consumed during a manufacturing or
assembling process.  Units of government
within a zone may abate local utility taxes
and property taxes.
Illinois Enterprise Zone
FinancingProgrammeDepartment of
Commerce andCommunity
AffairsLoan Programme is
designed topromote growth
and development
within the
enterprise zone.Any for-profit entity
with less than 500employees locating in
an Illinois Enterprise
ZoneDCCA may participate in an eligible loan
for no less than $10,000, nor more than$75,000.  In no case shall the amount of
DCCA’s subordinated participation exceed
25 percent of the total project.  DCCA’s
rate will be 200 basis points below the
Wall Street Journal Prime rate, but in noevent will the rate be less than 3%.
Illinois Rail Freight
ProgrammeIllinois
Department of
TransportationLoans and grants To promote new
and safe rail
freight facilities.Communities and
businesses which
improve or construct
rail facilities.87 projects have been undertaken at a cost
of $45.9 million since the programme’s
inception.G/SCM/N/48/USA/Suppl.1
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Page 21Indiana Economic
Revitalization
AreaDepartment of
Local Government
FinanceTax abatement To revitalize
economic growth
and development
in designatedurban areas.All taxpayers making
improvements to real
property located in
designated urbandevelopment areas.The abatement is actually a deduction
equal to 100% of the increased assessed
value of the property due to the
improvement in the first year.  Theabatement drops to 95% in the second year
and 80% in the third year, reaches 50% in
the fifth year, and is down to 5% by the
tenth year.
Indiana Enterprise Zones Department of
Commerce Tax credit To meet the
individual needs
of businesses and
residents in
Indiana's highlydistressed areas.Business located in an
enterprise zone.Incentives offered to qualified businesses
include: 5% tax credit on interest from
loans to firms in the zone for any business
purpose or to individuals for property
improvement; 10% tax credit on employerincome tax on employee wages; property
tax credits; employee tax deduction; low-
interest loans to Small Business
Investment Companies (SBICs), Minority
Enterprise SBICs (MESBICs), andCorporation for Innovation Development
(CID) for investments in zone businesses;
tax increment financing; priority for
neighbourhood assistance funds, and
equity investment tax credit of up to 30%of stock purchase.
Indiana Livestock
Promotion and
Development FundOffice of the
Commissioner of
AgricultureGrants Livestock organizations
(for production,
processing, anddistribution); non-profit
organizations which
promote the livestock
industry.24 grants totalling almost $260,000 were
awarded to recipients in 2000.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 22Indiana DeKalb County Tax credits, tax
abatement,
bonds, county
economicdevelopment
income tax
revenues applied
toward project.
On going tax
incentive
programmes
previously
notified.New minimill
startup in Butler.Steel Dynamics $107.04 million.
Indiana Spencer County Spencer County
tax abatementsNew structural
mill in Whitley
CountySteel Dynamics Up to $59 million.  Duration: 10 years.
Iowa Enterprise Zones Department of
Economic
DevelopmentTax incentives To promote
business
investments andjob creation in
economically
distressed areas
of Iowa.Businesses located in
an enterprise zone must
invest at least$500,000, hire at least
10 persons at target
wage and benefit
levels, and not be retail
establishments.1) Property tax exemptions for up to 10
years.  2) Investment Tax Credit for up to
10% on corporate income taxes.  3)Refunds of sales or use taxes paid to
contractors during construction.  4) A 13%
research and development activities credits
on corporate income taxes.  5) Additional
withholding tax credit of 1.5% (total 3%
for the business’ job training
programnme).
Iowa State of Iowa Tax incentives New plate mill Ipsco Fixed amount of $73 million. Duration of
the state incentive packet is 20 years.G/SCM/N/48/USA/Suppl.1
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Page 23Kansas Enterprise Zones Department of
Commerce and
HousingTax credit To expand and
renew the local
economy and
improve thesocial economic
welfare of
residents in
economically
distressed areaslocated within
the cities of the
state of Kansas.Retail businesses,
manufacturing
businesses, non-
manufacturing/retailbusinesses, business
headquarters; ancillary
support services,
financial and insurance
corporations.The incentives are: (1) Sales tax exemption
on the purchase of machinery, equipment,
or services associated with any
construction, expansion, or renovationproject that creates net new jobs. (2) Job
creation tax credit ($1,500 basic, $2,500
enhanced) against State income tax
liability for each net new job created.  (3)
Investment tax credit ($1,000) againstState income tax liability for each
$100,000 or major portion thereof. This is
a one-time credit with unlimited carry-
forward provisions.  The maximum credit
in any given year is 100% of the tax
liability in qualified business facility
investment.
Kentucky Coal Income Tax
CreditKentucky Revenue
CabinetTax credit Increase use of
coal.Companies which use
coal severed orprocessed in Kentucky
for industrial heating or
processing.Credit is allowed for up to 4.5% of the
purchase price of coal (excludingtransportation costs).  Credit is allowed for
10 years following either the installation or
conversion to coal burning units.  The
credit in any year cannot exceed the
corporation's tax liability, minus othercredits.  Unused credits cannot be carried
forward.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 24Kentucky Enterprise Zone Kentucky
Economic
Development
Cabinet,Department of
Financial
IncentivesTax credit Effort to bring
new or renewed
development to
targeted,economically
depressed areas.Business locating to or
located in an enterprise
zone.Building materials used in remodeling,
rehabilitation, or new construction are
exempt from sales and use taxes; new and
used machinery and equipment is exemptfrom sales and use tax; commercial
vehicles solely for business purposes shall
be exempt from motor vehicle usage tax;
other vehicles which are not defined as
commercial vehicles solely for businesspurposes are exempt from motor vehicle
usage tax, limited to the first $20,000 of
the retail price of the vehicle; credit
against the tax levied equal to 10% of the
wages paid to each employee who has
been unemployed for at least 90 days or
who has received public assistancebenefits, based on need and intended to
alleviate poverty, for at least 90 days prior
to being employed with the qualified
business, up to $1,500 per employee.  Any
unused credit may be carried forward forup to 5 years.
Kentucky Industrial
Development Act
(KIDA)Kentucky
Economic
Development
Cabinet,
Department of
FinancialIncentivesTax credit To create
employment and
new investments.Companies that create
at least 15 new full-
time jobs and invest at
least $500,000 in
projects approved
under KIDA.  Onlymanufacturing projects
are eligible for KIDA.State income tax credits for up to 100% of
annual debt service costs (principal and
interest) for up to 10 years on land,
buildings, site development, building
fixtures and equipment used in a project,
or the company may collect a jobassessment fee of 2% of the gross wages
of each employee whose job is created by
the approved project and who is subject to
Kentucky income taxes.
Kentucky Kentucky Rural
Economic
Development Act
(KREDA)Kentucky
Economic
Development
Cabinet,
Department ofFinancial
IncentivesTax credit To increase
employment in
disadvantaged
counties.Companies with
projects approved
under KREDA.
Manufacturing
industries are theprimary target of this
programme.State income tax credits and job
assessment fees for up to 100% of annual
debt service costs for up to 15 years on
land, buildings, site.G/SCM/N/48/USA/Suppl.1
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Page 25Louisiana Enterprise Zone
ProgrammeDepartment of
Economic
DevelopmentTax credit To attract growth
and
development.Businesses located in
or locating to an
enterprise zone.One-time tax credit of $2,500 for each net
new permanent job created.  The
Enterprise Zone programme also provides
rebates on applicable state and localsales/use taxes (except where local sales
taxes are encumbered toward payment of
bond indebtedness or are school taxes), on
purchases of building construction
materials, machinery, and equipment bybusinesses that build or renovate facilities
in Louisiana Enterprise Zones.
Louisiana Biomedical
Research andDevelopment ParkTax exemption
(statecorporation
income and
franchise taxes)Medical and
healthcare-related
businesses
located in the
New Orleans
RegionalMedical Center.Medical and health
care-related businesseslocated in the New
Orleans Regional
Medical CenterExemption shall not exceed 30% of the
corporate income, franchise and state’ssales/use taxes during the preceding fiscal
year
Louisiana Film and Video
Sales/Use Tax
Refund
ProgrammeDepartment of
Economic
DevelopmentTax refund To attract
business to
Louisiana.Motion picture
production companies.Rebates all of Louisiana state sales/use
taxes paid out by motion picture
production companies that film in the state
and pay sales/use taxes on a minimum of
$1 million of annual purchases in the state.
Maryland Enterprise
Incentive Deposit
FundDepartment of
Business and
Economic
DevelopmentLoan The programme
is to promote
employment and
business
development.Businesses, located in a
Maryland county that
has a population under
200,000 and an
above-averageunemployment rate
during the most recent
four consecutive
quarters for which data
is available, are eligiblefor participation in the
programmeLinked deposits are limited to $500,000.
Interest rate subsidy of 3%.  The loan rate
must be a fixed rate and must be made for
a period of at least five years.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 26Maryland Film Production
Sales and Use Tax
ExemptionDepartment of
Business and
Economic
DevelopmentTax Exemption Increase film
production (or
post-product
ion) in MarylandFilm production
companies or
producers.Varies - tangible personal property or
taxable services used in connection with
film production activity are exempt from
sales and use tax.
Maryland One Maryland
Economic
Development Tax
CreditDepartment of
Business and
Economic
DevelopmentTax Credit Attract new
businesses to
distressed areas
of the State(those areas not
reaching certain
thresholds for
employment and
income).Businesses that
establish or expand in a
priority funding area in
a distressed Marylandcounty.The credit for start-up costs is the lesser
of: 100% of eligible start-up costs or
$10,000 per new employee for qualifying
jobs.  The credit for project costs is thelesser of: 100% of eligible costs (up to $5
million) or the State income tax liability
for the taxable year from the project.  In
both cases, credits previously taken are
deducted first.
Maryland Smart Growth
EconomicDevelopment
InfrastructureDepartment of
Business andEconomic
DevelopmentLoan, Grant, and
EquityInvestmentAid the
expansion ofexisting
businesses and
attract new
businesses to
“distressed”jurisdictions
(those areas not
reaching certain
thresholds for
employment and
income).Eligible businesses in
seven qualifying areas:Baltimore City,
Allegany, Caroline,
Dorchester, Garrett,
Somerset, and
Worcester counties.Amounts vary.
Maryland Maryland
Economic
DevelopmentAuthority and
Assistance FundDepartment of
Business and
EconomicDevelopmentLoan, Grant,
InvestmentProvides
incentives to
specific growthindustry sector
businesses
located in
Priority Funding
Areas.Businesses in areas
where the State and
local governments wantto focus their efforts to
encourage and support
development of fixed
assets, machinery and
equipment, land, andworking capital.Amounts vary.G/SCM/N/48/USA/Suppl.1
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Page 27Maryland Enterprise Zone
Tax CreditsDepartment of
Business and
Economic
DevelopmentTax credit To promote
private capital
investment and
increase privateemployment
opportunities in
certain areas of
the state.Businesses located in
or locating to an
enterprise zone or
Focus Area that havebeen certified by the
local enterprise zone
administrator.Corporate and personal income tax
incentives.  If a business is located in a
Focus Area, a credit of up to $3000
against the corporate income tax isprovided for each new, permanent job; if
the new job is filled by a disadvantaged
applicant.  If the business is not located in
a Focus Area, the credit ranges from
$500-$1500.  Credits are available over athree-year period.
Maryland Job Creation Tax
CreditDepartment of
Business and
EconomicDevelopmentTax credit To encourage
firms in  targeted
growth sectors tolocate or expand
in Maryland,
especially in
priority funding
and revitalizationareas.Businesses engaged in:
manufacturing, mining,
transportation,communications;
agriculture, forestry,
fishing;  a public utility
or warehousing;
research, development,or testing;
biotechnology;
computer
programming, data
processing, othercomputer- related
services;  central
financial, real estate or
insurance services; and
the operation of acorporate headquarters.Credit will be granted for the lesser of
$1000 for each new employee or 2.5% of a
year's wages for each new, full-time job.If the new or expanded facility is located
in a designated revitalization area, then the
credit is increased to the lesser of $1500 or
5% of a year's wages for each new, full-
time job.  The maximum credit allowed-during any credit year for a single facility
is $1 million.
Maryland Dept. of Business
and Economic
Development/Baltimore CountyGrants  New cold
rolling millBethlehem Steel
CorporationsTotal $6 millionG/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 28Massachusetts Economic
Development
Incentive
ProgrammeOffice of Business
DevelopmentTax credit To stimulate job
creation in
distressed areas,
attract newbusinesses,
encourage
existing
businesses to
expand andincrease the
overall economic
development
awareness and
readiness of the
129 participating
cities and townsacross the
Common-wealth.Businesses located in
designated economic
target areas.Businesses and communities negotiate a
local real estate tax incentive agreement.
In turn, these businesses become eligible
for the state's enhanced 5% InvestmentTax Credit and, where applicable, the
state's 10% Abandoned Building Tax
Deduction.  In addition, the programme
also targets and prioritizes capital
spending, including such programmes asPublic Works for Economic Development
monies and Community Development
Action Grants, to communities within
Economic Target Areas.
Massachusetts Seafood Revolving
Loan FundDevelopment
Finance AgencyLoan To  improve the
quality,
efficiency, or
competitiveness
of a company'sseafood
operation.  The
four targeted
areas are
improvedproduct quality,
utilization of fish
by-products,
surimi
production, and
improved
distribution andmarketing.Companies engaged in
the shipping,
processing, freezing,
storing, packing,
distribution, ormarketing of seafood
products.Loans of up to $200,000 are available to
finance equipment and technologies.  The
fund cannot finance vessels.G/SCM/N/48/USA/Suppl.1
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Page 29Massachusetts Urban Initiative
FundCommunity
Development
Finance
CorporationLoans To help support
minority-owned
businesses.Minority-owned
businesses with less
than $500,000 in
annual sales in targetedurban communities.Loans up to $200,000.
Massachusetts Venture Capital
FundCommunity
Development
FinanceCorporation Loans and in
some cases,
equity financingTo help create
and support
employment inlow-income
communities.Firms in low-income
communities which
have a communitydevelopment
corporation, to enable
them to expand or
retain employment for
local residents.$100,000 to $300,000 per project, up to
1/3 of total financing.
Michigan Renaissance ZonesEconomic
DevelopmentCorporationTax credit To encourage
economicactivity in
designated urban
and rural areas o
f
the state bywaiving virtuallyall state and local
taxes for up to 15
years.Businesses with a
presence in Michiganchoosing to relocate
Michigan-based jobs to
a zone may do so by
meeting notification
requirements laid out inthe law.By law, Renaissance Zones waive the
following local and state taxes:  MichiganSingle Business Tax; Michigan Personal
Income Tax; Michigan's State Education
Tax; Local Personal Property Tax; Local
Real Property Tax; Local Income Tax; and
Utility Users Tax.  These taxes representnearly all state and local taxation on a
Michigan business.  Of the 11 Enterprise
Zones, the sunset dates arrive in 10-15
years after designation on January 1, 1997.
Michigan Technology Park
Development ActTax Abatement
(property tax)To promote
business within
the technology
parks.New facilities locating
in technology parks
(e.g., research and
development,
high-technologyindustrial activities,
business activity
related to development
or improvement of
existing products orcreation of new
products).The abatement is equal to a 50% reduction
in property taxes and may be granted for
periods of 1 to 12 years.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 30Minnesota Enterprise Zone
ProgrammeDepartment of
Trade and
Economic
DevelopmentTax credit The main goal of
the programme is
retention of
existingMinnesota
businesses with a
secondary
emphasis on the
creation of newdevelopment and
jobs.Any business located in
or locating to an
enterprise zone.  Any
business is eligibleexcept one of the
following: a recreation
or entertainment
facility, one owned by
a fraternal or veteran'sorganization, one
owned by a public
utility, or a financial
institution.The Zone programme provides business
tax credits (income, property, sales) to
qualifying businesses which create
investment, development, job creation orretention in the Enterprise Zone Tax
credits are allocated by the State to
Enterprise Zone cities.  Businesses apply
for tax credits through the city Enterprise
Zone coordinator. Tax credits include:property tax credits, debt financing credit
on new construction, sales tax credit on
construction equipment and materials, and
new or existing employee credits.
Minnesota Urban Challenge
Grant ProgrammeMinnesota Dept. o f
Trade and
Economic
DevelopmentGrants To help expand
minority and
women-owned
businesses
located withinthe targeted
areas.New and expanding
minority and
women-owned
enterprises located in
targeted areas.Loans will be more than $5,000 and less
than $150,000.
Up to $12 million available.
Minnesota Challenge Grant
ProgrammeDepartment of
Trade and
Economic
DevelopmentGrant To provide job
opportunities for
low-income
individuals,
encourage
private
investment, andpromote
economic
development in
rural areas of the
state.Eligible applicants
include businesses
located, or intending to
locate, in rural
Minnesota.  "Rural" is
defined as the 80
counties of Minnesotaother than the Twin
Cities metropolitan
area. Maximum loan available is $100,000 up
to 50% of start-up or expansion costs.
Most loans will be smaller due to the high
demand for funds compared with the funds
available. The interest rate is between 3%
and 10%, and the terms will be consistent
with other sources of project financing.Each Initiative Fund will determine the
specific interest rate and collateral
requirements. Each dollar of Challenge
Grant funds must be matched by at least
one dollar of non-public funds, usuallyowners' equity and/or private financing.
Mississippi State Port Income
Tax CreditDepartment of
Economic and
Community
DevelopmentTax credit To encourage the
use of in-state
ports by in-state
companies.Taxpayers who utilize
the port facilities at
state, county, and
municipal ports in
Mississippi.Credit in an amount equal to certain
charges paid by the taxpayer.G/SCM/N/48/USA/Suppl.1
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Page 31Missouri Enterprise Zones Department of
Economic
DevelopmentTax credit To encourage
taxpayers to
establish new
facilities andexpand existing
facilities in
economically
distressed areas
of Missouri andto create new
jobs and new
investment.Businesses located in
or locating to an
enterprise zone.The tax credits are earned each tax period
for up to a 10-year period.  Possible credits
include: $400 for each new job created at
the project; 2% of the new capitalinvestment over $100,000 created; $400
for each zone resident employee; $400
prorated on 365 days for each “special”
employee hired; $400 per employee
trained, who is a zone resident or wasunemployed for 90 days when hired; up to
$75,000 refund of unused credits earned
by new facilities only; at least 50%
abatement for 10 years on improvements
made to real property used for
manufacturing, mining, or wholesale
distribution.
Missouri Wine and Grape
Production TaxCredit Programme Department of
EconomicDevelopmentTax credits Vineyards and wine
producers.State income tax credit to an individual,
partnership or corporation in an amountequal to 24% of the purchase price of all
new equipment and materials used directly
in the growing of grapes or the production
of wine in Missouri.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 32Nebraska Enterprise Zone Department of
Economic
DevelopmentTax credit To encourage
business
development in
qualified zoneareas.Qualified Zone
business activities
include manufacturing,
assembly andfabrication; farming,
ranching or raising
livestock; research and
development; data
processing,telecommunications or
insurance services;
financial services; and
administrative
headquarters.
Targeted counties have
been designated by theState as Enterprise
Zones.Amounts which shall not exceed $75,000
per year, shall be: (1) $4,500 for each new
employee and $3,000 per $75,000 of
investment provided at least 50 percent ofthe new employees are Zone residents; (2)
$4,500 for each new employee who is a
Zone resident, $1,500 for non-Zone
residents, and
$1,000 per $75,000 of investments; or (3)the normal provisions for tax credits
provided by the Employment Expansion
and Investment Incentive Act - $1,500 per
employee and $ 1,000 per $75,000 of
investment.
Nebraska Ethanol Tax CreditDepartment of
RevenueTax Credits Producers of ethanol. $0.20 per gallon.
Nebraska Employment and
Investment
Growth ActDepartment of
RevenueTax Credits To create
employment and
job training and
skills.Specific types of
businesses which make
major investments in
employees and
property, with some
limitations.Varying percentage based on minimum
required investment levels.
Nebraska Revolving Loan
FundNortheast
Nebraska
DevelopmentDistrictLoan To promote
business
development.For-profit business
located in targeted
counties in
Northeastern Nebraska.Loans will range from $25,000 to
$100,000 (maximum).  Fixed asset
financing will not exceed 15 years.Working capital loans will be financed on
a short-term basis of 3 to 7 years.  Interest
rates will be fixed and negotiated on an
individual basis.G/SCM/N/48/USA/Suppl.1
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Page 33Nebraska Rural Economic
Opportunity ActNebraska
Tax
Incentive
ProgrammesTax credit To create
development and
growth in rural
areas.A taxpayer, who is or
whose owners are,
subject to sales and use
taxes and either anincome tax or financial
institutions tax or a
sub-chapter T
cooperative.10% investment credit earned on property
placed in service after date of application
and before the end of the entitlement
periods (3 years). Or, 5% compensationcredit earned in the entitlement period on
taxable wages of new employees.
Nebraska Nebraska Quality
Job ActsDepartment of
RevenueAllow up to 5%
withholding of
employee’s state
income taxes by
the recipient firmTo help sustain
employment in
the state of
Nebraska.Eligible companies
making a certain level
of investment and
employmentAllow retention by the company of state
income taxes from wages paid to new
employees not to exceed 5% to be used by
the company for an employee benefit
programme.
New Jersey Urban Enterprise
ZoneDepartment of
Commerce andEconomic
DevelopmentMixed tax
incentivesTo revitalize the
state's mostdistressed urban
communities
through the
creation of
private sectorjobs and public
and private
investment in
targeted areas
within these
communities.Businesses that locate
within the zone. (20zones).1) 100% sales tax exemptions for purchase
of certain materials and  tangible personalproperty. 2) One-time corporation tax
credit of $1,500 for the full-time hiring of
residents of a city where a Zone is located
who have been unemployed or dependent
upon public assistance for at least 90 days,or a corporation tax credit of $500 for
hiring residents within the Zone, within
another Zone or within a qualifying
municipality.  3) Subsidized
unemployment insurance costs for certain
new employees with gross salaries of less
than $4,500 per quarter.  4) Tax credit of8% of investment in the Zone by an
approved "in lieu" agreement for certain
eligible firms.  5) Priority for financial
assistance from New Jersey Local
Development Financing Fund and JobTraining Programme.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 34New Mexico Aerospace
Research and
Development
DeductionTaxation and
Revenue
DepartmentTax abatement or
reductionTo facilitate the
location of a
spaceport in New
Mexico.A company must:  Sell
its services to the US or
its agencies for
aerospace research anddevelopment; and
operate the proposed
spaceport for the
launch and recovery of
reusable spacecraft.Maximum Programme Benefits: A portion
of gross receipts tax is deductible,
increasing over four years to 100% by
1999.  Receipts from operating thespaceport are deductible.  Receipts from
launching or recovering space vehicles or
payloads are deductible.  Receipts from
preparing a payload for launch in New
Mexico are deductible.
New Mexico Enterprise Zones Economic
Development
DepartmentMixed tax
incentivesTo stimulate the
creation of new
jobs, with
emphasis oneconomically
disadvantaged
workers and
long-term
unemployedindividuals, and
to revitalize
economically
distressed areas.Businesses locating to
or located in an
enterprise zone.$50,000 tax credit to property owners for
the rehabilitation of qualified business
facilities;  Tax increment method of
financing local enterprise zone projects;Local property tax abatement for 10 years
on selected property;  Building
rehabilitation tax credit up to $50,000;
65% in-plant training reimbursement for
qualified businesses.
New Mexico Filmmaker's Gross
Receipts Tax
IncentiveTax information
officeTax exemption To facilitate the
filming of
movies,
television shows
and commercialsin New Mexico.Qualified production
companies filming in
New Mexico.A qualified production company may
execute nontaxable transaction certificates
with its suppliers for tangible personal
property or services.  The suppliers may
then deduct their receipts from the grossreceipts tax.G/SCM/N/48/USA/Suppl.1
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Page 35New York Empire Zones
Programme
(formerly notified
as
Economic
Development
Zones Programme)Empire State
DevelopmentMixed tax
incentivesTo stimulate
economic growth
through state tax
incentives forbusinesses that
expand or locate
in Economic
Development
Zones in NewYork State.Qualified New York
State businesses or
taxpayers operating in a
Zone or ZoneEquivalent Area who
are subject to franchise
and personal income
tax are eligible for
benefits.(1) Investment tax credit - Tax credits up
to 10% on business investments in new or
expanded manufacturing facilities.
Employee incentive credit of up to 9% isavailable to corporations if employment is
increased when the investment is made.
(2) Wage tax credit - up to $3000 available
for each new job created.  Credit can be
taken for up to five years. (3) Zone capitaltax credit - 25% tax credit for eligible
investments in or contributions to certified
zone business; approved community
development projects; or an approved local
loan or equity fund.  (4) New York State
sales tax refund - available for the 4% state
sales tax paid on the purchase of buildingmaterials incorporated into the
construction or renovation of industrial or
commercial facilities in the zone.  (5)
Utility rate reduction available in many
areas. (6) Real property tax abatement,credits, and reductions also available.
New York Long-Term
Economic
Development FundJob Development
AuthorityLoan To help promote
business
development in
distressed areas
of the state.Applicants must be
private businesses
located in rural or
distressed areas of the
state and in
communities withpopulation under
25,000, or in counties
that are not within a
Standard Metropolitan
Statistical Area, or in
counties with fewer
than 150 people persquare mile. Exceptions
may be made on a case-
by-case basis.Loans of up to one-third of total project
cost or a maximum loan of $150,000 per
project.  Interest rate on loans is the prime
rate minus 3%, fixed at the time of closing,
with a minimum rate of 5% and maximum
rate of 10%.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 36New York JDA Direct Loan
ProgrammeNew York Job
Development
AuthorityLoans To promote
development in
the distressed
areas.Priority given to
projects that contribute
to the revitalization of
distressed areas.Low-interest loans, amounts vary.
New York Energy Products
CenterNew York State
Energy R&D
AuthorityMarketing
assistance and
financial
assistanceTo promote more
efficient and
clean supplies of
energy.Businesses involved
with a technology,
product, or service that
generates new suppliesof energy more
efficiently and cleanly.Up to $500,000 of project cost may be
funded, with 50% co-funding.
New York Industrial Fuels
and Raw MaterialsNew York State
Dept. of Economic
DevelopmentTax exemptions
(sales and use
taxes)Components
used/consumed in
manufacturing, mining,
and R&D, as well as
fuels and utilities usedor consumed directly in
such activities
(manufacturing fuels
and utilities are taxable
in NYC). Regionalpreference for locating
outside of NYC.Amounts vary.  State and local sales tax
exemptions for manufacturing, research
and development, machinery/equipment,
and fuels/utilities do not include a general
exemption for raw materials, but may beexempt under the “sale for resale”
exemption or other exemptions.
New York Rural
Development LoanFundNew York Job
DevelopmentAuthorityLoans To promote
businessdevelopment in
rural areas.New and emerging
businesses in distressedrural communities, and
communities with 1980
populations of 25,000
or less, for
environmentally sounddevelopment projects.Provide up to 20% of the total project
costs.
North Carolina Job Creation Tax
CreditDepartment of
CommerceTax credits Job creation Companies that hire
new full-time
employees.  Benefits
dependent upon tier
status.Tax credit for Tier 1: $12,500;
Tier 2: $4,000; Tier 3: $3,000; Tier 4:
$1,000; Tier 5: $500.G/SCM/N/48/USA/Suppl.1
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Page 37North Carolina Worker Training
Tax CreditDepartment of
CommerceTax credits Job training Companies eligible for
job creation or
machinery and
equipment tax credits.Tier 1: $1,000; All other tiers: $500.
North Carolina Machinery and
Equipment
Investment Tax
CreditDepartment of
CommerceTax Credit Business
developmentEligible Companies are
manufacturing,
processing,
warehousing,distribution, and data
processing including
the following SIC
codes: 2011-3999,
4221-4226, 5012-5149,73)71-7379.The size of the tax credit is based on the
location of the firm and the size of the
investment.  The tax credit equals 7% of
the amount of the investment over thefollowing thresholds:  Tier 1 counties,  $0;
Tier 2 counties, $100,000; Tier 3 counties,
$200,000; Tier 4 counties, $500,000 and
Tier 5 counties, $1,000,000.
North Dakota Renaissance Zone
ActOffice of the State
Tax CommissionerTax credits To encourage
business
development.Businesses in certain
designated zones.Up to 100% exemption from property tax
for up to five years for purchasing
buildings, structures, fixtures, and
improvements for business purposes.  Up
to 100% exemption from property tax for
up to five-years for purchasing buildings,structures, fixtures and improvements
solely for investment purposes’; five-years
business income exemption for purchasing
or leasing real property for use in a
business or for improving real property
used in an existing business; five-year
investment income exemption forpurchasing residential or commercial real
property solely for investment purposes.
Ohio Enterprise Zones Department of
DevelopmentMixed tax
incentivesTo attract
business and
promote
economic
development.Businesses that
establish, expand,
renovate, or occupy a
facility in an Enterprise
Zone.Up to 75% exemption in incorporated
areas and up to 60% in unincorporated
areas of the improved real estate or new
tangible personal property tax valuation
for up to 10 years.  In some instances,local school board approval may be
required.  Additional state incentives
available.  Programme highlights include
substantial tax reductions on real and
personal property and state franchise taxes.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 38Ohio Scrap Tire Loan
and Grant
ProgrammeDepartment of
Development
(ODOD)Grant To attract
environmentally
aware
companies.Any operating business
that has a significant
presence in Ohio and
which demonstratesthat its fixed asset
expansion project will
recycle Ohio's scrap
tires.ODOD has $2 m illion available for
qualifying loans and grants, with
additional funds earmarked to continue the
programme through the year 2000.Financing is designated as "take-out"
financing wherein a business must
complete its project utilizing interim
financing from a conventional lender as its
equity.  Upon completion of the project,the state funds will be disbursed.
Preferential interest rates and terms are
provided for qualifying companies
locating or expanding in "distressed" areas.
Ohio Steel Development
Initiative: 166
Direct Loan or
Loan Guarantee &
Ohio EnterpriseBond FundDepartment of
DevelopmentLoan Support the steel
industry.Steel makers,
processors, and
foundries (SIC 3300 &
3400) making new
capital investments;eligible investments
include fixed asset
investment in building,
machinery, and
equipment.Up to $30 million available (up to $10m
per company) under two programmes: 1)
Direct Loan or Loan Guarantee - provides
up to 30-40% of eligible project costs,
$15,000 of state money loaned per jobretained or created in non-distressed areas;
$35,000 of state money loaned per job
retained or created in distressed areas; 10%
equity requirement; interest rate fixed at
3%; term of 5-15 years based on life offixed assets; 2) Ohio Enterprise Bond
Fund - provides up to 90% of fixed rate
financing of eligible project costs; $75,000
of bond money loaned per job retained or
created; 5-20 year term based on life offixed assets.G/SCM/N/48/USA/Suppl.1
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Page 39Ohio Steel Development
Initiative:
Infrastructure
GrantsDepartment of
DevelopmentGrant To develop
infrastructure Steel makers,
processors, and
foundries (SIC 3300 &
3400) making newcapital investments.
Eligible investments -
public infrastructure
improvements
necessary to move aproject forward or key
equipment forward.Up to $5 million over three years.
Ohio Steel Development
Initiative: TargetedIndustries Training
Grant ProgrammeOhio Board of
RegentsGrant Steel makers,
processors, andfoundries.Up to 75% of the instructional and related
costs of a training programme.  Maximumof $50,000 in benefits to a single company
during a fiscal year - cost per trainee per
training project cannot exceed $650.
Oklahoma Enterprise Zones Department of
Commerce Mixed financing To entice
manufacturers to
low- income,high out-
migration, or
high
unemployment
areas.Any type of
manufacturing business
located in or locating toan enterprise zone.Double the Investment/N ew jobs tax credit
is allowed and low-interest loans may be
made available through the enterprisedistrict loan fund.  These loans can be for
up to 100% of the estimated cost of the
building and equipment.
Oklahoma Former Military
Base Quality Jobs
ActDepartment of
Commerce and
Tax CommissionGrants To create new
jobs in areas
designated as
former militarybasesAny type of
manufacturing, certain
warehouse distributors,
certain servicecompanies.Amounts vary.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 40Oklahoma High Impact
Quality JobsDepartment of
Commerce and
Tax CommissionGrants To create new
job opportunities
in sparsely
populated areas.Any type of
manufacturing, certain
warehouse distributors,
certain servicecompanies locating in
low-population areas.Amounts vary.
Oklahoma Investment New
Jobs Income TaxCreditOklahoma Tax
CommissionTax credit To attract
investment to thestate of
Oklahoma.Manufacturers or
qualified aircraftmaintenance facilities.Credit of 1%/year of the investment in
qualified depreciable property the year theproperty is placed in service, or a credit of
$500/year per additional new jobs engaged
only in manufacturing or processing.  New
jobs credit shall be for each full-time
equivalent manufacturing employee hiredprior to 2003 whose paid wages are at least
$7,000 during each year the credit is
claimed.  In Enterprise Zones the credit is
doubled.  Firms that take advantage of the
Investment/Jobs Income Tax CreditPackage are ineligible for the Quality Jobs
10-Year Cash Back Incentive.
Oklahoma Sales Tax Refunds
for Computer-
related ProductsOklahoma Tax
CommissionTax refund To support
research and
development for
industries.New or expanded
aircraft maintenance
and manufacturing
facilities; Research and
development or
computer services
companies (SIC 7372-7375, 8731-8734).Sales tax refund on computers, data
processing equipment, related peripherals,
telegraph or telecommunications services
or equipment.
Oregon Business
Development Fund
(OBDF)Economic
Development
DepartmentLoans To attract
businesses to
rural or
depressed areas
of Oregon.Specified businesses
located in rural or
economically depressed
areas are given
preferential treatment.Max. 40% OBDF participation; max. loan
size is $250,000 and no more than 20% of
the Fund’s assets can be invested in any
one county.G/SCM/N/48/USA/Suppl.1
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Page 41Oregon Enterprise Zone Economic
Development
DepartmentTax abatement or
reductionTo create new
jobs by
encouraging
businessinvestment in
economically
lagging areas of
the state.Eligible business firms
provide goods,
products or services to
other businessoperations.  This
includes processing
plants, distribution
centers, maintenance
facilities, warehouses,and some operations
that handle bulk
clerical tasks or after-
sales technical support.Construction of new facilities in an
enterprise zone entitles a business to a 10
% property tax abatement for three years
on new plant and most of the equipmentinstalled in the plant.
Oregon Industrial
Development
Bonds/Locally
IssuedPortland
Development
CommissionBonds-IDB’s To promote
economic
development and
growth.Portland is the only city
currently meeting the
size limitation of more
than 300,00 in
population.Tax exempt industrial development bonds
can be used for up to 100% of the
estimated cost of the project and are issued
for up to 30 years.
Pennsylvania Keystone
Opportunity ZoneProgrammeDepartment of
Community andEconomic
DevelopmentTax creditTo encourage
economic growthin economically
distressed areas.Businesses located in a
keystone opportunityzone.Tax credit used to offset corporate tax
liability.  Tax credit shall not exceed thetax liability of the taxpayer for the tax
year.
Pennsylvania Enterprise Zone
Tax CreditDepartment of
Community andEconomic
DevelopmentTax credit To encourage
economic growthin economically
distressed areas.Businesses investing in
an enterprise zone.Up to $250,000 per project, per company,
per year.  Tax credit used to offsetcorporate tax liability.
Rhode Island Employer's
Apprenticeship
Tax CreditEconomic
Development
CorporationTax credit To promote
growth in the
metals and
plastic industries.The credit applies to
the following trades in
the metal and plastic
industries: machinist,
toolmaker,modelmaker, gage
maker, patternmaker,
plastic process
technician, tool &
machine setter,diesinker, moldmaker,
tool & die maker,
machine tool repair.Annual credit allowed is 50% of the actual
wages paid to the qualifying apprentice or
$4,800, whichever is less.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 42Rhode Island Enterprise Zone Economic
Development
CorporationTax credit To foster
economic growth
in distressed
urban areas.A taxpayer who owns a
certified business
facility within an area
designated by theEnterprise Zone
Council.Business Tax Credit:  50% of the Rhode
Island salaries and wages paid only to
those newly hired enterprise job workers
comprising the employees included in the"5% growth test" used for certification by
the council.  The maximum credit for each
worker is $10,000.  Resident Business
Owner tax modifications:  deduct $50,000
per year as a modification reducing federaladjusted gross income during the first 3
years of operation; and $25,000 during the
fourth and fifth years.  Tax Credit for
Donations: 20% deduction credit allowed
for donations to publicly supported
improvement projects in the zone, max of
$10,000 per year and cannot reduce the taxbelow the minimum.  Enterprise Zone
Interest Credits:  Lenders to certified
businesses may be eligible for credits
based on the interest paid by the business.
Regular Loan Interest:  A taxpayer isallowed a 10% credit (maximum $10,000)
for interest on loans made to certified
businesses.
Special Rehabilitation Loan Interest
Income Credit: 100% credit ($20,000maximum) for interest earned on loans
made to certified businesses for
rehabilitation of Council-certified
industrial or commercial property if the
amount of the loan is a minimum of 25percent of the business’ basis of real
property.G/SCM/N/48/USA/Suppl.1
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Page 43Rhode Island Seafood Revolving
Loan FundEconomic
Development
CorporationLoan To help promote
economic
development.Rhode Island Seafood
Industry firms are
eligible for funds.The maximum loan amount is $150,000.
Programme funds should not average more
than 90% of total project cost.  Interest
rates are fixed at the prime plus 1%.  Themaximum term for real estate is 15 years;
machinery and equipment is 10 years; and
working capital is 5 years.
South Carolina Movie Production
Project and
Facility CreditsS.C. Code Sec.
12-6-3510Tax Credit  Promote and
encourage the
location of
motion picture
production.Taxpayer investing in a
South Carolina movie
production or
production facility.33% of the value of a taxpayer’s
investment in constructing, converting, or
equipping a motion picture production
facility or post production facility in South
Carolina.  Total Project Credit is limited to
$15,000 and total Production FacilityCredit is limited to $5 million for all years.
South Carolina Corporate Income
Tax Moratorium in
Distressed
CountiesSouth Carolina
Department of
RevenueCorporate
Income Tax
MoratoriumTo encourage
growth in
economically
distressed
counties.Companies located in
South Carolina’s most
economically distressed
counties.Corporate income tax moratorium.  Length
of moratorium dependent upon number of
new jobs created: 100 new jobs over 5
years results in a 10-year moratorium; 200
new jobs results in a 15-year moratorium.
South Carolina Economic Impact
Zone Investment
Tax CreditSouth Carolina
Department of
CommerceTax Credit To help offset
the impact of
federal
downsizing in
the state and spurgrowth in areas
surrounding
Charleston Naval
Base, Myrtle
Beach Air ForceBase, and the
Savannah River
Site.Manufacturers located
in “Economic Impact
Zones.”One-time credit against a company’s
corporate tax of between 1% and 5% of a
company’s investment in new production
equipment.  Credit percentage depends on
the applicable recovery period for propertyunder the Internal Revenue Code.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 4416South Carolina Job Development
CreditSouth Carolina
Department of
CommerceTax credit Provides
companies that
add value to
South Carolinaor the
community in
which they
locate with
reimbursementsfor eligible
capital
expenditures
associated with
providing new
full-time jobs.Companies must meet
and maintain agreed
upon investment and
employment levels.Benefits available over 15 years.  Credit is
available throughout the state, although the
percentage of the credit varies according to
the county classification.  Companies indeveloped counties are eligible for only
55% of the credit, while companies in least
developed counties retain 100% of the
credit.
Tennessee Jobs Tax Credit Tennessee
Department of
Economic andCommunity
DevelopmentTax Credit To create jobs
and increase
investment in theSpecial
Enhancement
Counties.Businesses located in
economically distressed
areas.Up to $3,000 applied against the amount
of increase in the corporation’s franchise
tax liability caused by its expansion.
Tennessee Minority Business
Development Loan
FundLow-interest
loansTo stimulate
capital
investment,
encourage job
creation, and
buildentrepreneurial
capacity to
advance the
economic
well-being of thegrowing
minority
business sector.Business located in the
TVA power service
area for purchase of
fixed assets.Loans range from $50,000 up to $500,000
and are generally awarded for a period of
three to ten years, from five to seven years
for equipment, and eight to ten years for
real property.G/SCM/N/48/USA/Suppl.1
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Page 45Tennessee Special
Opportunities
Counties (SOC)
ProgrammeLow-interest
loanTo aid the
Valley’s poorest,
less developed
rural areas byassisting in the
creation of
projects for job
creation and
incomeenhancement by
providing limited
financial
assistance for
project
implementation.Businesses that will use
the loan for buildings,
plant equipment,
infrastructure, orproperty.Loans are based on capital investment
leveraged and number of jobs created.
TVA’s investment is generally based on
$3,000 to $5,000 per job created.Investment should not exceed 25% of
project costs.
Tennessee Economic
Development Loan
FundLow- interest
loanTo stimulate
capital
investment,encourage the
retention and
growth of
high-quality
jobs, andpromote
economic growth
in the TVA
power service
area.Businesses located in
the TVA power service
area.Maximum investment is $2 million.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 46Texas Enterprise Zone Department of
Economic
DevelopmentTax refund To encourage job
creation and
capital
investment inareas of
economic
distress.New or expanding
businesses in a zone.Refund of state sales or use taxes paid on
machinery and equipment, building
materials, labour for the rehabilitation of
existing buildings, and electricity andnatural gas purchased for use in the
enterprise zone.  Each project is limited to
a maximum refund of $1.25 million or
$250,000 per year over the five-year
period.
Franchise tax deduction on annual report
filing for each year of five-year
designation.  State franchise tax liability is
based upon the project's taxable capital or
earned surplus income.  The deduction is
based on the amount of capital investmentmade by the  project in the enterprise zone.
The project's apportioned taxable capital
may be reduced by 50% of the capital
investment made in the enterprise zone or
the apportioned earned surplus incomemay be reduced by 5% of the capital
investment made in zone.
Texas Capital Fund Real
Estate
Development
ProgrammeDepartment of
Economic
DevelopmentGrants To promote
development and
support new
businesses.Non-entitlement cities
and counties which
generally are those with
less than 50,000 and
200,000 in population,respectively,  to
acquire, construct or
rehabilitate real estate
to support new
businesses to invest in
the area.G/SCM/N/48/USA/Suppl.1
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Page 47Texas Capital Fund
Small Business
Incubator
ProgrammeDepartment of
Economic
DevelopmentGrants Support small
businesses.To establish a new
small business
incubator or expand an
existing small businessincubator located in
non-entitlement cities
and counties which
generally are those with
less than 50,000 and200,000 in population,
respectively.
Texas Capital Fund Loan
ProgrammeDepartment of
EconomicDevelopmentLoans Promote
economicgrowth.New business
development andexpansions in
non-entitlement cities
and counties which
generally are those with
less than 50,000 and200,000 in population,
respectively.Interest rates will be fixed at the Wall
Street Journal prime, unless the need for alower rate can be documented through
financial analysis.
Texas Capital Fund
Small and/or
Minority
Businesses Loan
ProgrammeDepartment of
Economic
DevelopmentLoans Support
small/minority
owned
businesses.Small and/or minority
businesses located in
non-entitlement cities
and counties which
generally are those with
less than 50,000 and
200,000 in population,respectively.Interest rates are fixed at Wall Street
Journal prime, unless the need for a lower
rate can be documented through financial
analysis.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 48Texas Rural Economic
Development FundDepartment of
Economic
DevelopmentLoan guarantee To promote
growth in rural
areas.Businesses located in
designated rural areas.
Utah Enterprise Zones Department of
Community and
Economic
DevelopmentTax credit Foster
development in
areas with
pervasive
poverty,unemployment,
or general
distress.Companies within
targeted industries
which move into, start
up, or expand within an
Enterprise ZoneIncome tax credit or a corporate franchise
tax credit of $750 for each new full-time
position that has been filled for not less
than 6 months during a given tax year, or
$1,250 if the position pays 125% of theaverage non-agricultural payroll wage for
the industry.  An annual investment tax
credit against income tax or corporate
franchise tax of 10% of the first $250,000
in investment and 5% of the next$1,000,000 investment in plant,
equipment, or other depreciable property
within Enterprise Zones.
Utah Industrial
Assistance FundDepartment of
Community and
Economic
DevelopmentGrant or loan To foster and
develop industry
to assure the
welfare ofcitizens,
economic growth
and employment.Companies that
establish,  relocate or
develop industry in an
economicallydisadvantaged rural
area.Amounts vary.  Credit amount determined
by number of jobs created and the
increased economic activity that results
from the assistance.
Virginia Clean Fuel
Vehicle Job
Creation Tax
CreditEconomic
Development
PartnershipTax credit Promote sources
of clean fuel.Businesses
manufacturing or
converting vehicles to
operate on clean fuel
and manufacturers of
components for use inclean fuel vehicles.Income tax credit for each new full-time
job created, over and above the previous
year's employment level.  The credit is
equal to $700 in the year the job is created,
and in each of two succeeding years if the
job is continued, for a maximum of $2,100
per job.  Unused credits may be carried
forward for five years.  The credit is
available for taxable years beginning on or
after January 1, 1996 through December
31, 2006. Businesses receiving this taxcredit are not eligible to receive the Major
Business Facility Job Tax Credit.G/SCM/N/48/USA/Suppl.1
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Page 49Virginia Solar Photovoltaic
Manufacturing
GrantsVirginia Dept. of
Economic
DevelopmentGrants Support of the
solar
photovoltaic
sector.Manufacturer who sells
solar photovoltaic
panels manufactured in
the state.Grants of 75 cents per watt of the rated
capacity of panels sold are available for a
five-year period.  The max. grant available
is $4.5 million.
Virginia Enterprise Zone Department of
Housing and
Community
DevelopmentTax credit To stimulate
business
development in
distressed urbanand rural areas.Businesses locating or
expanding in a zone.(1) A ten-year general credit against state
tax liability (80% first year and 60% in
years two through ten);  (2)  A credit
against state tax equal to 30% of qualifiedZone improvements for rehabilitation
projects of at least $50,000 and new
construction projects of at least $250,000.
Maximum cumulative credit is $125,000
in any five-year period;  (3) Large projectswith an investment in excess of $100
million and the creation of at least 200
jobs are eligible for a negotiable credit of
up to 5% of total investment (real property
and machinery and equipment).  Thiscredit is in lieu of the refundable real
property improvement tax credit, and
credits may be carried forward until fully
used; and  (4)  Businesses creating new,
full-time jobs receive grants equal to $500per job ($1,000 for zone residents) for
three years.
Virginia Loan/Grant
ProgrammeVirginia Coalfield
EconomicDevelopment
Authority/The
Virginia Southwest
PromiseLoans and grants To enhance the
economic base o
f
the seven
counties and one
city of far
southwestern
Virginia(Buchanan,
Dickenson, Lee,
Russell, Scott,
Tazewell, and
Wise countiesand the City of
Norton).Private businesses must
be basic employerswho will bring new
income to the area.Loans are limited to $10,000 per
permanent job created, and the averageminimum hourly wage should equal or
exceed 1.5 times the current federal
minimum wage rate at the end of one year
of employment.  Any project providing at
least 25 jobs within 12 months of start-upwill be given priority.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 50Washington Coastal Loan
ProgrammeOffice of Trade
and Economic
DevelopmentLoan To create
economic
opportunities in
Jefferson,Clallam, Grays
Harbor, Pacific,
and Wahkiakum
counties.Businesses Variable loans.  Loans up to $150,000.
Technical assistance loans up to $50,000
for public agencies and $20,000 for
businesses for feasibility studies.
Washington Distressed Area
Business and
Occupation Tax
Credit ProgrammeDepartment of
RevenueTax credit Encourage
growth in
distressed areas.Certain businesses
located in distressed
areas. The business
must be a
manufacturing,research and
development or
computer- related
service business.$1,000 credit against the business and
occupation (B&O) tax for each new
employment position created and filled.
Individual businesses are limited to a
maximum credit of $300,000 over the lifeof the programme.
Washington Distressed Area
Sales and Use Tax
Deferral/Exemption
ProgrammeDepartment of
RevenueTax exemption To encourage
manufacturing
and R&Dactivities and job
creation in the
state, particularly
in rural and
economically
depressed areas.Manufacturing,
research and
development, orcomputer-related
service businesses in
designated areas.Defer payment of retail sales and/or use
taxes on qualified construction and
equipment costs for a period of three oreight years.
Washington High Technology
Business and
Occupation TaxCredit ProgrammeDepartment of
RevenueTax credit Provide support
to high
technologies.The eligible high
technology businesses
include: advancedcomputing, advanced
materials,
biotechnology,
electronic device
technology andenvironmental
technology.An annual credit of up to $2 million is
allowed for each business that performs
the required activities and meets theminimum expense requirements.  The
credit cannot exceed the amount of the
business and occupation tax due for that
calendar year.  The rate for the credit is
.515% for nonprofit corporations andassociations and 2.5% for profit
businesses.G/SCM/N/48/USA/Suppl.1
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Page 51Washington High Technology
Sales and Use Tax
Deferral/
ExemptionProgrammeDepartment of
RevenueTax exemption To stimulate
growth in certain
high technology
industries.Research and
development pilot scale
manufacturing in the
areas of advancedcomputing, advanced
materials,
biotechnology,
electronic device
technology andenvironmental
technology.A sales and use tax deferral/exemption.  If
the project is used for qualifying purposes
for eight years, deferred taxes will be
forgiven.  If the project is used for non-qualifying purposes during the eight year
period, taxes plus interest are due on a pro-
rated basis.  Even if the deferral is
disallowed, no sales and use tax will be
due on exempt manufacturing andequipment (i.e. Manufacturing Tax
Incentive Programme).
Washington Industrial
Machinery andEquipmentDepartment of
RevenueTax exemption
(sales and usetaxes)Aircraft, rolling stock,
and watercraft; motorvehicles and trailers
used by nonresidents.
Washington Industrial
Machinery and
EquipmentDepartment of
RevenueTax exemption
(property tax)Motor vehicles,
aircraft, aircraft parts,
vessels under
construction in excess
of 1,000 ton burden,state-taxable vessels,
ships and vessels in
interstate and foreign
commerce.
Washington Industrial Fuels
and Raw MaterialsDepartment of
RevenueTax exemption
(property tax)Ore of metal
shipped into
state; timber;
hardboard,
particle board,and finished
plywood;
electrolytically
refined metals.
Washington Ships and Vessels
Under
ConstructionDepartment
Of RevenueTax exemption
(property tax)To improve
competitive
position of thestate’s shipyards.Provided to vessels
under construction that
are 1,000 tons or moreburden upon
completion.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 52Washington Small Timber
HarvesterDepartment of
RevenueTax Exemption
(B&O)To reduce tax
burden on small
tree harvests.Provide to the roughly
2,640 individuals and
small businesses that
qualify as small timberharvesters.
Washington $50 Minimum
Timber TaxDepartment of
RevenueTax Exemption To support
smaller timber
harvesters andreduce
administrative
costs.Harvesters who incur
less than $50 in timber
tax liability in a quarterare excused from
payment of tax.
Washington Prototype of
Aircraft PartsDepartment of
RevenueTax Exemption
(Retail sales &
use tax
exemption)To assist small
manufacturers of
aircraft parts.Small firms that
purchase materials used
to develop prototype
aircraft parts.
Washington Fishing Boat Fuel Department of
RevenueTax Exemption
(retail sales andUse Tax
exemption)In recognition
that most of thefuel is consumed
out of the stateVessels engaged in
commercial deep seafishing or in the
operation of
commercial charter
fishing boats.G/SCM/N/48/USA/Suppl.1
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Page 53West Virginia Aerospace
Industrial Facility
Investments CreditWest Virginia
Department of Tax
and RevenueTax Credit The purpose of
this tax credit is
to encourage the
establishment ofnew industry, the
expansion of
existing industry,
and the growth
and revitalizationof aerospace
industrial
facilities in West
Virginia.Eligibility for this tax
credit is limited to
taxpayers who operate
facilities used for themanufacturing
rebuilding or physical
refurbishment of: (1)
Aircraft, (engines,
engine parts, otherparts, auxiliary
equipment; and/or (2)
Guided missiles, space
vehicles, vehicle
propulsion units,
guided missile parts,
propellers, spacevehicle parts, or guided
missile and space
vehicle auxiliary parts.The tax credit shall be limited to 15%
(1.5% for each of ten consecutive years) of
the total qualified investment in a qualified
aerospace industrial facility. The amountof credit utilized in any given year shall
not reduce the taxpayer’s liability for
Business Franchise Tax and Corporation
Net Income Tax (in combination with all
other allowable investment credits) bymore than 60%. Any unused credit for a
particular year is forfeited.
West Virginia New Value-Added
Aluminum or
Polymer
ManufacturingOperations Tax
CreditWest Virginia
Department of Tax
and RevenueTax Credit To encourage job
creation in the
manufacture of
“Value-addedaluminum or
polymer
products” -
those products
that add to,increase or
enhance the
value of any raw,
base or
unimproved
aluminum or
polymer product.Eligible taxpayers for
tax years beginning on
or after July 1, 1998.
The credit is scheduledto expire July 1, 2002.
The credit may be
claimed against that
portion of BusinessFranchise Tax and
Personal Income Tax or
Corporation Net
Income Tax liability
which is attributable to
“new jobs” created in
the State during thetaxable year.The maximum amount of the one-time
credit is $250 for each new job filled by a
full time employee at such a facility.
Full-time jobs created by a taxpayer in ashort tax year during the taxpayer’s first
year of operation, or filled in the year in
which this credit expires, are prorated.
The credit may only be taken one time for
each new job created. Once claimed in a
tax year for a new job, the credit may not
be claimed in a subsequent year for that
position.G/SCM/N/48/USA/Suppl.1
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G/SCM/N/71/USA/Suppl.1Page 54West Virginia New Steel
Manufacturing
Operations Tax
Credit(Value-Added
Steel Products)West Virginia
Department of Tax
and RevenueTax Credit To encourage job
creation in the
manufacture of
“Value-addedsteel product” -
any product that
adds to,
increases or
enhances thevalue of any raw,
bare or
unimproved steel
product.Eligible taxpayers for
tax years beginning on
or after July 1, 1998.
The credit is scheduledto expire July 1, 2005.
The credit may be
claimed against that
portion of BusinessFranchise Tax and
Personal Income Tax or
Corporation Net
Income Tax liability
which is attributable to
“new jobs” created
during the taxable year.The maximum amount of the one-time
credit is $250 for each new job filled by a
full time employee at such a facility.
Full-time jobs created by a taxpayer in ashort tax year during the taxpayer’s first
year of operation, or filled in the year in
which this credit expires, are prorated.
West Virginia New Value-Added
WoodManufacturing
Operations Tax
Credit
(Consumer-Ready
Wood Products)West Virginia
Department of Taxand RevenueTax Credit To encourage job
creation in themanufacture of
“Consumer-read
y wood
products” -
value-addedwood products
that are ready for
sale to
consumers at the
end of themanufacturing
process.This credit is available
to eligible taxpayers fortax years beginning on
or after July 1, 1997.
The credit is scheduled
to expire July 1, 2002.
The credit may be
claimed against that
portion of Business
Franchise Tax and
Personal Income Tax orCorporation Net
Income Tax liability
which is attributable to
“new jobs” created  in
the State.The maximum amount of the annual credit
is $250 for each new job filled by a fulltime employee at such a facility during the
tax year. Full-time jobs created by a
taxpayer in a short tax year during the
taxpayer’s first year of operation, or filled
in the year in which this credit expires, areprorated.
West Virginia Wood Processing
Tax CreditDevelopment
OfficeTax credit To support
processing
operations.New wood processing
operations.$250 per year for full time employee for
10 years to new or expanding companies
involved in the manufacture ofvalue-added wood products.  The finished
product must be consumer ready.G/SCM/N/48/USA/Suppl.1
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Page 55Wisconsin Dairy 2020 Early
Planning Grant
ProgrammeDepartment of
CommerceLoan To provide
support to dairy
producers in
designated areas.Existing and start-up
dairy producers whose
farms are, or will be,
located in a city, townor village with a
population of less then
6,000.Up to 75% of eligible project costs up to a
maximum of $3,000.  Actual amount of
funds awarded is based on viability of the
project, the project’s economic impact, andfund availability.
Wisconsin Development Zone
Programme Department of
Commerce, Act
328Tax credit To encourage
private
investment in
distressed areas,
improving both
the quality andquantity of
employment
opportunities for
persons who are
unemployed orwho may face
barriers to
employment.Businesses located in
or locating to a
development zone in a
distressed economic
area.Tax credit in three parts consisting of the
following: a credit of up to 50 percent of
the environmental remediation coasts, a
credit of up to $8000 in tax credits for
every new position created and filled by a
member of a targeted group and a credit ofup to $6000 in tax credits for every new
position created.
Wyoming Taxpayer
RemediesW.S. 39-17-109(d) Tax Credit Support of
ethanol
producers.Producers of ethanol in
Wyoming.Credit of 40 cents per gallon.
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