The Economic Development Digest - August 30, 2013

Womble Carlyle’s Economic Development Digest aggregates news, opportunities and legislation impacting business in the Southeast and Mid-Atlantic U.S.

In this week's Economic Development Digest:

Georgia

Chinese company to create 50 jobs in Georgia; Guanming Fang represents Chinese investor in deal, wcsr.com (August 23, 2013) Womble Carlyle attorney Guanming Fang assists a Chinese phosphate and chemical company, Hubei Hingfa Chemicals Group, in bringing 50 jobs to Georgia. Georgia DOR amends rule to allow investor credit in 2014, 2015, TaxAnalysts.com (August 20, 2013)** The Georgia Department of Revenue has amended the qualified investor tax credit rule to allow the credit for investments in 2014 and 2015 with a credit cap of $5 million.

Maryland

Huge warehouse envisioned for GM site, The Baltimore Sun (August 22, 2013) A 1 million square foot facility that would employ up to 2,600 people is planned in Baltimore as a distribution center.

National

Tax foundation releases midyear ranking of state and local sales tax rates, TaxAnalysts.com (August 28, 2013)** A Tax Foundation report released August 28 ranks states and cities based on sales tax rates; Tennessee, Arkansas, Louisiana, Washington, and Oklahoma topped the ranking with the highest state and local combined rates, while Alaska, Hawaii, Maine, Wisconsin, and Wyoming had the lowest combined rates among states that imposed sales tax. A federal prod to lower college costs, The New York Times (August 22, 2013) President Obama unveiled a proposal last week which would potentially make college more affordable and potentially make higher education more accessible to families worried about rising tuition costs. Clock is ticking for recess, and for a deficit deal, The New York Times (August 22, 2013) The New York Times reports that a group of Senate Republicans are working with top White House officials on high level budget talks. 4 ways an attack on Syria could hurt the U.S. economy, Triangle Business Journal (August 27, 2013) Military action against Syria could affect the economy by creating uncertainty overall, lowering stock prices, raising oil prices and even negatively impacting aerospace and defense exchange traded funds.

North Carolina

Leaders divided on funding, The Wilson Daily Times (August 24, 2013) Close to $1,000,000.00 in license tag fees in Wilson County is now available, and the General Assembly of North Carolina has directed that the money be used for economic development. Changes to North Carolina Business Corporation Act take effect January 1, 2014, wcsr.com (August 29, 2013) The North Carolina General Assembly and Governor McCrory recently approved revisions to the North Carolina Business Corporation Act (the “Act”) that will become effective January 1, 2014. Rural Center plan would halt grant-making, diminish agency, News & Observer (August 28, 2013) The North Carolina Rural Economic Development Center's future diminishes in the wake of a loss of state funds. Triangle unemployment rate remains unchanged in July, News & Observer (August 28, 2013) For the first time in the past five months, the Triangle area of North Carolina’s unemployment rate remained unchanged.  The Triangle area is seeing expansions by its businesses, and there appears to be more positive economic developments overall. McCrory signs regulatory overhaul plan, 32 more bills, News & Observer (August 23, 2013) McCrory signs legislation into law which "cuts government red tape, axes overly burdensome regulations and puts job creation first here in North Carolina."

South Carolina

County Council endorses new realignment for Bluffton Parkway, The Island Packet (August 27, 2013 The Town of Bluffton, South Carolina and Beaufort County Council have agreed on the path that a major intersection should follow.  The project will cost approximately $25,000,000.00.  The intersection’s development is said to allow Bluffton to develop the town in the manner the Town of Bluffton wants it developed. DUER High Performance Composites establishing new facility in Beaufort County, sccommerce.com (August 28, 2013) DUER High Performance Composites, a maker of composite components, has established its new production facility in Beaufort County. The more than $1 million investment is expected to generate 47 new jobs. “Today’s announcement is another sign that South Carolina is on the right track with its economic development efforts. We celebrate DUER High Performance Composites’ decision to invest more than $1 million and create 47 jobs in Beaufort,” said Gov. Nikki Haley. South Carolina DOR issues guidance on sales tax exemption for datacenter's computers, TaxAnalysts.com (August 25, 2013)** The South Carolina Department of Revenue issued a revenue ruling providing guidance on a sales tax exemption for computers, hardware, equipment, software, and electricity used by datacenters, provided by 2012 legislation.

Virginia

Virginia tax commissioner issues guidelines for port volume increase credit, TaxAnalysts.com (July 1, 2013)** The Virginia tax commissioner reissued a ruling to clarify and provide guidelines for the port volume increase tax credit, including criteria for claims, computation and carryover, and special rules for major facilities.

**Note: a paid subscription is required to access this article. A brief description has been provided. Please contact Womble Carlyle’s Economic Development Team for more information on these developments.

Womble Carlyle's Economic Development Team helps clients explore opportunities for locating or expanding operations in the Southeast and Mid-Atlantic U.S. Our Economic Development Team combines a thorough working knowledge of economic development incentives; land use and siting procedures; and regulatory matters at the state, county and local levels, drawing on strong relationships built over many years with key governmental and civic leaders. For more information visit www.wcsr.com/economicdevelopment.

If you have any questions about this Economic Development Digest, please e-mail EconDigest@wcsr.com or contact any member of Womble Carlyle's Economic Development Team.

The Economic Development Digest - August 22, 2013

Womble Carlyle’s Economic Development Digest aggregates news, opportunities and legislation impacting business in the Southeast and Mid-Atlantic U.S.

In this week's Economic Development Digest:

California

Entering a new zone, The Desert Sun (July 14, 2013) Governor Brown signed legislation ending enterprise zones in California and replacing them with a new program to promote economic development through incentives. Raul Ruiz urges tax reforms to benefit renewable energy, The Desert Sun (August 17, 2013) Representative Raul Ruiz on Friday called on fellow lawmakers to reform the federal tax code in a way that benefits wind, solar and other green industries. California enterprise zones replaced with temporary incentives, TaxAnalysts.com (August 21, 2013)** Matt Mandel, Kathy Freeman, Erin Bradley, and Dorothy Lo of PricewaterhouseCoopers LLP examine California's new economic development program and provide taxpayers with a roadmap for navigating the new scheme.

Florida

Jacksonville council panel wants to take back $9 million reserved for downtown, The Florida Times-Union (August 9, 2013) Jacksonville, Florida’s City Council Finance Committee voted to take $2,000,000.00 away from a county economic development program for capital projects.

Georgia

Georgia DOR proposes to amend rule on investment tax credit for manufacturing, telecom, TaxAnalysts.com (August 15, 2013)** The Georgia Department of Revenue has proposed to amend an investment tax credit rule to update definitions and include establishments engaged in Internet services and specialized telecommunication services, such as satellite tracking, communications telemetry, and radar station operation, within the meaning of telecommunications. State conveyance pieces finalized, The Union-Recorder (August 6, 2013) Georgia’s State Properties Commission works to streamline the legislative process to facilitate state property conveyances.

North Carolina

North Carolinians fear the end of a middle way, The New York Times (August 13, 2013) In North Carolina, Republicans are controlling all branches of government for the first time in more than a century, and the legislature just pushed through a wide range of conservative change.  The New York Times reports that Governor McCrory says he has met most of his major economic goals. Hudson sees potential for county growth, The Enquirer-Journal (August 9, 2013) Representative Hudson of North Carolina receives a presentation given by Executive Director of Economic Development and Aviation about the Charlotte-Monroe Executive Airport and the county’s economic development efforts. Future plans for the airport include widening the taxiway and expanding the corporate area. Official: Battles over Charlotte airport and state politics hurting job recruitment efforts, Charlotte Observer (August 8, 2013) The head of the Charlotte Regional Partnership said that the ongoing battle for control of the Charlotte airport is hurting the economic development group’s efforts to work with companies interested in moving or expanding business operations in the Charlotte, North Carolina area. N.C. Biotech Center squeezes final juices from fiscal 2013, Triangle Business Journal (August 21, 2013) The North Carolina Biotechnology Center handed out $3.58 million in loans and grants in the quarter ending June 30. For the full fiscal year, North Carolina Biotech provided 151 awards totaling more than $10.7 million. Durham OKs incentives to convert hospital to hotel, Triangle Business Journal (August 21, 2013) The Durham, North Carolina City Council pledged $1.3 million in incentives this week for the conversion of a hospital to a 143 room hotel. Durham County has also pledged $400,000 to the project. Tata grapples with funding North Carolina's freeways of the future, Triangle Business Journal (August 20, 2013) North Carolina will boost annual transportation spending by $1 billion for regular wear and tear. Major new improvements would require an increase of $2 billion. Funding from private investment and also high occupancy toll lanes are also under consideration as funding sources. BBVA Compass targets Raleigh for expansion, Triangle Business Journal (August 20, 2013) BBVA Compass is the U.S. banking subsidiary of BBVA, an international lender with large operations in Spain, Mexico, South America, etc. It plans to hire commercial bankers and open offices in Raleigh and Charlotte. Sen. Ellie Kinnaird resigns, citing GOP's 'shocking reversal', Triangle Business Journal (August 19, 2013) North Carolina State Senator Ellie Kinnaird resigns over what she calls a “shocking reversal” in the Republican led North Carolina legislature. N.C. unemployment rate rises to 8.9% in July, Triangle Business Journal (August 19, 2013) North Carolina’s unemployment rate rose in July to 8.9%, the first increase in North Carolina’s jobless figure since January. N.C. solar development seeing a summer spike, Triangle Business Journal (August 20, 2013) North Carolina’s solar development is on the rise as Strata Solar and SunEnergy1 lead the way, and SunEnergy1 is proposing $311 million worth of new solar construction this year alone.

National

Old economics ride as growing markets begin to falter, The New York Times (August 14, 2013) The balance of world economic growth is tipping in another direction as the America economy is bouncing back.

South Carolina

South Carolina explains how engineering consulting firm should apportion gross receipts, TaxAnalysts.com (August 7, 2013)** The South Carolina Department of Revenue explained that an engineering consulting services firm that hires independent contractors in South Carolina should apportion its income based on where services are performed and should consider services performed by the independent contractors when calculating its South Carolina gross receipts. SCRA completes milestone year, reports record revenue, finance.yahoo.com (August 15, 2013) SCRA reported new record operating earnings of just over $21 million, and SCRA also made 21 investments in South Carolina based technology startups in fiscal year 2013.

Virginia

Virginia must be strategic in protecting state's most valuable asset, our ports, Daily Press (August 3, 2013) The Virginia Port Authority and Virginia Governor Bob McDonnell tout the Virginia port facilities as instrumental to economic growth and stability.  The Virginia Port Authority just enjoyed an upgrade in its bond rating by Moody’s Investors Service, and a bill passed this spring giving the Virginia Port Authority a way to possibly match competitive offers from port facilities in other states.

**Note: a paid subscription is required to access this article. A brief description has been provided. Please contact Womble Carlyle’s Economic Development Team for more information on these developments.

Womble Carlyle's Economic Development Team helps clients explore opportunities for locating or expanding operations in the Southeast and Mid-Atlantic U.S. Our Economic Development Team combines a thorough working knowledge of economic development incentives; land use and siting procedures; and regulatory matters at the state, county and local levels, drawing on strong relationships built over many years with key governmental and civic leaders. For more information visit www.wcsr.com/economicdevelopment.

If you have any questions about this Economic Development Digest, please e-mail EconDigest@wcsr.com or contact any member of Womble Carlyle's Economic Development Team.

The Economic Development Digest - August 6, 2013

Womble Carlyle’s Economic Development Digest aggregates news, opportunities and legislation impacting business in the Southeast and Mid-Atlantic U.S.

In this week's Economic Development Digest:

California

Obama economic tour attracts low expectations, The San Mateo Daily Journal (July 26, 2013) The broad economic themes Obama plans to address during his economic tour will be drilling down on key sectors such as manufacturing, education, housing, retirement security and health care. Layoffs continue, but Silicon Valley's economic picture still looks strong, San Jose Mercury-News (June 13, 2013) Some Silicon Valley companies continue to experience layoffs, but the tech industry is expected to remain a net positive and remain one of the strongest regions and sectors in the Unites States in terms of the labor market.

Maryland

Baltimore violated Open Meetings Act on Harbor Point Deal, The Baltimore Sun (July 30, 3013) Baltimore’s Board of Finance violated transparency laws by meeting behind closed doors in approving more than $100 million in public financing for a development southeast of the Inner Harbor.

North Carolina

Tax reform a reversal of fortune for city, High Point Enterprise (July 29, 2013) A sales tax overhaul recently signed into law in North Carolina will actually increase funds for High Point, North Carolina. 'Reform' is really just a tax cut, News & Observer (July 26, 2013) Will the tax reform in North Carolina boost the level of economic activity, or will it result in small businesses paying more taxes? Audit criticizes NC economic development program, Fort Mills Times (July 30, 2013) A North Carolina audit finds problems with a program that gives businesses tax breaks, in particular the Commerce Department’s Job Development Investment Grant program. Privatization of NC Commerce gets underway, Charlotte Business Journal (July 31, 2013) The conversion of the North Carolina Department of Commerce into a public-private partnership is underway. Local leaders count wins and losses at TBJ's Tomorrow's Real Estate forum, Triangle Business Journal (July 31, 2013) Leaders in the triangle area of North Carolina gathered to discuss the new rules, regulations and policies passed by the North Carolina General Assembly this year. North Carolina Governor wants a fracking tax to fund corporate incentives, TaxAnalysts.com (August 5, 2013)** Fresh off a victory shepherding through a package of tax cuts in the state budget, the administration of North Carolina Gov. Pat McCrory (R) now wants a new tax on fracking to fund new corporate tax incentives.

South Carolina

Florence wins economic development award, Florence Downtown (July 30, 2013) The City of Florence, South Carolina has received an award from the Municipal Association of South Carolina for its downtown revitalization efforts. $60M development plan proposed for Myrtle Beach, The Sun News (July 25, 2013) The Myrtle Beach Regional Economic Development Corp. has proposed spending $60 million over the next 15 years to attract business and industry to Myrtle Beach. School officials concerned about effects of Fee-in-Lieu proposal, The Journal (July 31, 2013) The Superintendent of the Anderson School District One in Anderson, South Carolina wants to discuss the impact of the Fee-In-Lieu of Tax incentive on school district funding. Charleston region export plan calls for collaboration and funds, The Post and Courier (August 1, 2013) World Trade Center Charleston and the Charleston Metro Chamber of Commerce have teamed up with the Brookings Institution, and Brookings has identified Charleston as one of eight communities selected to participate in a program to develop plans to increase exports based on local assets and capacities.

Texas

Texas amends franchise tax calculation to attract businesses, TaxAnalysts.com (June 14, 2013)** Texas HB 500 makes multiple amendments to the calculation of franchise tax, including providing a temporary rate reduction in fiscal 2014 and 2015, allowing a taxpayer to determine margin as total revenue less $1 million, amending the apportionment method for Internet hosting businesses, and providing other incentives for relocating to Texas.

Womble Attorneys Abroad

Womble Carlyle attorney, Morris Ellison, presents to the Israel America Chamber of Commerce in Tel Aviv: U.S. Real Estate: How Component Analysis applies to Israeli Investors Commercial real estate investors generally acquire properties based on total cash flow, rather than on the perceived value of the property’s individual components generating that cash flow. Increasingly, component analysis is impacting real estate in the United States in a number of ways. This presentation will focus on: What is component analysis? What are the types of real estate investments impacted by component analysis? What is “business enterprise value?” What is “go dark” value? How are these concepts changing the environment for real estate deals and lending in the United States? How do these concepts impact income and real estate taxes for Israeli investors in the United States? How is the American regulatory system changing to use these concepts to impact real estate deals and loans? Understanding the changing environment can assist Israeli real estate investors and owners

**Note: a paid subscription is required to access this article. A brief description has been provided. Please contact Womble Carlyle’s Economic Development Team for more information on these developments.

Womble Carlyle's Economic Development Team helps clients explore opportunities for locating or expanding operations in the Southeast and Mid-Atlantic U.S. Our Economic Development Team combines a thorough working knowledge of economic development incentives; land use and siting procedures; and regulatory matters at the state, county and local levels, drawing on strong relationships built over many years with key governmental and civic leaders. For more information visit www.wcsr.com/economicdevelopment.

If you have any questions about this Economic Development Digest, please e-mail EconDigest@wcsr.com or contact any member of Womble Carlyle's Economic Development Team.