
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, July 16, 1994                   TAG: 9407160041
SECTION: VIRGINIA                    PAGE: C-3   EDITION: METRO 
SOURCE: David M. Poole
DATELINE: RICHMOND                                LENGTH: Short

ENTERPRISE ZONE STUDY SET

The General Assembly's Senate Finance Committee on Friday named a panel to study ways to close loopholes in a state program designed to encourage development in designated "enterprise zones."

One focus will be building contractors who get tax breaks for establishing headquarters in the zones, even though most of their work is conducted at outlying construction sites.

"That is one of the problems we have," said committee Chairman Hunter Andrews, D-Hampton. "That is why we're having the study now."

Contractors represented one-fourth of the 168 qualifying companies in 17 localities last year. Another eight zones were added this year.

The study comes as Gov. George Allen, a Republican who has made economic development a top priority of his administration, wants to double the number of enterprise zones and sweeten tax incentives.

The Senate panel, headed by Sen. Elmo Cross, D-Hanover County, will present its findings in time for the 1995 General Assembly session. - DAVID M. POOLE

by CNB