THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, July 16, 1994 TAG: 9407160251
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: STAFF REPORT
DATELINE: RICHMOND LENGTH: Short : 30 lines
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 Senate committee chairman Hunter B. Andrews, D-Hampton. ``That is why we're having the study now.''
Contractors represented one-quarter of the 168 qualifying companies in 17 localities last year. Another eight zones were added this year.
The study comes at a time when Republican Gov. George F. Allen, 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 G. Cross Jr., D-Mechanicsville, will present its findings during the 1995 General Assembly session.
KEYWORDS: ECONOMIC DEVELOPMENT ENTERPRISE ZONES by CNB