THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, May 24, 1996 TAG: 9605240573
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY CATHERINE KOZAK, STAFF WRITER
LENGTH: 43 lines
Tax incentives would be increased for businesses that invest in North Carolina's poorer counties under legislation introduced in the state Senate Thursday.
State Senate leader Marc Basnight worked with Gov. James B. Hunt Jr. in drafting the bill, which was sponsored by John Kerr, D-Wayne, the chairman of the Senate Finance Committee.
As president pro tem of the Senate, Basnight does not sponsor legislation, but an aide, Brett Kinsella, said the Manteo Democrat pushed the proposal and told the governor's economic advisers that more must be done to help poor regions in the state.
The proposal will provide tax credits for new jobs, investments and employee training expenses in the 10 most economically distressed counties - Bertie, Graham, Hertford, Hyde, Mitchell, Northampton, Richmond, Swain, Tyrrell and Warren.
``What you have to keep in mind is that a $50,000 investment in Tyrrell could make a really big impact in the local economy,'' Kinsella said, ``but a $50,000 investment in Wake County (the Raleigh-Durham region) wouldn't even make a dent.''
Businesses that relocate to one of the poorest counties would be awarded with a doubling of their tax credits for job creation and worker training, plus a higher investment tax credit.
Under the formula in the proposed legislation, new business in one of the 10 counties would qualify for a $20,000 tax credit per job, 10 percent investment tax credit and up to $1,000 worker training tax credit per job. Businesses would not have to put up a minimum investment to be eligible.
The ``special development'' areas would also be eligible for new $5 million grants and loans for infrastructure for economic development.
The credits, which must be taken in equal installments over four years, are limited to 50 percent of income or franchise tax liability, and will expire after five years.
Kinsella said the bill has a good chance of being approved before the legislative short session ends this summer.
``My guess is it's going to be fairly popular,'' he said. ``It's a priority for Sen. Basnight.'' by CNB