DATE: Sunday, October 5, 1997               TAG: 9710020711

SECTION: FRONT                   PAGE: A17  EDITION: FINAL 

TYPE: DECISION '97

SOURCE: BY HELLY HEYSER. STAFF WRITER

                                            LENGTH:   39 lines

EXPAND INCENTIVES, SOME IN STATE DEMAND

The talk about economic development in Virginia has moved way beyond tax breaks, regulatory relief and incentives to grow or relocate here, but it's not because anyone has forgotten them.

It's just that Virginia has done a pretty good job in these areas, and economic developers have much bigger fish to fry.

``We have to continue creating new jobs, but that's only half the equation,'' said Bob Templin, president of Virginia's Center for Innovative Technology.

Roy L. Pearson, director of the Bureau of Business Research at the College of William and Mary, said the state already has a good package of business incentives.

``And Virginia has had a policy of not selling the farm to get a company,'' he said.

Some incentives on the table include:

Income-tax credits for companies locating or expanding in Virginia if they create at least 100 jobs (or just 50 jobs in enterprise zones).

Employee training for companies that create at least 25 new jobs and invest $1 million over one year. (Gateway 2000 received this benefit.)

Income-tax credits of up to 40 percent of a company's tax bill for buying machinery used to process recyclable materials.

Still, some Virginians would like to see more breaks and incentives for small businesses and existing companies.

Oscar Richardson runs two landscaping and tree care businesses in Chesapeake, but he said neither is large enough to qualify for incentives in the city's enterprise zone.

``That's entitling a certain class of people for a special privilege. Average citizens can't take advantage of it, and small business can't take advantage of it,'' he said.

``We need to offer incentives across the board.''

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