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Manufacturing Resurgence Attracts Attention of State Legislatures

June 26, 2014

This article is part of SSTI's series on trends in state technology-based economic development legislation in 2014. Read our other entries covering legislative action on patent reform, research capacity, capital & tax credits, technology commercialization & infrastructure and  workforce & STEM.

The recent uptick in U.S. manufacturing activity, along with the attention generated by additive manufacturing and the Makers movement, has led to an increase in state initiatives to help cash in on this growth. In recent months, New York, Connecticut, Maryland, and Arizona have all taken steps to build stronger manufacturing sectors through research collaborations, grants and tax credits. Leaders in Colorado and New Jersey have pursued their own cluster-specific efforts to build stronger high-tech industries.

Among New York’s many TBED-focused efforts in the past year, the state has established a 20 percent property tax credit and eliminated the income tax for manufacturers. The FY15 budget also provides $680 million for the Buffalo Billion initiative. The funding fulfills Gov. Andrew Cuomo’s 2012 commitment to provide $1 billion to the Buffalo region. Buffalo Billion support has been used to fund advanced manufacturing and cluster-based efforts such as the Buffalo High-Tech Manufacturing and Innovation Hub @RiverBend, the Buffalo Medical Innovation and Commercialization Hub, and an Edison Welding Institute center. Read the related Digest article …

Connecticut legislators allocated $30 million in the FY15 budget for a new fund that would help smaller manufacturers expand by purchasing equipment, developing new technologies or training workers. The state is focusing its efforts on the 42 regions designated as historic manufacturing hubs in order to rejuvenate local economies in which manufacturing has long played a pivotal role. The budget also increased the bond authorization for the Manufacturing Assistance Act program by $100 million for a total of $200 million to provide direct loans for the expansion of larger manufacturers with strong economic development potential. Read the related Digest article …

Maryland launched the Northeast Maryland Additive Manufacturing Authority (NMAMIA) to invigorate the manufacturing sector in the Harford region of the state. The Edgewood Chemical Biological Center (ECBC) at Aberdeen Proving Ground will allocate between $50 million-75 million in resources to the project and initiatives established by NMAMIA. The resources may take the form of access to engineers, other personnel, blueprints and technology.  The effort will allow NMAMIA to leverage additive-manufacturing investments at ECBC and encourage collaboration between institutions in the region to become a leader in the additive-manufacturing sector.

Arizona Gov. Jan Brewer signed a bill (SB 1413) eliminating sales taxes on electricity and natural gas purchased by manufacturers and mining smelters.

In Colorado, the FY15 budget provides level funding of $5 million for the three grant programs established last year under the Advanced Industries initiative. The programs provide financial support for proof-of-concept, early stage capital and retention and infrastructure funding in key industries. Targeted industries include aerospace, advanced manufacturing, bioscience, electronics, energy and natural resources, technology and information, and infrastructure engineering.  Read the related Digest article …

The New Jersey Institute of Technology (NJIT) launched the New Jersey Innovation Institute, a corporation that will encompass five sector-focused innovation labs. The labs, which will address industry challenges in civil infrastructure, defense and homeland security, healthcare delivery systems, biopharmaceutical production, and financial services, will be governed by a private sector-led model to spur economic development and business growth. 

 

Arizona, Colorado, Connecticut, Maryland, New Jersey, New Yorkmanufacturing, state budget