tax credits

Pew Distills Best Practices in Evaluating Economic Development Tax Incentives

Although every state delivers tax incentives for economic development, there are numerous inconsistencies in how these incentives are evaluated. Based on best practices developed by 10 states and the District of Columbia that passed legislation requiring regular evaluation of economic development tax credits from 2012 to 2014, researchers at The Pew Charitable Trust developed a framework for states hoping to improve the accountability and performance of tax incentives in a new policy brief. Ultimately, the brief recommends three steps:

MA Lawmakers Pass Economic Development Bill, Awaits Gov Approval

On August 1, the Massachusetts lawmakers enacted a comprehensive economic development bill (H.4377). The bill currently awaits Gov. Deval Patrick’s approval. Per state law, Gov. Patrick has until August 14 to sign the bill, 10 days after he received it. The approved bill that received unanimous approval by the Massachusetts state Senate was passed as a comprise package between two bills proposed in the Senate and House. Through the bill, Massachusetts policymakers intend to invest more than $80 million to spur economic growth with a significant emphasis on strengthening Massachusetts’ innovation industries. Tech-based economic development efforts will focus on emerging industries, investments in workforce development and education, and promoting targeted regional growth. A major point of contention, language dealing with non-compete agreements, did not survive in the final bill.

Lab Space, Commercialization Support Backed by State Governments

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, workforce & STEM and manufacturing & clusters.

MD Session Ends on High Note for Tech Sector, University-based Economic Development

The FY15 budget bill passed by Maryland lawmakers increases funding for three of the state’s high-tech tax credits and provides level funding for continued innovation-focused investments. Lawmakers also passed bills to fund endowed chairs, create zones to incentivize businesses, and establish a statewide internship program connecting students to small, technology businesses.

States Pass Innovation-Focused Legislation

Investments and policy to support innovation-focused agendas have flourished with the close of the 2014 legislative sessions in several states. Crowdfunding legislation, incentives for attracting talent, higher education affordability, punishing patent trolls, and encouraging greater accountability are some of the areas where lawmakers focused their efforts.

2014 Bills Tackle Crowdfunding, Tax Credits, Startup Capital and More

Several bills aimed at supporting startups, advancing research and improving the workforce have been introduced with the start of the 2014 sessions. Some of the proposed legislation offers a glimpse into the investment priorities of governors and lawmakers in the wake of economic recovery. Providing innovative companies with access to startup funds is a continued theme from previous years. Some states are seeking to expand tax credits for angel investors or offer new tax credits to encourage emerging industries. Other bills focus on generating more skilled workers quickly and positioning universities to enhance regional economic competitiveness.

Tech Talkin’ Govs: Part III

Tech Talkin’ Govs: Part III

Three High-Tech Tax Credits Expanded in Maryland Gov’s Budget

Gov. Martin O’Malley’s FY15 budget includes increased funding for the state’s biotech tax credit, cyber tax credit and R&D tax credit, and provides level funds to continue longstanding tech-based and workforce initiatives.

NM Gov Proposes Tax Credits, Research Initiatives for Startup Growth

Funding to universities to compete for endowed chairs and startup funds for a commercialization initiative are among New Mexico Gov. Susana Martinez’s proposals for tech-based economic growth in the coming year. The governor also wants lawmakers to expand the state’s angel investment tax credit and reform the Technology Jobs Tax Credit and R&D Small Business Tax Credit to better support startup companies. The announcements were rolled out over the past two weeks and detailed in the FY15 budget presented to lawmakers.

States Take Action to Capitalize on Angel Capital Recovery

Angel capital has long played a vital role in state and regional innovation economies, but recent trends in investment capital have pushed angel investment to the fore. As the supply of seed stage venture capital declines in many parts of the country, angels have stepped in to bridge early stage funding gaps for technology startups. The proliferation of angel investors and groups over the last few years has outpaced the recovery of the venture capital industry since early 2009, according to data from the PricewaterhouseCoopers/National Venture Capital Association Moneytree Survey and the University of New Hampshire Center for Venture Research. In the midst of these changes, many states have stepped up their efforts to attract and incentivize angel investment. Recent initiatives in Minnesota, Florida, Kentucky and West Virginia seek to book seed and early stage capital by working with angel investors.

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