An amendment authored by State Rep. Ron Herrell will now require the Indiana Economic Development Corp. to offer additional incentives to companies willing to locate in hard hit counties during the current recession.
The amendment was adopted by the Indiana General Assembly in legislation offering a number of provisions that will provide tax breaks for companies creating new jobs.
The legislation specifies the IEDC, when developing job creation incentive packages to locate companies in Indiana, shall give weight, in the awarding or approving of job creation incentives, to businesses that will locate in a county where workers have been dislocated because of a closed factory or reduction in the work force.
“It should be that way, it’s common sense,” said Herrell, D-30th District. “It refocuses the IEDC to target resources to areas that need assistance.”
Herrell said the bill also provides a 10 percent tax break for workers’ salaries created by a new business for a two-year period.
Blair West, IEDC spokeswoman, said historically the philosophy has been not to give preferential treatment to any community.
“I think the jury is still out on how it changes our day-to-day operations,” she said. “It will be discussed at the next board meeting.”
Jeb Conrad, director of the Greater Kokomo Economic Development Alliance, said he was surprised the provision was included in the bill approved by lawmakers.
“There needs to be some thresholds like jobs lost or the unemployment rate,” he said for a community to be included in the incentive program. “The state has parameters already, like average wage, which makes every city and county different.”
Conrad said Howard County has been getting a lot of attention from the IEDC in the past year.
“This will raise the bar for certain communities,” he said. “Any advantage we can get will help.”
Conrad said the state could increase the amount provided for training for each job created if a company locates in one of the economically distressed areas.
“It could become a marketing piece,” he said. “The IEDC could indicate there are a few targeted communities.”
Jim Tidd, executive director of the Miami County Economic Development Authority, said he applauded Herrell’s effort to have the language included in the bill.
“I believe it will help,” he said of the targeted incentives. “I believe it would include our region, which has been impacted by the regional and national economy.”
Tidd said what has not been determined is how the IEDC would target a certain area of the state. He suggested an area that has an unemployment rate of 1.5 to 2 percent above the state average should be included.
“Historically it doesn’t matter where in Indiana a company wants to locate, the incentives would be the same,” he said. “A project is the project and will hire a certain number of employees and make a certain investment.”
Tidd said the state has been equitable in offering incentives when it comes to economic development projects.
“I don’t disagree with the language,” he said. “Communities are struggling. Our region has been impacted by the downturn in the auto industry.”
Tidd said companies should be given a little more in the way of incentives if they will locate in hard-hit areas of the state.
“Communities hit the hardest need a little more assistance,” he said.
• Ken de la Bastide is the Kokomo Tribune enterprise editor. He can be reached at 765-454-8580 or via e-mail at ken.delabastide@kokomotribune.com
Local News
Bill offers help for distressed counties
Incentives aimed at areas hit hardest by economy
- Local News
-
-
Remains may be grandmother of abducted girl
Noblesville police are trying to determine if the remains of a woman found Thursday along the Mississinewa River near Marion are those of missing Noblesville woman Dorothy Heard.
-
Students kick off Black History Month at IU Kokomo
“Hey, black child, be what you can be. Learn what you can learn. Do what you can do. And tomorrow, your nation will be what you want it to be.”
-
Council taking heat for proposal
The Miami County Council on Thursday got to hear from county employees who are disgruntled about proposed budget cuts that would reduce the county general fund by nearly $900,000.
-
County looks at health care options
With the city of Kokomo ending its relationship with Novia Health Care, Howard County officials are now discussing what move they will make.
-
KHS to implement new technology program
Starting next school year, the more than 500 freshmen enrolled at Kokomo High School will receive either a laptop computer or tablet device as part of a new technology program that school officials say will improve learning in the classroom.
-
Measles patient was at NFL event
East Coast fans who left the Super Bowl host city feeling good about Hoosier hospitality may have been exposed to something less welcome: The measles.
-
Outreach provides housing to the down-and-out
Dale Bliss tells the story of a man with no money, no job and two kids.
Without any way to pay for a hotel or rent an apartment, the man was living in a tent with his children at a reservoir near Kokomo. He told them it was a family camping trip.
-
Green tech lab opens in Kokomo
A California green technology company has opened a research and development lab in Kokomo and plans to hire as many as 35 people over the next few years, the business announced this week.
-
Main Street conference coming to Kokomo
Following up on its Indiana Chamber of Commerce’s 2011 Community of the Year award, Kokomo received another accolade this week.
-
Howard Co. jail reconfiguration a ‘short-term solution’
With the ever-increasing number of female prisoners at the Howard County jail, local officials are looking to implement a short-term solution instead of expanding the existing facility.
- More Local News Headlines
-
Remains may be grandmother of abducted girl
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Expert: Removing LA School's Staff 'Appropriate'
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
Obama Gives Education Waivers to 10 States
Giffords Aide to Run for Her Seat
LA School in Sex Abuse Scandal Reopens
Winter Slamming North Asia, Parts of Europe
Syrian Forces Renew Bombardment of Homs
States, Banks Reach Foreclosure-abuse Settlement
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Raw Video: U.S. Pullout Celebration
Raw Video: Annual Empire State Building Run-Up
Man Killed in Courthouse Shootout
Air Force Airlines: Leaders Get Polished Service
