News from the Senate Majority
Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

Business Incentive Program Passes Senate

Will Help Generate Jobs and Broaden Alaska’s Economic Base

For Immediate Release: January 23, 1998 Contact: Kristy Tibbles, Aide to Senator Drue Pearce at (907) 465-4747.

Juneau – To create a more favorable business climate in Alaska, the Senate passed legislation Friday establishing incentives to attract business ventures that would increase year-round jobs for Alaskans, diversify the economy and broaden the state’s economic base. The Senate unanimously passed Senate Bill 159.

Senator Drue Pearce (R-Anchorage) sponsored SB 159 to help offset Alaska’s competitive disadvantages. In Anchorage, for example, the higher cost of site preparation, moving equipment and personnel compared to other states presents a significant barrier to corporate decision makers.

"Offering business incentives to companies that are comparing locations for new manufacturing or value added business ventures will help tip the scale in Alaska’s direction," said Pearce. "At the very least, these incentives will give our state a fighting chance in competing for new industries that will bring jobs to Alaskans and a broader corporate tax base."

The economic development grant program would be limited to reimbursement of designated portions of relocation costs, site development costs, special employee training not covered by other programs, and special analysis of sites in Alaska. The program is limited to $3 million annually, and is reimbursable (i.e. companies are reimbursed for expenses rather than paid up front). The program will be administered by the State of Alaska’s Department of Commerce and the Alaska Industrial Development Authority.

"This incentive program will help keep Alaska competitive in attracting high value jobs. The program is an essential economic development tool to attract good corporate tax payers to diversify our economy." said

Michael Brady, Chairman of the Anchorage Economic Development Corporation Legislative Committee.

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Broadcast Note: Please call 800/478-6540 to hear a radio actuality from Senator Drue Pearce.