Alaska State Legislature
News from the Senate Majority

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801
Phone: (907) 465-4582
http://www.akrepublicans.org
Actuality Line: 1-800-478-6540

Business Incentive Program Passes House

Will Help Generate Jobs and Broaden Alaska's Economic Base

For Immediate Release: March 18, 1998 Contact: Kristy Tibbles, Assistant to Senator Drue Pearce, at (907) 465-4747.

Juneau -- The House Passed legislation Wednesday to create a more favorable business climate in Alaska by establishing incentives to attract new business ventures. Senate Bill 159, passed by a vote of 32 to 5, would increase year-round jobs for Alaskans, diversify the economy and broaden the state's economic base.

Senate Drue Pearce (R-Anchorage) sponsored SB 159 to help 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.

"Alaska has great potential to participate in a global economy," said Patricia DeMarco, President of Alaska Economic Development Corporation. "But one of the results of global economic activity is that we face competition from domestic and international cities. This modest incentive program will help keep Alaska in the economic development game."

Representative Jerry Sanders sponsored HB 220, the House companion bill to SB 159.

"This incentive, like tender nurturing to a child, will help the birth and development of fledgling companies in Alaska that hopefully will mature and repay the sacrifices many fold over the coming years." Sanders said.

SB 159 received a minor amendment in the House and will return to the Senate for concurrence.

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