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 Signed into Law

Will Help Generate Jobs and Broaden Alaska’s Economic Base

For Immediate Release: April 6, 1998 Contact: Kristy Tibbles, Aide to Senator Drue Pearce, at (907) 465-4747.

Juneau – Senator Drue Pearce’s Business Incentive Program legislation, signed into law Monday, will create a more favorable business climate in Alaska by establishing incentives to attract new business ventures. Senate Bill 159 will increase year-round jobs for Alaskans, diversify the economy and broaden the state’s economic base.

"This new law will help offset Alaska’s competitive disadvantages," said Pearce. "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."

"Many states offer business incentives to attract companies that are comparing locations for new manufacturing or value added business ventures. Recent low oil revenues remind us of our obvious need to diversify Alaska’s economy," said Pearce. "These incentives give businesses a reason to locate in Alaska. Used wisely, they will give our state a competitive opportunity to compete for new industries that will bring jobs to Alaskans resulting in 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 and Export Authority.

Ernest Hall, Chairman of the Alaska Economic Development Corporation said, "This is the first Alaska statewide incentive program that is not specific to a single industry. It will help communities across the state develop value added and manufacturing business opportunities. Getting this measure adopted has involved broad partnership with Alaska Regional Development Organization Directors and municipalities across the state."

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