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But Hilson and other economic developers said the trust fund would grow as jobs and companies grow in the state, more than making up for any direct loss in taxes caused by the incentives. He said the AEA has often opposed incentives bills out of fear the Education Trust Fund would lose money. the head of the Birmingham Business Alliance said last week. The Birmingham Business Alliance leader said that will put the state at a disadvantage. (Birmingham News file/Frank Couch)
Brian Hilson, chief executive of the BBA, said in an interview while he is pleased with the economic development incentives the Legislature did pass in the recent regular session, he thinks an opportunity was missed to level the playing field by not passing House Bills 159 and 160.
There are already 19 states offering similar incentives, officials have said. The failure of two key incentives bills in this year's legislative session puts the metro area and the rest of the state at a competitive disadvantage in attracting new jobs, to end the Education Trust Fund earmark on 90 percent of employees' state income Adidas Neo Cloudfoam Vs City
Moreover, Hilson said the state does a cost benefit analysis of every major project to see if the incentives are worth what the state would gain by winning the project. Many project agreements have clawback clauses that allow for the state to get back any incentives if a company doesn't deliver on the promised jobs or investment. Many of the newer incentives packages are performance based meaning the incentives don't even kick in until thresholds are reached by the company.
tax withholdings. That would have allowed for HB 160, which allowed the companies to keep much of the income tax withholdings of employees to repay the costs of new equipment, factory expansions or other capital improvements.
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In 1994, when the first major incentives legislation was passed to recruit Mercedes Benz to Alabama, Hilson said the trust fund had $2.9 billion. By 2008, it had grown to $6.7 billion. The recession brought that down to $5.2 billion in 2010. House HB 159 would have let voters decide whether to amend the state's constitution Adidas Primeknit Green Birmingham Business Alliance chief says failed incentive bills may keep jobs out of state
"We cannot be in the business of unearmarking education money to give to big businesses," he was quoted as saying in The Birmingham News.
Under HB 160, the total amount a company collected could not exceed the cost of the new construction or expansion and would last no longer than 20 years after the project was put in service.
said Alabama once led the way with incentives packages, starting with Mercedes in 1994 and working to win Honda, Hyundai, Toyota, ThyssenKrupp and hundreds of other companies. But, he said, the state is now behind and needs the incentives that were in HB 159 and HB 160 to catch back up.
"We're very disappointed," Hilson said. "This was an opportunity for Alabama to add incentives Adidas Originals Los Angeles Grey/Silver Sneakers that would make us competitive with the other states we go up against in recruiting new industry."
The bills were opposed by the Alabama Education Association, which argued they would prevent money from going to the Education Trust Fund. Adidas Originals Los Angeles Grey/Silver SneakersAdidas Los Angeles W |
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