Close to 400 applicants made the April 14 deadline to submit an application for the tax credit. The Governor’s Office of Business and Economic Development
(GO-Biz) is expected to announce the awardees on June 9.
In comparison, the previous Enterprise Zone program, which is now winding down, was valued at approximately $750 million annually in economic development. Redevelopment agencies annually injected approximately $6 billion per year in local economic development activity, with more than $1 billion of that amount dedicated to affordable housing.
The new Economic Development Initiative is estimated to provide less than $150 million in FY 2013-14 in economic development assistance. The Sales and Use Tax Credit for manufacturing equipment is estimated to provide $100 million, while the new Employment Credit is estimated to provide only $7 million in FY 2013-14, according to the Senate Budget Committee analysis.
As the former Enterprise Zone program winds down, the amounts dedicated to the Economic Development Initiative are expected to increase, but the sheer volume of applications, and the amount of funding requested, highlights the need for additional economic development funding and programs to support state and local economic development activity.