Forward Janesville Position Statements
Forward Janesville Supports Tax Credit Portability Bill
January 10, 2012 | FJI’s Dan Cunningham testified before the Wisconsin Senate Committee on Economic Development and Veterans and Military Affairs in support of Senate Bill 291 on January 10, 2012. Here are his remarks:
“Good morning Mr. Chairman and committee members. Thank you for the opportunity to speak in support of Senate Bill 291. My name is Dan Cunningham, and I am the Vice President of Forward Janesville, a 500-member chamber of commerce and economic development organization representing businesses of all sizes in Janesville, Rock County and throughout south central Wisconsin.
Our story in Rock County has been well told. The 2008 closing of Janesville’s General Motors Plant hit our economy hard. Since January 2006, the Janesville area has experienced the loss of over 5,000 direct jobs due to plant closures, downsizings and long-term lay-offs. And while our unemployment rate has improved, the City of Janesville has an 8.4% unemployment rate. In light of our area’s economic difficulty, a group of community leaders developed a proactive agenda that contained four steps that the legislature could take to help Rock County and the state of Wisconsin. Tax credit portability was at the top of that list.
As you know, Senate Bill 291 would allow for the sale or transfer of state tax credits issued by the Wisconsin Economic Development Corporation in counties that meet a certain threshold of economic distress. Tax credits are one of the primary tools in Wisconsin’s economic development toolbox, and are frequently the primary state incentive offered to relocating and expanding businesses. Often, these tax credits are offered to start-up companies that have yet to generate a profit, or to distribution center-type projects that do not actually sell anything. Operations of this nature do not generate taxable income and, as such, do not have any state income tax liability, making the granting of tax credits largely ineffectual. A recent example of this the latter example is the Lowe’s distribution facility, which ended up outside Rockford, IL.
So what do these companies need? Often, the answer is cash to support investment in working capital, facilities and equipment. To remain competitive with other states, Wisconsin should enact a program to make its tax credits portable. Tax credit portability will allow companies to sell their tax credits on the open market or to receive a refund from the state. This would provide these companies with the cash they need, and would position them for sustainability and future growth. Offering tax credits to companies do not currently need them, or can’t utilize them over either the short- or long-term does not provide the economic incentive desired.
The federal government allows the sale of historic tax credits, which has played an important role in the revitalization of many communities across the nation. 33 states already offer some form of tax credit portability, placing them at a distinct competitive advantage. In this time of continued economic uncertainty, we ask you to enhance Wisconsin’s overall economic development competitiveness by passing Senate Bill 291. Thank you very much.”
Forward Janesville Applauds Inclusion of Interstate 39/90 Expansion Project in State Budget
June 28, 2011 | Forward Janesville today applauded the governor and the state legislature for giving the Interstate 39/90 expansion project the green light.
The recently signed state budget contains the enumeration of the 45-mile I-39/90 expansion project, making the project eligible to receive state and federal funds. The project will expand the Interstate from four to six lanes from the Illinois state line to Madison. The Wisconsin Department of Transportation has already begun to plan for the expansion, and construction could begin by 2014.
Expansion of the Interstate has long been Forward Janesville’s top legislative priority. The organization led the formation of the I-39/90 NOW Coalition, a group of concerned citizens, businesspeople and municipal leaders from Beloit, Clinton, Edgerton, Evansville, Janesville and Milton dedicated to seeing this project completed.
Interstate 39/90 has been the backbone of south central Wisconsin’s economy and one of the most vital gateways into our state. While Interstate 39/90 is a critical link to Wisconsin’s tourism industry, it is also vital to our state’s manufacturers and suppliers. The University of Wisconsin’s Center for Freight and Infrastructure Research estimates that between $650 million and $800 million in economic activity flows along the I-39/90 corridor every day.
Making this route safer and more efficient will help Wisconsin’s economy grow and make our area more attractive to business. Not to mention the job impact of the construction project itself. According to the Federal Highway Administration, every $1 billion in highway investment creates over 27,000 quality jobs—something south central Wisconsin desperately needs.
“The economic challenges facing Janesville and other Rock County communities have been well chronicled,” said Forward Janesville Chair David Bagley of McGladrey. “It is time to write a new chapter for our area that includes jobs, economic stability and hope for the future. We applaud Governor Walker and the state legislature for moving this vital project forward.”