LOC News
Semiconductor Package Advances with Local Changes
HB 2009, the semiconductor and economic development package, successfully passed the Revenue Committee and out of the House this week.
The bill contains several provisions related to a new R&D credit, enterprise zones and the Strategic Investment Program (SIP).
HB 2009 contains the following changes to local government programs:
Enterprise Zones
- Sunset Date: Extends the standard Enterprise Zone and Long-Term Rural Enterprise Zone programs until 2032;
- School Fee: Requires zone sponsors and school districts to set a school support fee between 15-30%. The fee will only apply to years 4-5 of the standard enterprise zone abatement and years 6-15 of the long term rural, so the companies would only receive the full abatement during the first 3 years of a standard enterprise zone agreement and during the first 5 years of the long-term rural agreement;
- Transparency: Requires zone sponsors to post the terms of agreements publicly for 21 days before finalization, with the exception of confidential and proprietary information; and
- Infrastructure: Requires zone sponsors to notify neighboring jurisdictions and potential impacts to infrastructure resulting from enterprise zone investments.
The program changes only apply to enterprise zone agreements entered after January 1, 2024. Enterprise zone agreements that have already been finalized will not be affected.
Strategic Investment Program
- Gain Share: extends the Gain Share program until 2030 and maintains the $16M cap;
- Project Eligibility: Increases the eligibility thresholds for SIP investments to $150 million for urban projects and $40 million for rural projects, adjusts yearly for inflation;
- Taxable Value: Increases the amount of real market value of the property that is taxable;
- Community Service Fee: Increases the fee cap from $2.5M to $3M, adjusts yearly for inflation; and
- Emergency Services: Requires emergency services to be included in negotiations.
The program changes apply only to SIP agreements entered after January 1, 2024. SIP agreements already in place will not be affected.
Contact: Lindsay Tenes, Lobbyist – ltenes@orcities.org
Last Updated 6/23/23