Posted: March 5, 2010

By Philip Newswanger

philip.newswanger@insidebiz.com

A small business lobby is touting big wins in this year's General Assembly session.

The measures range from increasing the Governor's Opportunity Fund, which is known as the deal closer on mammoth economic development projects, to a $500 tax credit for creating "green" jobs.

The Virginia Chapter of the National Federation of Independent Business is confident that Gov. Bob McDonnell is behind its agenda and praised his proposals to stir economic development in the state.

Some of McDonnell's proposals include:

• A new requirement that state regulatory agencies waive administrative fees for issuing a permit when the application is submitted by a veteran in connection with his establishment and operation of a small business.
• Awarding at least 15 percent of state procurement contracts to qualified small businesses in certain rural and economically distressed urban areas.
• Creating private investment funds that will invest in small businesses located in Virginia.

  The following bills are a sampling of small business advocacy:

  Senate Bill 474/House Bill 792: Establishes temporary business licenses for out-of-state companies moving into Virginia. Passed the Senate 40-0, the House. 99-0.

  Senate Bill 475/House Bill 380: Provides that the criteria to be used in awarding businesses with grants and loans from the governor's Opportunity Fund include job creation, private capital investment and anticipated additional state tax revenue expected to accrue to the state and affected localities as a result of the capital investment and jobs created. Passed the Senate 40-0, the House, 98-0.

  Senate Bill 554: Provides that the guidelines for the governor's Opportunity Fund may require an affected locality or localities to provide matching funds, which may be cash or in-kind, at the discretion of the governor. In addition, the governor may waive the cap on the amount of money that may be provided to any individual project if the project for which the waiver is granted is of regional or statewide interest. Passed the Senate 40-0; approved by House Appropriations.

  House Bill 1244: Authorizes the governor to award grants up to $2 million for projects located in a central city or urban core area. Passed the House 99-0; approved by Senate Finance.

  House Bill 555: Changes the eligibility for enterprise zone job grants in areas with an unemployment rate that is one and one-half times or more than the state average to positions paying at least 150 percent of the federal minimum wage including health benefits. Passed the House 99-0; approved by Senate Finance.

  Senate Bill 658: Requires the Department of General Services to develop a program that ensures that at least 15 percent of state procurement contracts are awarded to small businesses in historically underutilized business, or HUB, zones. Passed the Senate 40-0; referred to House Appropriations.

  Senate Bill 623: Allows a $500 income tax credit for the creation of "green" jobs for taxable years beginning on and after Jan. 1. Each taxpayer is allowed a credit for up to 350 new green jobs and may qualify for the enterprise zone grant program if the job is located in an enterprise zone. Passed the Senate 39-0; approved by House Appropriations.

  Senate Bill 472/House Bill 624: Amends the major business facility job tax credit. Current law provides a $1,000 credit for major business facilities that create at least 100 qualified full-time jobs. This legislation increases the tax credit to $2,000, and reduces the number of qualified full-time jobs required to be created to 50. In enterprise zones or economically distressed areas, the base or threshold is lowered from 50 newly created jobs to 25. The changes also allow the credit to be taken over a two-year period for taxable years from Jan. 1, 2009, through Dec. 31, 2012, rather than Dec. 31, 2010. Passed the Senate 40-0; approved by the House Appropriations Committee.

  Senate Bill 481: Reduces from 50 to 25 the number of jobs that must be created in an enterprise zone or an economically distressed area for eligibility for the major business facility job tax credit. It was incorporated into Senate Bill 472, approved by House Appropriations.

  Senate Bill 733: The small business investment company credit provides for the creation of private investment funds that will invest in small businesses located in Virginia. Under the VSBIC program, private investment managers are licensed by the state. Private capital is gained from outside entities (insurance companies) to be invested in qualified companies in accordance with guidelines set forth by the act. Passed the Senate 38-2. Continued to 2011.

  Senate Bill 455: Requires state regulatory agencies to waive any fees for issuing a permit when the application is submitted by a veteran in connection with his establishment and operation of a small business. Passed the Senate 40-0, the House, 99-0. nib