Special Subcommittee Studying Business Tax Incentives

December 18, 1998, Richmond

The special subcommittee of the House Finance Committee Studying Business Tax Incentives held its final meeting in Richmond and agreed on its proposal. The subcommittee will propose legislation during the 1999 General Assembly Session in the form of a study resolution. The resolution will be modeled after the one presented by the recycling industry to the subcommittee during its October meeting.

The purpose of the study is to determine if current and past economic development business incentives given to companies as enticements to bring their businesses to the Commonwealth are harmful to similar businesses already located in the state. The focus of this study will be the recycling industry.

According to the resolution, the study would be done by an independent consultant and monitored by the Virginia Economic Development Partnership. The consultant would collect and compare data from scrap recyclers and consumers concerning tons of material recycled, investments, margins, and employment in the participating companies for five years before the study begins and three years after. The consultant's findings will be presented in its final report to the General Assembly and the Governor no later than the 2002 session.

The Honorable Joseph P. Johnson, Jr., Chairman
Legislative Services contact: Joan E. Putney