CARZ proposal turns to cuts vs. credit debate
Posted on 04. Mar, 2010 by Session Daily | Public Information Services in State Legislature
CARZ, the governor’s list of proposed incentives to help keep the St. Paul Ford plant in operation, was held over by the House Taxes Committee for possible inclusion in its omnibus bill.
Ford has threatened to close the plant in recent years, but the facility received a reprieve until at least the end of 2011 as sales of the truck it produces have increased.
Sponsored by Rep. Michael Paymar (DFL-St. Paul), HF2329, the Create Automotive Recovery Zone proposal, focuses on creating a series of state and local tax exemptions to help make the site viable to Ford or another vehicle manufacturer.
With approximately 750 jobs at stake, and a significant asset to St. Paul, Mayor Chris Coleman said the proposal is about retaining and growing jobs. He called the CARZ proposal a sign to other employers that the state is serious about keeping and attracting businesses. “Unless we as a state get more aggressive to target these jobs, we won’t have these jobs,” he said.
Committee Chairwoman Rep. Ann Lenczewski (DFL-Bloomington) questioned how the proposal would be funded.
Rep. Keith Downey (R-Edina) said that the governor’s supplemental budget pays for the credit through cuts.
“We hear that we have a bad tax climate, but we don’t account for the jobs that are lost because of cuts,” countered Rep. Tina Liebling (DFL-Rochester).
A companion, SF1232, sponsored by Sen. Ellen Anderson (DFL-St. Paul), was laid over by the Senate Taxes Committee last year for possible omnibus bill inclusion.
by Lee Ann Schutz | Session Daily
