ࡱ> -/,}  bjbj55 7__   VXXXXXXMXJJJXmJVJVw`"B0(Z(@h4XXJJJJ : SENATE BILL 634 COMMITTEE ON COMMERCE Timothy Cowden, Sr. Vice President, Business Development Kansas City Area Development Council Home address: 14003 Eby Overland Park, KS Thank you, members of the Committee on Commerce, Chairpersons Brownlee and Jordan, for allowing me the opportunity to speak this morning to you about Senate Bill 634. First off by way of background, I have led the Kansas City Area Development Councils recruitment program for a decade. During this time, I have formed a strong opinion that the incentive programs offered by the State of Kansas by and large have been extremely effective. The recruitment and retention team at the Department of Commerce is known by both site selection consultants and peers in the economic development business across the country for its professionalism and results-oriented approach. It's been a powerful combination and one that continues to benefit the citizens of this State. Before I comment specifically on the importance of SB 634, let me provide some perspective on today's climate for recruitment and expansion projects. Each of you on this committee understands well the competitive nature of economic development. I would imagine that the one common link between all the testimonials you have heard during this and previous legislative sessions dealt at some level with Kansas maintaining or gaining a competitive edge. The reality of the marketplace for economic development projects is that today, in many similar conference rooms and legislative assemblies across the country, presentations or discussions are underway about why that state's leadership should pass some type of economic development legislation to give it some edge when competing with Kansas or any other state. There's one element of weakness in Kansas' incentive programs that we at KCADC have frequently been hearing from site location consultants and corporate executives. They feel the State's focus on tax credit based incentive programs is becoming increasingly out of touch with the market. To be specific, and this won't come as any surprise, site location consultants and the corporate executives they advise are placing greater emphasis on cash based incentive programs offered by states and communities. Based on our experience, the most impactful incentive programs that Kansas offers conventional economic development projects are KEOIF and IMPACTtwo cash based programs. More and more, when discussions with our clients turn to the State tax credit based programs, they discount these programs impact. The rationale being that these companies often times don't have the corporate income tax liability in Kansas to utilize the credits within the first couple of years after receiptif ever. Senate Bill 634 is a very important piece of legislation that will enable the State of Kansas to better compete for quality manufacturing jobs provided by an excellent corporate citizen of this State. And as importantly, passage of SB 634 will be a powerful signal to the market that Kansas continues to make the adjustments needed to win in the ever changing environment for all job and investment creation projects considering the State. Thank you for your time this morning. I would be happy to address any of your questions to the best of my knowledge. 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