Pharos-Tribune

Opinion

June 9, 2013

PUBLIC FORUM: Thanks for the effort, Sen. Head

As president and CEO of the Indiana Manufacturers Association, I want to express our appreciation for the pro-manufacturing legislation supported by your state senator, Randy Head, R-Logansport, during this most recent session of the Indiana General Assembly. Specifically, Senator Head served as primary author of Senate Bill 521, Indiana New Markets Job Act. Senate Bill 521, which was similar in design to the federal New Markets Tax Credit, would have provided a 39 percent state tax credit over a seven-year period for private investors willing to invest in businesses located in economically distressed areas. Studies of the federal tax incentive program indicate that manufacturers would likely have been one of the primary beneficiaries of the Indiana New Markets Tax Credit, if it would have become law. Although Senate Bill 521 did not become law, Sen. Head was able to lead the bill through the Indiana Senate by a vote of 40-9 on Feb 18, 2013. Unfortunately, once the bill was approved by the Senate, it did not receive a vote in the House Ways and Means Committee and, consequently, failed to become law. Regardless, we appreciate Senator Head’s efforts as the primary author of the bill.Indiana has the highest share of manufacturing as a percentage of private industry Gross State Product in the U.S. (29.7 percent), and the highest percentage of the workforce employed in (16.4 percent). Additionally, Indiana manufacturers generate over $74.2 billion in economic output annually – far and away the most of any other industry in the state – and employ over 490,000 Hoosiers at an average annual compensation of $70,400 – nearly $29,000 higher than other non-farm employers in the state. Therefore, legislation that is good for Hoosier manufacturers, such as the tax credit advocated by Senator Head, benefits the overall Indiana economy. We commend Senator Head for his support of pro-manufacturing legislation. Patrick J. KielyIndiana Manufacturers Association

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