February 10, 2009

Message to GBC Members:

Greenhouse gas bill set for Feb. 10 Senate committee hearing

An administration bill to achieve a 25 percent reduction in greenhouse gas emissions in Maryland by 2020 will be heard at 1 p.m. today, Feb. 10, by the Senate Education, Health and Environmental Affairs Committee.

The bill, SB278/HB315, is a key element of the "Smart, Green and Growing" portion of Governor Martin O'Malley's 2009 legislative agenda. The bill retains the goal of 25 percent reduction in greenhouse gases from 2006 levels that was included in legislation that last year passed the Senate, but not the House. It would require the state to develop a specific plan by the end of 2012 for reducing greenhouse gas emissions. Among other things, the bill would exempt manufacturers from any further reductions than they are currently obligated to achieve.

While the proposed exemption is good news for the state's manufacturing sector, the extent to which this provision would place additional burdens on other business sectors remains to be determined. The GBC will watch this issue closely as the session progresses.

Legislation filed to re-authorize tax credit for commercial rehab of historic buildings

Another administration bill introduced on January 23 would re-authorize the state to grant up to $100 million in tax credits for commercial and residential rehabilitation of historic buildings by 2012. The GBC strongly supports tax credits for commercial historic rehab, which have provided a significant incentive for many projects in Baltimore City and many other areas of the state. This is among the state's most effective tools for nurturing private investment in downtown revitalization.

This legislation, SB258/HB309, would authorize a 20 percent credit for commercial projects. The bill also contains provisions for a 5 percent credit bonus, and a maximum credit and bonus of up to $3 million. The bill is before the Senate Budget and Taxation Committee and the House Ways and Means Committee. Hearing dates have yet to be scheduled.

The GBC will host a meeting at 8:30 a.m. on February 17 to discuss the provisions of this priority bill and to coordinate support for its passage.

GBC urges maintaining biotech tax credit, increasing it ASAP

The GBC has written a letter to Senate and House leaders urging them to at least maintain the amount of available tax credits for biotech investment at the budgeted level of $6 million and to significantly increase it as soon as economically practical. In announcing his BIO 2020 initiative last year, Governor O'Malley proposed doubling the tax credit in FY 2010 and doubling it again to $24 million in 2013.

Although prospects for increasing the credit appear dim this session, the GBC will strongly push for getting back to the governor's proposed timetable sooner rather than later. This tax credit addresses the critical need of our state's bioscience industry for availability of early-stage investment funding. In the two years since its inception, this credit has leveraged more than $24 million in private investment in our state's bioscience industry.

It's essential that Maryland remain competitive with other states that are moving ambitiously to grow their own thriving bioscience industries and to overtake Maryland as an industry leader.

To view the GBC letter to Senate President Mike Miller and House Speaker Michael Busch, click here.

Gauging federal stimulus impact, eyeing 'shovel ready' projects in Baltimore region

More than $44 billion is reportedly targeted for transportation projects in the U.S. Senate's version of federal stimulus legislation, including $27 billion for highways and $8.4 billion for transit projects.

The American Public Transportation Association reports that transportation funding in the Senate bill includes:

• $27 billion for highways;
• $8.4 billion for urban and rural transit;
• $5.5 billion for intermodal/discretionary program;
• $2 billion for high-speed rail corridor investments;
• $250 million for intercity passenger rail grants;
• $850 million for Amtrak; and
• $60 million for ferryboat discretionary grants.

Meanwhile, Baltimore City and Baltimore County have made public the "shovel-ready" wish lists they sent to Governor O'Malley for consideration as potential uses of the discretionary federal stimulus funding that comes Maryland's way.

Baltimore City's list includes more than $300 million in public school rehabilitation and road construction projects. To view Baltimore City's "shovel-ready" list, click here and go to p. 185.

Baltimore County's list includes more than $140 million in projects including school capital projects, road improvements, and pumping station rehabilitation. For more information on Baltimore County's "shovel-ready" list, click here.

We'll keep you posted.

Best wishes,

Donald C. Fry
GBC President & CEO

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