Saturday, November 14, 2009

Homebuyers & Tax Credits - Stating the Facts

With the new incentives to revamp the housing market, we have listed below some details for both new homebuyers and step-up homebuyers. These are straight facts based on the existing tax credits.


First-time Homebuyers
· The measure will extend the first-time homebuyer tax credit until April 30, 2010. In addition, those who have signed a contract before May 1, 2010 will have 60 days to close on the home.
· Increases the income limits to $125,000 on a single return and $225,000 on a joint return (from $75,000 and $150,000, respectively). As with the current credit, the extended credit has a $20,000 phase-out after those limits are reached.
· Those who purchase in 2010 will be able to claim credit on 2009 tax return.
· Definition of first-time buyer remains the same as those who have not owned a home in the last three years.
·The credit will remain at $8,000.

Step-up Homebuyers
· Those who have owned the same home for 5 consecutive of the last 8 years will be eligible for a $6,500 tax credit.
· The $6,500 tax credit will be eligible for purchases between December 1, 2009 and May 1, 2010. The same opportunity to close within 60 days applies.
· The income limits are also $125,000 on a single return and $225,000 on a joint return and have a $20,000 phase-out thereafter.
· Those who purchase in 2010 will be able to claim the credit on 2009 tax return.

**Other provisions regarding the homebuyer tax credit in the bill.

· No homes over $800,000 will be eligible for the tax credit.
· It will extend the tax credit for the military and other Foreign Service Officers serving abroad through April 30, 2011. It also waves the recapture fee for all military personnel should the individual move and sells the home within 3 years.
· Cuts down on tax credit fraud by providing authority to the IRS to do greater electronic oversight and requires that the taxpayer claiming the credit be 18 or older.

Monday, November 9, 2009

Local Colleges Contribute to #1 Ranking

How has North Carolina managed to rank No. 1 in Site Selection’s annual business climate rankings eight times in the past nine years?


Focus on higher learning has a large part to do with this. Many major projects and plans involve the university system. There are major educational institutions in the Raleigh-Durham- Cary area. These include North Carolina State University, University of North Carolina at Chapel Hill and Duke. North Carolina State University produced a successful company - Cree, a developer and manufacturer of energy-efficient LED lighting and semiconductor applications. Cree draws talent from the public universities and community colleges in North Carolina, as well as from other states and around the world. The company’s most recent expansion was in 2004, when a $300-million, 300-job R&D investment was aided by an 11-year Job Development Investment Grant (JDIG) that could total $5.1 million in benefits.

In yet another instance of JDIG assisting in the creation of high-value jobs, Deutsche Bank in August announced it would invest $6.7 million in a new technology development center in Cary, where the newly formed DB Global Technology Inc. will create 319 jobs over the next five years. The JDIG agreement would award the company up to $9.4 million over 11 years. The new jobs at DB Global Technology will pay an overall average wage of $88,213. In July, Milken Institute named Raleigh-Cary as the second best performing city in the nation when it comes to economic growth, behind only Provo- Orem, Utah. “We are extremely excited at the prospect of opening a professional IT development center in the Research Triangle, which is home to some of the most highly skilled technology talent,” said Anthony P. McCarthy, global CIO, Capital Markets Technology at Deutsche Bank. “Deutsche Bank is the perfect example of the role that higher education can play in terms of skills and in terms of doing sponsored research,” says UNC’s Leslie Boney.


The Research Triangle Park (RTP) has a large part to do with the growth and success, which now can more credibly be called “the granddaddy of all research parks. Prominent private schools such as Duke University also lend depth to the landscape. “A creation like RTP supplies a community of active intellect and inquiry that no one school could create on its own,” said Duke President Richard H. Brodhead at the annual global conference of the International Association of Science Parks held in Raleigh in June 2009. “We all know how much emerges from obscure laboratories. But one thing we don’t sufficiently remember is that the knowledge economy does not and cannot thrive everywhere.

The National Science Foundation’s just-released ranking of 2008 total R&D expenditures at U.S. universities and colleges. Schools in the Tarheel State ranked 7th (Duke University), 26th (UNC-Chapel Hill), 47th (North Carolina State University) and 87th (Wake Forest), out of 679 institutions in the country. The only states with more institutions in the top 100 in that ranking were, in order, California, New York and Texas – states with populations that range from double to quadruple the 9.2 million residents in North Carolina. The campuses themselves may attract that funding. But the growing network of research parks in the state only help spread its effects further. “Like most research universities, Duke does some of the technology transfer work in-house,” said Brodhead, “but it is an essential advantage to have access right down the street to an R&D apparatus [RTP] that is adjacent, complementary but not identical to the university.”

UNC’s Boney says the latest effort to address tech transfer is a new report, developed with IBM, that makes recommendations on how to improve tech transfer across all 16 campuses, in order to “make it easier for companies to work with us,” he says. “We want a more innovative culture on campus that creates more intellectual property, and looks at options for how we partner with companies to make sure we offer a full range of relationships.” Boney says working with the community college system is also important, especially when it comes to 2+2 articulation programs that allow for credit transfers: “That ends up making a difference for the number of aerospace companies in the state,” he says. “That kind of cooperation is an important thing for the companies to see. It also pays off in determining the range of skills a company will need when they get here. Making sure credits transfer is mind-numbingly boring on one level, but for a company it’s very important.”

Rick Weddle, president and CEO of Research Triangle Park, says RTP still gets attention because of the big players in the neighborhood, but “nobody paid attention to the fact that there were 1,500 spinoffs out of RTP. SAS, Quintiles ... we have some of the largest companies in the world that were guys just starting stuff. More jobs have come out of those 1,500 firms in the Triangle than out of the big companies.” Weddle also echoed a point Brodhead made: Schools work with business, but they also make the extra effort to do the unthinkable – work with each other. “Universities are notorious for not working well even among themselves,” said Weddle. “In the Triangle, at these three universities [Duke, UNC-Chapel Hill and N.C. State], it is hard-wired into their culture to work well across lines.”

Source: Site Selection magazine, November 2009

Wednesday, November 4, 2009

Raleigh Ranks on Top!

North Carolina has the best business climate in the nation, according to Site Selection magazine, which placed the state atop its annual ranking for the fifth straight year and the eighth time in nine years.

The economic development magazine cited North Carolina's university and community college systems for the state's winning streak.

"Businesses are finding in the state what they need to succeed,” editor-in-chief Mark Arend said in a statement. “The synergy between North Carolina’s research parks, corporations, communities and economic developers at the state and local levels is a major factor in this year’s top ranking.”

The annual “Top Business Climate” rankings are based on quantitative and qualitative factors that people who help companies expand or relocate say they consider most important. Fifty percent of the ranking comes from a survey of corporate site selection executives who were asked to rank their top 10 states, and 50 percent is based on four measures of plant openings and expansions.

Texas finished second in the latest ranking, followed by Virginia, Ohio and Tennessee. South Carolina and Georgia also finished in the Top 10.

Business leaders know we are listening to them and working aggressively to meet their needs,” North Carolina Gov. Beverly Perdue said in a statement. “Companies know that in North Carolina they will find top-quality talent, world-class infrastructure, a pro-business environment, and premier education institutions. North Carolina is simply a great place to do business.”

Source: www.WRAL.com