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Defense Contractor Incentives Bill Moves Forward in Richmond

By: Keith Walker <http://www2.insidenova.com/staff/91631/>  | Inside NoVA
February 23, 2012

Del. Luke Torian’s House Bill 406 recently passed the Virginia Senate on a 38-to-1 vote with one abstention and is now on the way to Gov. Bob McDonnell’s desk.

The bill authorizes local governments to provide incentives and regulatory flexibility to defense contractors who operate within defense production and support services zones established by local governments.

Torian, who represents the 52nd District, said the bill will let defense contractors know that local governments will be open for business.

“In Fredericksburg, Prince William and Northern Virginia, we have a lot of defense contractors. This bill will let those companies know that we are serious about having them remain in our community,” Torian stated in a recent news release.

Del. Mark L. Dudenhefer, R-2nd, said future cuts in defense spending could make the bill more important in keeping defense contractors in the area.

“That may become more of an emphasis as the federal budget cuts flow through the Department of Defense,” said Dudenhefer, who represents parts of Prince William and Stafford counties. “You have to look over the horizon.”

Three other so-called jobs bills, which Torian co-patroned in the House of Delegates, have crossed over to the Virginia Senate.

HB 216 introduced by Del. Barbara Comstock, R-34th, provides sales and use tax exemptions for certain computer equipment and enabling software for data centers.

HB 841, introduced by Matthew James, D-80th, will allow businesses which create full-time positions to be eligible for the major business facility job tax credit and the enterprise job creation grants, according to the release.

Torian also supports Senate Bill 620 introduced by Sen.Chap Peterson, D-34th.

The bill recently passed the Senate and is now up for consideration in the House.

SB 620 is aimed at keeping federal contracting money in Virginia by establishing incentives to subcontract jobs in historically depressed communities, the release stated.

The bill, if passed, would establish a corporate income tax credit for federal contractors that subcontract with businesses owned by veterans, women or minorities, the release stated.