76% of the United States population is within 600 miles or 956 km, a day s drive.
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1 For businesses in search of increased profits and a better quality of life, the region has advantages no one else can offer. For businesses in search of increased profits and a better quality of life, the region has advantages no one else can offer. STRATEGIC ADVANTAGES The Northeast Tennessee Valley Regional Industrial Development Association is a multi-county economic development organization. Twelve (12) power distributors with service areas in Northeast Tennessee, Southwest Virginia, and Western North Carolina form the membership of the organization. Its Board of Directors is comprised of the Chief Operating Officers of the power distributors and representatives from the Tennessee Valley Authority. Appalachian Electric Cooperative Bristol Tennessee Essential Services Bristol Virginia Utilities Elizabethton Electric Department Erwin Utilities Greeneville Light & Power System Holston Electric Cooperative Johnson City Power Board Kingsport - American Electric Power Morristown Utilities Commission Mountain Electric Cooperative Powell Valley Electric Cooperative Tennessee Valley Authority EMPLOYEE TRAINING CONTINUED The Virginia Department of Business Assistance will provide customized recruiting and training services through its Virginia Jobs Investment Program (VJIP) to companies creating new jobs or experiencing technological change. VJIP offers consulting services, organizational development, electronic media services, and funding. Training monies may also be available through the regional Workforce Investment Board (WIB). This organization typically, can fund on-the-job training programs. The WIB often provides grants to companies for Incumbent Worker Training allowing companies to upgrade the skills of their workers. LOANS Regional Loan Programs A regional business loan program operated by the First Tennessee Development District can provide low-interest loans to companies creating new jobs. Funds of $2, per job up to $15, can be borrowed. Funds can be used for fixed capital assets and permanent working capital. Virginia s Coalfield Economic Development Authority operates a regional loan/grant program to member localities that provides monetary assistance to eligible companies. Funds can be used for fixed capital assets. LOCAL REAL ESTATE AND PERSONAL PROPERTY TAX ABATEMENTS The industrial development boards of member counties may grant temporary moratoriums on local real estate and personal property taxes for major industrial new construction or expansions. This can be accomplished through purchase/lease agreements between companies and the localities or industrial development boards. TENNESSEE VALLEY AUTHORITY (TVA) INCENTIVES TVA Economic Development offers a number of financing services and options to help new and existing companies with the financial resources they need to locate or expand in the Tennessee Valley. These offerings include the Economic Development Loan Fund (EDLF), the Valley Investment Initiative (VII), and Enhanced Growth Credit. STRATEGIC ADVANTAGES The region is a 15-county region located in Northeast Tennessee, Southwest Virginia and Western North Carolina. This regional includes the Johnson City and Morristown, Tennessee Metropolitan Statistical Areas (MSA) as well as the Kingsport/Bristol, TN/ VA MSA. The combined population of the three MSA s total 64,622. The individual counties in the Northeast Tennessee Valley Region include: Sullivan, Carter, Washington, Unicoi, Johnson, Hamblen, Hawkins, Hancock, Jefferson, Greene, Claiborne, Washington (VA), Lee (VA), Scott (VA), and Avery (NC). POPULATION - 29 CBSA 64,622 Kingsport-Bristol TN/VA MSA 35,629 Johnson City, TN MSA 197,381 Morristown, TN MSA 137,612 Source: U.S. Census Bureau LABOR FORCE Total Labor Force 347,95 Employed 313,73 Unemployed 34,22 Unemployment Rate 9.8% Source: TN Dept. of Labor & Workforce Dev Employment Security Div., Research & Statistics, May 21 TRANSPORTATION HIGHWAYS Interstates I-81, I-26, & I-4 U.S. Primary 23, 11E, 11W, 421, 19E Close Proximity I-77 and I-75 RAIL SERVICE On-Line Railroads Norfolk Southern CSX AIR SERVICE Tri-Cities Regional Airport (TRI) Airlines: American Airlines, Allegiant Air, Delta, US Airways Non-stop service to: Atlanta, Chicago, Charlotte, Cincinnati, Detroit, Orlando & Ft. Lauderdale POPULATION % of the United States population is within 6 miles or 956 km, a day s drive. 6
2 Quick Facts Tennessee and Virginia are right-towork states. FOREIGN TRADE ZONE # 24 U.S. Customs Port # 227 There are eight FTZ designated areas located in the Region. Merchandise held in an FTZ is considered to be outside the Customs Territory of the US and in international commerce and the government does not have the authority to tax merchandise in international commerce. These facts provide the basis for all benefits to use an FTZ.: Duty Deferral Allows foreign products to be held in an FTZ without paying U.S. Customs duties until the product leaves the FTZ for consumption in the U.S. Inverted Tariff Allows parts with a higher duty rate to be manufactured into a product with a lower duty rate. The lower duty rate is paid on the finished manufactured product when entered into the commerce of the U.S. Destruction of Product Allows obsolete or defective products to be destroyed in the FTZ without paying duty on the product. Direct Delivery Allows products to be sent directly from the port of arrival to the facility for immediate use on the assembly line even before it has been reported to U.S. Customs. Exported Goods Products entered into an FTZ and then exported out of the U.S. are not subject to U.S. Customs duties. This is much more efficient than duty drawback from both a man-hour and monetary perspective. Weekly Entry Allows all shipments received in one calendar week to be admitted on one entry document. This provides cost savings through reduced brokerage fees as well as fewer merchandise processing fees from Customs. Zone-to-Zone Transfer Merchandise can be transported in-bond from one FTZ to another, duty may be deferred until the product is removed from the final zone for entry into the U.S. NOTE: The US Customs Port is located at the Tri-Cities Regional Airport. The local Customs Official can process and clear shipments anywhere within the Region. TENNESSEE TAX CREDITS Jobs Tax Credit In Tennessee, a $4,5 jobs tax credit against a company s Franchise Tax and/or Excise Tax liability is available for each new full-time (37.5 hours) employee hired. Eligibility requires a minimum of 25 new employees and a $5, investment. The percentage of franchise and excise tax liability, which can annually be offset by credits, is 33-1/3%. Unused credits can, however, be carried forward for 15 years. (The Franchise Tax is based on the net worth or book value of real tangible personal property owned or used in Tennessee whichever is greater. The tax is $.25 cents per $1 of value. The Excise Tax is 6.5% of net earnings from business conducted in the state or on state apportionment of total earnings of interstate corporations.) Tennessee is ranked 17th Best in the United States for business tax friendliness by the Tax Foundation, FY 29. explore the mountains of possibilities Investment Tax Credit Tennessee provides an investment tax credit against the State Excise Tax of 1% of the cost of purchases of equipment and certain distribution related items. A purchase of $1,, in equipment would result in a $1, credit. Unused credits can be carried forward 15 years. OTHER TENNESSEE TAX ADVANTAGES Tennessee offers several advantages for manufacturers. The State has relatively low corporate taxes. There is no personal income tax on wages. Property Tax No state property tax No tax on goods being manufactured (goods-in-process) No tax on finished goods inventories No tax on goods-in-transit VIRGINIA INCENTIVES Governor s Opportunity Fund The Governor s Opportunity Fund provides either grants or loans to localities to assist in the creation of new jobs and investment in accordance with criteria established by legislation. Eligibility based on minimum capital investment of $1,5, US, creation of 15 new jobs, and above-average unemployment with population of 5, or less. Tobacco Region Opportunity Fund (TROF) This fund provides monetary incentives for new industry locations and expansions within the tobacco region. Minimum capital investment of $1,, US required, eligibility based on unemployment rates, prevailing wage rates, and industry type. Major Business Facilities Job Tax Credit Qualified companies locating of expanding in Virginia receive a $1, US corporate income tax credit for each new full-time job created over a threshold number of jobs. Eligibility based on the creation of 5 new jobs. Virginia Enterprise Zone Program This program encourages new business activity by providing state and local tax relief and grants, local regulatory flexibility and local infrastructure development based on the number of jobs created and capital investment. EMPLOYEE TRAINING The Tennessee Department of Economic and Community Development will provide training assistance through its FastTrack Jobs Training program. The program compliments a company s approach to training by reimbursing the cost of qualified expenses. The State will work with a company to tailor-make a training assistance program to fit the company s needs. The support can include travel related training, preemployment training, formal classroom instruction, on-the-job training, and vendor-delivered instruction. State training funds must go toward the training of new full-time employees (3+hours with benefits) hired by the company. The Tennessee Department of Labor & Workforce Development can also provide screening of potential employees. Sales Tax No sales tax on purchases of qualified manufacturing equipment and machinery No sales tax on raw materials for processing No sales tax on pollution control equipment Reduced sales tax on water and electricity used in manufacturing process (1.5% vs. 7%) Virginia is ranked 1st for doing business for the last 3 years by Forbes Magazine, FY 21.
3 For businesses in search of increased profits and a better quality of life, the region has advantages no one else can offer. WORKFORCE & TRAINING Committed to quality workforce, the region offers an excellent workforce for every sector Employers know that loyal, well-trained employees with a strong work ethic are the key to success in business. The () area offers a skilled workforce (more than 347,) with higher than average education and nationally-recognized Technology Training Centers. Employer-driven curriculum is a priority at the six Technology Centers in the region. LABOR FORCE AGE DISTRIBUTION , , , , ,379 69, , ,62 64,392 53,122 TOTAL 136,99 Trade, Transportation, Utilities Management Professional Services Public Admin. TOTAL 26,688 Source: 26 U.S. Census
4 Quick Facts Low worker turnover and strong work ethic Nationally recognized technology training centers Colleges in the area ranked among best in the nation and top in the south by U.S. News and World Report and Forbes High School graduation rates higher than the national average Cost of living well below the national average Education & Training Tennessee, Virginia and North Carolina state governments recognize that education is the key to economic development. They have developed programs to provide the specific skills that employers need, emphasize science and math in all levels of education and provide higher education opportunities for working adults. Benefits of the area workforce are: Rapidly growing workforce of more than 3, High School graduation rate higher than national average. Local and state government technology centers offer customized employeetraining as an incentive for creating new jobs. Technical colleges and centers develop curriculum in partnership with area employers to specifically fill the needs of area business and industry in on-the-job training. FastTrack offers high school students who qualify a jump start to obtain technology degrees in specialties that employers have immediate need for or will need in the near future. Six Tennessee Technology Centers in the region provide training in vocational and manufacturing skills on campus explore the mountains of possibilities or at employer s site. The purpose of technology centers is to prepare graduates for specific entry-level employment. Job Training Assistance Program available from the State of Tennessee offers pre-employment training, on-thejob training, training materials, unique systems training, leadership skills, and systems support training. Higher education institutions include East Tennessee State University, Tennessee State University, University of Tennessee, Appalachian State University, Northeast State Technical Community College, Milligan College, Tusculum College, Lincoln Memorial University, Mountain Empire Community College, King College, Carson Newman College, Walters State Community College, Hiwassee College, and Virginia Intermont The presence of four universities, four (4) four-year colleges, and five two-year colleges provides many opportunities to working adults for continuing education and advanced degrees (on-campus, off-campus sites, Internet and industry on-site). Advantages to business and industry include interns to supplement the workforce, and research capabilities to assist management. The colleges and universities in the region are involved in the community and have an employerfriendly relationship with area business ,95 313,73 Unemployment Rate 9.8% 34,22 Source: 29 U.S. Census
5 For businesses in search of increased profits and a better quality of life, the region has advantages no one else can offer. NORTHEAST TENNESSEE VALLEY REGIONAL INDUSTRIAL DEVELOPMENT ASSOCIATION EDUCATION Committed to quality education, the Northeast Tennessee region offers an excellent education for everyone Primary and Secondary Education Primary, secondary and college education is a priority in Tennessee. State lottery revenue is dedicated to education, and the Governor has an initiative to produce more college graduates in science and math. New programs in K-12 emphasize science and math and strive to improve test scores in all curriculums. The following are examples of partnerships, accountability and innovation of the school systems located in the Regional Industrial Development Association area. Teach Tennessee encourages mid-career and retired professionals to become teachers in math and science curriculum. FastTrack offers high school students a jump start to obtain a college degree in technology (such as electro-mechanical technology, plant maintenance and other technical skills that area employers recognize a need for in the workforce.) The program is conducted through a partnership between area schools and Northeast State Community College. GEAR UP is a program conducted by East Tennessee State University to help 7 th and 8 th graders gain awareness and readiness for high school, college and the workforce. ETSU mentors the students until they graduate and beyond. Partners in Education unites city and county schools with area businesses to address needs of the local workforce and to improve communication between educators and employers. Tennessee Scholars are high school students who have completed a specific curriculum that provides a market of higher education. VA Educational Testing: Tennessee is a leader in accountability testing for all students. Pioneered by Tennessee, the TVAAS scoring system provides precise data measurement of techniques which best impact student achievement. Tennessee Lottery revenue is dedicated to education of Tennessee college students who qualify. Private Schools are available throughout the region (K-12) offering education with emphasis on classical, Christian and liberal arts education. Higher Education 4-year Colleges & Universities East Tennessee State University (ETSU) offers 2 undergraduate, graduate and medical degree programs of study. These include the College of Arts and Sciences, College of Business and Technology (including a degree in Digital Media), College of Medicine, College of Pharmacy, College of Nursing, College of Public and Allied Health. The School of Graduate Studies offers Masters and PhD. programs. Students can earn advanced degrees through Internet, distance learning and industryon-site programs. Enrollment is 1, students. Milligan College is a private, Christian, liberal-arts college in Northeast Tennessee. For several years in a row including 25, Milligan was rated as one of the Best Liberal Arts Colleges in the country by US News & World Report. The college offers degrees such as: Bachelor of Arts, Bachelor of Science, Bachelor of Science in Nursing, Masters in Business Administration, Masters of Education, and Masters of Occupational Therapy. Enrollment is approximately 1, students. Tusculum College is a private college in Tennessee offering 21 Majors leading to the Bachelor of Arts Degree. The Graduate & Professional Studies program offers degree tracks leading to a Bachelor of Science, Organizational Management, Marketing, a Master of Arts in Organizational Management and the Master of Arts in Education. Tusculum offers working adults opportunities to finish their degrees or get advanced degrees through concentrated study programs at offcampus sites, industry on-site and internet classes. Enrollment is 2,122. Lincoln Memorial University in Tennessee is a private liberal arts and professional studies college offering programs in English, Humanities, Math, Natural Science (including Environmental Science, Biology and Chemistry) Nursing and Allied Health. LMU is also offering Masters-level programs in Business and Nursing. Online and off-site classes are available. Enrollment is 2,8.
6 NORTHEAST TENNESSEE VALLEY REGIONAL INDUSTRIAL DEVELOPMENT ASSOCIATION explore the mountains of possibilities Quick Facts 4 Universities 5 four-year colleges 5 two-year colleges King College is a private college offering 8 majors, minors and concentrations. Degrees are offered in areas such as Business, Science, Math, Chemistry, Computer Science, Forensic Science, Pharmaceutical Sciences, Management and International Business and Global Health, and Pre- Engineering. King has been rated one of the top colleges in the nation for 16 years by U.S. News & World Report. Enrollment is 97 students. Carson Newman College, has been ranked by U.S. News & World Report as the best educational value in Tennessee and one of the best in the South among colleges and universities that offer master s level degrees. More than 4 majors in business and science and other areas are offered. Enrollment is 2,15. University of Tennessee, the largest and oldest university in the state, offers more than 9 major programs in nine different colleges. In recent years University of Tennessee has been rated by U.S. News & World Reports as having outstanding programs in Logistics, Social Work, Law, Education, Civil Engineering, Forensic Science and Physical Therapy. The main campus is located in Knoxville, Tennessee. Enrollment is 26,1. Appalachian State University in North Carolina offers 17 degrees including 8 graduate degrees in Business, Education, Science, Environmental Science, Technology and Liberal Arts and many others. Ranked fifth overall among regional public universities in the South by U.S. News and World Report and among the top five Best College values in the U.S. by Forbes. Enrollment is 12,5. Virginia Intermont College in Bristol, Virginia was established in 198 and today offers 87 Bachelor Degrees in the Arts, Education, sciences including Pre-medicine and Pre-veterinarian medicine, Computer Information Management, Pre-law, Equine Studies and many other degrees. The college also offers associate degrees in Allied Health, General Studies and Graphic Design. The college has a well-developed curriculum of online coursework and adult degrees in subjects from business to teacher education. 2-year Colleges Northeast State Community College offers associate and bachelor degrees in medical, technical studies and liberal arts. Northeast State develops curriculum in partnership with area employers to specifically fill the needs of area business and industry, such as Computer Technology and Chemical Process Engineering. Northeast has multiple sites and total enrollment is 5,1. Walters State Community College offers programs of study that lead to Associate of Science, Associate of Applied Science and Associate of Art degrees. There are 7 programs of study ranging from Art Education to Web Developer Specialist and majors that prepare students for transfer to four-year colleges. Other areas of study include Business, Humanities, Mathematics, and Computer Science. Total enrollment at various sites is 5,9. Tennessee Technology Centers, located throughout the region, are recognized as among the best technical training schools in the Southeast. Training is provided for students to gain entry-level employment and continuing education. Employer-driven curriculum is a priority. Total enrollment is approximately 4,. Mountain Empire Community College offers programs of study that lead to Associate of Science, Associate of Applied Science and Associate of Art degrees. Degrees, certificates and transfer programs to four-year colleges are offered in a wide range of studies such as Manufacturing Distribution, Computer Technology, Welding and many others. Enrollment is approximately 5. Hiwassee College, is the oldest private two-year college in Tennessee. Hiwassee offers two-year programs of study for transfer to four-year colleges in areas such as Finance, Family and Consumer Services, Biology, Sports Medicine, Computer Technology, Criminal Justice, Elementary Education Pre-Law, and Pre-Medicine Enrollment is 4.
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