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Go Zone Program Sees 2/3rds of the Businesses Outside of Coastal Counties
by Keith Burton - GCN       12/29/06

A program passed by Congress designed after Hurricane Katrina to stimulate the area's business economy has generated over $5 billion in tax incentives for businesses participating in Mississippi, but most of the businesses are outside of the most devastated areas.

Known as the Gulf Opportunity Zone Act of 2005 or the GO Zone Act, the program offers several tax benefits to properties built and placed into service in the GO Zone region after the hurricanes. The incentives were made available by the government with the intent to help bring back life once again to the affected areas and rebuild the economies of the state affected by the 2005 hurricanes Katrina and Rita.

The Gulf Opportunity Zone Act affects 11 counties in Alabama, approximately 50 counties in Mississippi and 31 parishes in Louisiana.

The GO Zone incentives also provide opportunities for business owners to invest in recovery and new or expanded operations. What's more, capital is borrowed through tax-exempt financing, and borrowers can take accelerated depreciation in the first year.

The most significant incentives in the GO Zone Act include:

  • 50% Bonus Depreciation
    5-Year NOL Carryback
    Tax-exempt Financing
    100% First-Year Equipment Expense Deduction for Small Business
    Special Incentives for Employers
    Expensing of Demolition and Cleanup Charges

According to the Mississippi Business Financing Corporation, which is administering the business portion of the Go Zone program in Mississippi, some 135 businesses have signed up for the program with a total incentive valuation exceeding $5 billion.

The Go Zone legislation also provides incentives for apartment and homes building, but that aspect is administered by the Mississippi Home Corportation. The Go Zone program for housing has had only a limited affect so far on replacing the nearly 6,000 apartment units lost from Katrina. (Click Here for this story)

But of the 135 businesses participation in the Go Zone program, only 39 are located within the three Coastal counties and many are from existing operations that are using the program for rebuilding and are familiar names to Coast residents. GCN has included  a list the businesses participating in the Coastal counties below.

For a complete list statewide: Click Here

ACCURATE EDGE GULFPORT HARRISON $1,250,000
ANIP ACQUISITION COMPANY d/b/a ANI PHARMACEUTICALS GULFPORT HARRISON $2,200,000
BROADHEAD BUILDING SUPPLIES, INC.   HARRISON, SIMPSON $2,500,000
GULF COAST METAL WORKS SAUCIER HARRISON $900,000
SCOTT TRACTOR & EQUIPMENT COMPANY, INC.   HARRISON, SIMPSON $1,200,000
SEEMANN COMPOSTIES, INC. GULFPORT HARRISON $3,000,000
TRADITION CUSTOM HOMES, INC. GULFPORT HARRISON $3,700,000
ANDOVER MCGINTY WHITE, LLC LONG BEACH HARRISON $4,000,000
BAY ST. LOUIS INVESTMENTS, LLC BAY ST. LOUIS HANCOCK $5,000,000
CHEVRON U.S.A., INC. PASCAGOULA JACKSON $500,000,000
COAST ELECTRIC POWER ASSOCIATION KILN, BAY ST. LOUIS, BILOXI, PICAYUNE HANCOCK, HARRISON, PEARL RIVER $6,275,500
COAST ELECTRIC POWER ASSOCIATION   HANCOCK, HARRISON, PEARL RIVER $247,000,000
COMPLETE LODGING, LLC BAY ST. LOUIS HANCOCK $20,000,000
CORPOREX DEVELOPMENT AND CONSTRUCTION MANAGEMENT, INC.   HARRISON $25,000,000
CORPOREX DEVELOPMENT AND CONSTRUCTION MANAGEMENT, INC. GULFPORT-BILOXI INTER. AIRPORT HARRISON $20,000,000
EDGEWATER RETAIL PARTNERS I, L.P. BILOXI HARRISON $27,000,000
ENLIGHTENED PROPERTIES, LLC BILOXI HARRISON $8,500,000
FUTURE PIPE INDUSTRIES, INC. GULFPORT HARRISON $5,000,000
GULF LNG ENERGY, LLC PASCAGOULA JACKSON $675,000,000
GULF SHIP, LLC GULFPORT HARRISON $30,000,000
GULFPORT-BILOXI AIRPORT HOTELS, LLC GULFPORT HARRISON $38,000,000
GUY EVANS D/B/A EVANS INVESTMENTS BILOXI, WIGGINS HARRISON, STONE $5,500,000
IONATRON, INC. STENNIS SPACE CENTER HANCOCK $7,000,000
JACKSON/NEWELL PAPER COMPANIES JACKSON, HATTIESBURG, COLUMBUS HINDS, FORREST, LOWNDES $4,000,000
KNIGHT ABBEY COMMERCIAL PRINTING, INC. BILOXI HARRISON $8,500,000
KOAR D'IBERVILLE CENTER, LLC D'IBERVILLE HARRISON $25,000,000
LYLE MACHINERY COMPANY   HARRISON, HINDS, FORREST $7,500,000
MARKETOWN INVESTORS, INC. BAY ST. LOUIS HANCOCK $2,500,000
MISSISSIPPI PHOSPHATES CORP. PASCAGOULA JACKSON $8,000,000
NORTHROP GRUMMAN CORPORATION PASCAGOULA, GULFPORT JACKSON, HARRISON $550,000,000
PEOPLES BANK, THE   HANCOCK, HARRISON, JACKSON $10,000,000
ROLLS-ROYCE NORTH AMERICA, INC. STENNIS SPACE CENTER HANCOCK $42,000,000
SEAWAY DEVELOPMENT COMPANY, LLC GULFPORT HARRISON $12,000,000
SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION   COVINGTON, GEORGE, GREENE, HANCOCK,  $3,500,000
TANGI EAST, LLC BILOXI HARRISON $17,600,000
TINDALL CORPORATION   JACKSON $15,000,000
TRADITION CUSTOM HOMES, INC. GULFPORT HARRISON $3,700,000
VT HALTER MARINE,INC. PASCAGOULA JACKSON $5,000,000
WOLF INDUSTRIES, INC. dba GRACE HEALTHCARE GULFPORT HARRISON $5,200,000

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