[Congressional Record Volume 152, Number 21 (Friday, February 17, 2006)]
[Senate]
[Pages S1472-S1473]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Ms. Collins):
  S. 2331. A bill to amend the Internal Revenue Code of 1986 to extend 
the period for which the designation of an area as an empowerment zone 
is in effect; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to introduce a bill that will 
help struggling communities, like Aroostook County in my home State of 
Maine, take full advantage of the special tax incentives for creating 
economic growth and community revitalization in empowerment zones. The 
bill enables those economically depressed communities, already taking 
advantage of these incentives, to secure the full 15 years of targeted 
growth originally granted to the areas first designated as empowerment 
zones.
  I believe all empowerment zone communities need 15 years to reverse 
the decades of decline that originally impacted their economies. I have 
long supported empowerment zone incentives, and I believe that these 
targeted tax incentives provide struggling communities the best chance 
for sustained, long lasting economic renewal. In Maine, I have seen 
first hand empowerment zones' ability to revitalize faltering 
communities, with new jobs, and the creation of the economic activity 
needed for vibrant and strong cities and towns.
  Empowerment zones are vital to the health of rural Maine. The story 
of Aroostook County demonstrates how decades of decline can force 
people to leave rural areas in order to find better, more stable, 
employment opportunities. Since the 1960s, difficult economic 
circumstances have caused a continuous decline in Aroostook County's 
population. In 1994, Loring Air Force Base closed, the major employer 
in Aroostook County at the time, further decimating the area's already 
struggling economic base and population. The Pentagon wrote, in their 
assessment of closure at Loring that, ``closing Loring Air Force Base 
would result in a population loss of approximately 22,000 persons, 
(the) direct and indirect employment loss of nearly 9,900 jobs, and 
regional income loss of just over 92 million dollars.'' Today, over 11 
years after the Air Force left Aroostook County, the population hovers 
near a sparse 73,000 people with 14 percent of these households still 
living in poverty.
  In 1994, Congress designated the first empowerment zones setting 
2009, a 15-year timeframe, as the date that these tax incentives would 
expire. The 2009 expiration date of empowerment zone status was held 
firm for Round II communities designated in 1997, and the Round III 
communities designated in 2002; granting communities like Aroostook 
County, which was designated in 2002, as little as 7 years to use tax 
incentives to reverse decades of decline and economic neglect.
  Unfortunately, Aroostook's economic problems will not be fixed within 
the 7 short years this area qualifies for empowerment zone tax 
incentives. Instead a long-term and lasting commitment of at least 15 
years is necessary to help Aroostook communities work their way to 
stronger economic prosperity. Many communities, like Aroostook County, 
that were unable to qualify for empowerment zone status until 2002 are 
in need of the long-term 15-year commitment in which to address their 
stubborn causes of poverty.
  Businesses operating within empowerment zones receive a 20-percent 
wage credit for the first $15,000 they pay in wages to local residents. 
Other tax incentives encourage businesses, and industries, to further 
commit to these communities. Companies with businesses in empowerment 
zones are eligible for an additional $35,000 worth of 179 business 
expensing--making these long-term business obligations more attractive, 
affordable, and likely. Empowerment zones are also eligible for 
expanded tax exempt financing for building the infrastructure 
communities need to attract long-term developers and business partners.
  To qualify for empowerment zone status, communities develop 
comprehensive strategic plans that depend on these tax incentives to 
help them transform their economies. Each community's plan focuses on 
establishing long-term partnerships between private businesses, 
nonprofits, State, local, and Federal Government agencies, to help 
develop the local economy. Together these parties use the community's 
strategic blueprint to implement interconnected projects that address 
the factors creating the area's economic sickness. These types of 
projects focus on building needed business and industrial 
infrastructure, developing an educated workforce and diversifying local 
economies away from a reliance on one employer or industry.
  In 2002, Aroostook County was designated an empowerment zone based on 
population loss, one of only two empowerment zones designated because 
of population decline. The county formed the Aroostook Partnership for 
Progress to spearhead their empowerment zone strategy, initiatives, and 
projects.

[[Page S1473]]

Since its formation, the Partnership for Progress has steadfastly 
dedicated their time and resources to create a projected 1,500 new jobs 
and negotiated over $1.2 million worth of investments into Aroostook 
County. These numbers indicate the ability of empowerment zone 
incentives to drive investment and strengthen local businesses in the 
area.
  Through the Aroostook Partnership for Progress, and the businesses 
working in the empowerment zone, are making significant progress--the 
factors causing poverty in this rural part of Maine can not be 
eradicated quickly. Aroostook County's strategic plan will take time to 
implement as infrastructure, industry, and other projects create 
greater economic capabilities and diversification. Though Aroostook 
County is working valiantly to overcome the factors causing their 
economic decline they will need more than 9 years to overcome 40 years 
of difficulties. I know that there are many other struggling Round II 
and Round III empowerment zone communities, like Aroostook, who need 
the maximum order to reverse the poverty and underdevelopment also 
plaguing those areas.
  I urge my colleagues to recognize the importance of making a long-
term commitment to communities using empowerment zone incentives to 
work their way out of long-term poverty. I hope that each Senator will 
support the communities in their States, currently undertaking the 
painful process of economic transformation, by supporting passage of 
this economic development bill.

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