President Obama’s budget expands, simplifies small business health care tax credits

The Affordable Care Act includes a Small Business Health Care Tax Credit to help small businesses afford the cost of covering their workers. For tax year 2011 alone, the existing tax credit will benefit an estimated 360,000 small employers who provide health insurance to 2 million workers.
In his fiscal year 2013 budget, President Barack Obama has called for expanding and simplifying the Small Business Health Care Tax Credit. If the President’s proposal is enacted, the tax credit would benefit nearly 0.5 million employers who provide insurance to 4 million workers. Over the next 10 years, the proposal would provide an additional $14 billion in tax credits. For a particular business, these changes could mean a tax cut of tens of thousands of dollars. The President has proposed to:
• Allow small businesses with up to 50 workers to qualify for the credit. Currently the tax credit is only available to employers with fewer than 25 full-time workers. (Part-time workers are counted proportionally based on the hours they work.) The President’s budget doubles this ceiling to 50. It also doubles—from 10 full-time workers to 20—the maximum size for a firm to receive the maximum credit matching rate (which is currently 35 percent and increases to 50 percent in 2014).
• Adopt a more generous phase-out schedule. The tax credit phases out based on both the average wage paid by the employer and the number of workers it employs. The President’s budget makes the phase-out schedule more generous and permits every otherwise eligible firm that falls within the limits for size (50 full-time workers) and average wage ($50,000 per full-time worker) to receive the credit.
• Simplify the credit by streamlining the rules. The President’s budget eliminates two requirements for claiming the credit:
o Uniformity requirement. The budget eliminates the requirement that employers claiming the credit determine that they contribute the same percentage of the cost of each employee’s health insurance. This will make the credit less dependent on the specific practices of the employer and easier to claim. Employers would still be required to contribute at least 50 percent of the premium, ensuring a substantial commitment to their employees’ health coverage.
o Cap based on state average premiums. The budget eliminates the cap that limits eligible employer contributions to the amount an employer would have contributed if it offered the plan with the average premium in the state—another requirement that can be complicated to calculate and which is unnecessary given other incentives to control premiums.
Together, eliminating these requirements will significantly simplify the process of claiming the credit.

Examples of how the budget proposal affects various businesses
Example 1: Budget makes small business with 30 full-time employees eligible
Business Profile:
• Full-time employees: 30
• Wages: Average $25,000 per employee
• Employer premium contribution per employee: $5,000
Tax credit in 2012:
• Under current law: Not eligible
• Under budget proposal: $35,000
Tax credit in 2014:
• Under current law: Not eligible
• Under budget proposal: $50,000
Example 2: Budget more than doubles credit for small business with 15 full-time employees
Business profile:
• Full-time employees: 15
• Wages: Average $35,000 per employee
• Employer premium contribution per employee: $6,000
Tax credit in 2012:
• Under current law: Up to $8,400
• Under budget proposal: $18,900
Tax credit in 2014:
• Under current law: Up to $12,000
• Under budget proposal: $27,000

Charlotte in 2012 calls for barbeque sauce to represent the Carolinas

This week, Charlotte in 2012 released a Request for Proposal seeking to work with a barbeque sauce vendor as part of the merchandising effort for the convention. The RFP calls for three different types of BBQ sauces—mustard, vinegar and tomato—to represent and showcase the different styles from around the Carolinas. The sauces will be sold together in Charlotte in 2012’s online merchandise store to people from across America.
“I love the food from this region—I even smoke my own pork—so I understand very well the importance of selecting three barbeque sauces that truly represent the flavor of the Carolinas,” said Dan Murrey, Executive Director of Charlotte in 2012. “We expect bids from eastern Carolina, western Carolina and South Carolina. ... Needless to say it will be a challenge to select the best sauces, but I think I speak for my entire team when I say that we are looking forward to the taste test.”
This is part of a grassroots fundraising effort, and proceeds go toward funding the convention. Charlotte in 2012 is the first Host Committee in convention history to raise convention funds without accepting monetary corporate contributions; monetary contributions now come from individuals, foundations and charitable organizations.
Those interested in submitting a proposal to sell barbeque sauce must register their business in the vendor directory at www.charlottein2012.com and must be open to working with Charlotte in 2012 on any creative designs having to do with the bottle and labels. Sauces must be made in America, and preference will be given to those made in the Carolinas. Final proposals are due by Monday, Feb. 27.

Hagan invites small business owners to attend Exporter Forum in Greensboro

U.S. Sen. Kay R. Hagan (D—N.C.), a member of the Senate Small Business and Banking committees, invites all North Carolina small business owners to attend a Small Business Exporter Forum on Friday, Feb. 24, at the Gateway University Research Park in Greensboro. The "Ex-Im Bank Global Access Forum for Small Business," which Hagan will cohost with Export-Import Bank Chairman and President Fred P. Hochberg, will include industry, academic and government experts who will provide North Carolina businesses practical information they need to sell their products and services overseas. Hagan previously hosted a similar exporter forum with Hochberg in Charlotte last summer.
The forum is tailored to address the needs of small- and medium-sized businesses with 500 or fewer employees. All business owners interested in attending must register here.
The exporter forum will serve as another stop on Hagan’s North Carolina Back to Work Jobs Tour, which is taking Hagan across the state to focus on action and ideas that will get unemployed North Carolinians back on the job as quickly as possible.

WHAT: Hagan invites North Carolina small business owners to attend Small Business Exporter Forum
WHEN: Friday, Feb. 24, from 9 a.m. to noon
WHERE: Gateway University Research Park, 2901 E. Lee St. in Greensboro
HOW: Registration is required for participants. Register here.

Orange County Agricultural Summit is Feb. 13

Agriculture makes a major contribution to the well-being of Orange County residents, both those living within and outside the county. In addition to direct contributions to the local economy in the form of product sale receipts and expenditures on farm services and inputs—along with employment on farms and farm support businesses—farmers also make significant contributions as stewards of the remaining amounts of undeveloped land (often called open space) in the county. Their stewardship protects the county's soil and water resources, recharges groundwater and abates storm water runoff, connects wildlife habitat, and safeguards the scenic and historic vistas that have defined Orange County's character.
"It is in the county's best interest to safeguard, promote and maintain the local agricultural industry and protect farmland," said Board of Orange County Commissioners chair, Bernadette Pelissier. "Enabling farmers who want to continue to farm is a cost-effective way of maintaining the quality of life of everyone in Orange County."
To better understand key issues affecting the local agricultural industry, Orange County sponsors an annual Agricultural Summit to address geography, economic trends and regulations governing farming.
"It is critical for all of us in Orange County to understand the values and concerns of the farmers themselves, and this annual Summit helps all of us accomplish this," Pelissier said.
The Annual Orange County Agricultural Summit will be held Monday, Feb. 13, at the Big Barn Convention Center in the Daniel Boone Village, 388 Ja-Max Drive off S. Churton Street. The day-long event is from 8 a.m. to 4:30 p.m., including afternoon tours. Residents throughout the region are encouraged to attend.
Speakers include N.C. 4th District U.S. Rep. David Price discussing the Farm Bill and other agricultural issues, local farmers and experts in farm diversification, soil, water as well as apicultural experts. Also on hand will be Orange County planning and economic development staff who will address new rules for farm enterprises in Orange County.
Additionally, Jack Tapp of Busy Bee Apiaries will speak about his fruit-flavored creamed honey business, Vintage Bee Honey, and how it got to where it is today.
Afternoon tours include the new Piedmont Food and Agricultural Processing Center in Hillsborough and Walters Unlimited at Carls-Beth Farm in Efland.
The summit fee is $10, which includes a catered lunch by Bob Compton. On-site registration at the Big Barn will take place from 8 to 8:30 a.m. Pelissier will welcome the group at 8:30 a.m., with the first session beginning at 8:40 a.m.
To register for the summit, contact the Orange County Cooperative Extension office at (919) 245-2050. For additional information, including the agenda and driving directions, visit http://orange.ces.ncsu.edu/ or http://www.orangecountyfarms.org/ .

Orange County Economic Development unveils new website

Orange County Economic Development launched its redesigned website—www.growinorangenc.com—offering a glimpse into the county’s renewed focus on economic development. The website is part of a strategic effort by the department to increase awareness of Orange County as a business location and provide the key types of information needed by businesses and site selection firms looking to expand or locate a business.
The website provides up-to-date information on the county’s three economic development districts targeted for commercial and industrial growth. The redesign also provides tools to allow users to search for available buildings and sites as well as current demographic data including labor force, wages, training availability and information on Orange County’s quality of place. With workforce skills and location being prime factors in the business site search process, the website showcases Orange County’s position along major transportation corridors and its proximity to several renowned research universities. Prospective investors can identify Orange County’s core positioning within the Research Triangle Region and the Research Triangle Park.
While www.growinorangenc.com officially launched the week of Jan. 30, the site will continue to grow and evolve. Future developments will include an interactive property search feature, videos showcasing local businesses and highlighting those economic development activities that will be funded by the quarter-cent sales tax recently approved by voters.
“Today’s business site selection process is more competitive than ever,” Steve Brantley, county economic development director, said. “The search increasingly begins on the Internet and includes much more than just looking at available properties; those involved in today’s business site searches are looking for a glimpse into the community—from demographics and work force availability to educational and cultural opportunities in the area. This website was developed to showcase the assets Orange County can offer as a prime business location.”

Campus Y to open Social Innovation Incubator in January

Budding social entrepreneurs soon will have space to nurture their initiatives in the heart of the University of North Carolina at Chapel Hill campus. The Social Innovation Incubator will open in January in the third floor of the historic YMCA building, home of the Campus Y. The incubator will provide physical space and equipment to its resident teams as well as important resources such as legal, tax, communications and other expert advice.
Applications for residency in the incubator, which can be found on the Campus Y's website, are being accepted now through Jan. 6 at 5 p.m.

To be eligible, teams must:
• Pitch an idea that is an innovative solution to persistent social problems that creates social value through sustainable, systemic change and
• Be UNC students who have thought through short- and long-term challenges, including required resources and sustainability measures.

The top three teams selected for residency in the incubator for the spring semester will be announced Jan. 21 at TEDxUNC: Global Initiative. This conference based on the concept of creation through connection—generating new thought on global issues by connecting existing resources—will be held at the FedEx Global Education Center.
The Social Innovation Incubator supports the Innovate@Carolina Roadmap, UNC's plan to help Carolina become a world leader in launching University-born ideas for the good of society. The incubator is made possible through strategic campus partnerships with the Minor in Entrepreneurship, the Center for Global Initiatives, the Community Development Law Clinic at UNC School of Law, and BASE (Business Accelerator for Sustainable Entrepreneurship), a program of the Center for Sustainable Enterprise at Kenan-Flagler Business School. To learn more about the Innovate@Carolina Roadmap, visit http://innovate.unc.edu/.

NC to get funds to support small businesses

U.S. Senator Kay R. Hagan (NC) announced on Tuesday, Sept. 27, that North Carolina will receive $603,442 to fund trade and export promotion for the state’s small businesses. Authorized through the Hagan-backed Small Business Jobs Act of 2010, the funds will help small businesses export for the first time to overseas markets and help raise the value of the exports of those small businesses that are already selling in other countries.

“North Carolina's small businesses are the key to our economic growth, and we have got to do all that we can to help them," said Hagan, who serves on the Senate Small Business Committee. "With this critical new funding, North Carolina's small businesses can expand production and hiring here at home by finding new customers overseas. I will continue fighting to ensure North Carolina's small businesses have the resources they need to be competitive in the global market."

Specifically, the funding awarded to North Carolina will allow small businesses to travel to overseas markets and attend foreign trade shows based upon best opportunities and best markets for the states’ firms. It will also help translate businesses’ websites into target market languages.

The grant is funded through the U.S. Small Business Administration’s State Trade and Export Proportion (STEP) Program. The STEP grants will help provide:

• support for small business participation in foreign trade missions and foreign market sales trips;
• subscription to services by the Department of Commerce;
• website translation fees;
• design of international marketing media;
• trade show exhibitions;
• participation in training workshops; and
• other export initiatives determined to be appropriate by the SBA.

Hagan votes to support small business

U.S. Senator Kay R. Hagan, a member of the Senate Small Business Committee, voted for a long-term extension of two successful programs that give small businesses opportunities to participate in federal research and development. In a key procedural vote, the Senate voted 84-12 to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, both under the Small Business Administration, for the next eight years. The programs are set to expire on May 31.
In 2009, North Carolina companies won a total of 94 SBIR/STTR awards totaling $55 million, a 43 percent increase over 2007.
“By extending these successful programs for an eight-year period, our North Carolina small business entrepreneurs will have the certainty they need to continue to produce innovative research, expand their companies and add jobs,” Hagan said. “Small businesses remain the key to our economic recovery in North Carolina, and I have long been an advocate for these programs that allow our smaller companies to participate in high-level research and the development of next generation technologies. Given today’s overwhelming bipartisan support for these programs, I look forward to quickly passing this bill in the Senate and getting it to the President’ desk as soon as possible.”
The SBIR program designates resources to increase the participation of small, innovative companies in federally funded research and development. Similarly, the STTR program provides federal funding for small firms to work jointly with non-profit research institutions, such as research and development centers, universities, university-affiliated hospitals, and other non-profits.