Arizona Technology Council Announces 2005 Public Policy Agenda; Agenda Represents the Key Issues of Interest from the Technology Community for the Coming Year.

TEMPE, Ariz. -- The Arizona Technology Council unveiled an ambitious 2005 legislative agenda today that signifies the central concerns of the Arizona technology community.

Two key initiatives the plan calls for are the adoption of a small business opportunity program and an increase of research and development tax credits. The proposed small business program gives qualified investors a 30% tax credit, and biotech and rural investments a 35% tax credit over three years, with a $20 million overall program cap over five years.

The R&D plan calls for an increase for R&D tax credits, and an enhancement of R&D tax credits for partnerships with state universities or affiliates and rural or biosciences investments.

"The Council believes strongly that we can't be complacent about the need for change," said Todd Bankofier, president and CEO of the Arizona Technology Council. "To build a knowledge-based economy will require commitment to new tools. Our agenda incorporates new ideas for both the public and private sector."

"We worked hard to refine our public policy goals," said Steven Lawrence, attorney for Gallagher and Kennedy and board of director for the Arizona Technology Council. "Capital formation continues to be the top priority in order to grow Arizona's knowledge-based economy. We look forward to working with Governor Napolitano, leadership in both houses of the legislature, and legislative staff to forward the Arizona Technology Council's public policy initiatives."

The 2005 Legislative Agenda:

Advocacy

--Adopt Small Business Opportunity Program: 30% qualified investor tax credit over three years (10% per year); 35% for biotech and rural investments over three years; $20mm overall program cap over five years.

--Increase R&D tax credits, and enhance R&D tax credits for partnerships with (a) state universities or affiliates, and (b) rural or biosciences investments.

--Increase Technology Cluster Funding to $300,000 line-item appropriations.

Advisory

--Support sound budget and tax policies that reinforce technology industries and promote development of Arizona's knowledge-based economy, such as:

--Support a single property tax assessment ratio for primary and secondary property taxes for all classes of property;

--Enhance corporate sales factor to promote high wage job growth;

--Oppose elimination of sales and use tax exemptions critical to the economic viability of high technology in Arizona;

--No new Internet sales and use taxation.

--Protect funding base for Arizona Job Training Program, and increase training in knowledge-based employment.

--Continue funding for the Community Telecommunications Assessment Initiative and fund a statewide telecom roadmap and strategic plan in coordination with the Governor's Council on Innovation and Technology (GCIT).

Watch

--Monitor activities of Governor's Council on Innovation and Technology (GCIT)

--Support policies that promote education, including: core competencies in math, science and technology; expansion of a technology workforce; and use of technology in the educational process.

About The Arizona Technology Council

Since its inception in 2002, the Arizona Technology Council has stood as the largest association of technology companies in Arizona, whose shared vision is for the state to be recognized as a top-tier center for technology-based businesses. The council works to carry out this vision by driving partnerships, policies and programs that advance the business climate for Arizona's technology community and by representing, supporting and advocating for member companies through initiatives, advocacy, networking and effective communications. The Arizona Technology Council represents 30,000-plus employees at more than 400 of the leading technology companies across Arizona. Represented industries include advanced manufacturing, aerospace, biotechnology, e-learning, environmental technology, software, Internet applications, semiconductors and telecommunications.

For more information, visit http://www.aztechcouncil.org.