State needs to improve incentives for energy, official says

Virginia can’t get complacent when it comes to business and economic development, a state economic development leader said.

The state receives plenty of accolades, like Forbes.com’s “Best State for Business,” CNBC’s “Top State for Business,” and Pollina Corporate Real Estate’s “No. 1 Pro-Business State.”

That gets the attention of companies, but it’s not enough, said Jerry Giles, the director of finance and team leader in science and research for the Virginia Economic Development Partnership.

The Danville native emphasized the importance of incentive packages to attendees of the Danville Pittsylvania County Chamber of Commerce’s Business at Breakfast on Wednesday morning. Giles leads the state’s marketing and business development unit for energy project recruitment efforts.

“Virginia has a wonderful story to tell,” Giles said. “But we’ve got to be able to close the deal.”

It’s easy to become complacent in budget-challenging times, the Manakin-Sabot resident said.

Yet, new energy technologies are emerging now, Giles said. It would be better to get in the game when companies are first developing and locating rather than later.

In Giles’ opinion, the state’s incentive portfolio is outdated. Other states are developing incentive arsenals that are sector-focused, like with energy.

Virginia doesn’t have a specific energy incentive tool, Giles said. Legislators and other stakeholders will need to come together to work out ways to attract new energy companies.

For every dollar the state invests, it gets back $10 from economic projects, according to seven years of data from 188 projects.

Attendee Joe King, deputy city manager for Danville, understands every state is suffering from the economic downturn and that Virginia has a huge budget deficit, but he thinks tax incentives could be a good solution and investment. Some states are even offering incentives for industry, utilities and homeowners to install new energy technology, he added.

The state’s partnership efforts play a huge role in large projects coming to Danville and the Dan River Region, he said.

“In the energy sector, Virginia’s way behind the curve,” King said.

Attendee Eddie Tatarski, branch manager of Electric Systems Inc., agreed.

“They really need to target the energy sector,” Tatarski said. “That has a lot of potential for economic improvement in the area.”