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November 4, 2010 <br />To: Members of the South Bend Common Council <br />Re: Bill 25 -10 Tax abatement — Third Substitute Version <br />Integration of bills 25 -10 and 61 -10 <br />Dear Council members: - -- <br />Attached is the third substitute version of Bill 25 -10. (A short, 4 -page summary <br />of the bill is also attached.) <br />This version of the bill was written by members of the Coalition for Responsible <br />Tax Abatement and that organization is the sponsor of the bill. I am "signing in" the bill <br />so that it can be considered by the Council. <br />The first two substitute versions did not make substantive amendments. This <br />version, however, is a substantial revision. It represents an effort by the Coalition to <br />merge the best elements of bills 25 -10 and 61 -10 (deletions from the second version have <br />double strikethrough; additions are in bold): <br />The bill incorporates the following fourteen (14) aspects of Bill 61 -10: <br />1. Tax phase -in terminology. <br />The phrase "tax phase -in," prominent in bill 61 -10, has been incorporated into the <br />Statement of Purpose and Intent, and in other parts of the bill. <br />2. Definition of a local company <br />Sec. 2- 76.1(a)(18) The definition of a local company from bill 61 -10 is used. <br />3. Language regarding independent contractors <br />Sec. 2- 76.3(9) The language in bill 61 -10 prohibiting the misclassification in employees <br />as independent contractors is used here. A clarifying reference to an IRS publication on <br />the difference between independent contractors and employees is also referenced. <br />4. Technology -based businesses <br />Sec. 2- 76.4(1)(a)(2) The term in bill 61 -10, "technology -based businesses," is used in <br />this section. The optional benefit category having to do with licensing intellectual <br />property arising from a college or university within St. Joseph County has been renamed <br />"technology -based businesses" and expanded to included nanotechnology. <br />5. Green businesses <br />Sec. 2- 76.4(1)(a)(4) The term in bill 61 -10, "green businesses" is used for this section. <br />6. Benefit category: generate electricity with renewable resources <br />Sec. 2- 76.4(1)(a)(5) This benefit category is incorporated from bill 61 -10, which gives <br />credit to companies that achieve 10% percent of electric usage via wind- powered <br />