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Bond attorneys working OT on GO Zone deals.

Article Excerpt
Businesses of all sorts are taking advantage of tax-exempt GO Zone bonds.

Michael Russ, a member of the public law and finance group at Butler Snow O'Mara Stevens & Cannada. PLLC, in Jackson, has closed several bond deals and induced many more in recent months for businesses ranging from shipbuilding to hotels, office buildings, retail shopping, doctor's offices and manufacturing plants.

"We're seeing manufacturing companies using the economic benefits of the bonus depreciation to help finance expansions or to upgrade their equipment," said Paul Varner, leader of the tax group at Butler Snow. "In addition, many professional service firms are using bonus depreciation to help finance the construction of new or expanded office space. Due to the nature of the incentives and the fact that the state delegation, led by Sen. (Trent) Lott's office, drafted this legislation to attract new business and assist recovering ones, these projects include business recovery, expansion and new construction."

According to the Mississippi Business Finance Corporation, 107 projects totaling $3.57 billion have been induced, creating 10,363 new jobs and retaining 24,932 jobs for a total workforce impact of 35,075, as of September 1.

For Mississippi, the GO Zone bond allocation is nearly $5 billion in these tax-exempt bonds.

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