State uses new research to recruit from California

If California executives don't believe the claims of Nevada officials that the Silver State provides a better home for their business, Nevada now is coming armed with facts.

The Nevada Commission on Economic Development commissioned Whittaker Associates Inc., a Michigan economic research firm, to detail the differences between California and Nevada.

The study provides validation from an outside observer to the pitch made by industrial recruiters in Nevada, said Mike Skaggs, executive director of the Commission on Economic Development.

The commission will be using the research as part of an e-mail campaign targeting high-growth California companies that are looking to expand, said Skaggs.

It will be used, too, as economic development officials work the trade show circuit to pitch potential employers on the benefits of Nevada locations.

This week, for instance, recruiters from Nevada will be working a trade show for manufacturers of medical devices.

The Whittaker Associates study found Nevada is a leader in supporting new businesses, with a business tax climate that ranks fourth among the 50 states. Nevada also ranks third in terms of its favorable corporate tax structure. California ranks 48th and 34th, respectively, in these same categories.

Among other findings are that with no state income and capital-gains tax, Nevada is ranked second by the Small Business & Entrepreneurship Council for its friendly policy environment for entrepreneurship. California, ranks 49th. And while Nevada does not levy a state personal income tax, California has the highest top personal income tax rate in the nation at 10.3 percent.

Nevada is also one of the nation's top states for business in 2009. According to CNBC's America's Top States for Business Survey, Nevada ranks 18th in a workforce index, while California ranks 23rd. CNBC measured a number of different variables to measure workforce including education level, availability or workers, union members and effectiveness of workers training programs.

Skaggs said industrial sectors targeted by economic development recruiters in Nevada include renewable energies, manufacturing and technology.