Outdated Shopping Mall Proposed as Dallas Location for Amazon’s HQ2

Dallas Mall

Last Friday, cities in North Texas submitted their bids to become the home of Amazon’s second headquarters HQ2. To set it apart from the other 50 North American cities vying for the spot, Dallas’ proposals ranged from the practical – such as highlighting the upcoming bullet train project from Dallas to Houston – to the ironic, which suggested the online retail giant take over the location of the Valley View Mall, an outdated shopping mall.

Three Dallas developers, Hillword Urban, KDC, and Crescent Real Estate, had proposed the Valley View Mall location at LBJ Freeway and Preston Road as a potential site for HQ2. With the rise of online retail giants like Amazon, the Mall has struggled to adjust to fluctuating consumer trends in the 2000s and gradually, its major department stores closed one after the other: Bloomingdale’s in 1990, Macy’s and Dillard’s in 2008, JCPenney in 2013, and finally Sears in July 2017. The prospect of Amazon’s HQ2 replacing the Mall therefore adds a symbolic, ironic flare. The Mall is near three airports: Addison, Love Field, and DFW International, making it another appealing option since Amazon had included proximity to an airport as one of its requirements for HQ2. Dallas-based architects from Omniplan have already drafted a design for a 500,000 square foot building for HQ2. If successful, Amazon would move into HQ2 by 2019 and expand the space to 8 million square feet by 2027.

Texas is a prime prospect for HQ2. 20,000 Amazon employees already work in the Lone Star State, making it the third state with the most Amazon workers, aside from California and Washington State. Amazon CEO Jeff Bezos had announced last month the company’s intention to expand to a second headquarters with a commitment to invest $5 billion to the new city and create 50,000 jobs in the area.  The Dallas Regional Chamber is in the process of preparing an executive summary of North Texas’ best proposals to send to Amazon for the company’s October 19 deadline.

Are you conducting R&D projects to build and improve existing buildings like Valley View Mall? You may be eligible for the R&D tax credit and can get up to 14% back on your expenses. If you would like to find out how your company could benefit from R&D Tax Credits, please contact a Swanson Reed R&D Specialist today.

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s.  For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Faster, Bigger, Quieter: Dallas-based Southwest Airlines launches Boeing 737 Max 8 Aircraft to make history

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Yesterday, Dallas-based carrier Southwest Airlines launched nine Boeing 737 Max 8 jetliners, making it the first North American company to use the new Max 8 aircraft in commercial flights. The aircraft departed from six different airports, with the first taking off from Dallas Love Field for Houston and then San Antonio, a route reminiscent of Southwest’s “Texas Triangle” route in 1971. Southwest hopes to expand from nine to 14 of the Max 8 jetliners by the end of 2017.

The introduction of the Max 8 aircraft marks a new chapter in Southwest history. Earlier this weekend, Southwest retired 30 of their Boeing 737-300 jetliners, affectionately dubbed the “Classics”. Though a trailblazer when first introduced in 1984, the Classics have proven outdated in recent years due to their louder engines and lack of Wi-Fi connectivity. The Classics’ fuselage was also infamous for its safety hazards. In July 2009, a huge hole at the rear of the plane forced an emergency landing. In April 2011, two people were injured when a 5-foot-long gash opened in the fuselage mid-flight.

In contrast to the Classics and other Boeing models, the new Max 8 aircraft is safer and more fuel-efficient. With its nacelles that curb noise, v-shaped winglets, and powerful Leap-1B engine, the Max 8 is quieter, uses 14 percent less fuel, and travels 500 nautical miles farther than the Boeing 737-800. The Max 8 aircraft also has wider seat dimensions in economy class than any other plane on the North American market and can carry up to 175 passengers, 32 more than the Classic aircraft

The Max 8 was designed with the long-term future in mind. Unlike the Classic jetliner, the Max 8 aircraft is connected to satellite-based Wi-Fi. Southwest, notably, did not include television monitors to the Max 8 design. Instead, customers are encouraged to use their personal devices on board. This was a cost-effective measure since maintaining television monitors can be expensive and according to Mike Van de Ven, Southwest’s Chief Operating Officer, technology is constantly evolving and the television monitor may be outdated one day. After all, he noted how airplane seats once had telephones attached to them.

As Chairman & CEO Gary Kelly told Business Insider on Sunday, “Today, we begin a new chapter in Southwest’s history by introducing the Boeing 737 MAX 8 to our Customers and Employees. The MAX 8 is the future of the Southwest fleet, and we look forward to connecting Customers to the important moments in their lives through our legendary service delivered with this more fuel efficient aircraft designed to produce less noise in the communities we serve.” [sic]

Are you conducting R&D to improve aviation and the passenger experience like Southwest Airlines? You may be eligible for the R&D tax credit. If you would like to find out how your company could benefit from R&D Tax Credits, please contact a Swanson Reed R&D Specialist today.

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s.  For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

2017: The Best Year for Texas Manufacturing Despite Hurricane Harvey

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As the month of September comes to a close, the Federal Reserve Bank of Dallas (Dallas Fed) released its monthly Texas Manufacturing Outlook Survey earlier this week. Even in the aftermath of Hurricane Harvey, September’s survey results were clear: the manufacturing industry in Texas is still going strong.

Industry executives throughout Texas contribute to the survey on the monthly basis, providing data for indicators such as employment, orders, prices, output, and so forth. Dallas Fed then calculates this data and releases an index for each indicator to reveal the health of the state’s economy. Any index below zero demonstrates a decrease while a score above zero means growth.

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How Does Your State Rank on the Innovation Scale?

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Innovation Is Key

Innovation is crucial to sustainable economic growth, but for innovation to occur businesses must have both the incentive and the capacity to invest.

As innovation is key to the United States’ economy as a whole, many U.S. states are showing off while others are falling short when it comes to patents, R&D, venture capital and academics.

So which states are excelling in innovation and which ones are lacking, you ask?

Patents

The top states in patents per population include:

  1. Wisconsin
  2. Washington
  3. Texas
  4. Utah
  5. California
  6. Massachusetts

The bottom five patented states include:

  1. Alaska
  2. Mississippi
  3. Tennessee
  4. West Virginia
  5. Wyoming

Venture Capital

The top states for venture capital are:

  1. Massachusetts
  2. California
  3. Utah
  4. Washington
  5. Colorado

The lowest are:

  1. Arkansas
  2. Alaska
  3. Hawaii
  4. Wyoming
  5. Iowa
  6. South Dakota

R&D Spending

The leaders in R&D spending are:

  1. Delaware
  2. Michigan
  3. California
  4. Connecticut
  5. Massachusetts

The states that spent the least on R&D include:

  1. Arkansas
  2. Wyoming
  3. Louisiana
  4. Alaska
  5. Mississippi

Academics

As for academics, the top states include:

  1. New Mexico
  2. Maryland
  3. Rhode Island
  4. Massachusetts
  5. Alabama

The lowest academic rankings were for:

  1. Louisiana
  2. Arkansas
  3. Delaware
  4. Wyoming
  5. Nevada

If you are a U.S. based company conducting R&D you may be eligible for the federal and/or state research tax credit. Please contact a Swanson Reed representative to find out further information.

US-Israel Cybersecurity R&D Cooperation

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This week a large majority of the US Congress voted in favor of two bills which will benefit US-Israel cybersecurity research and development. The bills were introduced by John Ratcliffe, from Texas, and Jim Langevin, from Rhode Island, following discussion which commenced in May regarding cybersecurity threats recorded in the US and Israel.

The United States-Israel Cybersecurity Cooperation Enhancement Act of 2016

This bill moves to increase detection and combat of cyber threats through a grant program supporting R&D projects for US-Israel joint ventures, non-profits, and academic or government entities in both countries. These grants will be provided to non-classified projects and the program is expected to run for seven years.

The United States-Israel Advanced Research Partnership Act

This act will expand an existing bi-national R&D program which is run by the US Department of Homeland Security and Israel’s Ministry of Public Security. Not only will the bill expand the program to include cybersecurity research, the bill aims to increase the success rate of products moving from the initial stages of development to successful commercialization.

Cyber Giants

As web security is the greatest security challenge of current generations, the US and Israel have recognized the importance of uniting as primary cybersecurity technology exporters to promote cooperation and unity against a dangerous front.

If  you are performing research and development and would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.