Our goal is to help navigate the difficult maze of available economic incentives and ensure that our client realize their optimum package. Let’s begin with some frequently asked questions on how economic incentives can impact your business.
What is Required to Pursue Economic Incentives?
Knowledge, Expertise and Time.
Projects that attract economic incentives typically involve job creation or retention, capital investment in equipment, IT systems/computers and either a new building or improvements. It is also preferable it your company is in an industry that a community wants to attract.
How Can Economic Incentives Offset Project Costs?
Shorten the ROI Timeline.
Economic incentives can offset project costs through up front or down stream benefits depending on the type of program benefit. As an example, some incentives can lower your project construction costs through an industrial development grant or by diminishing the company’s state tax liability via tax credits.
What Drives the Size of an Economic Incentive Package?
Investment, Jobs and Location.
Are Incentive Program Benefits the Same for All Projects?
Not All Projects are Created Equal.
Each state controls the structure of their programs. The industry niche of a particular community will dictate the level of interest expressed by a state’s economic development organization.
What Economic Incentives are Available?
- Tax Benefits
- Investment Tax Credits
- Employment Tax Credits
- Tax Abatements for Real & Personal Property (PILOT)
- Training Grants
- Infrastructure Grants
- Technology Grants
- Equipment Grants
- Low Interest Loans
- In-Kind Contributions
- How are Economic Incentives Obtained?
Through Focus, Organization and Timing.
We work with our clients to develop a strategy, secure commitments, complete applications, organize compliance data and close out programs. We also work with our clients to preserve incentive commitments if project plans change.
What is the Time Commitment a Company has to Make?
A week’s worth of time spread out over three months.
Time commitments become shorter with each phase of the incentive program.
Do I Have to Create Jobs to Get Incentives?
States consider both job retention and creation important.
Do I Have to Build a Building to Get Incentives?
States and local communities also view equipment purchases and upgrades, computer hardware and IT systems, and building improvement as eligible project investments.
Are Programs and Incentives the Same from State to State and Project to Project?
Program eligibility and compliance requirements often vary from state to state.
When Should Incentive Negotiations Occur?
Ideally, when you are planning your project.
This allows a company to maximize leverage and optimize the total package.
How do I get started putting my companies economic incentive package together?
Contact Rubin Advisors.
We are ready to assist you in determining the best plan of action for your companies development program.