Negotiated incentives and grants are offered to compel a company to do something it would not otherwise do, or to do it in a location they would not otherwise choose.
Examples of incentives are:
- Cash grants
- Tax Credits
- Free Land
- Public Infrastructure Improvements
- Expedited Permitting
- Reduced Utility Costs
- Job Training Refunds and Grants
- Property Tax Abatements
- Sales Tax Rebates
Required Approval
Discretionary incentives require approval of governing bodies prior to any public announcement of the project, to satisfy the “but for” requirement most states impose. Timing is crucial when attempting to secure incentive packages.
Compliance Reporting
Most States now require at least annual compliance reporting to ensure that the promised number of jobs have been created and/or the amount of investment has been made. If companies do not fulfill their obligations, “clawback” provisions in agreements may require the company to repay any benefits gained.
Qualifying Businesses
Businesses that qualify for negotiated incentives and grants typically will have the following characteristics:
- New job creation (25+), new capital investment, exporting goods, R&D, energy efficient programs and processes, environmental site remediation, ongoing employee training
- Involved in one of the following industries: biotech, manufacturing and sistribution, information technology, renewable energy, film production, real estate development, utilities, telecommunication, high technology and e-commerce, retail and hospitality, and financial institutions
- Pay above average wages
- Located in specific geographic regions of a state that are typically rural or distressed urban areas (federal empowerment zones or state enterprise zones)
How alliantgroup Can Help
For discretionary incentives and financing alternatives,
alliantgroup will meet with state and local economic development authorities to negotiate and secure incentives and financing agreements.
Phase I - Assessment
- Conduct 1-2 day onsite review of your current and past tax return filings to determine potential opportunities (minimal information and assistance will be required from you)
- Present initial findings and establish project scope
Phase II - Design
- Obtain key information to better assess opportunities (asset reports, employment runs, research and development work papers, training budgets and facility listings)
- Utilize alliantgroup’s internal C&I national network to determine if opportunities exist to enhance credits currently being claimed
- Perform necessary research, draft technical memoranda, and secure necessary rulings and approvals to claim and maximize credits (you may need to provide some assistance to our C&I team in gathering the necessary information and communicating with their internal departments)
Phase III - Implementation
- Assess risks of filing claims based on other return positions you have takent
- File amended returns and prepare necessary credit forms for current filings
- Provide documentation package (audit binder) to assist with any state audits of the claims filed
- Provide audit support and assistance
- Provide a road map (compliance binder) to continue the newly created process to claim the credit and/or incentive
Phase IV - Maintenance
- Review current year filings to ensure carry forwards and current credits are properly documented and claimed
- Review business activities to determine if any new potential credits and incentives opportunities exist
