Whenever a company is considering expansion or relocating its business, it is also a good time to consider state and local credits, entitlements, abatements, and other incentives. The reason is most states and cities are competitively seeking increased employment and capital infusion within their jurisdictional boundaries and are willing to offer both statutory and negotiated incentives in exchange for these jobs and investment.
In many cases, the negotiated incentives are the most valuable to a business because they can be customized to meet the specific financial requirements of a particular project.
Although the most valuable, negotiated incentives are also the most precarious. Most negotiated incentives are referred to as "but for" incentives. That is, the expansion would not be completed or the relocation would not occur but for the available incentives. It is tough to negotiate an incentive after the project has already been publicly announced, building permits pulled, ground broken, other financing arranged, etc. In these circumstances, incentives are obviously not needed to get the deal done; the project was going to move forward with or without the incentive. The timing of negotiations is critical.
That is why contacting FGM's SALT specialists for tax credits and incentives work makes a lot of sense. Here are two points to make the case.
First, they have the expertise in negotiating the incentives; they have done this before. They know what incentives are available, they know what other similarly situated businesses have been awarded, and they know how your project will grid against competing projects.
Second, they provide a cloak of confidentiality and anonymity to the process. The client's name is never used or disclosed until the appropriate time. This prevents workforce disruption, company intention from leaking to competitors, the media, and the communities involved.
Here are some of the other tax credit and incentive areas FGMK's SALT specialists can help you with:
- Locate enterprise zone and other tax-favored areas
- Negotiate and secure incentives, credits, abatements, and entitlements
- Site selection
- "Stay-or-Go" feasibility