Copyright 2013 Attracting Resources, LLC.
Joel A. Smiley, M.P.A., Principal.
Office: 314.827.9623 Fax: 314.469.1114
Joel A. Smiley, M.P.A., Principal
8. Negotiated Incentives:
Even when an area has no identifies incentives, states, countries, or cities may be able to offer designated funding to attract a business to an area.
If a developer builds a an environmental challenged area, a Brownfield could be an option. Brownfields provide credits or rebates for environmental assessments, creation of a clean-up plan, and the assistance hiring credits for jobs created after the clean-up.
7. New Market Tax Credits (NMTC):
For investments in high poverty areas with a minimum of $5 million in new investment, a New Market Tax Credit can provide a 39% tax credit over a seven year period.
9. Energy Credits:
Most utility companies offer energy incentives to high energy use customers. These credits are on top of any other credits.
1. Enterprise Zones:
Enterprise Zones are state programs that create zones based upon poverty rates, unemployment rates or other key statistics for a targeted area. Enterprise Zone benefits vary by state and county, but most provide hiring credits, property tax abatement, and sales tax waivers on equipment purchases.
2. Workforce Credits:
Workforce credits can be provided by the state or county and combined with federal programs. Workforce program can provide employers with training credits or general hiring credits. States may also use workforce credits to attract or retain companies especially manufactures.
4. Tax Incremental Financing (TIF):
Tax Incremental Financing is a very comprehensive tax strategy that allows the developer to make major investments in infrastructure immediately using captured tax revenue over a 23 year period.
3. Work Opportunity Tax Credits (WOTC):
Work Opportunity Tax Credits are a federal tax credit of $2600 for the hiring of an employee that meets one of several demographic criteria.
5. Industrial Revenue Bonds (IRB):
Industrial Revenue Bonds are bonds used to cover development costs and machinery for manufacturing under $10 million. The IRB is issued by a governing body and financed through a traditional bank. In general IRB financing saves a manufacturer 150 basis points over traditional bank financing.