Follow These Six Discretionary Incentives Best Practices
We have successfully secured incentives for our clients for over 16 years and through our knowledge and experience, we have the capability to not only capture, but fully maximize discretionary incentives opportunities for our clients. Incentives may be widely used by state and local governments to attract business investment, but it is important to fully understand these incentives - how they increase your tax savings, when you may realize the benefit, how to apply and what happens, if anything, if you don’t keep up your end of the bargain.
Here are some of the best practices we’ve established based on our success:
- Understand the difference between the various incentives offered by governments and how they may or may not benefit your company.
- Verify programs are still viable and applicable – many times programs expire or may run out of funding.
- Understand the application process and rules for pre-qualification. Also be aware of application filing deadlines.
- Understand the timing of incentives – typically incentives are not issued until after you have created new jobs and/or have made significant capital expenditures.
- Understand implications of failing to meet program requirements especially considering many incentives require you to enter into a contract with the jurisdiction issuing the incentives. Be aware of any clawback provisions.
- Start early – partnering with your service provider during the early stages of project planning will allow your service provider to better assist you with identifying incentives opportunities as well as provide them with ample time to negotiate with jurisdictions regarding incentives packages.