fbpx

< Back to Thought Leadership

Credits and Incentives: An extra return on your investments.

The topic is always in the news — a state or city offering a major corporation a generous package of incentives to relocate or even to keep their operations in place. However, did you realize, you do not necessarily have to be a Fortune 500 company to negotiate those benefits? Because state and local incentives are offered separately, many states will offer incentives with as little as ten new jobs created over five years, and local authorities will offer incentives with capital expenditures as little as a million dollars.

Every community wants to add good jobs, attract investments, and help its businesses succeed. Federal, state, and local tax jurisdictions offer incentives to stimulate certain investments or encourage those types of investments in their communities.

These incentives are customized according to the needs of each business. They can include real and personal tax abatements, payroll tax credits, infrastructure grants, lower interest loans, tax increment financing, relocation or training grants, special lease or construction terms, and tax refund credits. Some key actions that should trigger a look at potential incentives include:

  • Adding Jobs
  • Buying, Leasing, or Building a Facility
  • Acquisition or Merger
  • Relocating or Expanding Operations
  • Purchasing Equipment
  • Training Initiatives

In addition to the many statutory programs that exist, there are often opportunities to negotiate incentive packages that may combine statutory, discretionary, and custom incentives. We help our clients build credits and incentives investigation into their strategic processes because these opportunities are often lost if you do not pursue them before you begin your activities.

Jobs matter. Governments at all levels offer incentives to companies because they create jobs, promote economic growth, and help maintain an area’s economic vitality and quality of life. Whether you are planning on adding jobs to an existing facility, buying new equipment, opening a new operation or moving to a new location, credits and incentives may be available.

Blue & Co.’s credits and incentives team provides a broad range of services to help clients identify and procure credits and incentives across the full spectrum of federal, state and local programs. If you would like to talk more about potential opportunities for your organization or have questions about this topic, please contact Patrick Brown or your local Blue & Co. advisor.

Phase 4 and ARP Rural Payment Application

Phase 4 and ARP Rural Payment Application

We are two weeks away from the deadline to submit your Phase 4 and ARP Rural Payment Application. These applications are due on October 26. If you haven’t started the process yet, please do so this week. Part of the application involves validating your Tax ID Number (TIN) with the IRS, and HRSA is saying […]

Learn More
Medicaid Managed Care Organizations

Kentucky Medicaid Managed Care Organizations Changes

Pursuant to KRS 205.640 and managed care contracts, Kentucky Medicaid Managed Care Organizations (MCOs) are required to provide a Paid Claims Listings (PCLs) to all in-state hospitals. The department and each Medicaid Managed Care Organization shall supply a Paid Claims Listing (PCL) to each hospital within ninety (90) days of the last day of the […]

Learn More
Income Approach

The Income Approach in a Post-COVID-19 World

By Brandon Nowling, CPA, CVA, Senior Accountant COVID-19 has created much uncertainty for business owners who are considering buying or selling a business during these troubling economic times. Many owners who are considering selling are asking themselves, “What will the lasting impact be on my business? Will the decline in revenue during 2020 impact my […]

Learn More