State Credits and Incentives Overview

Each year, billions of dollars in federal, state, and local Credits are available to qualifying companies. There are thousands of different Credit and Incentive programs available nationwide. States typically offer incentives for many reasons, including trying to attract new businesses and to keep existing jobs from moving out-of-state.  New Credits and Incentives programs are created every year for many reasons.  In addition, many Incentive programs now offer refundable cash dollars to the awarded company, especially for local start-up technology companies in order to provide them with cash; so, these companies can create new businesses and jobs.

TBIG’s tax professionals have extensive collective experience in identifying, securing, and administering valuable state and local Credits and Incentives for companies ranging from start-up entities to Fortune 1000 companies. Our tax specialists have extensive experience serving in government, as well as in the private and consulting sectors.

TBIG’s Credits and Incentives practice identifies opportunities including: State Enterprise Zone Credits, State Income/Franchise Tax Credits, State Hiring Credits, Jobs Tax Credits, Job Training Credits, Research and Development Credits, Investment Credits, Brownfield Credits, among others.

Credits are available by statute and may be claimed against current state tax liabilities, carried forward or claimed retroactively, resulting in a refund to the company.  Generally, Credits offset state income or franchise tax liability, but can also be applied against other taxes, such as sales and use or property tax.

 

Some of the Economic Development Credits & Tax Incentives potentially available include:

Tax credits, abatements or exemptions --
1. Income and/or franchise tax;
2. Real and/or personal property tax;
3. Sales and use tax;
4. License or gross receipts tax; and
5. Refundable and/or saleable credits for technology companies and other entity types,
available even in tax loss situations.

Non-tax cost avoidance or minimization--
1. Workforce hiring, training, and relocation;
2. Land, site preparation, and site improvements; and
3. Facility and infrastructure construction and installation.

Facilities in designated special districts--
1. Enterprise Zones and Empowerment Zones;
2. Special Business Improvement Districts.

 

Credits and Incentives can be based on a number of factors including:

New jobs created or existing jobs retained

Amount of wages paid and non-wage benefits offered

Type of industry 

Training programs provided by the company

Capital investment in new equipment, buildings, and technology

Location of facility

 

 

• How We Work With You the Client
• TBIG will review a list of locations (actual physical addresses) for operating facilities throughout the country to determine potential areas of benefit opportunities at each and every location.
• TBIG will identify Retroactive & Proactive Tax Credits and Incentives available to the Client in order to secure current Credits and retroactive refund opportunities, as well as going forward benefits that are available to the Client.
• TBIG will consult with management and staff to develop a plan of action to request appropriate data to review Incentives and other statutory benefits from the identified states as needed or will secure any data it may already have in-house.
• TBIG will coordinate the filing of appropriate documentation in order to secure all appropriate Incentives and benefits on behalf of the Client.
• TBIG will work on behalf of the Client with appropriate state and local officials to secure all eligible benefits for the Client in terms of statutory and negotiable Incentives available.
• TBIG will prepare all necessary calculations and complete appropriate forms for the Client to claim all Credits and Incentives available.
• TBIG will qualify the Client, when necessary, as to additional benefits the Client is eligible for and for the ongoing receipt of these Incentives for the term of the agreement.
• TBIG will provide the Client with appropriate reports and updates, which summarize the results of all
• activities related to Incentives and savings realized.
• TBIG will monitor the filing of pertinent documentation necessary for the completion of the process.
• TBIG will monitor the various laws regarding Incentives and make recommendations to the Client management regarding the appropriate steps necessary to claim the Incentives under these laws.
• TBIG will notify the Client of any legislative changes.

 

• Fees for State Tax Credit Services Provided by TBIG
• TBIG’s fees are related to a percentage of the total savings realized by the Client attributable to the project initiated by TBIG.
• TBIG only realizes fees upon securing the Client savings in the form of Credits and Incentives.
• If we do not find the Client any savings, there is no fee for our services!