State Tax Incentives: Structuring Activities to Take Advantage of Capital Investment, Hiring and Negotiated Credits

Recording of a 110-minute CPE webinar with Q&A


Conducted on Wednesday, March 23, 2016

Recorded event now available

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Program Materials

This webinar will provide tax advisers and corporate tax professionals with a solid working knowledge of the key tax incentives that individual states provide to corporations and business entities to encourage expansion or relocation within the state. The panel will discuss the primary state-level incentive programs, and detail specific planning opportunities for advisers to leverage in obtaining state tax incentives.

Description

As states work to expand their tax base, programs that encourage companies to expand or relocate within a given state have become a competitive arena with the targeted companies being the clear winners. While each state has its own goals and unique ways of encouraging companies towards those goals, three main categories have emerged: statutory credits for hiring of employees and capital investment, negotiated credits based on proposed activity and discretionary credits that are project by project based. Because nearly 50% of available state incentives go unclaimed, tax advisers must keep fully up to date on state tax programs.

States use hiring credits to persuade companies to hire individuals that traditionally face barriers to employment, whether geographic, economic or societal. Capital investment incentives are generally used to encourage companies to place capital investment in service within the state. These incentive programs vary in scope from expansive to targeted and provide significant opportunities for bottom-line tax savings as well as offsetting ROI of capital and operating costs for eligible companies.

Negotiated incentives, also called discretionary incentives, can take the form of tax credits, grants, abatements, low-interest financing, and utility rate reductions, among other forms. As the name suggests, these are negotiated agreements between the state and local governments and the company attempting to receive the incentive. This category, while subject to negotiation, generally requires a substantial combination of both capital investment and hiring activity within the state but can be the most lucrative category.

Listen as our experienced panel of state tax incentive experts provides a thorough exploration of available state tax incentive programs.

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Outline

  1. Hiring credits
    1. General structure
    2. Specific program details as an example
    3. Hot states
  2. Investment credits
    1. Hot states
  3. Negotiated
    1. Incentive overview
    2. Types of incentives
    3. Process of negotiating incentives
    4. Transferable/Refundable Credits
    5. Common mistakes
    6. Case studies
    7. Hot states/areas of focus

Benefits

The panel will discuss these and other important issues:

  • What are the common trends in state tax incentives for new hires?
  • How do various states’ negotiated incentive programs work?
  • What states are the most active in setting up tax incentive programs?
  • Operational and application considerations for participation in state tax incentives

Faculty

Zach Kimball
Zach Kimball

Managing Director, Business Development
DevelopmentAdvisors

Mr. Kimball works with domestic and international clients that seek to increase ROI on capital projects in the US...  |  Read More

Patric S. Zimmer
Patric S. Zimmer

President
DevelopmentAdvisors

Mr. Zimmer has a successful 20-year background in location consulting and real estate development. He focuses on site...  |  Read More

Zimmerman, Jennifer
Jennifer A. Zimmerman

Atty
Horwood Marcus & Berk Chartered

Ms. Zimmerman concentrates her practice in state and local tax planning and the resolution of state and local tax...  |  Read More

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