Tax Incentives and Grants Overview
Tax Incentives and Grants Overview
| The following is a list of the types of Tax Incentives and Cash Grants offered in the U.S. grouped by focus area: Capital Investment, Geography, Operations/Finance and People: | ||||||
| Capital Investment | Location-Specific Benefits | Operations/Financing | People | |||
| Real and Personal Property Tax Exemptions | Discretionary Government Assistance | Reduced Cost Financing | Wage Subsidies | |||
| The most commonly available economic development incentive in the U.S. is the property tax exemption, which typically is granted for multiple years. | State and local government officials have discretion over tax incentive and grant programs designed to stimulate the local economy. Such programs may be tapped to provide millions of dollars in annually recurring savings. | Interest subsidies and tax- exempt financing are available in some states. Occasionally, loaned amounts are forgiven. | An increasing number of states offer cash grants or tax credits, subsidizing wages to induce job creation or retention. The best-known programs include the North Carolina JDIG, the Kentucky job assessment fee, the Michigan MEGA, the Indiana EDGE and the New Jersey BEIP. | |||
| Investment and Research & Development Tax Credits | Federal Empowerment Zones | Tax Increment Financing | Hiring From Targeted Populations | |||
| Investment Tax credits at the state level subsidize the purchase of eligible buildings and equipment. R&D credits support research. | Empowerment zone benefits are available to new and existing businesses in the form of income tax credits and tax exempt financing in specific geographic areas. | Tax increment financing is used in many states for real and personal property taxe abatement and reduce project financing costs. Government-issued bond proceeds may be used to reduce project costs in a variety of ways | Some states and the federal government offer tax credits for hiring individuals from certain disadvantaged groups or neighborhoods. | |||
| Project Grants | State Enterprise Zones | Utility Discounts | Recruitment Assistance | |||
| Investment project grants may take the form of cash grants, cash subsidies or tax credits. | Enterprise zones at the state level may offer income tax credits, property tax abatements, sales and use tax exemptions and other assistance based on the location of the business and/or residence of new hires. | "Economic development" projects may receive favorable rates for electricity and telecom services | Cash Grants may be available to offset recruiting costs, which can be substantial, especially in an expansion situation. | |||
| Land, Infrastructure and Real Property Grants | Foreign Trade Zones | Relocation Cost Subsidies | Training Assistance | |||
| Grants of land and other property provide significant subsidies, while vital infrastructure may be provided without cost to your company. | FTZs designated by the federal government offer excellent incentive opportunities for companies doing business across international borders. | State-level programs may be available to pay a portion of the cost of moving operations. | State tax credits and cash grants are increasingly available to offset a portion of anticipated training; both on-the-job and classroom. | |||
| Trigger Events | ||||||
| Many activities occurring in the normal course of your business could trigger significant tax incentives and grant opportunities. | ||||||