Discretionary Credit and Incentive Programs
Every community wants to add good jobs, attract investment and help its businesses succeed. But not every incentive opportunity is defined in an existing program. 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. You don't have to be a Fortune 500 company to negotiate those benefits.
If you're considering new hiring, investment, location or operational initiatives, RSM can help you investigate customized incentive opportunities with the affected communities. Among other possible incentives, your jobs could give you the leverage to negotiate:
- Income tax abatements
- Sales and use tax relief
- Tax increment financing (TIF)
- Nonrefundable credits into refundable credits
- Property tax abatements
When pursuing a discretionary credit and incentive package, it is important to understand the entire process, including the information economic development agencies require in order to make decisions around benefit amounts or custom incentives. Our credits and incentives team has experience preparing incentive proposals and negotiating with government agencies to obtain favorable incentive offers, frequently increasing the benefits companies are able to secure on their own.
Our approach involves a thorough assessment of your business operations and strategic plans to identify areas of incentive opportunity. We can work with your business and tax teams to provide all required documentation to support your request and, ultimately, secure the agreed-upon incentives.
The IRS released a notice extending and clarifying safe harbors for determining when facilities are deemed to have begun construction.
IRS provides interim guidance defining chassis and body for purposes of the excise tax on the first retail sale of heavy trucks and trailers.
Businesses expanding or increasing activity in their current state or in new states should consider the benefits of state tax credits.
Video subscription package ineligible for domestic production activities deduction; however, each film may be considered as a separate item.
When developing plans to expand or improve facilities, manufacturers should take an approach that includes analysis of tax opportunities.