What type of location incentives should I be looking for?

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What type of location incentives should I be looking for?

  • incentives, location, site selection

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Deloitte gives a good overview of the type of  location incentives you might want to look for, from its presentation at SelectUSA in Malmo in Sept. 2015.


Successful incentives negotiations are dependent upon the development of competitive leverage and understanding of state and local programs.

Incentive types:

incentive types Deloitte
One time / hard cash:

  • Cash grants
  • Free site
  • Site preparation costs
  • Utility infrastructure
  • Waiver of utility tap fees
  • Utility connections
  • Training center construction
  • Forgivable loans
  • Sales/use tax exemptions

Ongoing / hard cash:

  • Tax increment financing
  • Property tax abatements
  • Income tax credits
  • Reduced utility rates
  • Free Trade Zone designations
  • Withholding tax abatements/refunds

One time / soft

  • Zoning variations
  • Expedited permitting
  • Road improvements
  • Relocation assistance
  • Temporary space

Ongoing / soft:

  • Low interest loans/financing
  • Hiring assistance
  • Training support
  • Employee support

Here are some sample incentives available today in the market:

Sample incentives available in the marketplace Deloitte

These are:

Tax Related

Ad Valorem/Property Tax Abatements

  • Realty/Facility
  • Machinery & Equipment
  • Pollution Control
  • Inventory
  • Payment-in-Lieu

Corporate Income Tax Credits

  • Job Creation-Based
  • Payroll-Based
  • Investment-Based

Sales/Use or VAT Tax Exemptions

  • Machinery & Equipment
  • Pollution Control
  • Energy/Fuels
  • Building Materials
  • Other facility purchases

Site and Infrastructure Related

Land Acquisition

  • Free/Reduced Cost
  • Free Testing/Environmental Review
  • Zoning/Covenant Variances

–Clearing

–Grading

–Landscaping

–Drainage

  • Creative Options
  • Creative Terms/Financing

Facility Financing

  • Low-interest Government Funds
  • Bonds (Taxable/Tax Free)
  • Interest Rate Buy Down
  • Tax Increment Financing
  • Creative Leases/Buy Backs

Infrastructure Assistance

  • Utility Extensions/Enhancements

–Capacity upgrades

–Dual feed infrastructure

–Rate reductions

  • Rail and Highway Extensions
  • Road Improvements

HR/Other

Relocation Assistance

  • Personnel Relocation
  • Machinery & Equipment Relocation
  • Cash Grants

Customized Training

  • Instruction
  • Materials
  • Space/facility
  • Travel
  • Wages

Hiring Assistance

  • Recruiting
  • Testing
  • Screening

Other

  • Permitting Assistance
  • Transition Space
  • Enterprise/Free Trade Zones
  • Expat relocation assistance
  • Local Discounts
  • Special Air Fares
  • Daycare
  • Tuition

 

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