biggins lacy shapiro & company · to 80% for 5 years and a 10-year, 25% tax credit on the...

Biggins Lacy Shapiro & Company

2017 STATE INCENTIVES

RESOURCE GUIDE

Northeast

Connecticut Delaware Maine Maryland Massachusetts New Hampshire New Jersey New York Pennsylvania Rhode Island Vermont

Midwest

Illinois Indiana Iowa Kansas Kentucky Michigan Minnesota Missouri Montana Nebraska North Dakota Ohio South Dakota Wisconsin

South

Alabama Arkansas Florida Georgia Louisiana Mississippi North Carolina Oklahoma South Carolina Tennessee Texas Virginia West Virginia

West

Arizona California Colorado Idaho Nevada New Mexico Oregon Utah Washington Wyoming

www.BLSstrategies.com I 609.924.9775

THIS BLS & Co. 2017 STATE INCENTIVES RESOURCE GUIDE is intended to provide a detailed

summary of the primary and most valuable state and local economic development incentives offered throughout the U.S to help companies evaluate whether incentives can play a meaningful role in their real estate decision making process. As specific opportunities arise, including relocations, expansions, consolidations, etc, BLS & Co. recommends a more detailed project specific evaluation of the potential value incentives may add.

THE COMPETITIVE LANDSCAPE

FOR INCENTIVES ECONOMIC DEVELOPMENT INCENTIVES are investments made by state and local governments

to influence corporate decisions on the location of jobs and investment, to create or enhance the feasibility of a private sector project that helps to achieve a community’s economic goals. While in rare instances incentives are the primary drivers that determine if a project will go forward, they are more often part of a broad set of location factors and are intended to help reduce the costs and financial risks to the company thereby improving ROI. The decisive variables in most decisions include location, labor and business climate. Once a company has narrowed its choices to a short list of locations in which it can successfully operate, then incentives can become the ‘last variable’ to financially differentiate among finalists.

A BEST PRACTICES APPROACH to incentives should be multi-tiered, and include a strategy to

systemically capture the more modest incentives opportunity that may be imbedded in smaller transactions, which can amount to significant savings across an active portfolio over a period of time.


WE ARE BIGGINS LACY SHAPIRO & COMPANY, LLC. For more than 25 years, we have provided

professional expertise and creativity in the field of Location Economics: the mix of specialized disciplines that enables companies to plan and execute successful location strategies. We create value on both the demand and supply side of the market for corporate location decisions. We help companies offset the high costs of a wide range of location decisions with high-value incentives strategies, helping to reduce costs and manage risks associated with opening new facilities, relocating operations, acquiring undervalued businesses, or consolidating and closing existing operations. We work with corporate clients, in cooperation with their real estate advisors, to optimize the economics of location decisions involving both individual projects and overall portfolios of diverse properties. Our professionals evaluate financial and operational location variables, manage the regulatory challenges to economic development and negotiate incentives which can make a difference in the financial performance of our clients’ projects. Our strategic evaluations provide companies with the information for making smart location decisions and enable states, cities and holders of surplus properties to position their locations to compete for corporate investment. BLS & Co. provides the full range of services required to plan and execute incentives transactions, from initial evaluation of potential inducements, through structuring of incentives transactions, negotiation of documentation, tax credit sales and the administration and claiming of benefits.

OUR PRINCIPALS Jay Biggins Executive Managing Director [email protected] Joe Lacy Managing Director [email protected] Andy Shapiro Managing Director [email protected] Tracey Hyatt-Bosman Managing Director [email protected]

LEARN MORE: Visit www.BLSstrategies.com

OUR OTHER SERVICES: Site Selection | Land Use Strategies and Approvals | Energy Services

mailto:[email protected]




http://www.blsstrategies.com/

BUSINESS TAX SNAPSHOT Corporate Income Tax: 7.5%

Sales Tax: 6.35%

Property tax: $2,774 per capita

CO

NN

ECTIC

UT


TAX CREDITS Urban and Industrial Sites Reinvestment (URA) Tax Credit Program: Primary incentive tool used by the State to attract new business investment and job creation to economically distressed areas. Companies that invest at least $5 million in facilities located in eligible areas may be entitled to a non-refundable corporate income tax credit under this discretionary program. Tax credits are disbursed over a 10-year period. Unused credits may be carried forward or transferred/sold to other Connecticut taxpayers. Research and Development Tax Credit: Equal to 20% of R&D expenditures in Connecticut in the current income year exceeding R&D expenditures of the prior taxable year. Unsold credits can be carried forward, and for companies with less than $70 million in gross income, credits can be sold to the State for 65% of their value.

TAX EXEMPTIONS

Sales and Use Tax Exemption: The State has the discretionary authority to provide an exemption from state sales tax on the purchase of construction materials and furniture, fixtures and equipment for businesses that make capital investments and create jobs. Equipment, tools, machinery, supplies, materials, and fuel used in renewable energy and clean energy technology industries are also exempt from state sales and use tax. Real and Personal Property Tax: Municipalities have the discretion to provide a negotiated exemption from real and personal property tax for up to 30 years. State statutes also provide for exemption of tax on certain newly acquired and installed machinery, inventories, unbundled software, commercial motor vehicles; dependent on certain conditions.

SPECIAL ZONING

Enterprise Zone: Businesses that locate inside an Enterprise Zone, or within a community which contains a zone, may be eligible for an abatement on real and business personal property taxes of up to 80% for 5 years and a 10-year, 25% tax credit on the portion of the Connecticut corporation business tax that is directly attributable to the company relocation, expansion or renovation project.

GRANTS Grants: DECD offers discretionary grants to support economic development projects that result in new capital investment and job creation. Grants may also be available for job training and alternative energy installations.

LOW-INTEREST LOANS

Low-Interest and Forgivable Loans: The State has the discretionary authority to provide low-interest loans to business making significant capital improvements and retaining and creating new jobs. The State, through the Department of Economic and Community Development (DECD), at its discretion may forgive a portion of the loan principal (convert to a grant) if certain minimum employment and investment thresholds are met.

Updated June 2017


Sales Tax: None

Property tax: $828 per capita

DELA

WA

RE


GRANTS

Delaware Strategic Fund (DSF): Discretionary program offers low-interest loans and grants to

businesses for job creation, expansion, relocation, and brownfield redevelopment.

Delaware New Jobs Infrastructure Fund: The State may provide discretionary grants to businesses

for infrastructure improvements that result in job creation and capital investment.

TAX CREDITS New Business Facility Corporate Income Credit: Program provides an as-of-right tax credit to

businesses that create at least 5 jobs and make a capital investment of at least $200,000 ($40,000

per employee). The credit is equal to $500 per job and an additional $500 for every $100,000 in

capital investment. This non-refundable credit cannot be used to offset more than 50% of tax

liability in a given year. Unused credits may be carried forward for up to 10 years.

Business Finder’s Fee Tax Credit: This program was established to attract new businesses

to Delaware and to give existing Delaware companies an incentive to encourage suppliers,

customers, and service providers to establish operations in the state. To qualify for the

refundable tax credit, both the existing business (called the Sponsor Firm) and the

relocating business (called the New Business Firm) must jointly file an application and the

New Business must create at least 3 full-time jobs. The Sponsor Firm and New Business are

both able to claim an annual credit equal to $500 for each new full -time job created by the

New Business. Credits may be claimed by both businesses for a period of 3 years.

Research and Development Tax Credit: Offers a non-refundable tax credit equal to either: (a) 10%

of the excess of the taxpayer’s total qualified research and development over its base amount, or

(b) 50% of Delaware’s apportioned share of the taxpayer’s federal research and development tax

credits, with modifications. The R&D credit cannot exceed 50% of tax liability in any given

year. Unused credits may be carried forward.

FINANCING Tax-Exempt Bond Financing: The Delaware Economic Development Office (DEDO) may assist new

or expanding businesses through the issuance of tax exempt bonds which carry lower interest

rates. Projects that require the issuance of $750,000 or more in bonds would derive the most

benefit under the program.

Updated June 2017


BUSINESS TAX SNAPSHOT Corporate Income Tax: <8.93%

Sales Tax: 5.5%


MA

INE

TAX CREDITS Research Expense Tax Credit: This incentive is based on a percentage of the federal Credit for

Increasing Research Activities. The credit is limited to 5% of the qualified research expenses in excess

of the previous three-year average, plus 7.5% of the basic research payments for qualified

organizations (e.g. educational, scientific, or grant institutions). For corporate taxpayers, the credit

may not exceed 100% of the first $25,000 in tax liability, plus 75% of the tax liability in excess of

$25,000. Credits may be carried forward for up to 15 years.

SPECIAL ZONING

Pine Tree Development Zones (PTDZ): Businesses that locate in one of the state’s Pine Tree

Development Zones may qualify for corporate income tax credits, sales and use tax exemptions, a

withholding tax reimbursement of 80% and reduced electricity rates. To qualify, a company must

operate in one of Maine’s targeted industry sectors and create new jobs paying wages that exceed

the per capita personal income of the county in which the project is located. The incentives available

under this program are available for up to 10 years.

TAX EXEMPTIONS

Business Equipment Tax Exemption (BETE): This program eliminates business personal property tax

on eligible equipment.

Sales Tax Exemptions: A business may apply for a sales tax exemption on equipment to be used for

biotechnology, custom computer programming, manufacturing and R&D-related activities.

REFUNDS Employment Tax Increment Financing: Businesses that create at least 5 jobs may be eligible to

receive a refund ranging from 30% to 80% of state income tax withholdings paid by the business for

the newly hired employees. Businesses that locate in Pine Tree Development Zones or areas of the

state with high levels of unemployment qualify for a higher reimbursement rate (closer to 80% of

state income tax withholdings). The refund is available for up to 10 years.

Updated June 2017



Sales Tax: 6%


MA

RY

LAN

D

TAX CREDITS Job Creation Tax Credit (JCTC): Businesses that create at least 60 new jobs may be eligible for a

corporate income tax credit equal to 2.5% of the aggregate annual wages of the newly created jobs

with a maximum credit of $1,000 per job. If a business locates in a Priority Funding Area (includes

enterprise zones, federal empowerment zones, and county-designated growth areas), the job

creation requirement is reduced from 60 to 25 jobs, and the amount of credit is increased to 5% of

aggregate annual wages with a maximum credit of $1,500 per job. Credits and non-refundable and

non-transferable, however unused credits may be carried forward for up to 5 years.

One Maryland Tax Credit: Investment tax credit program available for businesses that locate in one

of 7 qualified distressed counties. To qualify, a company must invest a minimum of $500,000 in a

business facility and create at least 25 new jobs. Unused credits may be carried forward for up to 14

years.

Research and Development Tax Credit: Provides businesses with R&D tax credits that incur qualified

research and development expenses. The Basic R&D tax credit is 3% of eligible R&D expenses that

exceed the firm’s average R&D expenses over the last 4 years. The Growth R&D tax credit is 10% of

eligible R&D expenses that exceed the firm’s average R&D expenses over the last 4 years. If either of

the credits applied for exceed $4.5 million, the business’ respective tax credits will be prorated.

SPECIAL ZONING

Enterprise Zone: Companies that locate or expand in one of 31 designated Enterprise Zones may be

eligible for corporate income tax and real property tax credits in exchange for creating new jobs and

making capital improvements.

TRAINING PROGRAMS

Maryland Industrial Training Program (MITP): Provides grants to reimburse companies for costs

associated with new workforce development and training activities. This program is designed to

retain or assist in the expansion of existing industries.

GRANTS AND LOANS Maryland Economic Development Assistance Authority and Fund (MEDAAF): Provides competitive

loans and grants to businesses and local jurisdictions through five separate financing capabilities. In

particular, major economic development projects may receive loans of up to $10 million dollars while

local municipalities may receive up to $5 million in loans or $2 million in conditional loans and grants

to assist new or expanding businesses. Projects must be within Priority Funding Areas and eligible

industry sectors.

Economic Development Opportunities Fund (Sunny Day): This discretionary program provides

grants and loans to economic development projects that will result in significant capital investment

and job creation. Priority is given to businesses that plan to locate or expand in communities with

high levels of unemployment.

Updated June 2017


BUSINESS TAX SNAPSHOT Corporate Income Tax: 8%

Sales Tax: 6.25%


MA

SSAC

HU

SETTS

TAX CREDITS The Economic Development Incentive Program (EDIP): Provides discretionary tax credits to

companies that generate at least 25% of sales out-of-state and commit to retaining and/or creating

full-time jobs. Credits are offered for projects that meet the following designations:

Investment Tax Credit (ITC) of up to 10% for Certified Expansion and Enhanced

Expansion projects – credit is non-refundable and non-transferable

Refundable Investment Tax Credit (ITC) of up to $1,000 per job (increases to $5,000

per job in Gateway community) for Job Creation Project (JCP) resulting in the creation

of at least 100 jobs

Investment Tax Credit (ITC) of up to 40% of eligible investment for Manufacturing

Retention Project (MRP) – credit is non-refundable and non-transferable

Massachusetts Life Sciences Initiative: Offers incentives to companies engaged in life sciences R&D,

including a 10% credit on depreciable property (90% refundable), extension of NOL for 15 years, a

special sales tax exemption, and a construction sales tax exemption.

Life Science Company Jobs Credit: A business in the life sciences industry that creates at least 50

new jobs may be eligible for a corporate income tax credit. If the value of the jobs credit exceeds tax

liability, up to 90% of the remaining credit will be refunded.

Research and Development Tax Credit: Massachusetts offers a permanent R&D tax credit which is

separated into two categories. The first category is a 10% credit designed for qualified expenses. The

Commonwealth defines qualified expenses as those which would qualify for the federal R&D tax

credit. The second category is a 15% credit available to basic research payments. This provides a

credit for any costs related to donations and contributions made to research organizations like

hospitals and universities. The R&D tax credit may be used to offset a company’s tax liability to the

minimum tax of $456.

TAX EXEMPTIONS

Sales & Use Tax Exemptions: All machinery, replacement parts, and materials used by manufacturing

and R&D corporations in research and development are exempt.

Updated June 2017



Sales Tax: None


NEW

HA

MP

SHIR

E

TAX CREDITS Economic Revitalization Zone Tax Credits (ERZ Tax Credit) Program: Businesses that create at least

one net new full-time job and make capital improvements may be eligible for a tax credit of up to

$240,000 over 5 years. The actual credit amount is based on capital investment, number of new jobs

created, and the salary level of the new jobs. To qualify, a business must locate in one of 189

economically distressed areas that have been certified as Economic Revitalization Zones. Tax credits

are non-refundable and non-transferable. Credits must first be applied against the Business Profits

Tax (BPT) with any remaining credit applied against the Business Enterprise Tax (BET). Unused credits

may be carried forward for up to 5 years.

Research and Development Tax Credit: Businesses engaged in qualified manufacturing research and

development may receive a credit equal to 10% of eligible R&D expenditures, or $50,000, whichever

is less. The credit must first be applied against the Business Profits Tax (BPT) with any remaining

credit applied against the Business Enterprise Tax (BET). Unused credits may be carried forward for

up to 5 years.

TRAINING PROGRAMS

Job Training Fund: Reimbursable training grants are available to businesses that commit to paying

at least 50% of eligible training costs. The maximum training grant available to a business under this

discretionary program is $100,000.

SPECIAL ZONING

Coos County Job Creation Tax Credit: Businesses that locate or expand in Coos County may claim a

tax credit of $750 per job, per year, for up to 5 years for newly created jobs with an hourly wage of

at least 150% of the state minimum hourly wage. A larger credit of $1,000 per job, per year, for up

to 5 years is available for newly created jobs with an hourly wage of at least 200% of the state

minimum hourly wage. Credits must first be applied against Business Profits Tax (BPT) with any

remaining credit applied against the Business Enterprise Tax (BET). Unused credits may be carried

forward for up to 5 years.

Updated June 2017



Sales Tax: 6.875%


NEW

JERSEY

PROGRAMS Grow New Jersey: Program offers transferrable tax credits against corporate income and insurance premium taxes to companies that create and/or retain jobs. Tax credits are awarded on a per-job basis and can range from a base amount of $500 per job, per year to a base amount of $15,000 per job, per year for a period of up to 10 years (i.e., $5,000 to $50,000 over 10 years). In addition to the base amount, most businesses are eligible for a potential bonus awards based on a number of factors – e.g. industry sector, wages and capital investment, the number of jobs created or retained, project location (including urban locations and proximity to public transportation) and other variables. The minimum number of jobs required to be eligible varies with industry and type of project. For example, a technology startup company or manufacturer must create at least 10 jobs, while a non-tech business in one of New Jersey’s other targeted industry sectors would need at least 25 jobs. All other businesses must create at least 35 new jobs to qualify for the program. To incentivize companies to locate in one of the state’s more economically distressed urban areas (called Garden State Growth Zones or GSGZs) and in South Jersey counties, the program reduces the minimum job creation requirements by one-fourth or 25%. There also are minimum capital investment thresholds which vary based on the type of project and are lower for renovations versus new construction projects. Certain minimal “green building” design standards also apply. This NJ program and predecessors have been prolific, with the State having awarded more than $7 billion in tax credits in the past seven years. Economic Redevelopment and Growth (ERG) Program: A developer that can demonstrate that its project requires a subsidy in order to close a “project financing gap” may apply for an incentive grant in an amount up to 75% of the annual incremental tax revenues generated by the development project over up to a 20-year period. If the project is located within a Garden State Growth Zone, 85% of the projected annual incremental revenues may be pledged toward the award. Commercial projects may receive an incentive grant reimbursement of up to 20-40% of total project cost, depending on where the project is located and whether or not it meets other economic development criteria, such as proximity to public transit. Residential projects that do not generate tax revenues can qualify for transferrable tax credits that can be sold and/or assigned to lenders for project financing. The tax credit can be up to 20-30% of total project cost and is given out over a 10-year term. This is a discretionary program.

SPECIAL ZONING

Urban Enterprise Zone (UEZ) Sales Tax Exemption: Businesses that sign new leases or purchase property in one of the 27 communities in New Jersey with Urban Enterprise Zones may qualify for a state sales tax exemption on qualified purchases. The UEZ designation for Bridgeton, Camden, Newark, Plainfield, and Trenton expired January 1, 2017. Note: This summary covers the primary incentives programs with the broadest applicability. The State also has other funding tools for more specialized needs, and many municipal governments also may make available tax abatement and other forms of TIF-like financing available for selected projects

Updated June 2017



Sales Tax: 4%


NEW

YO

RK

GRANTS Business Expansion & Retention Grants: Empire State Development (ESD) provides discretionary grants to support business attraction, expansion, and retention projects. The specific amount of the grant will depend on the level of capital investment, the number of jobs created and/or retained, and the location of the project.

TAX CREDITS

Excelsior Jobs Program: One of New York State’s signature economic development incentive tools, this discretionary program provides refundable tax credits to companies in strategic industries that create jobs and make capital investments. The minimum number of new jobs needed to qualify for the program varies by industry with a minimum of 5 new jobs required for scientific R&D, software development, and agriculture companies; 10 new jobs for manufacturers; 50 new jobs for financial services and back office operations; and 75 new jobs for warehouse and distribution companies. Excelsior Jobs is comprised of the following refundable tax credits.

Jobs Tax Credit: A credit of 6.85% of wages per new job to cover a portion of the associated payroll cost.

Investment Tax Credit: Valued at 2% of qualified investments.

R&D Tax Credit: A credit of 50% of the Federal R&D credit up to 3% of research expenditures in New York State

Real Property Tax Credit: Available to companies locating in certain distressed areas and to Regionally Significant Projects - businesses in strategic industries that meet higher employment and investment thresholds.

Brownfield Cleanup Program: This program offers a refundable tax credit to support site cleanup and the redevelopment of qualifying brownfield sites. Redevelopment credits may be increased depending on the cleanup level obtained and the site location.

SPECIAL ZONING START-UP NY: This program establishes “tax free” zones on designated areas of public universities, community colleges, and technical schools affiliated with the State University of New York (SUNY) as well as a select number of private universities. While this program is active across New York State, there is a particular focus on spearheading job creation and private sector investment on or near college campuses in Upstate New York. Startup businesses and early stage companies that expand in or relocate to New York and partner with a college or university may qualify for a 10-year exemption on state corporate income taxes. Employees that work at an approved business are exempt from all state personal income taxes for the first 5 years of the 10-year program. Beginning in year 6 and ending in the 10th year of the program, personal income taxes on the first $200,000 of annual income earned ($250,000 for a head of household, and $300,000 for taxpayers filing a joint return) are exempt.

TAX EXEMPTIONS

Sales Tax Exemptions: There is no sales tax on purchases of production machinery and equipment, property used for R&D purposes, or fuels/utilities used in manufacturing and R&D. Local Industrial Development Agencies (IDAs) have the discretionary authority to provide a 100% exemption of state and local sales tax to assist economic development projects. Personal Property Tax: The State of New York and local governments do not levy a tax on personal property owned by businesses or individuals.



Sales Tax: 4%


NEW

YO

RK

REGIONAL INCENTIVES

Regional Economic Development Councils: New York is divided into 10 economic development regions with each region comprised of its own Regional Economic Development Council (REDC). These councils are each led by board members appointed by the governor to formulate economic development strategies for their respective regions. The REDCs collaborate with state agencies to recommend discretionary grants, Excelsior Jobs tax credits, and other incentives to support business attraction and expansion projects.

Updated June 2017



Sales Tax: 6%


PEN

NSY

LVA

NIA

TAX CREDITS Job Creation Tax Credit (JCTC): This program provides a non-refundable corporate income tax credit to businesses that create at least 25 new jobs or expand existing employment by 20%. The credit is equal to $1,000 for each newly created job. Credits cannot be sold or transferred, however unused credits may be carried forward for 5 years. Research and Development Tax Credit: Offers a non-refundable tax credit equal to 10% of a company’s R&D expenses over a base period. The credits are assignable, and may be carried forward for up to 15 years.

GRANT AND FINANCING

Pennsylvania First Program (PA First): Businesses that make significant capital investments and

commit to creating and/or retaining at least 100 jobs may be entitled to grants, loans, or loan

guarantees offered under this discretionary program. Program funds may be used to offset costs

associated with building improvements, capital expenditures, environmental assessments, and land

acquisition. In addition to businesses, applicants for PA First funds may also include municipalities,

redevelopment authorities, and local development districts. The maximum amount of assistance is

capped at $5,000 per job

Pennsylvania Industrial Development Authority (PIDA) Loan: Businesses that commit to creating or

retaining jobs may qualify for low-interest loans to help finance eligible project expenditures

including Land and Building Costs as well as Machinery and Equipment Costs. The maximum available

loan for Land and Building Costs is $2.25 million or 50% of eligible Land and Building Costs, whichever

is less. Eligible businesses (except service enterprises and developers) may be eligible for a maximum

loan of $1,500,000 to finance Machinery and Equipment Costs.

Industrial Sites Reuse Program (ISRP): Provides grants and low-interest loan financing to perform environmental site assessment and remediation work at former industrial sites. The maximum grant or loan is $200,000 for environmental assessments and $1 million for remediation projects.

SPECIAL ZONING

Keystone Opportunity Zone (KOZ): Businesses that locate in a KOZ are eligible for credits, waivers

and broad-based exemptions on state and local taxes until the zone’s expiration date (zones have

varying expiration dates). The effective tax burden for a company may be reduced to zero. To qualify

for the full range of KOZ benefits, existing businesses that relocate from a non-KOZ Pennsylvania

location to a KOZ must increase full-time employment by 20% within the first full year of operation

or make a capital investment equal to 10% of gross revenues from the previous fiscal year that were

attributable to the business operation(s) that will be relocating to the KOZ.



Sales Tax: 6%


PEN

NSY

LVA

NIA

TAX EXEMPTIONS

Local Economic Revitalization Tax Assistance (LERTA): This program allows local taxing authorities

to provide real property tax exemptions for projects that involve new construction or result in

improvements made to industrial, commercial, or other business property. The exemptions apply to

the assessed value of new construction and the assessed value of improvements made to an existing

building. Eligible projects must be located in an area designated as a Local Economic Revitalization

Assistance zone. To receive the 10-year exemption, approval is required from all local taxing

authorities, including the school district.

In addition to LERTA, Pennsylvania permits local taxing jurisdictions to use tax increment financing

(TIF) to spur redevelopment projects in blighted areas.

Updated June 2017



Sales Tax: 7%


RH

OD

E ISLAN

D

TAX CREDITS Jobs Incentive Credit: The Rhode Island Qualified Jobs Incentive Act of 2015 offers tax credits for up to 10 years to businesses that create new jobs. The amount of credit awarded to a business is roughly equivalent to the W-2 withholdings received by the State for each new full-time job created. The job creation threshold to qualify for the program will depend on whether a business is in a targeted industry and the number of existing, full-time employees. Annual credits range from $2,500 per job to $7,500 per job, but are capped by actual W-2 withholdings. Unused credits can be carried forward for up to 4 years. Tax credits can also be sold, transferred, or redeemable with the State for 90% of value. Rebuild Rhode Island Tax Credit: Program is intended to encourage commercial development and redevelopment. The maximum credit is the lesser of:

20% (or sometimes 30%, depending on project characteristics) of total project cost, or

Amount needed to close a demonstrable project financing gap (after taking into account all other private and public funding sources available to the project)

The maximum credit awarded to any project cannot exceed $15 million. Tax credit is paid out over a period of five (5) years. Unused tax credits can be carried forward for up to four (4) years. Credits are also salable, transferable, or redeemable with the State for 90% of value. Projects that are eligible for the Rebuild Rhode Island Tax Credit, may at the discretion of the Commerce Corporation, be exempt from Sales and Use taxes imposed on the purchase of furniture, fixtures and equipment.

Anchor Institution Tax Credit: This program was established to attract businesses to locate in Rhode Island and to give existing Rhode Island companies an incentive to encourage businesses in their supply chain, service providers, or customers to relocate to the Ocean State. A business is eligible to claim a credit if it has played a substantial role in the decision of a qualified business to relocate a minimum number of jobs as provided below:

Relocation of 10 jobs from 2015-2018;

Relocation of 25 jobs from 2019-2020 The number of jobs created, wages, industry sector, and location of the project (e.g. in a “Hope Community) will determine the amount of the credit. Tax credits can be claimed for five (5) years.

GRANTS AND LOW-INTEREST FINANCING

First Wave Closing Fund: Discretionary program provides gap financing in the form of a loan or conditional grant to support economic development projects that result in the creation and retention of jobs. The State will consider the following factors when evaluating applications:

• Economic impact of the project, including costs and benefits to the state; • Amount of the project financing gap; • Strategic importance of the project to the state, region, or locality; • Quality and number of jobs produced; • Quality of industry and project; and • Competitive offers regarding the project from another state or country

Program funds may be used by a qualified business to cover working capital, equipment, furnishings, and fixtures; construction, rehabilitation, or purchase of real property; and permanent financing



Sales Tax: 7%


RH

OD

E ISLAN

D

Industry Cluster Grants: Competitive grants are administered by the Commerce Corporation to start, grow, or improve industry sector partnerships, encouraging companies to work together to solve problems, exchange technology and share talent.

Competitive Startup and Technical Assistance Grants: Available in amounts between $75,000 and $250,000. These grants can be used to support activities within the industry cluster that enable collaboration among businesses and other institutions to advance innovation and increase sector profitability. Eligible organizations may be regional or statewide in scope and may include, but not solely be composed of, relevant companies or institutions outside of Rhode Island.

Competitive Program Grants: Available in amounts between $100,000 and $500,000. These program grants are available to businesses that enhance cluster growth and effectiveness.

TAX EXEMPTIONS AND

REDUCTIONS

Sales and Use Tax Exemptions: Machinery and equipment used in an industrial plant is exempt from sales tax as is scientific equipment, computers, and software used for R&D. Tax Stabilization Incentive: TSAs (Tax Stabilization Agreements) are available that reduce the tax rate on a project for a set number of years; qualifying business development projects must create at least 50 new full-time jobs and spend at least $10 million. If the project is located in a designated hope community, the number of jobs is reduced to 25 and capital investment is reduced to $5 million.

SPECIAL ZONING

Tax Increment Financing (TIF) Program: Rhode Island’s tax-increment financing program allows developers to retain up to 75% of the incremental state tax revenues generated by or around their projects within a designated TIF area. Payments to a qualified developer cannot exceed 30% of total project costs. I-195 Redevelopment Project Fund: The State has allocated funds to support the redevelopment of surplus land along the I-195 corridor in the City of Providence. Funds can be used to help cover capital expenditures, land acquisition costs, public infrastructure, and project financing gaps for real estate development projects involving private businesses and anchor institutions.

TRAINING PROGRAMS

Job Training Tax Credit - Apprenticeships: Provides companies with a tax credit equal to 50% of eligible training expenditures for new or existing employees. Employees must be full-time and earn at least 150% of the RI minimum wage. Training plans must be filed with the Rhode Island Human Resources Investment Council for prior written approval. The credit is capped at $5,000 per employee over a 3-year period. Job Training Grants: The Governor’s Workforce Board Rhode Island offers a training program for business and industry funded through a job development assessment fee that is applied to taxable payroll. This pool of money is available for companies to create customized training programs tailored specifically for a business and free from restrictions imposed by federally-funded programs.

Updated June 2017



Sales Tax: 6%


VER

MO

NT

TAX CREDITS Research and Development Tax Credit: Businesses that incur qualified R&D expenses can claim a

non-refundable tax credit equal to 27% of the federal tax credit. The credit can be carried forward

for up to 10 years.

GRANT Vermont Employment Growth Incentive (VEGI): This discretionary program provides a performance-

based cash grant to businesses that create net new full-time jobs and make capital investments. To

qualify, businesses must create new jobs with wages at or above 140% or 160% of the Vermont

Minimum Wage. The actual wage threshold (140% or 160% of the minimum wage) is based on the

Labor Market Area (LMA) where the project is to be located. The incentive award is disbursed in 5

equal installments once project milestones have been met.

TRAINING PROGRAMS

The Vermont Training Program (VTP): Businesses seeking to train newly hired workers and/or

upgrade the skills of existing employees may be eligible for a discretionary training grant. The VTP

provides reimbursable grants of up to 50% of training costs. To qualify, businesses must offer wages

to trained employees that meet or exceed the state’s livable wage, which is currently set at $13.00

per hour. Training may be conducted on-site or through a training provider/vendor.

LOW COST FINANCING

Vermont Economic Development Authority Loans: Offers low-cost, non-forgivable financing for the

purchase of land, buildings, or equipment.

Updated June 2017


Sales Tax: 6.25%


ILLINO

IS


** At the time of this guide’s publication, The Illinois Economic Development for a Growing Economy (EDGE) Tax Credit Program had expired on 4/30/17. Since the program’s expiration, multiple proposals that would revive or even replace the EDGE Tax Credit have been introduced in the Illinois legislature. Companies actively considering investments in Illinois will want to track related developments closely as well as funding-levels of several programs. Please contact our Chicago office for additional information: 312-924-2490.

GRANTS Large Business Development Program (LBDP): Discretionary grants are available for major expansion or relocation projects that create and/or retain a large number of jobs. The funds may be used for bondable business activities, including financing the purchase of land or buildings, building construction or renovation, and certain types of machinery and equipment. Businesses relocating to Illinois from out-of-state must create at least 500 jobs to qualify for the program. This program also provides long term fixed-rate low-interest loans. (Note: the LBDP program has not received a funding allocation for the current fiscal year)

TAX CREDITS Economic Development for a Growing Economy (EDGE): Provides non-refundable annual tax credits against corporate income taxes over a period of up to 10 years. EDGE credits are equal to a percentage of the new income tax withholdings generated by new job creation. To qualify, a company must make an investment of at least $5 million in capital improvements and create a minimum of 25 new full-time jobs, or make an investment of $2.5 million and create 50 jobs. Businesses with fewer than 100 employees must invest at least $1 million and create a minimum of 5 new full- time jobs. (Note: the EDGE Tax Credit expired on 4/30/17) High Impact Business (HIB): To stimulate large-scale economic development projects outside of Enterprise Zone locations, the HIB program offers investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, and a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility. Qualifying businesses must make a minimum capital investment of $12 million and create at least 500 full-time jobs.

SPECIAL ZONING

Enterprise Zone Program: Businesses locating in one of state’s 104 dedicated Enterprise Zones may qualify for certain incentives including a sales tax exemption on building materials, an investment tax credit of 0.5% of qualified property, a state utility tax exemption on gas, electricity and telecommunication, as well as other incentives.

TAX EXEMPTIONS

Property tax exemptions: All personal property of businesses; inventories, machinery, and intangibles are exempt.

JOB TRAINING Employer Training Investment Program (ETIP): The state can provide reimbursable grants of up to $500 for each new full-time job created. (Note: the ETIP program has not received a funding allocation for the current fiscal year)

Updated June 2017



Sales Tax: 7%


IND

IAN

A

TAX CREDITS Economic Development for a Growing Economy Program (EDGE): A refundable tax credit available

to companies that create and/or retain jobs and make capital investments in the state. The EDGE

credit is calculated as a percentage of the projected tax withholdings that will be generated by the

newly created and/or retained jobs for up to ten years.

Hoosier Business Investment Tax Credit Program (HBI): Companies that create new jobs and make

capital improvements to a business facility may qualify for this non-refundable tax credit. The

maximum credit is equal to 10% of qualified capital investment. The credit may be certified annually,

based on the phase-in of eligible capital investment, over a period of two full calendar years from

the commencement of the project. Unused credits may be carried forward for up to 9 years.

Headquarters Relocation Tax Credit: Businesses that relocate a corporate headquarters operation

to Indiana, create at least 75 jobs, and have annual worldwide revenue of at least $50 million are

eligible to receive a tax credit of up to 50% of business relocation costs including capital investment.

The credit is non-refundable and non-transferable; however unused credits can be carried forward

for up to 9 years.

Industrial Recovery Tax Credit: Provides an incentive for investment in former industrial facilities

requiring significant rehabilitation or remodeling expenses. The credit is available to owners,

developers, and certain lessees of buildings located in an industrial recovery site which was brought

into service at least 15 years ago. The buildings must be at least 100,000 square feet beginning

January 1, 2015 and 75% vacant at the time the application is filed.

Research and Development Tax Credit: Provides a tax credit equal to 15% of qualified research

expenses on the first $1 million of investment. This non-refundable credit may be carried forward

for up to 10 years.

GRANTS Industrial Development Grant Fund (IDGF): This program provides assistance to municipalities and

other eligible entities. The grant may be provided to reimburse up to 50 percent, of eligible public

infrastructure costs over a period of two full calendar years from the commencement date of the

project.

Skills Enhancement Fund (SEF): This program provides reimbursable grants to businesses for costs

associated with training and upgrading skills of employees. Grants are typically valued at up to 50%

of eligible training costs over a 2-year period.

TAX EXEMPTIONS

Sales & Use Tax Exemptions: Manufacturing and research and development equipment (including

computers, computer software, and testing equipment) are exempt from sales and use tax.

Updated June 2017


BUSINESS TAX SNAPSHOT Corporate Income Tax: <12%

Sales Tax: 6%


IOW

A

TAX CREDITS High Quality Jobs Program: Companies that create or retain jobs and make capital investments may

qualify for a variety of state and local incentives. Available incentives include property tax

exemptions, investment tax credits, sales and use tax refunds, and an expanded Research Activities

Credit. New and retained jobs must meet specific wage thresholds to qualify for the program. These

thresholds are based on the wages of the labor shed area where the project is located. The Iowa

Department of Workforce Development (IDWD) has identified employment centers within the state

and the boundaries of each labor shed area, which are based on the commuting patterns of area

workers. To receive this incentive, newly created jobs must pay 100% of the labor shed wage at the

start of the project and increase to 120% of the labor shed wage within 3 years. Retained jobs must

have wages of at least 120% of the labor shed wage. Businesses that locate or expand in economically

distressed counties must pay wages of at least 100% of the labor shed wage throughout the life of

the project.

New Jobs Tax Credit: Provides a one-time corporate income tax credit to businesses that increase

the size of their workforce by at least 10% and participate in the New Jobs Training (260E) Program.

The maximum credit per new job is $1,758. Tax credits are non-refundable and non-transferable;

however unused tax credits may be carried forward for up to 10 years.

Research Activities Tax Credit: All businesses within the state that meet the qualifications of the

federal research credit may claim the Iowa Research Activities Tax Credit which is equal to 6.5% of

qualified research expenditures in Iowa above a base amount. Supplemental research credits are

available to companies that participate in the High Quality Jobs Program. Any research credit in

excess of the tax liability may be refunded to the taxpayer or credited for the following year.

Economic Development Set-Aside (EDSA): Businesses that create or retain jobs in counties or cities

with fewer than 50,000 residents (except communities designated as HUD entitlement areas) may

qualify for a direct or forgivable loan of up to $1 million. To be eligible for a loan under this

discretionary program, a company must demonstrate proof of a funding gap, locational disadvantage

or insufficient return on investment. In addition, jobs created or retained must pay at least 80% of

the area labor shed average and at least 51% of these positions must be filled by low and moderate

income individuals as defined by the U.S. Department of Housing and Urban Development.

JOB TRAINING Iowa Industrial New Jobs Training: Administered by Iowa's 15 community colleges, this discretionary training program is financed through bonds sold by the colleges. Depending on the wages of the trainees, a business will divert 1.5% or 3.0% of its Iowa state withholding taxes generated by the new positions to the community college to retire the bonds. This structure enables the training to be of low to no cost since the bonds are retired with dollars that otherwise would have been paid to the state as withholding taxes.

Updated June 2017



Sales Tax: 6.5%


KA

NSA

S

TAX CREDITS High Performance Incentive Program (HPIP): Companies that operate an eligible business, pay above-average wages and invest in employee training may receive a corporate income tax credit of up to 10% of capital investment. Unused credits may be carried forward for up to 16 years. Research & Development Tax Credit: Kansas offers an income tax credit equal to 6.5% of the difference between the company’s current qualified R&D expenditures and the average of the annual qualified research expenditures for the current year and the two previous years. No more than 25% of the allowable annual credit may be claimed in any given year.

TRAINING PROGRAMS

Kansas Industrial Training Program (KIT) and Kansas Industrial Retraining (KIR) Program: Both programs provide financial assistance to help offset a company’s training costs, paying a negotiated portion of the costs. The programs can be structured as pre-employment, classroom, on-the job or a combination of the three approaches. The average wage of the trainees must be equal to or higher than the median wage of the county in which the project is located.

LOW INTEREST

FINANCING

Industrial Revenue Bonds: A local Chapter 349 Industrial Development Corporation can issue either taxable or tax-exempt bond financing of fixed assets for eligible businesses; however, no property tax abatement is available.

TAX EXEMPTIONS

High Performance Incentive Program (Sales Tax Exemption): Offers a 100% sales tax exemption on the purchase of labor and materials to construct or remodel a facility, as well as on the machinery, equipment, furniture and fixtures used in the facility. Sales tax exemptions may also be obtained through the use of Industrial Revenue Bonds.

DIRECT FINANCIAL ASSISTANCE

Promoting Employment Across Kansas (PEAK): This program allows expanding businesses to retain 95% of their payroll withholding taxes paid for each newly created job. Companies need to create at least 10 jobs within two years in metropolitan areas or 5 new jobs within two years in all other counties. High-impact projects that create 100 new jobs within two years can retain 95% of payroll withholding tax for seven to ten years

Updated June 2017



Sales Tax: 6%


KEN

TUC

KY

TAX CREDITS

Kentucky Business Investment (KBI) Program: Provides income tax credits and wage assessments

to qualified businesses that make a minimum capital investment of $100,000, create at least 10 new

full-time jobs, and satisfy minimum wage requirements for the newly created jobs. The value of the

tax credit may equal up to 100% of corporate income tax liability arising from the project and the

wage assessments may equal up to 5% of employee gross wages. The tax credits and wage

assessments may be claimed for up to 10 years in most parts of the state with the eligibility period

extending to 15 years in enhanced incentive counties.

Kentucky Reinvestment Act (KRA): Existing Kentucky manufacturers that invest at least $2,500,000

in capital expenditures may qualify for a corporate income tax credit. The value of the credit may

equal up to 100% of corporate income tax liability arising from the project and credits may be claimed

for up to 10 years. Approved companies must retain at least 85% of their employees at time of

approval.

Kentucky Environmental Stewardship Act (KESA): Businesses that manufacture products that are

found to have a positive impact on human health and the environment may receive a corporate

income tax credit of up to 100% of corporate tax liability. Qualified companies are required to make

a capital investment of at least $5 million and can potentially recover up to 25% of the fixed projects

costs and 100% of employee skills training. The tax incentive may be claimed for up to 10 years.

REFUNDS Kentucky Enterprise Initiative Act (KEIA): Provides a refund of sales and use tax paid by approved

companies for building and construction materials. Eligible equipment purchased for use in research

and development and data processing facilities is also eligible for a refund. Eligible companies must

make a minimum capital investment of $500,000.

JOB TRAINING Bluegrass State Skills Corporation Skills Training Investment Credit: Provides a credit against

income tax liability for businesses that sponsor occupational or skills upgrade training programs for

employees.

Bluegrass State Skills Corporation Grant Reimbursement Program: Provides matching grant funds

for customized business and industry-specific training programs.

TAX EXEMPTIONS

Property tax exemption: Manufacturing machinery is exempt from local property taxation and is

subject to a reduced state tax rate of $0.15 per $100 of assessed valuation. Goods in transit and

pollution control equipment are exempt from state and local property taxation.

Sales & Use Tax Exemptions: Pollution-control equipment, industrial machinery and equipment and

industrial fuels and raw materials are exempt from sales & use taxes.

Updated June 2017



Sales Tax: 6%


MIC

HIG

AN

SPECIAL ZONING

Border County Incentives: Businesses that locate in one of 14 counties that border another state or

Canada may receive full or partial tax abatements through a partnership between the State of

Michigan and local municipalities. Eligible businesses may receive a 100% abatement of business

personal property taxes. New warehousing, distribution, and logistics facilities can qualify for a 50%

reduction in real property taxes.

Renaissance Zones: Businesses that locate in Renaissance Zones are exempt from the state

education tax, business personal property tax and real property taxes.

TRAINING PROGRAMS

Michigan Works!: Provides workforce development assistance to companies in the form of candidate identification and screening, training grants and programs, and internships/co-ops.

GRANTS Michigan Business Development Program (MBDP): The discretionary program provides performance-based grants, low interest loans, and other assistance to support business attraction and expansion projects that involve capital investment and/or new job creation. To qualify as job creation project, a business must create at least 50 jobs. The minimum job creation requirement is reduced to 25 jobs if the project is located in a rural county or qualifies as a high-technology activity. The maximum amount of funding that may be provided to a project cannot exceed $10 million.

TAX EXEMPTIONS

Sales Tax Exemptions: Manufacturing machinery and equipment, pollution control equipment and

electricity and natural gas used in production are all exempt from sales tax.

PA 198 Property Tax Abatement: Local units of government have the ability to reduce property

taxes on new investment by 50% for manufacturers and high-tech businesses. These abatements can

last up to 12 years and can provide relief on both real and personal property taxes. Businesses

approved for a PA 198 abatement can also receive an exemption of the 6-mill State Education Tax.

Personal Property Tax Reform: Michigan is phasing out its Personal Property Tax for most

businesses. Eligible manufacturing personal property includes all personal property located on real

property where that personal property is used more than 50% of the time in industrial processing or

in supporting industrial processes.

Updated June 2017



Sales Tax: 6.875%


MIN

NESO

TA

TAX CREDITS

Research and Development Tax Credit: A refundable tax credit equal to 10% of the first $2 million in eligible expenditures and 2.5% of eligible expenses above $2 million is available for qualified businesses engaged in R&D activities.

SPECIAL ZONING

Border Cities Enterprise Zone Program: This program provides tax credits to qualifying businesses

that locate or expand in the cities of Breckenridge, Dilworth, East Grand Forks, Moorhead, or

Ortonville.

LOANS AND GRANTS Minnesota Job Creation Fund: Businesses that create at least 10 jobs and make a capital investment

of at least $500,000 may receive discretionary cash grants. To qualify, a company must meet certain

job creation, prevailing wage, and capital investment targets. Eligible businesses may receive up to

$3,000 per job, per year and up to 7.5% in rebates for real property improvements.

TRAINING PROGRAMS

Minnesota Job Skills Partnership: Discretionary grants of up to $400,000 are available to educational

institutions that partner with businesses to develop job training programs for new hires and existing

workers.

TAX EXEMPTIONS

Greater Minnesota Job Expansion Program: Provides sales tax exemptions of up to 12 years to

existing businesses that meet certain job creation and prevailing wage requirements.

Data Centers: Businesses that invest at least $30 million in a data or network operation center with

at least 25,000 square feet qualify for a 20-year sales tax exemption on related equipment purchases.

In addition, a 20-year sales tax exemption is available for businesses that invest at least $50 million

to refurbish an existing data with at least 25,000 square feet.

Sales and Use Tax Exemptions: In addition to the sales tax exemption for manufacturers’ capital

equipment, sales of property delivered outside the state are exempt from sales tax under certain

conditions. Materials used or consumed in agricultural, industrial, or services production for retail

sale and petroleum products subject to other excise taxes are also exempt from sales and use taxes.

Updated June 2017



Sales Tax: 4.225%


MISSO

UR

I

TAX CREDITS Missouri Works: Businesses that create at least two full-time jobs with wages between 80% and

140% of the average county wage (depends on project location) may have the ability to retain the

state withholding tax of the newly created jobs and, in some cases, receive a refundable corporate

income tax credit equivalent to a percentage of new payroll created. The actual value of the

incentive award will be based on the number of jobs created, project location and payroll.

JOB TRAINING Missouri Works Training: Missouri’s training programs are designed to be extremely flexible so

companies can effectively train their current and future workforce in new or improved processes.

Funding can be targeted to include areas such as technical training, quality training, or soft skills

training.

TAX EXEMPTIONS &

INCENTIVES

Data Center Sales and Utility Tax Exemption: Businesses that create 10 full-time jobs with wages

that are at or above 150% of the county average wage and invest $25 million in a new data center

facility within a 36-month window may receive a full 15-year exemption of sales and utility taxes. A

10-year exemption is available for companies that expand an existing data center facility by investing

$5 million within 12 months and creating at least 5 full-time jobs with wages that are at or above

150% of the county average wage within 24 months.

Sales Tax Exemption for Manufacturers: Energy, machinery and equipment used or consumed in the

manufacturing process is exempt from state sales and use tax.

Chapter 100 Industrial Revenue Bonds: Local governments in Missouri can offer real and/or

personal property tax abatements to businesses through the issuing of Chapter 100 Industrial

Revenue Bonds. The incentive could potentially also provide a sales tax exemption on tangible

personal property purchased through Chapter 100 bonds for non-manufacturing purchases as well

as building materials for real property investment. Companies eligible for Chapter 100 bond financing

include manufacturing, warehousing, distribution, office, research and development, agricultural

processing, and services in interstate commerce.

Income Tax Allocation: Allows manufacturing and service companies to annually select from either

three-factor (property, payroll, and sales) or single sales factor corporate income tax apportionment

to effectively reduce their state corporate income tax liability.

Updated June 2017



Sales Tax: None


MO

NTA

NA

TAX CREDITS

New or Expanding Industry Wage Credit: A manufacturing corporation may receive a corporation

license tax credit equal to 1% of wages paid to new employees for the first 3 years of operation and

expenses.

Research and Development Tax Credit & Tax Exemption: Program offers a 5% tax credit on qualified

R&D expenditures. The credit is non-refundable and non-transferable; however it may be carried

back for 2 years and carried forward for 15 years. All net income earned form research and

development activities are exempt from corporate license tax during a company’s first 5 taxable years

of activity in Montana.

SPECIAL ZONING Empowerment Zone Tax Credit: For individuals or corporations meeting eligibility criteria, the credit

against income tax liability for each qualifying employee is equal to $500 for the first year of

employment, $1,000 for the second year of employment, and $1,500 for the third year of

employment. The credit may be carried back for 3 years and carried forward for 7 years. The

employer is also entitled to a credit against the state’s insurance premium tax.

Tax Increment Financing Districts: State law provides for the creation of a tax increment financing

industrial district for industrial development projects. A local government may issue bonds for a wide

variety of development purposed such as financing land acquisition, industrial infrastructure, rail

spurs, buildings, and personal property related to public improvements. The incremental increase in

the tax base over the unimproved value before the project was developed can be committed to

repayment of the bonds. The bond financing can essentially be considered a grant by the business

because taxes paid will directly benefit the district. The actual amount of bond financing available is

based on the ability to repay the bonds with the incremental value of the tax increase.

GRANTS The Primary Sector Workforce Training Grant program: Provides funds to businesses for training

new and existing full-time workers with a maximum grant of $5,000 for each full-time employee and

$2,500 for each part-time worker. Qualifying businesses must provide a $1 of match for every $3

dollars of grant funds.

Big Sky Economic Development Trust Fund: This discretionary program provides funds to local

governments in the form of grants and loans for the purchase of machinery, equipment and/or

working capital for economic development projects. Up to $7,500 may be awarded for each new full-

time job created. In addition, funds can be awarded in the form of grants for planning and capacity

building.

TAX ABATEMENTS New Industrial Property Tax Abatement: Manufacturing businesses that establish a new location in

Montana are eligible to receive a reduced taxable rate of 3% on real and personal property for a

period of 3 years. Property dedicated to R&D is also eligible for the reduced tax rate.



Sales Tax: None


MO

NTA

NA

New or Expanded Industries Property Tax Abatement: A business that starts operations or invests a

minimum of $125,000 worth of qualifying improvements or modernized processes may receive a 50%

property tax abatement from the local governing body. The tax abatement is 50% for the first 5 years

and escalates 10% per year with the abatement expiring after the ninth year of operation.

Reduced Rate for Remodeling of Building or Structures: Properties that are remodeled,

reconstructed or expanded and result in an increase in taxable value of at least 2.5% are eligible for

reduced property taxes. The tax rate is 0% during the construction period and escalates at an annual

rate of 20% with the reduced rate expiring in the fifth year following construction.

Industrial Park Property Tax Exemption: If approved by the local governing body, an industrial park

owned and operated by a local economic development organization or port authority is eligible for

an exemption from local property taxes.

Updated June 2017



Sales Tax: 5.5%


NEB

RA

SKA

TAX CREDITS INCENTIVES

Nebraska Advantage Research and Development Credit: This program offers a refundable tax credit

for qualified research and development activities equal to 15% of the federal credit allowed. The

credit is increased to 35% of the federal credit allowed for expenditures that take place at Nebraska

colleges or universities..

Nebraska Advantage Package: Businesses that create new jobs and/or make capital investments

may qualify for sales tax refunds, sliding scale wage tax credits, investment tax credits and business

personal property tax exemptions. This discretionary program is organized into different tiers of

benefits that are based on capital investment, number of jobs created, industry sector, and average

project wage. The program has been amended to include a special tier level for data center projects.

TRAINING PROGRAMS

Nebraska Customized Job Training Program: Offers discretionary grants to companies that provide

job training for full-time employees. Grants range from $800 to $4,000 per trainee with additional

grant funds available to businesses located in rural and/or high-poverty areas.

TAX EXEMPTIONS Sales Tax Exemptions: Purchases of manufacturing machinery, equipment and related services may

be entitled to exemptions from state and local sales tax.

Updated June 2017



Sales Tax: 5%


NO

RTH

DA

KO

TA

TAX CREDITS Research Expense Credit: A corporate income tax credit equal to a percentage of the excess of

qualified research expenses in North Dakota over the base period is available for eligible businesses.

Unused credits can be transferred or sold.

Wage and Salary Credit: A new North Dakota business is eligible to receive an income tax credit

equal to 1% of wages and salaries paid during the first three tax years of operation, and .5% for the

fourth and fifth tax years.

SPECIAL ZONING

Renaissance Zones: Businesses locating in any of the state’s designated Renaissance Zones are eligible to receive state income and local property tax exemptions for zone projects, as well as historical tax credits, available to approved zone projects.

TRAINING PROGRAMS

North Dakota New Jobs Training Program: The state provides a variety of training programs in the

form of loans and grants. Loans are repaid through state income tax withholding credits. The state

also assists firms in recruiting, screening, and testing potential trainees.

Workforce 20/20: New or expanding businesses are eligible to receive a partial reimbursement for

employee retraining and upgrade training to support the introduction of new technologies and work

methods. The grants are a portion of the actual costs expended and identified in the contract.

TAX EXEMPTIONS

Sales and Use Tax Exemptions: Electrical generating facilities, agricultural commodity processing

facilities, manufacturing facilities, primary sector businesses (computer and telecommunication

equipment), gas processing facilities, coal mining facilities, and oil refineries are exempt from sales

and use tax.

Property Tax and Income Tax Exemptions: Certified primary sector new or expanding businesses

may be granted a property tax exemption for up to 5 years. Certified primary businesses or tourism

businesses may qualify for an income tax exemption for up to 5 years.

LOW INTEREST FINANCING

There are a variety of low interest financing options available through the North Dakota Public

Finance Authority, as well as banks throughout the state, such as the North Dakota Development

Fund, and the Pace Program.

Updated June 2017



Sales Tax: 5.75%


OH

IO

TAX CREDITS

Job Creation Tax Credit (JCTC) Program: Businesses that create at least 10 net new full-time jobs

with a minimum annual payroll of $660,000 may receive a tax credit equal to a percentage of the

state income tax withholdings for all newly hired employees. Qualified companies approved for this

discretionary incentive will generally receive a credit ranging from 25% to 55% of state income tax

withholdings for a period of 5 to 7 years. The credit can be used to offset up to 100% of a company’s

commercial activity tax liability. If the value of the credit exceeds the tax liability in any given year,

the State will provide a refund.

Research & Development Investment Tax Credit: This program provides a non-refundable credit

equal to 7% of the amount of qualified research expenses in excess of the average investment in

qualified expenses over the three previous tax years. Unused credits can be carried forward for up

to 7 years.

GRANTS JobsOhio Economic Development Grant: Discretionary grants are available to support manufacturing, R&D, high technology, corporate headquarters and distribution projects that involve substantial capital investment and job creation. Grant funds can be used for machinery and equipment purchase costs, new building construction and acquisition costs, infrastructure improvements and other fixed asset investments.

TAX EXEMPTIONS

Sales and Inventory Tax Exemption: Machinery and equipment used in the manufacturing process;

material handling equipment used in warehouse and distribution facilities; and equipment used for

research and development purposes are exempt.

Data Center Sales Tax Exemption: Data center operators that meet minimum investment and payroll

thresholds may receive a full or partial sales tax exemption on the purchase of eligible equipment.

JOB TRAINING JobsOhio Workforce Grant: This program offers reimbursable grants of up to 50% (75% in targeted areas) of training costs. Eligible costs include instructor salaries, materials, travel and special needs. Additional grants are available for industrial and eligible administrative or office operations that create or retain jobs.

Updated June 2017


BUSINESS TAX SNAPSHOT Corporate Income Tax: None

Sales Tax: 4.5%


SOU

TH D

AK

OTA


Revolving Economic Development & Initiative (REDI) Fund: This discretionary program offers low-

interest loans of up to 45% of total project costs to assist business attraction and expansion projects.

The REDI Fund provides permanent financing for the purchase of land and associated site

improvements, construction, acquisition, renovations of buildings and equipment. In addition, the

fund can be used to offset fees, services and other costs associated with construction. Interest rates

are 2%, and loans are amortized for up to 20 years on a building and 10 years on equipment, with a

balloon payment due after 5 years. Companies should secure matching funds and be able to provide

a 10% minimum equity contribution before applying.

South Dakota WORKS: Offers business/commercial loans to companies in need of working capital.

Loans can be used to cover start-up costs, payroll, and construction. Loans are for 1-5 years, with a

maximum loan of $1 million.

Agricultural Processing & Export (APEX) Loan Program: Designed to assist companies that locate or

expand in communities with 25,000 or fewer residents, these loans can be used to purchase land,

buildings, and equipment as well as the costs associated with building renovations. The program

may provide up to 75% of the total project costs and requires 10% minimum equity contribution. The

loans are amortized over the useful life of the assets and have a 5-7% interest rate with a balloon

payment due after 6 years. The program is open to for-profit businesses and local economic

development corporations.

TAX EXEMPTIONS Businesses in South Dakota are not subject to corporate income tax, personal income tax, personal

property tax, business inventory tax, or inheritance tax.

TRAINING PROGRAMS

Workforce Development Program: Supports three types of training: new employee training, current

employee retraining, and current employee upgrade training. The program is designed as a 50/50

match-funding source. Every Workforce Development dollar must be matched with private sector

contributions - either financial or in-kind..

Updated June 2017



Sales Tax: 5%


WISC

ON

SIN

TAX CREDITS Business Development Tax Credit (BTC) Program: Refundable tax credits may be provided to eligible businesses that create jobs, make capital improvements, invest in employee training, and/or locate or retain a corporate headquarters facility in Wisconsin. Credits can only be claimed in a tax year in which a company increases net employment in Wisconsin when compared to the previous tax year. This discretionary program provides the following tax credits:

Job Creation: Up to 10% of annual wages paid to eligible employees earning at least 150% of federal minimum wage

Job Training: Up to 50% of eligible training costs

Capital Investment: Up to 3% of capital investment in business personal property; up to 5% of eligible capital investment in real property

Corporate Headquarters: Up to 10% of annual wages of positions created or retained at corporate headquarters facility

Manufacturing and Agriculture Credit: This non-refundable credit is equal to 7.5% of eligible qualified production activities income and may be used to offset state income or franchise taxes. The annual tax credit reduces the company’s effective state corporate income tax rate to 0.4%. Unused credits may be carried forward for up to 15 years.

GRANTS Business Opportunity Loan Fund (BOLF): Discretionary program provides assistance to businesses that create and/or retain jobs. The funds may be used for construction and expansion; working capital; acquisition of existing businesses, land, buildings, and equipment. Companies that create and/or retain a significant number of jobs may be eligible for loan forgiveness.

TRAINING PROGRAMS

Employee Training Programs: The state offers various training programs available for businesses relocating or expanding in Wisconsin, including a customized training program for businesses implementing new technology or production processes.

SPECIAL ZONING Enterprise Zone Jobs Tax Credit: Corporate income tax credits are available for companies that create new jobs and make capital improvements at business facilities in designated enterprise zones. This discretionary program provides the following tax credits for up to 12 years.

Job Creation: Up to 7% of annual wages

Job Training: Up to 100% of training costs

Capital Investment: Up to 10% of all capital expenditures

Supply Chain: Up to 1% of supply chain utilization

TAX EXEMPTIONS

Computer equipment, machinery and equipment used in manufacturing, and manufacturing, merchant and farm inventories are exempt from property tax. Sales and use tax exemptions are available for manufacturing machinery, equipment and materials, biotechnology and manufacturing research, production fuel and electricity, as well as alternative energy used in manufacturing.

Updated June 2017


Sales Tax: 4%


ALA

BA

MA


TAX CREDITS Jobs Act Incentives: This discretionary program offers credits for job creation and capital investment. To qualify, businesses that operate chemical manufacturing, data center, metal/machining or toolmaking, engineering, design, and research facilities must create net new jobs but are not subject to a specific minimum job creation requirement. Businesses that do not operate within the aforementioned industry sectors must create a minimum of 50 jobs (25 in a Targeted County). If approved by the Governor, companies may claim the following credits:

Jobs Credit: Annual cash refund of up to 3% (4% in a Targeted County) of the previous year’s gross payroll for eligible employees. The annual refund may be claimed for up to 10 years.

Investment Credit: Tax credit of up to 1.5% of qualified capital investment. The credit may be claimed for up to 10 years and may be applied against Alabama income tax and/or utility tax liability. Unused credits may be carried forward for five years. If approved by the Governor, the first three years of the credit may be transferred to another Alabama taxpayer for at least 85% or more of face value.

Full Employment Act of 2011: Businesses with 50 or fewer employees may receive a one-time, non-

refundable tax credit equal to $1,000 for every new job created earning over $10 per hour.

Alabama Renewal Act Port Credit: This discretionary program offers a one-time tax credit for

increased usage of Alabama public ports. The credit is up to $50 per TEU, $3 per net ton or $0.04 per

net kilogram. The credit may be taken against Alabama income tax liability and can be carried forward

for five years. New distribution or warehouse shippers investing at least $20 million and creating at

least 75 net new jobs are eligible to receive up to $100 per TEU over a 3-year period if entering into

a project agreement with the state

TAX ABATEMENTS Sales and Use Tax Abatement: The state sales and use tax for machinery purchased for

manufacturing and farm machinery is reduced from the general rate of 4.0% to 1.5%; qualified

businesses may be eligible for an abatement of sales and use taxes for construction materials.

Property Tax Abatement: Discretionary abatement of the non-educational portion of property tax

for up to 20 years

SPECIAL ZONING

Enterprise Zone Credit /Exemption: Businesses that locate in an Enterprise Zone may receive a tax

credit or tax exemption for new job creation (up to $2,500 per permanent job), investment tax

credits, training grants of up to $1,000 per new employee and an exemption of sales and use tax on

purchases of construction materials. Employers with existing facilities in an Enterprise Zone that

create at least 5 new jobs may also receive incentives.

TRAINING Employer Education Credit: Tax credits are available to businesses that provide approved basic skills

education to Alabama resident employees. The credit is 20% of the actual costs, limited to the

employer’s income tax liability. Certain requirements must be met.

Updated June 2017



Sales Tax: 6.5%


AR

KA

NSA

S

TAX CREDITS Advantage Arkansas (Income Tax Credit): This program provides corporate income tax credits to

businesses that create new full-time jobs. An annual credit of up to 4% of new employee payroll may

be claimed for 5 years. The percentage of the available credit (1% to 4%) and average hourly wage

needed to qualify for the incentive is based on the tier level of the county where the project is

located. In any year, tax credits claimed under this program cannot exceed 50% of a company’s tax

liability. Unused credits may be carried forward for 9 years.

ArkPlus (Income Tax Credit): State corporate income tax credits equal to 10% of the total investment

in a business attraction or expansion project may be awarded to companies that meet certain

investment and employee payroll requirements. The minimum investment and employee payroll

thresholds will depend on the tier level of the county where the project is located. In any year, tax

credits claimed under this discretionary program cannot exceed 50% of a company’s tax liability.

Unused credits may be carried forward for 9 years.

InvestArk (Sales and Use Tax Credit): A company that has operated a business facility in Arkansas for

at least two years and invests $5 million or more in capital improvements may receive a credit against

its state direct-pay sales and use tax liability. The non-refundable and non-transferable tax credit is

equal to 7% of eligible project expenditures. In any year, tax credits claimed under InvestArk cannot

exceed 50% of a company’s sales and use tax liability on taxable purchases. Unused credits may be

carried forward up to 5 years. The Program will sunset on 6/30/2017. No new applications will be

taken after this date.

Research and Development Tax Credits (Various Programs): Arkansas offers several R&D tax credit

programs. A credit equal to 33% of research expenditures is available for certain qualified businesses

that perform in-house research, research in strategic areas, or contract with Arkansas colleges and

universities to perform research. Companies that do not meet the qualifications of a “targeted

business” may receive a tax credit equal to 20% of qualified research expenditures that exceed the

base year, for a period of 3 years and the incremental increase in qualified research and expenditures

for the succeeding two years. R&D tax credits may be used to offset up to 100% of a business tax

liability in a given year. Unused credits may be carried forward for 9 years.

GRANTS/LOANS Create Rebate (Cash Rebate): Businesses that create new full-time jobs with a minimum annual

payroll of $2,000,000 may qualify for annual cash payments under this discretionary program. The

minimum payroll must be met within 24 months of the effective date of the incentive agreement.

The percentage of the benefit (3.9% to 5.0% of annual payroll) is based on the tier level of the county

where the project is located.

TAX REFUNDS Tax Back (Sales and Use Tax Refund): Businesses that create new jobs and make a minimum capital

investment of $100,000 may receive a refund on sales and use tax associated with the purchase of

building materials and machinery and equipment.

Updated June 2017



Sales Tax: 6%


FLOR

IDA

GRANTS High Impact Performance Incentive (HIPI) Grants: The State has the discretionary authority to

provide grants to companies in high-impact industry sectors that create at least 50 full-time

equivalent jobs (25 full-time equivalent jobs if a research and development facility). Eligible

businesses must make a minimum capital investment of at least $50 million ($25 million if a research

and development facility) within a 3-year period to qualify for the program.

Economic Development Transportation Fund: Commonly referred to as the “Road Fund,” this

program provides up to $3 million in discretionary grants to address transportation issues impacting

a specific company’s location or expansion decision. Grants are awarded to local governments on

behalf of a business for public transportation improvements.

TAX REFUND Qualified Target Industry Tax Refund (QTI): This discretionary program provides a tax refund of

$3,000 per job ($6,000 if a business is located in a rural county) to companies that create at least 10

high-paying jobs in one of Florida’s target industry sectors. Businesses that meet certain location,

industry and average wage criteria may be eligible for bonus awards. The refund applies to a variety

of Florida taxes including corporate income, sales, ad valorem, intangible personal property, and

insurance premium. No more than 25% of the total refund approved may be taken in any single fiscal

year. A qualified business may receive no more than $1.5 million in tax refunds for a single fiscal year.

The local municipality must agree to contribute 20% of the approved tax refund for a business to be

eligible for the QTI incentive.

Qualified Defense and Space Contractor Tax Refund (QDSC): Defense, space, and homeland

security-related businesses may receive a tax refund of up to $3,000 per net new full-time equivalent

job created or retained ($6,000 if a business is located in a rural county). Bonus awards are available

for projects that meet certain location, industry and average wage criteria.

TAX CREDITS Capital Investment Tax Credit (CITC): Businesses that operate within one of Florida’s high-impact

industry sectors that make a capital investment of at least $25 million and create a minimum of 100

jobs may receive corporate income tax credits. The credits which may be valued up to 100% of the

eligible capital costs of the project are issued in annual installments over a 20-year period. Capital

Investment Tax Credits are non-refundable and non-transferable.

TRAINING PROGRAMS

Quick Response Training: This program offers discretionary training grants to businesses in Florida’s

targeted industries that create net new jobs with wages that are at least 125% of the state or county

average wage, whichever is less. Qualified businesses partner with state colleges and universities to

develop training programs that are flexible and customized.

TAX EXEMPTIONS

Sales & Use Tax Exemptions: Manufacturing equipment and machinery, commercial space activities,

and R&D machinery and equipment are all exempt from Sales and Use Tax. Additionally, data centers

which invest $150 million and meet electric load requirements can qualify for sales and use tax

exemptions on infrastructure, equipment, personal property, and electricity.

Updated June 2017



Sales Tax: 4%


GEO

RG

IA

TAX CREDITS Job Tax Credit: Businesses that create new full-time jobs may be eligible for an annual corporate

income tax credit of $1,250 to $4,000 per job. The exact value of the as-of-right tax credits will

depend on job creation and the development tier of the county or census tract where the project is

located. These non-refundable and non-transferable credits are claimed over 5 years. Unused

credits may be carried forward for up to 10 years.

Quality Jobs Tax Credit: This as-of-right program offers tax credits to companies that create at least

50 net new jobs with wages that are at or above 110% of the county average wage. Credits range

from $2,500 to $5,000 per job, per year and may be claimed for up to 5 years. The amount of credit

per job will depend on the development tier of the county in which the project is located. Quality

Jobs Credits can be used to offset up to 100% of state corporate income tax liability. If the credit

exceeds a company’s tax liability in any given year, the business may use the credit against its state

payroll withholding. Any unused credits can be carried forward for up to 10 years.

Mega Project Tax Credit: Companies that create at least 1,800 net new jobs and either invest a

minimum of $450 million in a business facility or have an annual payroll of at least $150 million may

claim a tax credit of $5,250 per job, per year for a period of 5 years. Credits can be used to offset up

to 100% of state corporate income tax liability. If the credit exceeds a company’s tax liability in any

given year, the business may use the credit against its state payroll withholding. Any unused credits

can be carried forward for up to 10 years.

Investment Tax Credit: Provides tax credits to companies engaged in manufacturing or

telecommunications support that have operated in Georgia for at least 3 years. A business must

invest at least $50,000 in plant or facility upgrades to be eligible for a credit of up to 8% of qualified

investments. The actual credit will depend on the development tier of the county in which the

project is located and the type of capital expenditures that are made by a business. Credits can be

used to offset up to 50% of a state corporate income tax liability. Any unused credits can be carried


TRAINING PROGRAMS

Retraining Tax Credit: Businesses that retrain employees to use new equipment or learn new skills

may qualify for a tax credit equal to 50% of direct training expenses with a maximum credit of $500

per full-time employee. Tax credits can be used to offset up to 50% of a company’s state corporate

income tax liability. Unused credits can be carried forward for up to 10 years.

Quick Start Employee Training: Provides training space, instructors and all needed materials for new

employees in skill-based jobs at no cost to qualifying companies.

TAX EXEMPTIONS

Sales & Use Tax Exemptions: Machinery, equipment, and materials used in the manufacturing

process are exempt from sales tax.

Updated June 2017



Sales Tax: 5%


LOU

ISIAN

A

CASH REBATES Quality Jobs (QJ) program: Cash rebates of up to 6% of annual payroll expenses for new direct jobs

for up to 10 years. The State also has the ability to offer either a state sales and use tax rebate on

capital expenditures or a 1.5% project facility expense rebate for qualified expenses.

Competitive Projects Payroll Incentive Program: Provides companies with an incentive rebate of up

to 15% of new payroll for up to 10 years. Additionally, the company will be eligible for either a rebate

of state sales and use taxes on capital expenditures or a rebate equal to 1.2% of project facility

expenses.

TAX CREDITS Research and Development Tax Credit: Provides a non-refundable and non-transferable tax credit

of up to 40% for R&D expenditures incurred in the State.

Technology Commercialization Tax Credit: Provides a 28.8% refundable tax credit for companies

that invest in the commercialization of Louisiana technology. Program also offers a 4.32% payroll

rebate for creation of new jobs in the Louisiana technology industry.

SPECIAL ZONING

Enterprise Zone: Businesses that create net new jobs and hire at least 50% of the new employees

from one of four targeted groups are eligible to receive income and franchise tax credits. The

benefits include either a one-time $3,500 or $1,000 tax credit for each new full-time job created and

a state sales/use tax rebate on materials, machinery, furniture and equipment or a 1.5% refundable

investment tax credit on total capital investment.

TAX EXEMPTIONS

Sales Tax Exemptions: Manufacturing machinery and equipment, natural gas and utilities are exempt

from sales tax.

Industrial Tax Exemption: This program offers an abatement of real property taxes for up to 10 years

manufacturer’s new investment and annual capitalized additions to the site for up to 10 years.

JOB TRAINING FastStart®: Provides free customized employee recruitment, screening, and training for new and

expanding businesses.

Updated June 2017



Sales Tax: 7%


MISSISSIP

PI

TAX CREDITS Jobs Tax Credit: Businesses that locate or expand in a Tier 3 county and create at least 10 new jobs

may receive a non-refundable and non-transferable corporate income tax credit. In more developed

counties, the minimum job creation threshold to qualify for the program increases to 15 jobs in a Tier

2 county and 20 jobs in a Tier 1 county. The credit is calculated as a percentage of eligible payroll

and ranges from 2.5% to 10% of payroll depending on the tier level of the county where the project

is located. Credits may be claimed for 5 years and can be used to offset up to 50% of a company’s

tax liability in a given year. Unused credits may be carried forward for up to 5 years.

Businesses also have the option of monetizing the tax credit for job training purposes. Should a

company elect to monetize the credit, the Mississippi Development Authority (MDA) will issue a grant

to a two-year college or state university to support job training and retaining. The grant will cover

up to 75% of training costs with a maximum incentive of $1,000 per job in Tier 1 counties, $1,500 per

job in Tier 2 counties and $2,000 per job in Tier 3 counties.

National or Regional Headquarters Tax Credit: Businesses that establish a national or regional

corporate headquarters in Mississippi may receive a tax credit of $500-$2,000 for each full-time job

created. The actual credit will be based on the wage levels of the newly created jobs. A minimum of

20 new headquarters jobs must be created to be eligible for the credit which can be used to offset

up to 50% of a company’s tax liability in a given year. Unused credits may be carried forward for up

to 5 years.

Research and Development Skills Tax Credit: Tax credits equal to $1,000 per employee per year for

a 5 year period and may be claimed by a business for any position that requires research or

development skills. Unused credits may be carried forward for up to 5 years.

Manufacturing Investment Tax Credit: To support the retention and expansion of manufacturers,

Mississippi offers an investment tax credit to companies that have maintained a manufacturing

facility in the state for at least 2 years. To qualify, a business must invest at least $1 million in

buildings and/or equipment. A corporate income tax credit equal to 5% of eligible investment may

be awarded to qualifying manufacturers with a maximum available credit of $1 million per project.

These non-refundable and non-transferable credits can be used to offset up to 50% of a company’s

tax liability in a given year. Unused credits may be carried forward for up to 5 years.

GRANTS Job Protection Grant: This program provides incentives to companies in “at-risk industries” to

encourage them to retain business operations in Mississippi. Qualifying companies must have

operated a business facility in the state for at least 3 years and have had to eliminate jobs or are at

risk of doing so as a result of outsourcing. Grants must be used to retain jobs and improve

productivity. The value of the grants cannot exceed 50% of the project costs.



Sales Tax: 7%


MISSISSIP

PI

CASH REBATES Advantage Jobs Incentive Program: Qualified businesses that create at least 25 jobs may receive a

rebate equal to a percentage of a company’s payroll for up to 10 years. The amount of the rebate is

equal to 90% of the actual state income taxes withheld from employees. To qualify, a business must

pay its employees an annual average wage that is 110% of the county average wage where the project

is located or the state average wage, whichever is less.

TAX EXEMPTIONS

Sales and Use Tax Exemptions: Exemptions are available for the materials used in some construction

and expansion projects, machinery and equipment and some purchases made with bond proceeds.

Exemptions are also available for eligible businesses that establish a national or regional

headquarters in Mississippi. In addition, aerospace, clean energy, and data center projects that meet

certain job creation and capital investment requirements may receive exemptions and other

incentives.

SPECIAL ZONING Growth and Prosperity (GAP) Program: Qualified businesses that create at least 25 jobs may receive

a rebate equal to a percentage of a company’s payroll for up to 10 years. The amount of the rebate

is equal to 90% of the actual state income taxes withheld from employees. To qualify, a business

must pay its employees an annual average wage that is 110% of the county average wage where the

project is located or the state average wage, whichever is less.

Updated June 2017



Sales Tax: 4.75%


NO

RTH

CA

RO

LINA

GRANTS One North Carolina Fund: Discretionary program offers performance-based grants to businesses that create new jobs and make capital investments. In Tier 1 and Tier 2 counties, a business must create at least 20 jobs with a minimum average wage that meets or exceeds the average county wage. In Tier 3 counties, a business must create at least 40 jobs with a minimum average wage that is at least 110% of the average county wage or the state average wage, whichever is lower. The average incentive amount ranges from $1,000 to $3,000 per job depending on the tier level of the county where the project is located. As a general rule, businesses that locate or expand in Tier 1 counties which are classified by the State as the most economically distressed will be eligible to receive a larger incentive award than a similar project located in a Tier 2 or Tier 3 county. This program requires a local funding commitment. Funds must be used for the purchase or installation of equipment, repairs or construction to facility, or on infrastructure improvements. Job Development Investment Grant (JDIG): This program provides discretionary grants to new and expanding businesses that create new jobs in North Carolina. JDIG benefits are based on state income tax revenue generated by new jobs. As a business ramps up employment and satisfies annual investment and job creation targets, the JDIG program offers a rebate equal to the percentage of income tax withholdings associated with the newly created jobs. The maximum JDIG award in most areas of the state is 75% of income tax withholdings or 80% for businesses that locate in Tier 1 counties. An enhanced level of JDIG benefit is available for “mega” or “high-yield” projects which are defined as projects that involve a minimum capital investment of $500 million and result in the creation of at least 1,750 jobs. JDIG payments are disbursed annually to qualifying businesses for up to 12 years. Mega or “high-yield” projects may receive JDIG grants for up to 20 years with a business being eligible to claim a JDIG benefit equal to 100% of income tax withholdings if investment and job creation obligations are met for 3 consecutive years. Public Infrastructure and Transportation Grants: North Carolina offers several different programs to fund public infrastructure development to support business expansion and attraction projects. Programs include the Community Development Block Grant Economic Development Program, Utility Account, the Rural Division’s Economic Infrastructure Program, NCDOT’s Rail Industrial Access Program, and the state Dept. of Commerce’s Joint Economic Development Program with the NCDOT

TRAINING PROGRAMS

NCWorks Incumbent Worker Training Grants: Businesses can receive a reimbursement of up to $60,000 for eligible costs associated with training employees.

TAX EXEMPTIONS

Sales and Use Tax Discounts, Exemptions and Refunds: North Carolina offers reduced rate allowances on certain parts, accessories and construction supplies for eligible industries and manufacturing processes. The Data Center Infrastructure Act offers sales, property and utility sales tax exemption to data center providers and occupants that have collectively invested at least $75 million in private funds in a given facility.

BONDS Industrial Revenue Bonds: Provides tax-exempt financing for eligible new or expanded

manufacturing facilities, certain solid waste disposal facilities, and sewage disposal facilities.

Updated June 2017



Sales Tax: 4.5%


OK

LAH

OM

A

GRANTS Oklahoma Quality Jobs Program: Provides cash grants of up to 5% of new employee gross taxable payroll for businesses that create new jobs with wages that meet or exceed the average county wage or the State Index wage threshold, whichever is lower. To qualify, a company must achieve at least $2.5M in new annual payroll within 3 years. Businesses may receive cash grants for up to 10 years. The 21st Century Oklahoma Quality Jobs Program: To attract more high-paying jobs and expand the number of companies in advanced industries, Oklahoma offers a cash grant of up to 10% of taxable payroll to businesses that create at least 10 full-time jobs. The new jobs must have an average annual wage that is the lesser of $97,341 or 300% of the average wage of the county where the project is located. Businesses may receive cash grants for up to 10 years. Oklahoma Quick Action Closing Fund: The governor has the discretionary authority to award grants to support economic development projects.

TAX CREDITS Insurance Premium Tax Credit: Provides a special annual tax credit (15% to 50% based on the number

of full-time employees) to insurance companies that locate or expand a regional home office in

Oklahoma and maintain 200+ employees.

Investment / New Jobs Income Tax Credit: Manufacturers that invest in new capital improvements

or create jobs may receive a 5-year tax credit on the greater of 1% per year of investment in qualified

new depreciable property or a credit of $500 for each new job created. The credit doubles to 2% of

investment or $1,000 per new job if a business is located in an Enterprise Zone or if the amount of

qualified investment exceeds $40 million.

TRAINING PROGRAMS

Training for Industry Program (TIP): The state provides a no-cost/low-cost way for businesses that

create jobs to develop a skilled workforce. The amount of job training funds varies depending on the

project.

SPECIAL ZONING

Opportunity and Enterprise Zones: Businesses locating in one of the state’s Opportunity or

Enterprise Zones may be eligible for certain incentives including an enhanced Investment/New Jobs

Tax Credit, ad valorem exemptions from local taxing entities for up to 6 years, and may not be subject

to wage requirements for purposes of qualifying for the Quality Jobs Program.

TAX EXEMPTIONS

Sales Tax Exemption Program: Machinery and equipment used directly in the manufacturing process

and tangible personal property that becomes part of a finished product are exempt from sales tax.

Ad Valorem Tax Exemption: Certain new and expanding manufacturers, research and development

companies, certain computer services and data processing companies with significant out-of-state

sales, aircraft repair companies, oil refineries, and certain wind power generators may be eligible for

ad valorem tax exemptions for up to 5 years.

Updated June 2017



Sales Tax: 6%


SOU

TH C

AR

OLIN

A

TAX CREDITS Jobs Tax Credit: A business that creates a monthly average of 10 net new jobs at a corporate headquarters, manufacturing, distribution, processing, warehousing, or R&D facility is eligible to receive an annual credit of $1,500 to $8,000 per job. This non-refundable, as-of-right credit may be claimed for 5 years. An additional $1,000 per job bonus is available to companies that locate in a multi-county industrial park. The actual amount of the tax credit will depend on the development tier of the county where the project is located. The credits cannot be used to offset more than 50% of tax liability in a given year. Unused credits may be carried forward for up to 15 years. Corporate Headquarters Tax Credit: Companies that establish or expand a corporate headquarters facility in South Carolina may receive a tax credit equal to 20% of the value of the portion of the facility dedicated to the headquarters operation or 20% of the first 5 years of direct lease costs. To qualify, a business must create at least 40 full-time jobs with 20 of those jobs classified as headquarters staff positions. Tax credits are non-refundable and non-transferable and may be claimed for up to 10 years. Businesses that create a minimum of 75 new jobs with average cash compensation that is at least two times the state’s per capita income may receive an enhanced credit.

Investment Tax Credit: Manufacturers that relocate to or expand in South Carolina are eligible for a one-time corporate income tax credit of up to 2.5% of the cost of new production equipment. The credit can be used to offset up to 100% of corporate tax liability. All unused credits can be carried forward for up to 10 years. Research and Development Tax Credit: A credit equal to 5% of a company’s qualified research expenses in the state may be claimed by eligible businesses. The credit cannot be used to offset more than 50% of a company’s remaining tax liability after all other credits have been applied. Unused credits can be carried forward for up to 10 years.

GRANTS Governor’s Closing Fund: Discretionary cash grant available to businesses that can demonstrate additional funding is needed to close a competitive cost gap relative to other states in contention for a project that involves new job creation and capital investment.

Job Development Credit: Discretionary program offers a quarterly cash refund of a portion of the personal withholding taxes of new employees. To qualify, businesses must create at least 10 full-time jobs with wages at or above the average county wage and make a substantial capital investment. The maximum allowable credit is $3,250 per employee, per year. A business is eligible to claim the credit for up to 10 years provided it retains the number of new jobs specified in the project agreement. The actual amount of refund a business is eligible to claim will depend on the tier level of the county where the project is located, the gross wages of new employees, as well as other factors. Refunds must be used to pay for capital expenditures and cannot be used to reduce state tax liability.

Economic Development Set-Aside Program: Business expansion and attraction projects may qualify for discretionary state funds for road, water/sewer infrastructure and site improvements.



Sales Tax: 6%


SOU

TH C

AR

OLIN

A

JOB TRAINING ReadySC and Apprenticeship Carolina: These two programs provide recruiting, training, and

workforce development tools through the South Carolina Technical College System. Through the

Apprenticeship program, eligible businesses can also receive a tax credit of up to $1,000 for each

registered apprentice employed for at least 7 months during a year. This credit may be claimed for

up to 4 years.

TAX EXEMPTIONS

Sales Tax Exemption: Inventories, intangible personal property, R&D equipment, manufacturing equipment, and industrial electricity are exempt from sales tax. Construction materials used to construct a $100+ million manufacturing or distribution facility are exempt from sales and use tax. Data Centers: Businesses that operate data centers may receive exemptions from sales and use taxes

in exchange for investing at least $50 million (or $75 million at a multi-tenant facility) and creating at

least 25 jobs with an average wage that is 150% of the county or state per capita wage, whichever is

lower.

Updated June 2017



Sales Tax: 7%


TENN

ESSEE

TAX CREDITS Job Tax Credit: Businesses that create at least 25 net new jobs within a 3-year period and make a

capital investment of at least $500,000 qualify for a one-time corporate income tax credit of $4,500

per job. The tax credit can be used to offset up to 50% of franchise and excise (F&E) tax liability in

any given year. Job Tax Credits are non-refundable and non-transferable, however businesses with

inadequate tax liability may carry forward unused credits for up to 15 years. Companies that qualify

for the Job Tax Credit and are located in Tier 2 or Tier 3 Enhancement Counties, may receive an

additional incentive called the Enhanced Job Tax Credit. The enhanced credit is equal to $4,500 per

job, per year for 3 years for projects located in Tier 2 counties and $4,500 per job, per year for 5 years

if a business is located in a Tier 3 county. Enhanced credits may be used to offset up to 100% of tax

liability in a given tax year, however unused credits cannot be carried forward.

Industrial Machinery Tax Credit: Credit of 1% to 10% for the purchase, third party installation and

repair of qualified industrial machinery. In addition to industrial equipment, the corporate income

tax credit is also available for businesses that purchase equipment for warehouse and distribution

facilities, corporate headquarters operations and call centers.

GRANTS FastTrack Infrastructure Program: Provides discretionary grants to local communities for public

infrastructure improvements that will benefit at least one company that has committed to creating

net new full-time jobs and making a capital investment in a business facility.

FastTrack Economic Development Fund: Discretionary grants may be provided to local government

agencies to reimburse a business for project-related expenditures that are not covered by grants

offered by the FastTrack Infrastructure and FastTrack Job Training programs. The grant can help

offset expenses such as relocation of equipment, temporary office space, capital improvements and

retrofitting. To qualify, a business must create net new full-time jobs and make a capital investment.

TRAINING PROGRAMS

FastTrack Job Training Assistance Program: Reimbursable grants that cover up to 50% of new employee training costs are available for businesses that create net new full-time jobs. The amount of funds awarded under this discretionary program will be based on the level of new job creation, amount of capital investment, and new employee wages.

TAX EXEMPTIONS

Sales Tax Exemptions: Available on industrial machinery, energy, fuel and water used at a

manufacturing facility. In addition, businesses that meet certain capital investment and job creation

requirements are entitled to a sales tax exemption on equipment purchased for use at a corporate

headquarters, call center, data center, and warehouse and distribution facility.

Updated June 2017



Sales Tax: 6.25%


TEXA

S

GRANTS Texas Enterprise Fund (TEF): Discretionary cash grants may be available to businesses that create at

least 25 new jobs in rural areas or 75 jobs in metropolitan areas. To qualify for incentives under this

“deal closing fund,” the wages for the jobs should be above the average wage in the county where

the project would be located. The amount of the TEF award will be determined by several factors

including average project wages, number of net new jobs, capital investment, community support,

and the availability of program funds.

TRAINING PROGRAMS

The Skills Development Fund: Discretionary grants may be provided to public community and

technical colleges that develop customized job training programs for businesses that want to train

new workers or upgrade the skills of existing employees. Administered by the Texas Workforce

Commission, the average training costs reimbursed are $1,800 per trainee and up to $500,000 for a

business, however the actual benefit will depend on the project.

SPECIAL ZONING

Enterprise Zone: Businesses that establish operations in an Enterprise Zone are eligible to receive refunds on state sales and use tax for qualified expenditures.

TAX EXEMPTIONS

Sales and Use Tax Exemptions: Available to taxpayers who manufacture, fabricate, or process

tangible property for sale; manufacturing companies are also exempt from paying state sales/use tax

on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal

property.

Freeport Exemption: Property tax exemptions are available for various types of goods that are

detained in Texas for 175 days or less. The goods must be in Texas only for a limited purpose such

as assembly, storage, manufacturing, processing or fabricating. This exemption is available in select

areas only.

Manufacturing Exemption: Equipment purchased for use in the manufacturing process is exempt

for the state sales and use tax.

Data Center Tax Exemption: Data Center projects that result in the creation of at least 20 qualifying

jobs and a capital investment of $200 million over a 5-year period can qualify for an exemption on

sales and use tax.

Research and Development Tax Credit/Exemption: Provides qualified businesses with the option of

selecting either a sales tax exemption on property purchased for purposes of R&D or a franchise tax

credit equal to 5% of the difference between the qualified research expense and the base period.

The total credit cannot exceed 50% of franchise tax liability.

Updated June 2017



Sales Tax: 5.3%


VIR

GIN

IA

TAX CREDITS Major Business Facility Job Tax Credit: Businesses that expand in or relocate to Virginia may qualify

for an income tax credit equal to $1,000 for each new full-time job created over a threshold number

of 50 jobs. A company that is located in an enterprise zone or another economically distressed area

is subject to a lower threshold of 25 new jobs. The credit is taken in equal installments over 2

years. Credits are non-refundable and non-transferable; however unused credits may be carried


Refundable Research and Development Expenses Tax Credit: This program provides an as-of-right corporate income tax credit equal to 15% of the first $300,000 in Virginia qualified R&D expenditures incurred during a taxable year. If the qualified R&D was conducted in partnership with a Virginia college or university, the tax credit is increased to 20% of the first $300,000 in expenditures. Effective for taxable years on or after January 1, 2016, a taxpayer may elect to calculate the credit for this program as 10% of the difference of the taxable year’s qualified research and development expenses and 50% of the average of the previous three years of expenses. If no research and development expenses were incurred in any one of the previous three years, the credit is equal to 5% of the qualified expenses during the relevant taxable year. Regardless of calculation method, the credit shall not exceed $45,000 for any year. The only exception is if the research is conducted in conjunction with a Virginia college or university. In this case the credit may not exceed $60,000. If the amount of credit that a business is entitled to claim exceeds its Virginia tax liability, the excess amount may be refunded to the company. Major Research and Development Expenses Tax Credit: For taxable years beginning on or after

January 1, 2016, but before January 1, 2022, a taxpayer with Virginia R&D expenses in excess of $5

million for the taxable year will be allowed a credit against the Virginia corporate income tax for

qualified R&D expenses incurred in Virginia. Businesses may claim a tax credit equal to 10% of the

difference of the taxable year’s qualified R&D expenses and 50% of the average of the previous three

years of expenses. If no R&D expenses were incurred in any one of the previous three years, the

credit is equal to 5% of the qualified expenses during the relevant taxable year. The amount of the

credit cannot exceed 75% of the taxpayer’s tax burden for any taxable year. Any credit not usable

may be carried forward for up to 10 years.

Port Volume Increase Tax Credit: Virginia’s Port Volume Increase Tax Credit benefits manufacturing, distribution, agriculture, and mineral and gas companies that utilize Virginia’s port facilities. A company that increases its usage by 5% in a single calendar year over its base year of port cargo volume can claim a credit against its corporate income tax of up to $250,000. Any unused credits may be carried forward for up to 5 years.

GRANTS Commonwealth’s Opportunity Fund (COF): The Governor has the discretionary authority to provide

incentives under this “deal closing fund” program in competitive situations where Virginia is

competing against other states for business attraction and expansion projects. To qualify, a company

must satisfy minimum job creation, salary, and capital investment requirements which vary by

county. Discretionary grants are awarded to local governments who disburse funds for the benefit

of a company that is expanding in or relocating to that community.



Sales Tax: 5.3%


VIR

GIN

IA

Virginia Investment Partnership Grant (VIP): This discretionary performance-based incentive is

designed to encourage continued capital investment by manufacturers that have business

operations in Virginia for at least 3 years. To qualify, a company must invest at least $25 million and

maintain existing employment levels. The grant is disbursed in 5 equal installments over 5 years;

installments begin two or three years after investment and job creation are achieved, depending on

locality.

Major Eligible Employer Grant (MEE): Businesses that make a minimum capital investment of $100

million and create at least 1,000 new jobs (or 400 jobs if the average pay is at least twice the area’s

prevailing average wage) may receive a discretionary grant. The grant is disbursed in 5 to 7 equal

annual installments; installments begin three years after investment and job creation are achieved,

depending on locality.

Virginia Economic Development Inventive Grant (VEDIG): This discretionary grant is available to businesses that meet one of the following criteria:

Locate in a Metropolitan Statistical Area (MSA) with a population of at least 300,000 and create a minimum of 400 new full-time jobs with average salaries that are at least 1.5 times the average local prevailing wage or create 300 new full-time jobs with average salaries that are at least twice the average local prevailing wage;

Locate in a Metropolitan Statistical Area (MSA) with a population of at least 300,000 and make a capital investment of at least $5 million or $6,500 per job, whichever is greater;

Locate elsewhere in Virginia and create at least 200 new full-time jobs with average salaries at least 1.5 times the average local prevailing wage

Locate elsewhere in Virginia and make a capital investment of at least $6,500 per job Rail Industrial Access Program: This program provides funds to construct railroad tracks to new or substantially expanded industrial and commercial projects having a positive impact upon economic development in Virginia. Financial assistance to any one county, city, or town is limited to $450,000 in any one fiscal year, and the locality may utilize the entire allocation for one project. The state will provide a maximum of $300,000 in unmatched funds. Up to $150,000 in additional funds are available if matched by the community on a dollar-for-dollar basis. Economic Development Access Program: The Virginia Department of Transportation (VDOT) administers this program that assists localities in providing adequate road access to new and expanding basic employers. The maximum award for an economic development access road is $500,000. However, the state will fund an additional $150,000 if the amount is matched on a dollar-for-dollar basis from sources other than VDOT. The amount of the award is limited by the eligible capital investment of the company and the estimated cost of the access road.



Sales Tax: 5.3%


VIR

GIN

IA

TRAINING PROGRAMS

Virginia Jobs Investment Program - Virginia New Jobs Program: Businesses that make a minimum

capital investment of $1 million and create 25 or more full-time jobs within 12 months that pay at

least 1.35 times the federal minimum wage may receive a cash grant to cover a portion of training

costs.

Virginia Jobs Investment Program - Workforce Retraining Program: Available to companies

retraining at least 10 full-time employees and making a new capital investment of $500,000

(businesses with more than 250 employees company-wide) or 5 full-time employees and making a

new capital investment of $50,000 (businesses with less than 250 employees company-wide).

Enterprise Zone Real Property Investment Grant: Businesses that make a qualified investment in an

enterprise zone facility are eligible for a cash grant based on the excess above the minimum required

investment threshold (the threshold is $100,000 for rehabilitation or expansion projects and

$500,000 for new construction projects).

Tobacco Region Opportunity Fund: Assists with the location of companies in Virginia’s tobacco

producing regions. This program provides discretionary cash grants to local governments to assist

with the recruitment of economic development projects. To qualify, a project must have a minimum

private capital investment of $1 million and result in the creation of at least 10 jobs within a 3-year

period.

Technology Zones: Virginia cities, counties, and towns have the ability to establish, by ordinance,

one or more technology zones to attract growth in targeted industries. Qualified businesses locating

or expanding operations in a zone may receive local permit and user fee waivers, local tax incentives,

special zoning treatment, or exemption from ordinances.

SPECIAL ZONING

Enterprise Zone Job Creation Grants: Qualified businesses that locate or expand in one of 46

Enterprise Zones may receive a cash grant if certain wage levels are met. An annual grant of up to

$800 per job may be provided for up to 5 years.

Enterprise Zone Real Property Investment Grant: Businesses that make a qualified investment in an

enterprise zone facility are eligible for a cash grant based on the excess above the minimum required

investment ($100,000 to $500,000 depending on zone location).

TAX EXEMPTIONS

Sales & Use Tax Exemptions: All machinery, replacement parts, and materials used directly in the

manufacturing process are exempt from sales tax. Other items exempt from sales tax include

purchases used directly and exclusively in research and development; semiconductor clean rooms

and related equipment; and computer equipment associated with data centers.

Updated June 2017



Sales Tax: 6%


WEST V

IRG

INIA

TAX CREDITS Corporate Headquarters Relocation Credit: Businesses that relocate a corporate headquarters operation to West Virginia and create at least 15 new jobs are entitled to a tax credit equal to 10% of qualified investment. The non-refundable and non-transferable credit can be used to offset up to 100% of business and occupation tax and corporate net income tax liability for a period of up to 13 years. Economic Opportunity Tax Credit: Companies that create at least 20 new jobs and make a qualified investment in a business facility may offset up to 80% of the corporate net income tax attributable to that qualified investment. If a company creates 20 new jobs with an annual median wage above the statewide average, it may offset up to 100% of the corporate net income tax attributable to the qualified investment. High-Tech Manufacturing Credit: Businesses that create at least 20 new jobs and manufacture certain computers and peripheral equipment, electronic components or semi-conductors may receive a tax credit to offset 100% of the business and occupation tax and corporate net income tax for 20 consecutive years.

TAX EXEMPTIONS

Sales & Use Tax Exemption: Materials and equipment purchased for direct use in manufacturing and Research and Development are exempt. High Technology Valuation Act (Data Centers): Tangible personal property, including servers, directly used in a technology or internet advertising business has a reduced assessment of 5% of its original cost for business personal property tax purposes. Sales tax is eliminated from all purchases of prewritten computer software, computers, computer hardware, servers, building materials and tangible personal property for direct use in a technology or internet advertising business.

LOW-INTEREST LOANS AND FINANCING

West Virginia offers a variety of indirect and direct loan programs that may be used for the acquisition of land, buildings, and equipment. The state can also provide customized financing through federal tax-exempt industrial revenue bonds.

JOB TRAINING Governor’s Guaranteed Work Force Program: This program provides customized job training to businesses that create at least 10 net new jobs within a 12-month period.

Updated June 2017


Sales Tax: 5.6%


AR

IZON

A


GRANTS Arizona Competes Fund: Deal closing fund that awards discretionary grants to businesses that create

new jobs with wages at or above the median county wage. At least 25% of funding appropriated each

year is restricted to business attraction and expansion projects located on tribal lands or outside of

Maricopa County (Phoenix), or both. Businesses that locate or expand in counties along the Arizona-

Mexico border, counties with military facilities, and on tribal lands are given priority consideration

for funding.

TAX CREDITS

Quality Jobs Tax Credit: Corporate income tax credits of up to $9,000 per job are available to

businesses that make capital investments and create jobs that meet specific wage requirements. The

program was modified in 2017 to allow businesses that make lower capital investments but create

higher paying jobs to be eligible for the incentive.

Businesses that locate or expand in urban areas must meet one of the following capital investment,

job creation, and wage requirements to participate in the program:

Make a minimum capital investment of $5 million and create at least 25 jobs with wages at

100% of the county median wage where the project is to be located

OR

Make a minimum capital investment of $2.5 million and create at least 25 jobs with wages

at 125% of the county median wage where the project is to be located

OR



OR

Make a minimum capital investment of $500,000 and create at least 25 jobs with wages at


Businesses that locate or expand in rural areas must meet one of the following capital investment,

job creation, and wage requirements to participate in the program:



OR



OR



Tax credits are disbursed in 3 equal installments of up to $3,000 per year for up to 3 years and are

non-refundable and non-transferrable. Unused credits can be carried forward for up to 5 years.


Sales Tax: 5.6%


AR

IZON

A


Qualified Facility Tax Credit: Refundable tax credits are available to qualified businesses that make

investments and create net new full-time jobs at manufacturing, corporate headquarters or R&D-

related manufacturing facilities. To qualify for the incentive, at least 51% of the net new full-time jobs

must have wages at or above 125% of the Arizona median wage for production occupations (reduced

to 100% of median wage if project is located in rural area) and the company must pay at least 65% of

employee’s health insurance premiums or membership costs. Tax credits are authorized on a first-

come, first-served basis with the maximum credit amount equal to the lesser of: 10% of the total

qualified investment made at the facility; or $20,000 per qualified job created; or $30 million per

taxpayer, per year. Tax credits are claimed in 5 equal installments over 5 consecutive taxable years.

Research and Development Income Tax Credit: Provides refundable and non-refundable state

income tax credits for qualified R&D activity in Arizona.

TAX EXEMPTIONS Sales Tax Exemption: Machinery and equipment used directly in manufacturing or research and

development are exempt from sales tax.

Computer Data Center Tax Exemption: A capital investment made in the establishment or expansion

of a data center that exceeds $25 million ($50 million in Maricopa and Pima counties) is eligible for

Transaction Privilege Tax (TPT) and Use Tax exemptions for up to 20 years. The definition of eligible

capital investment was recently expanded to include leased land, buildings, modular data centers,

and computer data center equipment.

Updated June 2017


Sales Tax: 7.25%


CA

LIFOR

NIA


TAX CREDITS

California Competes Tax Credit: This discretionary program offers non-refundable corporate income tax credits to businesses that create new jobs and make capital investments. Companies must apply for tax credits during one of several open application periods that are held several times a year. Businesses that can demonstrate a project will provide an attractive cost-benefit ratio to the state (defined as the amount of credit requested divided by employee compensation and capital investment over a five-year period) are more likely to be approved for incentives. Projects that provide a less attractive cost-benefit ratio may still be considered for tax credits in the following scenarios: existing jobs are at risk of being eliminated or relocated out of California; California is competing against another state for a new or expanded business operation; at least 75% of the new positions to be created in California will be located in an area of high unemployment or high poverty. Program restrictions limit the amount of tax credits claimed by any single business to no more than 20% of all credits awarded during a fiscal year. Unused credits may be carried forward for up to 6 years. New Employment Hiring Tax Credit (NEC): This program is available to businesses that create net new jobs with hourly wages between 1.5 and 3.5 times the state minimum wage. Businesses must be located in a Designated Geographic Area (DGA). A DGA includes census tracts with the state’s highest poverty and unemployment rates, former Enterprise Zones (low poverty zones are ineligible) and former Local Agency Military Base Recovery Areas (LAMBRAs). Businesses that locate in PILOT areas - select locations within the DGA certified by the State – are subject to a lower wage threshold to qualify for the program. The value of the New Employment Credit is determined by multiplying the qualified wages for all eligible employees by 35. The maximum credit is $56,000 per employee over 5 years. To receive the credit, businesses must hire employees that meet the following criteria:

• Unemployed for six (6) months before hire • Veterans within one-year of separation from U.S. Armed Forces • Earned Income Tax Credit recipients • Ex-offenders convicted of a felony • Recipients of CalWorks and/or other welfare assistance programs

Tax credits are non-transferable and non-refundable. Unused credits may be carried forward for 5 years or until the credit is exhausted, whichever occurs first. California Research and Development Tax Credit: Provides a non-refundable tax credit of 15% against corporate income or franchise tax liability for qualified in-house research expenses and a 24% credit for basic research payments to outside organizations. An alternative incremental rate may be selected, as well. Unused credits can be carried forward until none remain, and may also be assigned to an affiliated corporation.

TAX EXEMPTIONS

Manufacturing and R&D Partial Sales and Use Tax Exemption: All manufacturers and businesses primarily engaged in R&D related to the physical, engineering, and life sciences are eligible for a partial exemption in state sales and use tax (3.9375%). The partial exemption only applies to the state sales tax rate – businesses are still subject to local sales tax. California caps the amount of equipment that a business may exempt from state sales tax to $200 million of equipment per year.

Updated June 2017


Sales Tax: 2.9%


CO

LOR

AD

O


GRANTS Strategic Fund Incentive: This discretionary program offers cash grants ranging from $2,500 to

$5,000 for each new job created and retained for one year. To qualify, a business must create jobs

that pay an average wage that is at or above 100% of the average wage of the county where the

project is located. Local governments must provide matching funds for a business to be eligible for

this program.

TRAINIING PROGRAM

Colorado FIRST and Existing Industry Customized Job Training Programs: Colorado FIRST program

offers job training grants of up to $1,200 per job for businesses that are expanding in or relocating

to Colorado. Grants of up to $1,000 per job are available to qualified existing businesses that are

implementing new technologies. A minimum of 40% of the total training costs must be covered by

the company.

TAX CREDITS

Job Growth Incentive Tax Credit (JGITC): Businesses that create at least 20 new jobs with wages at

or above the average wage of the county where the project is located may receive a corporate

income tax credit. The credit is equal to 50% of the FICA or payroll taxes the company pays for new

hires. Credits may be claimed for up to 8 years and are non-refundable and non-transferable. Unused

credits may be carried forward for up to 10 years.

SPECIAL ZONING

Enterprise Zone Program: Businesses that locate in an Enterprise Zone may qualify for the following

non-refundable corporate income tax credits:

Investment Tax Credit (ITC): 3% of equipment purchases

Job Training Tax Credit: 12% of qualifying training expenses

New Employee Credit: $1,100 per job

R&D Increase Tax Credit: 3% of increased R&D expenditures

Vacant Commercial Building Rehabilitation Tax Credit: 25% of rehab expenditures

To encourage investment in the state’s most rural and economically distressed areas, Rural Enhanced

Enterprise Zones have been created. Businesses that locate in Rural Enhanced Enterprise Zones may

receive larger tax credit amounts and additional benefits than those offered under the Enterprise

Zone program.

TAX EXEMPTIONS

Sales and Use Tax Exemptions: An exemption of state sales and use taxes is available for purchases

of manufacturing machinery, machine tools, and parts.

Updated June 2017


Sales Tax: 6%


IDA

HO


TAX CREDITS

Tax Reimbursement Incentive (TRI): Businesses that create new full-time jobs with wages at or above the county average may be eligible for a tax reimbursement of up to 30% of payroll, sales and income taxes for a negotiated period of up to 15 years. To qualify, companies must create at least 20 jobs in rural areas or 50 jobs in an urban setting. Unused tax credits are refundable. Business Advantage Tax Credits: Companies that invest at least $500,000 in a business facility and create 10 new jobs with an average salary of $40,000 are eligible to receive corporate income tax credits. Under this program, companies may also be eligible for an Enhanced Investment Tax Credit of 3.75%, a 2.5% Real Property Tax Improvement Credit (up to $125,000 in any given year), a 25% Sales Tax Rebate on construction materials, and up to a 100% Property Tax Exemption for 5 years. Investment Tax Credit: Businesses that make qualifying new investments may earn a 3% income tax credit that can be used to offset up to 50% of a company's state income tax liability. The credit can be carried forward up to 14 years. R&D Tax Credit: Businesses that conduct qualified research may be eligible for a 5% income tax credit that can be carried forward for up to 14 years.

GRANTS Idaho Opportunity Fund: This $2 million program offers grants to support infrastructure development projects. Workforce Development Training Fund: Cash grants for workforce training expenses are available to businesses that create at least 5 new jobs with wages of at least $12 an hour. The value of the training fund incentive is up to $3,000 per job. Infrastructure Improvement Grants: Grants of up to $350,000 are available to help communities expand infrastructure capacity.

TAX EXEMPTIONS

Large Business Property Tax Cap: Businesses that invest at least $1 billion in capital improvements are eligible to receive property tax exemptions on all property valued in excess of $400 million. $100,000 Personal Property Tax Exemption: Businesses are allowed an exemption on the first $100,000 of “personal property,” such as equipment and furnishings. Large Employer Property Tax Cap: Businesses that employ at least 1,500 employees within an Idaho county and make a yearly capital investment of $25 million within that county are eligible to receive a property tax exemption on property values in excess of $800 million. Production Sales Tax Exemption: Businesses that purchase equipment and raw materials used directly in manufacturing, processing, mining, fabrication, logging, or semiconductor are eligible for a sales tax exemption Sales & Use Tax Exemption: Applies to equipment used in manufacturing, processing, and mining, as well as equipment or materials used in R&D.

Updated June 2017


Sales Tax: 6.85%


NEV

AD

A


TAX ABATEMENTS

Modified Business Tax Abatement: New businesses that make a capital investment of at least $1 million in Clark (Las Vegas) or Washoe (Reno/Sparks) counties and create at least 50 jobs with wages at or above the statewide average may receive a 50% abatement of the Modified Business Tax. Existing businesses that expand in Clark or Washoe counties as well as new or expanding businesses located in Nevada’s rural counties (defined as the rest of the state) may also receive a partial abatement and are subject to lower capital investment and job creation thresholds. The Modified Business Tax is imposed by the state on employers and is equal to 1.475% on taxable wages over $50,000 in a quarter. Qualifying businesses may receive the abatement for up to 4 years. Partial Sales and Use Tax Abatement: New businesses that make a capital investment of at least $1 million in Clark or Washoe counties and create at least 50 jobs with wages at or above the statewide average may receive a partial abatement of sales and use taxes for the purchase of capital equipment. The abatement is equal to approximately 75% to result in an effective sales and use tax rate of 2%. Existing businesses that expand in Clark or Washoe counties as well as new or expanding businesses located in Nevada’s rural counties may also receive a partial abatement and are subject to lower capital investment and job creation thresholds. Personal Property Tax Abatement: New manufacturing businesses that make a minimum capital investment of $5 million in Clark or Washoe counties and non-manufacturing businesses that are new to Nevada and make a minimum capital investment of $1 million may receive a 10-year, 50% abatement on business personal property taxes. To qualify for the incentive, a business must create at least 50 jobs with wages at or above the statewide average. Existing businesses that expand in Clark or Washoe counties as well as new or expanding businesses located in Nevada’s rural counties may also receive a partial abatement and are subject to lower capital investment and job creation thresholds. Data Center Tax Abatement: Companies that build new data centers or expand existing operations may receive abatements equal to 75% of sales and use taxes and 75% of business personal property taxes for up to 20 years. To qualify, a business must invest at least $25 million over 10 years for new and expanded facilities or $100 million over 20 years. A minimum of 10 jobs with wages that meet or exceed the statewide average must be created to receive the 10-year abatement. To be obtain the 20-year abatement, a company must create at least 50 jobs with wages that are at or above the statewide average.

TRAINING PROGRAMS

Workforce Innovation for the New Nevada (WINN): The Workforce Innovation for the New Nevada (WINN) program helps fund job training programs for qualifying employers.

GRANTS Catalyst Fund: This discretionary program offers post-performance transferable tax credits to support business attraction and expansion projects that involve significant capital investment and job creation. Funds are disbursed in equal installments over a 5-year period.

Updated June 2017


Sales Tax: 5.125%


NEW

MEX

ICO


TAX CREDITS

High Wage Jobs Tax Credit: Refundable corporate income tax credit equal to 10% of wages and

benefits paid for each job created and retained for a 48-week period. The position must have an

annual salary of at least 40,000 (project located in community with fewer than 60,000 residents) or

$60,000 (project located in community with more than 60,000 residents) to qualify for the

incentive. The credit can be taken for 4 years and the amount of credit claimed each year cannot

exceed $12,000 per job.

Rural Jobs Tax Credit: Non-refundable corporate income tax credits equal to $1,000 per job, per year

are available to manufacturers that locate in rural communities. Credits may be claimed for 2 or 4

years depending on the tier of the county. Unused credits may be carried forward for up to 3 years.

Investment Tax Credit for Manufacturers: Non-refundable corporate income credit equal to 5.125%

of the value of qualified equipment.

TRAINING PROGRAMS

Job Training Incentive Program (JTIP): Provides reimbursable grants to cover training costs for newly

created jobs. Reimbursements range from 50%-75% of employee wages and travel expenses.

GRANTS LEDA Grants: The Local Economic Development Act (LEDA) allows municipalities in conjunction with

the State to award discretionary cash grants to support infrastructure development and business

attraction efforts that are consistent with local and regional economic development plans.

Updated June 2017


Sales Tax: None


OR

EGO

N


TAX CREDITS Oregon Investment Advantage: Qualified companies that establish a new business operation in one

of 20 eligible counties and create at least 5 full-time jobs have the ability to annually deduct or

subtract taxable income related to the new business operation for a multi-year period. These

deductions can potentially eliminate state income tax liability for the years in which they are taken.

Qualified Research Activities Credit: Provides a corporate income tax credit for qualified R&D expenditures. The state credit is based on the federal R&D credit computation.

TAX ABATEMENTS

Strategic Investment Program (SIP) Property Tax Abatement: Manufacturers and other “traded

sector” businesses that make a significant capital investment may qualify for a 15-year abatement

on real property taxes.

GRANTS Business Expansion Program (BEP): Forgivable loans may be provided to businesses that create at least 50 new full-time jobs with wages at or above 150% of the state or county average wage, whichever is less. The amount of the forgivable loan is equal to the estimated increase in personal income tax revenue over two years resulting from the new job creation.

JOB TRAINING Governor’s Strategic Training Fund: The state can provide job training grants to companies that create living wage jobs.

SPECIAL ZONING Enterprise Zones: Businesses locating or expanding in one of 69 Enterprise Zones may be eligible for an exemption of real property taxes on new plant and equipment for up to 5 years. The State provides a “Construction-in-Process” exemption for up to 2 years when qualified property may be exempt from local taxation before it is placed in service. In addition, an extended 15-year property tax exemption is available for companies that locate or expand in one of 54 rural enterprise zone locations.

TAX EXEMPTIONS

Income Tax Exemption: Businesses that relocate to one of 22 rural counties are eligible to receive

a 10 year waiver on all income and excise taxes. To qualify, companies must create at least 5 jobs

and cannot have existing operations anywhere within the state.

Updated June 2017


Sales Tax: 5.95%


UTA

H


GRANTS Industrial Assistance Fund (IAF): Discretionary, post-performance grants are available to companies that create at least 50 high paying jobs. To qualify, the wages of the newly created jobs must be at least 110% of the county average wages within both rural and urban communities and the company must operate within one of the state’s targeted industry sectors. Corporate headquarters projects are also eligible.

SPECIAL ZONING

Enterprise Zone Tax Credits: Businesses that locate in Enterprise Zones and create new jobs are

eligible for corporate income tax credits valued at $750 per job with an additional $500 if the newly

created job has wages at or above 125% of the average county wage. Other incentives include a 25%

credit on the first $200,000 invested in renovating a vacant building and an annual 10% credit on the

first $250,000 invested in a manufacturing facility. An additional credit of 5% is available for

investment exceeding $1 million in manufacturing plant and equipment. All credits are non-

refundable and non-transferable. Unused credits may be carried forward for up to 3 years.

TAX CREDITS EDTIF Tax Credit: Businesses that locate in Economic Development Zones may be eligible to receive

refundable, post-performance tax credits. The value of the EDTF credit is up to 30% of new state

revenues generated by a business attraction or expansion project over a typical period of 5 to 10

years. To qualify, a business must create at least 50 jobs with wages that meet or exceed 110% of

the county average wages within both rural and urban communities. This discretionary program is

available to businesses that operate within one of the state’s targeted industry sectors.

Research Activities Credits: Businesses engaged in qualified R&D may be eligible for one (or more)

of the following non-refundable income tax credits:

5% of qualified R&D research expenses in Utah for the current tax year that exceed a base amount

5% of payments made to a qualified organization for basic research in Utah for the current taxable year that exceed a base amount (unused credits may be carried forward for up to 14 years)

7.5% of qualified research expenses for the taxable year (unused credits cannot be

carried forward)

JOB TRAINING Custom Fit Training: Discretionary grants may cover up to 50% of job training costs, and are

administered through Utah’s community college system.

TAX EXEMPTIONS Sales & Use Tax Exemptions are available for new and replacement manufacturing equipment.

Updated June 2017


Sales Tax: 6.5%


WA

SHIN

GTO

N


TAX CREDITS

Multiple Activities Tax Credit (MATC): Businesses that perform more than one taxable activity for

the same product are ordinarily subject to the state’s Business and Occupancy (B&O) Tax multiple

times to reflect each taxable activity. To avoid being taxed multiple times, the State allows

companies to take a credit so that the B&O tax is only paid once for the same product.

TRAINING PROGRAMS

Washington Customized Training Program (CTP): The State Board for Community and Technical

Colleges (SBCTC) provides interest-free training loan assistance to businesses. Upon completion of

the job training, the company is required to pay the SBCTC for the cost of training. The State then

provides a tax credit equal to 50% of a company’s B&O tax. Unused credits may be carried forward

until July 1, 2021.

SPECIAL ZONING

Rural County/CEZ Business and Occupation (B&O) Tax Credits: Businesses that locate or expand in

rural counties or community empowerment zones are eligible to receive certain B&O Tax credits.

Manufacturing, R&D, and computer service firms (including data centers) that create new jobs may

receive an as-of-right tax credit of up to $4,000 per job. The tax credit may be claimed for up to 5

years.

EXEMPTIONS DEFERRALS

Sales and Use Tax Exemption: Exempts sales and use tax on machinery and equipment used directly

in data centers, manufacturing, research operations, in generating electricity using fuel cells, wind,

solar or landfill gas energy, and for the labor and services necessary to install such equipment.

Updated June 2017


Sales Tax: 4%


WY

OM

ING


GRANTS Workforce Development Training Fund: The State provides two major types of training grants, the Business Training Grants and the Pre-Hire Economic Development Grants. The Business Training Grants provide opportunities for Wyoming’s new or existing businesses to create new jobs or to complete necessary skill upgrades to stay competitive. The State may award a grant of up to $4,000 per trainee. The Pre-Hire Economic Development Grants provide pre-employment, industry-specific skills training to develop a work force for businesses or industry when there is a shortage of skilled workers. Business Ready Community Grant and Loan Program: Cities, towns, counties, and joint powers boards are eligible to receive grants and loans to stimulate economic development at the local level. The typical maximum award is $1.5 million with a 10% match. These incentives can be used for public infrastructure projects in which a business is committed to locate or expand in the community. Grants and loans can also be made available for projects in which a community wants to build facilities or install infrastructure to prepare for new business development under a specific strategy or plan of action.


Industrial Development Revenue Bonds: Cities and counties may issue Industrial Development Revenue Bonds to provide financing to promote economic growth within the state, and to create jobs for in-state residents. The maximum amount of bonds that can be issued for a project is $600,000,000 and the business must provide a bank “letter of credit” to guarantee payment of the bonds.

TAX EXEMPTIONS

Sales Tax Exemption: Fuel for transporters and fuel or power consumed directly in manufacturing or processing is exempt from sales tax. The lease or sale of manufacturing machinery used directly and predominately in the manufacturing process is also exempt from sales/use tax. Property Tax Exemption: Personal property in transit in interstate commerce, as well as goods manufactured or assembled in Wyoming when the final destination is out of state, is exempt from property tax. Pollution-control equipment is exempt from property tax.

RENEWABLE ENERGY CREDIT

WyoRECs Renewable Energy Credit Discount Program: Offers discounted renewable energy credits to companies interested in taking advantage of green energy to power expanding operations.

Updated June 2017

BIGGINS LACY SHAPIRO & COMPANY is distinguished by our multi-disciplinary approach to helping companies successfully plan and execute location strategies, including Incentives Advisory, Site Selection and Energy Procurement. These services allow us to meet our core mission of devising win/win strategies that create value for our clients, while also enabling our clients to build and maintain strong ongoing relationships with their host communities.

INCENTIVES ADVISORY SERVICES Structuring and Negotiations: We identify all incentives that might be available to a project; evaluate if a company will be able to efficiently use the benefits; and negotiate with public entities to achieve the optimal balance between value and business flexibility for each relevant program. We do so while closely coordinating with our clients’ real estate due diligence, acquisition and disposition process, and by crafting a communications strategy and protocols to protect project confidentiality and ensure a company’s public relations standing. Compliance and Administration: Incentives awarded for a project typically involve substantial procedural requirements, necessitating the establishment of monitoring, reporting and compliance systems. We work with clients to provide a post-closing “roadmap” of all reporting and claiming requirements and can manage these compliance activities on an annual cycle over the life of the particular grant or tax credit. Tax Credit Sales: We frequently are able to arrange the sale of any unused tax credits when state programs allow such transfers or sales. We provide advice and support in connection with the initial filing and approvals required to issue a tax credit certificate.

LOCATION ADVISORY SERVICES Site Selection: We help clients optimize their location choices via deep process expertise, problem solving skills and situational awareness. We employ the most effective analytical tools and databases available to evaluate labor markets, logistics, costs, regulatory environments and other critical location variables. We carefully integrate site selection with business incentives and real estate negotiations, and our clients’ overall project schedules. Logistics & Supply Chain Optimization: Integral to many industrial location decisions is the evaluation of transportation costs, shipping methods and service levels for existing and proposed manufacturing, assembly, and warehousing locations. BLS & Co. helps manufacturers address issues related to supply chain including transportation cost analysis and comparison, network optimization, evaluation of number and location of plants, supplier identification, waste reuse/disposal opportunities, and other concerns. ENERGY PROCUREMENT SERVICES BLS & Co. also helps clients manage utility and energy-related issues including negotiation of electric power and natural gas contracts and rates and incentives; evaluation of site utility infrastructure; and analysis of power reliability and redundancy requirements and utility options.

www.BLSstrategies.com

PRINCETON, NJ

47 Hulfish St.

Suite 320

Princeton, NJ

(609) 924-9775

NEW YORK, NY

215 Park Ave South

14th Floor

New York, NY 10003

(646) 652-7555

CHICAGO, IL

30 S. Wacker Dr.

Suite 2200

Chicago, IL

(312) 924-2490

WALNUT CREEK, CA

1255 Treat Boulevard

Suite 300

Walnut Creek, CA 94597

(925) 239-1711

www.BLSstrategies.com

biggins lacy shapiro & company · to 80% for 5 years and a 10-year, 25% tax credit on the...

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