MULTI-STATE TAX CREDITS & INCENTIVES
In the current competitive economic environment, states continue to compete against each other to lure companies (and their employees) to the “right” state. Many states offer lucrative tax credits and incentives to do so.
We often see competitions play out in the media between states as big companies promise to open a new headquarters or significant manufacturing facility. Depending on the size of a deal, legislators at the state and local levels may even become involved. While these large deals often make the news, it’s important to note that states and communities also try to lure smaller companies; we can help with that.
How Can Miles Consulting Group Help With Your Tax Credits & Incentives?
We help companies identify, quantify and substantiate multi-state benefits available as a result of expansion or future expansion including:
- Increases in company headcount and training (e.g. hiring credits, training credits, grants and reimbursement programs)
- Investments in property, plant and equipment (e.g. investment tax credits)
- Increases in research and development activities (e.g. R&D credits)
- Expansions in enterprise zones, renaissance zones or similar targeted areas
What Exactly Are Tax Credits & Incentives?
Tax Credits
Tax credits and incentives focus on current (and sometimes retroactive) income tax benefits available to companies that meet specific requirements defined by statutes and regulations in a particular state.
If a company clears those hurdles, they are often able to take advantage of a variety of tax credits and incentives (such as hiring credits, investment credits and enterprise zone credits) for doing business within the jurisdiction. The specifics can vary greatly from state to state.
Statutory tax credits often have very specific parameters and companies must meet all of the requirements to qualify. They also have to be able to substantiate this under audit. Over the years, we have assisted clients in securing and documenting enterprise zone benefits, investment credits, manufacturing exemptions and others. Our deliverables include all the supporting documentation, which would be needed in a review by a state agency.
Negotiated Incentives
Negotiated incentives are generally contracted directly with the state or local community before a company expands into a given jurisdiction. Oftentimes, a company might pit one state against another to secure the best incentives. Negotiated incentives can therefore be more flexible and come in various forms, including infrastructure support, special financing arrangements, tax rebates, etc. In negotiating these types of benefits, it is important to have the right team of consultants working with the local jurisdictions. We partner with firms that help us provide this specialized knowledge for our clients.
Individual State Tax Credits & Incentives
Many states have some kind of tax credits or incentives program and the benefits can vary significantly. Our home state of California, has several available programs that your company may be eligible for (you learn about them on our California Tax Credits and Incentives page). Do you want to know which ones your business can take advantage of? We can help with that!
