Consultants Forum   |   FacilityLocations    |   FastFacility    |   Advertise   |   Subscribe   |   Newsletter   |   RSS RSS
Inward Investment Guides
Taxes and Incentives: Getting the Full Benefit of Government Funding
As states and municipalities face budget shortfalls, companies must commit more resources to securing tax exemptions and financial incentives - but the potential benefits are too large to ignore.
Joseph Calvanico, National Director for Property Tax and Valuation Services, Crowe Horwath and Dan Megathlin, Director, Crowe Horwath (March 2011)
 
As the economy continues to show encouraging signs of a long-term recovery, savvy manufacturers are continuing to evaluate how to reduce their operating costs. Government funds - in the form of tax exemptions, credits, and incentives - can deliver a substantial boost to an organization's bottom line and free up resources for other initiatives. While state and local governments offer a wide range of assistance, the environment is constantly evolving, presenting a complex, moving target for manufacturers that operate in multiple jurisdictions. Executives who understand the landscape, sources of funding, and available exemptions can capture the full benefit of government funding and gain a competitive advantage.


Click on any state in the above map for links to updated business incentives and tax resources

Ask Area Development

If you have questions about state-level tax exemptions and financial incentives, submit them below to Ask Area Development and the article authors will respond.
Recent Trends in Government Exemptions
Over the past couple of decades, state and local governments have increasingly offered a range of exemptions and incentives to lure manufacturers to their jurisdictions, retain facilities, and encourage hiring. Several competing factors have combined to create a highly fluid business landscape.

Rising competition among states - Government officials across the country have implemented policies to create a business-friendly environment to attract companies. Even during the recession, states and municipalities moved forward aggressively to offer exemptions, credits, and incentives as part of a long-term economic development strategy. For example, in 2009, Georgia reduced its application requirements for qualifying for the manufacturing exemption and significantly expanded the scope of machinery and equipment eligible for a sales and use tax exemption in an effort to gain an advantage over neighboring states.

Heightened commitment to the environment - To encourage manufacturing companies to adopt practices that protect the environment, state and local governments have instituted new exemptions for the purchase of equipment and machinery that reduces emissions and curbs water, air, and noise pollution. States from Connecticut to California are also offering credits for recycling, clean energy, and other sustainable practices. Despite budget shortfalls, these exemptions enjoy support from both parties.

    Page1 2 3  Next >>
 
X
Save/Share Article

About the Author

Joseph Calvanico, National Director for Property Tax and Valuation Services, Crowe Horwath
Joseph Calvanico, a LEED Green Associate, has been with Crowe Horwath LLP since February 2010, serving as the National Director for Property Tax and Valuation Services. Calvanico has almost 30 years of experience in real and personal property tax and valuation. He was a senior member of the GE Capital Real Estate team. Prior to that, Calvanico was a partner with one of the “Big Four” accounting firms and has spent 20 years in Public Accounting. Calvanico has worked in over 45 states and has experience in industries including manufacturing, utilities, assisted living, parking, hospitality, office buildings, residential subdivisions, and shopping centers. Representative clients include the Mall of America, NBC Tower, and the Plaza Hotel. Calvanico will earn an MS in Real Estate Law from Chicago's John Marshall Law School in 2011 and holds a BA in Economics from the University of Wisconsin, Madison.
Email
Dan Megathlin, Director, Crowe Horwath
Dan Megathlin is a Director for Crowe Horwath LLP who heads the Firm’s National Sales/Use Tax Practice. Megathlin has over 16 years of experience in the area of state and local taxation, specializing in transactional taxes. He has significant experience in helping deal with states in local tax matters in Florida, Georgia, Tennessee, North Carolina, and Alabama. Megathlin was formerly employed by the Florida Department of Revenue as a sales and use tax auditor and has spent the last 13 years in state and local tax consulting. Megathlin has a broad range of industry experience including manufacturing, hospitality, utilities, retail, transportation, and healthcare providers. He has contributed to many large state and local consulting engagements, including numerous sales and use tax reverse audit projects. He has also been involved with several significantly large sales and use tax audit protests and voluntary disclosure projects. Megathlin obtained his Bachelors degree from Palm Beach Atlantic College where he majored in Accounting. He is an active member of the Institute of Professionals in Taxation (IPT) and a Certified Member of the Institute (CMI). He regularly speaks on behalf of business and tax societies and organizations concerning specialized sales and use tax topics such as Streamlined Sales Tax Project; sales and use taxation of manufacturers and contractors; and defending against an audit.
Email
Have questions, comments or concerns about this article? Submit to Ask Area Development here and the author or an expert from our network of site selection and facility planning professionals will answer:
How is state-level budget uncertainty regarding taxes affecting site selection?
Site selection by businesses looking to relocate or start a new operation has been impacted by those states that have higher tax burdens as compared to their competitors. More
- Dan Megathlin, Director, Crowe Horwath
Are any states initiating new or expanded incentive programs? If so, which ones?
Many states have been aggressive. More
- Dan Megathlin, Director, Crowe Horwath
News Items
 
Around The Web
 
Studies/Research
News Items
 
Around The Web
 
Studies/Research
State Resource map
Click on any state for links to current state news and data, contact directory, corporate taxes, financial and business incentives, credits, grants and available buildings and sites
State Resource Sponsor