Amy Gerber, Executive Vice President, Jones Lang LaSalle and Matt Jackson, Strategic Consulting, Jones Lang LaSalle (September 2010)
The results of Area Development's 2009 Corporate Survey illustrated the importance of taxation when companies select locations for new operations. Tax exemptions and corporate tax rate were two of the top five site selection factors. Such ratings acknowledge the complexity and variability of the U.S. tax landscape, and the challenges companies face in assessing taxation's effects on projects.
Because every facility has a direct impact on a company's profits and losses, a thorough analysis of taxes is critical before deciding where to locate. Until the tax analysis is complete, a company will not understand the true cost of operating in a given jurisdiction, the difference in costs between jurisdictions, and the benefits economic development incentive programs represent.