Economic Development Incentives

What are incentives?

• Economic development incentives are inducements offered by state, local and federal agencies to attract investment and job creation.
• Incentives are not “give away” programs; rather, they are investments by communities intended to generate a positive economic return.
• In a successful project, everyone wins- the business, the community and its citizens.

Who qualifies?

• Non- retail businesses creating more than 15 new jobs and investing in building improvements or capital equipment may be eligible to receive economic developement incentives.
• The level of incentives depends on many factors, including: the number of jobs to be created; average wage of the new jobs; proposed capital investment; type of industry; competition for the project; and project location.

Type of incentives

The types and value of incentives vary by community, with common incentives including:

• Corporate income Tax Credits
• Property Tax Abatement
• Subsidized Real Estate
• Discretionary Funds
• Infrastructure Grants
• Training Assistance
• Low- Interest Project Financing
• Reduced Permitting Fees

Triggers (fro economic development services)

If a company is:

• Adding Jobs
• Buying or Building a New Facility
• Considering Acquisition / Merger
• Relocating Operations
• Expanding / Downsizing Operations
• Purchasing Equipment
• Attempting to Use Existing Incentives

Tools

Potential Incentives

• Property Tax Abatement
• Job Tax Credits
• R&D Tax Credits
• Training Grants
• Public Infrastructure Assistance
• Tax Increment Financing
• Fast Track Approvals

Information provided by: Bingham Economic