State and Local Tax Credits & Incentives

Our Business Credits & Incentives team is ready to help with all state and local tax credits and incentives; including Statutory and Discretionary Tax Incentives. These types of tax incentives help with capital investment recovery through tax abatements and other incentives, assists to expand or pay for completed expansion projects, and may help to offset new hiring costs. When you partner with Eide Bailly, you’ll get access to many skilled professionals within one firm for all of your tax credits and incentives needs.

A retail organization recently made an $80M capital investment in a new distribution center, but the expansion expense was offset by a $20M tax incentive over a specified period consisting of both statutory and discretionary incentives. This is a prime example that illustrates the impact of benefiting from available State and Local Tax Credits and Incentives.

Types of Incentives

Statutory Incentives

Statutory incentives are an economic benefit earned by right if a company meets certain thresholds or performs certain activities. In some cases, these incentives can be retroactive but many of them must be applied for prior to making an investment.

State Incentives Examples

Arizona Enterprise Zone Credits
California Manufacturing Equipment Personal Property Tax Exemptions
Michigan Brownfield Redevelopment Credits
Oklahoma Specialized Qualified Investment Credits
Texas Data Center Property Tax Exemptions
Utah High-Cost Infrastructure Tax Credit

County Incentives Examples

Maricopa County, AZ – Government Property Lease Excise Tax
Hennepin County, MN – Business District Incentive
Clark County NV – Small Business Stabilization Grants
Dallas County TX – Abatements for new/expansion, grants, foreign trade zones, enterprise zones
Cass County, IA – Property Tax abatements, Tax Increment Financing, Economic Development Income Tax Fund

City Incentives Examples

Tulsa Oklahoma – Economic Development Infrastructure Fund and Retail Incentive
Waco Texas – Tax abatements for new/expansion, grants, Tax Increment Financing

Discretionary Incentives

Discretionary Tax Incentives are negotiated incentives and are at the state, county and local government’s discretion. Negotiation with state and local representatives from the local Economic Development Corporation (EDC) or local authorities must occur before plans for capital investment or hiring are made public and are key to success. We can help you determine your ideal wish list, highest priorities and requirements for site selection. Once we understand your needs, we’ll research available incentives for the desired locations and contact the EDC to inquire about potential Discretionary Incentives. Then, our team can negotiate on your behalf with the EDC or other authorities to provide the most favorable outcome possible.

There are many available types of discretionary incentives including, hiring credits, capital investment credits, sales and use tax abatement for project construction, cash grants, new employee training incentives, port incentives, property tax abatements, inventory tax abatements, hiring incentives, free land, utility and access construction. Working with the right firm can help position your new location or expansion for success.