Roundtable in the Desert
An Insider’s View of Site Selection
Craig S. Fisher Tax Incentives Consultants, LLC
Tax Incentives Consultants, LLC
This presentation will also discuss how consultants interact with clients who have an expansion, relocation or consolidation project.
This presentation will focus on the importance of incentives in the site selection process. This will include which types of programs companies are looking for, the impact of the “but-for” test, and the importance of creativity and flexibility in incentive programs.
In addition, the presentation will discuss the value of income tax related credits, how the Department of Revenue can play an important role in allowing as an incentive modifications to standard income tax rules, the importance of non-cash incentives and how Departments of Commerce and Revenue need to be coordinated so that incentives that are promised can be realized.
2
Tax Incentives Consultants, LLC
Overview Of Being A Successful Site Selection Consultant
Case Studies
Group Presentations/Discussions
How to Make It Work
What Companies Are Looking For
3
Tax Incentives Consultants, LLC 4
You Are the Site Selection Consultant
Tax Incentives Consultants, LLC 5
Tax Incentives Consultants, LLC
What are the Goals of being a Successful Site Selection
Consultant?
6
Tax Incentives Consultants, LLC 7
Tax Incentives Consultants, LLC
Clients
8
Tax Incentives Consultants, LLC
1. Companies / Businesses
2. Governments / Quasi-Governments
Federal
State
Regional Alliances
County
City
Utilities
9
Tax Incentives Consultants, LLC
Company / Business Relationships
Trust
“Success” as Defined by your Client
Recurring Engagements
Communication
Remember who’s the star
10
Tax Incentives Consultants, LLC
Government Relationships
Communication
Remember who’s the star
Trust
Work Ethic
11
Tax Incentives Consultants, LLC
Provide facts
Groups give short list of potential incentives for the project
Groups discuss potential political issues for the project and how to resolve them
Discuss applicability
12
Tax Incentives Consultants, LLC
Prospect A:
• Textile Manufacturing Company
• 150 Jobs in 3 different locations (cities)
• 50-75 new jobs over 3 years
• Large Propane/Natural Gas User
• Currently having propane delivered
• Potentially large maintenance expenses upcoming at facilities
• Looking in surrounding states
13
Tax Incentives Consultants, LLC
Prospect B:
• Distribution Center for manufacturer
• Will have tenant in part of the facility
• Need to make tenant improvements to facility
• 200 Jobs over 3 years, 400 jobs over 5 years
• $1 - 2 million capital expenditures
• Looking to geographically diversify workforce
• Need to train new workforce
• No previous connection to county/city
14
Tax Incentives Consultants, LLC
Prospect C:
• Specialty Furniture Manufacturer
• 40 - 50 Jobs
• $1-2 million capital expenditures
• Moved before finalizing incentives because of operational considerations, considerations no longer applicable
• Need to train new workforce
15
Tax Incentives Consultants, LLC 16
Tax Incentives Consultants, LLC
• Tax Credits
• Grants
• Training Assistance
• Property Tax Abatements
• Permits
• Other
17
Tax Incentives Consultants, LLC
• Trained Employees
• Flexibility
• Financial Support – offset start-up costs
• Programs that fit their project or business
• Creating a partnership
• Other
18
Tax Incentives Consultants, LLC
Incentives do not make the project.
Business needs to drive the location decision, not incentives.
While incentives will enhance the ROI on a good project, and make a good project better, they will not make a bad project a good project.
19
Tax Incentives Consultants, LLC
• Unclear or slow process
• Over-verifications
• Applications
• Surprises
• Politics
• Statutory Framework
• No flexibility or discretion
• “But-For” Test
• Coordination of Agencies
• Time Frame
20
Tax Incentives Consultants, LLC
Income Tax Credits: Job Tax Credit
Investment Tax Credit
Grants: Cost Reimbursements
Discretionary
Training: Done by State/County/City
Reimbursing Company Costs
21
Tax Incentives Consultants, LLC
Property Tax Abatements
Sales and Use Tax Abatements
State/County/City Financing Tax Increment Financing
Utility Rebates
Permitting / Licensing
Other
22
Tax Incentives Consultants, LLC
QUESTIONS
&
ANSWERS
23
Tax Incentives Consultants, LLC
THANK
YOU
24
Tax Incentives Consultants, LLC
Craig S. Fisher, JD, CPA
Experience:
Craig has over twenty years of experience providing economic development and state and local tax services to companies. He
has provided these services to manufacturers, media companies, pharmaceutical companies and retailers. Craig has assisted
clients in negotiating and obtaining favorable tax and economic incentives related to relocation or expansion plans. He has
guided clients through the process of acquiring transferable tax credits to reduce their state tax burden. He has also led teams in
the design and delivery of strategic business restructuring projects which have benefited his clients by reducing their overall
operating costs and their state tax liability. Additionally, Craig has extensive experience with consulting on income/franchise
tax, sales and use tax and unclaimed property issues for his clients and managing state tax audits.
Education
Juris Doctor, University of New Hampshire School of Law
Bachelor of Accountancy, The George Washington University
Professional Associations & Affiliations
Attorney at the Bar of the Courts of Connecticut
Maryland Certified Public Accountant
Managing Member, Charlotte, NC
704-995-6014
25