Credits and Incentives Success Stories
Project
A food service processing company requested assistance in negotiating a new facility for production and warehousing in the Midwest. Project negotiation developed a Tax Incremental Financing District ("TIF") that allowed the community and state to flow cash grants to the company where this was not possible under the existing state program regulations.
Project Parameters
- Capital Expenditures for Buildings - $35.0 million
- Capital Expenditures for Equipment - $45.0 million
- Number of Employees - 234
Benefits Obtained
| Municipal Grant Under TIF (abatements and exemptions) |
|
$9,000,000 |
| Infrastructure TIF Grants |
|
$2,500,000 |
| Training Grants |
|
$100,000 |
| Refundable Income Tax Credit |
|
$2,600,000 |
| Infrastructure Grant |
|
$585,000 |
| Total |
|
$14,785,000 |
Benefit Measure
- Benefits equal $63,185 per retained employee
- Benefits equal 18.5% of total capital investment
Project
A manufacturing company was interested in establishing a new facility in the Southwest to be used for manufacturing and distribution to the various Midwest states. The new facility would be the primary point of customer deliveries for the company's product. Industrial Revenue Bonds were used to finance the property, but the interest rate savings are not included below.
Project Parameters
- Capital Expenditures for Buildings - $20.0 million
- Capital Expenditures for Equipment - $5.0 million
- Number of Employees - 350
Benefits Obtained
| Property Tax Abatement |
|
$6,000,000 |
| Sales Tax Exemptions |
|
$1,460,000 |
| Training Grants |
|
$1,000,000 |
| All local incentives for various uses |
|
$2,000,000 |
| Total |
|
$10,460,000 |
Benefit Measure
- Benefits equal $29,886 per retained employee
- Benefits equal 41.8% of total capital investment
Project
A food products manufacturer in the Midwest was making capital expenditures for a new addition, but was not hiring any new employees. However the project would result in the retention of 50 employees.
Project Parameters
- Capital Expenditures for Buildings - $4.790 million
- Capital Expenditures for Equipment - $6.605 million
- Number of Retained Employees - 50
| Property Tax Abatement |
|
$1,706,000 |
| Discretionary Employee Grant |
|
$232,500 |
| Sales Tax Exemption |
|
$1,976,500 |
| Investment Tax Credit |
|
$2,648,000 |
| Training Grant |
|
$12,000 |
| Total |
|
$6,575,000 |
Benefit Measure
- Benefits equal $131,500 per retained employee
- Benefits equal 58% of total capital investment
Project
Company requested assistance in obtaining credits and incentives for a distribution center retention. Revenue Bonds were used to finance the capital investment; however the interest savings are not included in the calculations below.
Project Parameters
- Capital Expenditures for Buildings - $5.0 million
- Capital Expenditures for Equipment - $15.0 million
- Number of Employees - 1178
Benefits Obtained
| Local Training Grant |
|
$460,000 |
| State Training Grant |
|
$500,000 |
| Capital Grant |
|
$2,500,000 |
| Parking Variance |
|
$100,000 |
| Total |
|
$3,560,000 |
Benefit Measurement
- Benefits equal $2,682 per retained employee
- Benefits equal 15.8% of total capital investment
Project
A telecommunications company requested assistance in Fort Worth, Texas to negotiate credits and incentives for a new warehouse distribution facility in excess of one million square feet. The project required approval from the Fort Worth City Council to agree to a package of incentives and credits providing a solid cash flow to the company.
Project Parameters
- Capital Expenditures for Building - $50.0 million
- Capital Expenditures for Equipment - $5.0 million
- Number of New Employees - 700
Benefits Obtained
| Property Tax Abatements |
|
$6,500,000 |
| Sales Tax Exemptions |
|
$800,000 |
| Inventory Exemption |
|
$285,000 |
| Total |
|
$7,585,000 |
Benefit Measurement
- Benefit equals $10,835 per new employee
- Benefit equals 13.8% of total capital investment
Project
Company is based in the United Kingdom and established a new facility in Georgia. This location was in the metro area of Georgia for which cash incentives were not available to the company. We worked with state officials to assist the client with creative utilization of the new Georgia Headquarters credit against the payroll tax this allowing a cash reimbursement to the company.
Project Parameters
- Capital Expenditures for Building - $20.0 million
- Capital Expenditures for Equipment - $4.0 million
- Number of New Employees - 450
Benefits Obtained
| Headquarters Credit (payroll tax rebate) |
|
$7,500,000 |
| Property Tax Abatement (40 years) |
|
$225,000 |
| Total |
|
$7,725,000 |
Benefit Measurement
- Benefit equals $16,772 per new employee
- Benefit equals 31.7% of total capital investment
Project
A Southeastern regional company requested assistance in obtaining refundable credits and incentives in key states for current and retroactive liabilities. Benefits were obtained for call center, processing center and corporate headquarters.
Project Parameters
- Capital Expenditures for Buildings - $5.0 million
- Capital Expenditures for Equipment - $15.0 million
- Number of Employees - 1178
Benefits Obtained
| Tennessee Jobs Tax Credit |
|
$1,793,866 |
| Industrial Machinery Credit |
|
$321,000 |
| Mississippi Jobs Credit |
|
$287,500 |
| Indiana Enterprise Zone Loan Interset Credit |
|
$160,781 |
| Illinois Replacement Credit |
|
$144,000 |
| Illinois Interest Deduction |
|
$15,000 |
| Total |
|
$2,722,147 |
Benefit Measurement
- Benefits equal $2,257 per retained employee
- Benefits equal 7.0% of total capital investment
Project
A national pharmaceutical distributor had to establish a new distribution center in the Southwest. This was the company's first venture into the Southwest with a major project with three states under consideration. The project consisted of acquiring land and new construction. The project requirements included a new highway interchange and substantial infrastructure improvements. Other intangibles were also made available to the company such as pre-screening potential employees and providing cash assistance to the company for hiring economically and physically disadvantaged.
Project Parameters
- Capital Expenditures for Buildings - $60.0 million
- Capital Expenditures for Equipment - $80.0 million
- Number of Employees - 600
Benefits Obtained
| Property Tax Abatement |
|
$8,800,000 |
| Sales Tax Exemption |
|
$250,000 |
| Electric Company Cash Grant |
|
$250,000 |
| Training Grants |
|
$1,000,000 |
| Site & Infrastructure Development Grants |
|
$1,450,000 |
| Jobs Tax Credit |
|
$7,500,000 |
| Road Improvements |
|
$600,000 |
| Employee Payroll Refunds |
|
$6,800,000 |
| Inventory Exemption |
|
$20,000,000 |
| Total |
|
$46,650,000 |
Benefit Measurement
- Benefits equal $77,750 per retained employe
- Benefits equal 33.0% of total capital investment
Project
A wood products company was interested in building a new facility in one of two states in the Southwest United States to be closer to raw materials needed for production. The timing of the project to get underway was critical and required completing negotiations within one month. Task was able to obtain the best package possinle within the time frame allowed. We were able to secure significant incentives and credits and worked with the communities and states in developing creative incentives. In fact, we were able to obtain a sales and use tax exemption plus the quality jobs payroll rebate at the same time which has never been accomplished in this state before.
Project Parameters
- Capital Expenditures for Buildings $53.0 million
- Capital Expenditures for Equipment - $81.0 million
- Number of Employees - 150
Benefits Obtained
| Property Tax Abatement |
|
$4,900,000 |
| Sales Tax Exemption on Equipment |
|
$6,500,000 |
| Sales Tax Exemption on Bldg Materials |
|
$1,500,000 |
| Sales Tax Exemption on Energy |
|
$145,000 |
| Training Grants |
|
$300,000 |
| Site & Infrastructure Development Grants |
|
$800,000 |
| Sales Tax Exemption on Manufactured Goods |
|
$1,100,000 |
| Road Improvements |
|
$1,200,000 |
| Employee Payroll Refunds |
|
$2,600,000 |
| Inventory Exemption |
|
$100,000 |
| Total |
|
$19,145,000 |
Benefit Measurement
- Benefits equal $127,633 per retained employee
- Benefits equal 14% of total capital investment
Project
A national hotel chain requested assistance in negotiating the relocation of corporate headquarters within the Southeastern United States. After meeting with company personal, we developed search criteria to assist the company in analyzing multiple factors necessary to screen potential sites (demographics, costs, benefits, taxes, etc.) After comparing each potential site's data to search criteria, assisted company with reducing final choice to one of three sites. We assisted company personal with negotiations and presentations before state and local government officials. We were able to provide unique location based burden analysis to each individual community to assist in enhancing economic inducement proposals to meet specific needs of company based on each location.
Project Parameters
- Capital Expenditures for Buildings - $20.0 million
- Capital Expenditures for Equipment - $10.0 million
- Number of Employees - 200
Benefits Obtained
| Municipal Grant under TIF (abatements and exemptions) |
|
$2,000,000 |
| Infrastructure Grants |
|
$500,000 |
| Training Grants |
|
$250,000 |
| Refundable Payroll Taxes |
|
$2,600,000 |
| Special Tax Apportionment Formula |
|
$1,500,000 |
| Income Tax Credits |
|
$6,500,000 |
| Total |
|
$13,350,000 |
Benefit Measurement
- Benefits equal $66,750 per retained employee
- Benefits equal 44% of total capital investment
If you would like TNT to give you a free estimate as to what incentives your company may be entitled - please email us! Don't leave money behind - contact us NOW! info@tntedu.com
|
