A business change event - whether strategic (i.e. multi-state expansion) or tactical (one-off real estate transaction) – frequently offers material opportunity to secure economic incentives. These incentives may range between 5% and 50% of project investment (Capital Expenditures plus first year Human Resource costs). The value GCS Economic Incentive Advisory clients realize is variable but we have secured benefits in a range of $5,000 to $50,000 per job created.
The GCS Economic Incentive Advisory practice assists companies in capturing the following types of tax and non-tax economic incentives programs:
- Capital investments, including tax abatements, tax refunds, tax credits, project grants and infrastructure.
- Location-specific, including enterprise zones, empowerment zones, Tax Increment Financing (TIF) districts and new market tax credits (NMTC).
- Employment-specific, including training, wage subsidies, tax credits, pay per job grants and recruitment assistance.
- Operations and financing, including utility discounts, subsides, exemptions and reduced cost financing.
Companies entering into a new market; acquiring or divesting a business; expanding, relocating or consolidating operations; rationalizing portfolio of facilities or experiencing operating environment constraints utilize economic incentives to improve cost reduction strategies and mitigate overall business risk.
Business change events that can trigger opportunities for economic incentives include:
- Business Changes
- New Market Access and Entry
- Business Growth
- New Business Lines/Products
- New Financing
- Acquisitions and Divestures
- Capital Investments
- Equipment Expenditures
- Research and Development
- Infrastructure Improvement
- Off-Site and On-Site Infrastructure Investments
- Facility and Real Estate Transactions
- Lease Expiration
- Human Resources
- Labor Market Change
- Job Creation and Retention
- Jobs Transfer
- Talent Development and Training
Economic Incentive Advisory services deliver a comprehensive business case detailing financial and non-financial incentive opportunities. GCS Economic Incentives Advisory services take a holistic approach by identifying and securing measureable, bottom line value.
Newmark GCS’ Economic Incentive Advisory practice is composed of professionals who have the technical expertise to understand how incentives impact a company’s operations, structural costs, tax liability, financial statements and project execution. These Economic Incentive experts have deep experience with different asset types, industry verticals and domestic and international geographies as well as proven expertise in supply chain management, operations, real estate, economic development, tax and law.
Economic Incentives Advisory services include:
- Program Research & Feasibility
- Negotiation & Optimization Strategy
- Compliance Management
- Economic Development & Target Industry Strategy