Embed Size (px)
Citation preview
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
itsin
cent
ives
and
tax
cred
its14
May
201
3
Chi
cago
Dis
clai
mer
Ern
st &
You
ng re
fers
to th
e gl
obal
org
aniz
atio
n of
mem
ber f
irms
of E
rnst
& Y
oung
G
loba
l Lim
ited,
eac
h of
whi
ch is
a s
epar
ate
lega
l ent
ity. E
rnst
& Y
oung
Glo
bal L
imite
d,
aU
Kco
mpa
nylim
ited
bygu
aran
tee
does
notp
rovi
dese
rvic
esto
clie
nts
Form
ore
a U
K c
ompa
ny li
mite
d by
gua
rant
ee, d
oes
not p
rovi
de s
ervi
ces
to c
lient
s. F
or m
ore
info
rmat
ion
abou
t our
org
aniz
atio
n, p
leas
e vi
sit w
ww
.ey.
com
.E
rnst
& Y
oung
LLP
is a
clie
nt–s
ervi
ng m
embe
r firm
of E
rnst
& Y
oung
Glo
bal L
imite
d op
erat
ing
in th
eU
S.
This
pre
sent
atio
n is
© 2
011
Ern
st &
You
ng L
LP. A
ll rig
hts
rese
rved
. No
part
of th
is
docu
men
t may
be
repr
oduc
ed, t
rans
mitt
ed o
r oth
erw
ise
dist
ribut
ed in
any
form
or b
y an
y m
eans
, ele
ctro
nic
or m
echa
nica
l, in
clud
ing
by p
hoto
copy
ing,
facs
imile
tra
nsm
issi
on, r
ecor
ding
, rek
eyin
g or
usi
ng a
ny in
form
atio
n st
orag
e an
d re
triev
al s
yste
m,
,g,
yg
gy
gy
,w
ithou
t writ
ten
perm
issi
on fr
om E
rnst
& Y
oung
LLP
. Any
repr
oduc
tion,
tran
smis
sion
or
dist
ribut
ion
of th
is fo
rm o
r any
of t
he m
ater
ial h
erei
n is
pro
hibi
ted
and
is in
vio
latio
n of
U
S a
nd in
tern
atio
nal l
aw. E
rnst
& Y
oung
LLP
exp
ress
ly d
iscl
aim
s an
y lia
bilit
y in
co
nnec
tion
with
use
of t
his
pres
enta
tion
or it
s co
nten
ts b
y an
y th
ird p
arty
.p
yy
py
Vie
ws
expr
esse
d in
this
pre
sent
atio
n ar
e no
t nec
essa
rily
thos
e of
Ern
st &
You
ng L
LP.
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its1
Circ
ular
230
dis
clai
mer
Any
US
tax
advi
ce c
onta
ined
her
ein
was
not
inte
nded
or w
ritte
n to
be
used
, and
can
not
be u
sed,
for t
he p
urpo
se o
f avo
idin
g pe
nalti
es th
at m
ay b
e im
pose
d un
der t
he In
tern
al
Rev
enue
Cod
eor
appl
icab
lest
ate
orlo
calt
axla
wpr
ovis
ions
Rev
enue
Cod
e or
app
licab
le s
tate
or l
ocal
tax
law
pro
visi
ons.
Thes
e sl
ides
are
for e
duca
tiona
l pur
pose
s on
ly a
nd a
re n
ot in
tend
ed, a
nd s
houl
d no
t be
relie
d up
on, a
s ac
coun
ting
advi
ce.
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its2
Toda
y’s
pres
ente
rs
Paul
Nau
mof
f —M
oder
ator
M
ary
Faye
LaF
aver
yy
Bria
n Sm
ithJo
e St
achn
ik
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its3
Age
nda
Intro
duct
ions
Cur
rent
clim
ate
forc
redi
tsan
din
cent
ives
Cur
rent
clim
ate
for c
redi
ts a
nd in
cent
ives
Key
tren
ds fo
r tax
and
non
-tax
ince
ntiv
esFe
dera
l dev
elop
men
tsIn
cent
ives
in P
resi
dent
’s b
udge
tS
tate
dev
elop
men
tsR
ecen
t leg
isla
tive
activ
ityIn
tern
atio
nal d
evel
opm
ents
Cor
pora
te tr
ends
and
lead
ing
prac
tices
Q&
A(th
roug
hout
)Q
&A
(thr
ough
out)
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its4
Cur
rent
clim
ate
for c
redi
ts a
nd in
cent
ives
“Fis
cal c
liff”
in th
e re
ar-v
iew
mirr
or
Com
pani
es p
oise
d to
spe
nd c
apita
l
Fede
ral a
nd s
tate
ince
ntiv
es a
vaila
ble
Fede
ral c
redi
ts e
xten
ded
thro
ugh
2013
Unc
erta
inty
rem
ains
Tax
refo
rm im
pact
on
fede
ral i
ncen
tives
Key
stat
es(e
gC
alifo
rnia
)cur
taili
ngta
xcr
edits
Key
sta
tes
(e.g
., C
alifo
rnia
) cur
taili
ng ta
x cr
edits
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its5
Key
tren
ds fo
r cre
dits
and
ince
ntiv
es
Gov
erno
rs fo
cuse
d on
elim
inat
ing
inco
me
tax
Exa
mpl
es:L
ouis
iana
,Nor
thC
arol
ina,
Neb
rask
aE
xam
ples
: Lou
isia
na, N
orth
Car
olin
a, N
ebra
ska
Alte
rnat
e re
venu
e so
urce
s ci
ted
to b
e sa
les
tax
Sta
tein
com
eta
xcr
edits
Sta
te in
com
e ta
x cr
edits
Ris
e in
non
-inco
me
tax
ince
ntiv
es
Ris
e in
tax
cred
it tra
nsfe
rabi
lity
and
mon
etiz
atio
n
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its6
Oth
er tr
ends
impa
ctin
g in
cent
ives
Glo
baliz
atio
n co
ntin
ues
as d
o gl
obal
ince
ntiv
esIm
pact
ofin
tern
atio
nali
ncen
tives
onU
SIm
pact
of i
nter
natio
nal i
ncen
tives
on
US
prog
ram
ava
ilabi
lity
Re-
shor
ing
also
onth
eris
eR
e-sh
orin
g al
so o
n th
e ris
e
Dat
a ce
nter
ince
ntiv
esFi
nanc
ial s
ervi
ces
indu
stry
(con
solid
atio
nof
ope
ratio
ns)
Impa
ct o
f the
Affo
rdab
le C
are
Act
(AC
A)
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its7
How
are
pro
gram
s ev
olvi
ng to
mee
t bot
h pa
rtie
s’
need
s?
Rea
lizat
ion
Incr
ease
dcl
osin
gfu
nds
Incr
ease
d cl
osin
g fu
nds
With
hold
ing
tax
reba
tes
Neg
otia
bilit
y an
d ad
vanc
e qu
alifi
catio
nIn
crea
sed
emph
asis
on“b
usin
ess
case
”In
crea
sed
emph
asis
on
busi
ness
cas
eTr
ansi
tion
from
“as
of ri
ght”
cred
its —
e.g.
, NY
, CO
Targ
eted
sec
tors
(e.g
., da
ta c
ente
rs) a
nd d
emog
raph
ics
(vet
eran
s,
ld
k)
unem
ploy
ed w
orke
rs)
Sus
tain
abili
ty in
cent
ives
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its8
Fede
ral d
evel
opm
ents
Fede
ral t
ax c
redi
t upd
ate
and
hot t
opic
s
Fisc
al C
liff b
ill (A
mer
ican
Tax
paye
r Rel
ief A
ct
of 2
012)
Wor
k O
ppor
tuni
ty T
ax C
redi
t, em
pow
erm
ent z
one,
Indi
an
empl
oym
entt
axcr
edit
(ext
ende
dth
ru20
13)
empl
oym
ent t
ax c
redi
t (ex
tend
ed th
ru 2
013)
R&
E e
xten
ded
thro
ugh
2013
Ext
end
Sec
. 45
Pro
duct
ion
Tax
Cre
dit f
or w
ind
Mod
ifica
tion
of S
ec. 4
5 P
TC a
nd 4
8 In
vest
men
t Tax
Cre
dit –
“beg
in c
onst
ruct
ion
befo
re e
nd o
f 201
3”A
ltern
ativ
e fu
el c
redi
ts u
pdat
ed
New
mar
kets
tax
cred
it$3
5B
allo
catio
nto
Com
mun
ityD
evel
opm
entE
ntiti
esin
2013
$3.5
B a
lloca
tion
to C
omm
unity
Dev
elop
men
t Ent
ities
in 2
013
Ava
ilabl
e fo
r eco
nom
ic d
evel
opm
ent p
roje
cts
$5.B
pro
pose
d fo
r 201
3 ap
plic
atio
n ro
und
Oth
er h
ot to
pics
IR
C §
179D
: tax
ded
uctio
n fo
r ene
rgy
effic
ient
com
mer
cial
bui
ldin
gs a
nd
gove
rnm
ent a
lloca
tion
IRC
§45
O a
gric
ultu
ral c
hem
ical
s se
curit
y cr
edit
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its10
§g
y
IRC
§45
F ch
ild c
are
cred
it
Pres
iden
t’s p
ropo
sed
2014
bud
get
Wor
k O
ppor
tuni
ty T
ax C
redi
t (m
ake
perm
anen
t)In
dian
Em
ploy
men
tCre
dit(
mak
epe
rman
ent)
Indi
an E
mpl
oym
ent C
redi
t (m
ake
perm
anen
t)P
rom
ise
Zone
s$5
b N
ew M
arke
ts T
ax C
redi
tsE
nhan
ce a
nd m
ake
perm
anen
t R&
D T
ax C
redi
tO
ther
: M
ake
perm
anen
t and
enh
ance
of §
179D
tax
dedu
ctio
n p
§A
dditi
onal
$5b
§48
C A
dvan
ced
Ene
rgy
Man
ufac
turin
g C
redi
tsM
ake
perm
anen
t ren
ewab
le e
nerg
y pr
oduc
tion
cred
itTa
xcr
edit
forn
ewm
anuf
actu
ring
com
mun
ities
Tax
cred
it fo
r new
man
ufac
turin
g co
mm
uniti
es$2
.5b
of §
48C
Adv
ance
d E
nerg
y M
anuf
actu
ring
Pat
hway
s to
Wor
kT
ft
til
idti
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its11
Tax
refo
rm p
oten
tial c
onsi
dera
tions
Inve
stm
ents
in fe
dera
l and
sta
te ta
x cr
edits
Com
pani
es a
re in
crea
sing
ly b
uyin
g fe
dera
l and
/or s
tate
ta
x cr
edits
Ofte
nge
nera
tes
imm
edia
teca
shflo
wbe
nefit
sw
ithre
lativ
ely
Ofte
n ge
nera
tes
imm
edia
te c
ash
flow
ben
efits
with
rela
tivel
y lo
w ri
sks
and
min
imal
com
plia
nce-
track
ing
requ
irem
ents
Com
mon
mon
etiz
able
tax
cred
its in
clud
e:Lo
w In
com
e H
ousi
ng T
ax C
redi
t, hi
stor
ic, e
nerg
y an
d fil
m
cred
itsIn
vest
men
tcon
side
ratio
nsIn
vest
men
tcon
side
ratio
nsD
urat
ion
of th
e cr
edit
stre
am a
nd p
aym
ent s
ched
ule
Rec
aptu
re ri
sk, t
ax li
abili
ty ri
sk
Type
s of
tax
cred
it ca
n of
fset
(sta
te le
vel p
rem
ium
s ta
x)
Whe
ther
oth
er ta
x be
nefit
s ar
e in
clud
ed (d
epre
ciat
ion
dedu
ctio
ns)
yiel
d/IR
RG
AA
P/IF
RS
treat
men
t
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its12
dedu
ctio
ns),
yiel
d/IR
R, G
AA
P/IF
RS
trea
tmen
t
Stat
e de
velo
pmen
ts
How
are
sta
tes
resp
ondi
ng?
1. E
limin
atio
ns/m
orat
oriu
ms
2. E
nfor
cem
ent/c
law
back
s
3. In
crea
se in
pro
gram
s
4W
hole
sale
mod
ifica
tions
4. W
hole
sale
mod
ifica
tions
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its14
Mid
wes
t reg
ion
upda
te —
Illin
ois
Sta
te o
f Illin
ois
HB
1336
/SB
2(p
endi
ngle
gisl
atio
n)H
B 1
336/
SB
2 (p
endi
ng le
gisl
atio
n)P
endi
ng le
gisl
atio
n to
am
end
the
Illin
ois
Eco
nom
ic D
evel
opm
ent B
oard
Act
and
th
e E
cono
mic
Dev
elop
men
t for
a G
row
ing
Eco
nom
y (E
DG
E) T
ax C
redi
t Act
w
hich
wou
ld m
ake
all E
DG
E T
ax C
redi
t Agr
eem
ents
sub
ject
to B
oard
App
rova
lLi
mits
ED
GE
agr
eem
ents
to 5
yea
rsE
DG
E a
war
ds a
re c
urre
ntly
10
year
s in
dur
atio
n (a
nd m
ore
for s
peci
fic p
roje
cts)
Lim
its E
DG
E a
war
ds to
no
mor
e th
an $
10,0
00 p
er n
ew e
mpl
oyee
H
ii
llE
DG
Ed
f$1
500
0$3
000
0l
His
toric
ally
, ED
GE
aw
ards
rang
e fro
m $
15,0
00 to
$30
,000
per
em
ploy
ee
Cre
ates
a c
ap o
f $10
0m in
ED
GE
tax
cred
it aw
ards
per
sta
te fi
scal
yea
r
Illin
ois
Ent
erpr
ise
Zone
Act
was
am
ende
d in
201
2 (P
ublic
Act
9709
05)
(Pub
lic A
ct 9
7–09
05)
Ext
ende
d th
e E
nter
pris
e Zo
ne A
ct b
y 25
yea
rs a
nd a
utom
atic
ally
ext
ende
d m
ost
zone
s to
201
6
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its15
Mid
wes
t reg
ion
upda
te —
Illin
ois
Sta
te o
f Illi
nois
(con
tinue
d)Ill
inoi
sE
nter
pris
eZo
neA
ctw
asam
ende
din
2012
(Pub
licA
ct97
–090
5)Ill
inoi
s E
nter
pris
e Zo
ne A
ct w
as a
men
ded
in 2
012
(Pub
lic A
ct 9
709
05)
Re-
certi
ficat
ion
of z
ones
M
aint
ains
the
Util
ity T
ax a
nd E
xpan
ded
Man
ufac
turin
g E
xem
ptio
ns (f
or q
ualif
ied
busi
ness
es) a
nd th
e S
ales
and
Use
Tax
Exe
mpt
ion
for b
uild
ing
mat
eria
ls d
urin
g co
nstru
ctio
n ph
ases
Elim
inat
ed th
e fo
llow
ing
EZ
ince
ntiv
es: $
500/
Job
Tax
Cre
dit,
Div
iden
d In
com
e D
educ
tion,
Inte
rest
Inco
me
Ded
uctio
n fo
r Fin
anci
al In
stitu
tions
New
Dep
artm
ento
fRev
enue
repo
rting
requ
irem
ents
New
Dep
artm
ent o
f Rev
enue
repo
rting
requ
irem
ents
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its16
Mid
wes
t reg
ion
upda
te —
Indi
ana
Sta
te o
f Ind
iana
Sta
tein
solid
finan
cial
cond
ition
;Ind
iana
Eco
nom
icD
evel
opm
ent
Sta
te in
sol
id fi
nanc
ial c
ondi
tion;
Indi
ana
Eco
nom
ic D
evel
opm
ent
Cor
pora
tion
(IED
C) a
nd lo
cal j
uris
dict
ions
hav
e ut
ilize
d di
scre
tiona
ry c
ash
gran
ts to
ince
ntiv
ize
com
pani
es
Infra
stru
ctur
e as
sist
ance
and
cap
ital g
rant
s fo
r pur
chas
es
Cor
pora
te in
com
e ta
x is
in th
e pr
oces
s of
bei
ng lo
wer
ed in
0.5
%
incr
emen
ts fr
om 8
.5%
in 2
011
to 6
.5%
in 2
015
Con
stitu
tiona
l am
endm
ent h
as c
appe
d bu
sine
ss p
rope
rty ta
xes
at 3
% o
f th
e as
sess
ed v
alue
Allo
wan
ce o
f pro
-rat
a in
cent
ives
and
flex
ibili
ty b
ased
on
certa
in
inve
stm
ent/j
ob c
reat
ion
leve
lsG
New
Gov
erno
r Mik
e P
ence
is c
ontin
uing
the
sam
e pr
o-bu
sine
ss p
olic
ies
as fo
rmer
Gov
erno
r Mitc
h D
anie
lsG
over
nor P
ence
has
ass
igne
d tw
o di
ffere
nt p
eopl
e to
repl
ace
Dan
Has
sler
as
the
Sec
reta
ryof
Com
mer
cean
dth
eP
resi
dent
ofth
eIE
DC
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its17
the
Sec
reta
ry o
f Com
mer
ce a
nd th
e P
resi
dent
of t
he IE
DC
Mid
wes
t reg
ion
upda
te —
Iow
a an
d M
isso
uri
Sta
te o
f Iow
aS
.F.2
328
S.F
. 232
8R
epea
led
the
qual
ity jo
bs e
nter
pris
e zo
ne c
redi
t, ef
fect
ive
1 Ju
ly 2
012
Sta
te o
f Mis
sour
iD
ata
Sto
rage
Cen
ters
Tax
Ince
ntiv
esD
ata
Sto
rage
Cen
ters
Tax
Ince
ntiv
es
New
legi
slat
ion
perm
its m
unic
ipal
ities
to s
ell,
leas
e or
mor
tgag
e m
unic
ipal
pr
oper
ty fo
r the
dev
elop
men
t of d
ata
cent
ers
The
legi
slat
ion
prov
ides
sta
te a
nd lo
cal s
ales
and
use
tax
exem
ptio
ns fo
r all
gp
pm
achi
nery
, equ
ipm
ent,
com
pute
rs, e
lect
rical
ene
rgy,
gas
, was
te a
nd o
ther
ut
ilitie
s us
ed in
new
and
exi
stin
g da
ta s
tora
ge c
ente
r fac
ilitie
sTo
qua
lify,
new
faci
litie
s m
ust i
nves
t $37
m a
nd c
reat
e 30
new
jobs
and
exi
stin
g fa
cilit
ies
mus
tinv
est$
5man
dcr
eate
5ne
wjo
bsfa
cilit
ies
mus
t inv
est $
5m a
nd c
reat
e 5
new
jobs
Mis
sour
i Exp
ort I
ncen
tive
Act
Beg
inni
ng 1
Jul
y 20
13, t
he A
ct a
utho
rizes
refu
ndab
le a
ir ex
port
tax
cred
its fo
r fre
ight
forw
arde
rs e
qual
to 4
0 ce
nts
per k
ilo s
hipp
ed o
ut o
f an
airp
ort o
wne
d an
d
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its18
eg
oa
des
equa
o0
ces
peo
spp
edou
oa
apo
oed
ad
oper
ated
by
City
of S
t. Lo
uis
Mid
wes
t reg
ion
upda
te –
Mis
sour
i con
tinue
d
Sta
te o
f Mis
sour
iH
B69
8(P
endi
ngLe
gisl
atio
n)H
B 6
98 (P
endi
ng L
egis
latio
n)P
endi
ng le
gisl
atio
n to
am
end
the
Mis
sour
i’s ta
x in
cent
ive
prog
ram
sA
utho
rizes
a s
tate
and
loca
l sal
es a
nd u
se ta
x ex
empt
ion
on it
ems
rela
ted
to n
ew d
ata
stor
age
cent
ers
Red
uces
the
tota
l am
ount
of t
ax c
redi
ts a
utho
rized
ann
ually
by
the
Larg
e-S
cale
D
evel
opm
ent A
ct fr
om $
25 m
illio
n to
$10
mill
ion
Red
uces
the
tota
l am
ount
of t
ax c
redi
ts a
utho
rized
ann
ually
by
the
Enh
ance
d E
nter
pris
e Zo
ne p
rogr
am fr
om $
24 m
illio
n to
$19
mill
ion
Cre
ates
ince
ntiv
es fo
r ang
el in
vest
men
t and
job
crea
tion
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its19
Mid
wes
t reg
ion
upda
te —
Kan
sas
Sta
te o
f Kan
sas
Sen
ate
Bill
193
Sen
ate
Bill
193
Exp
ands
the
Pro
mot
ing
Em
ploy
men
t Acr
oss
Kan
sas
(PE
AK
) pro
gram
from
1
Janu
ary
2013
thro
ugh
31 D
ecem
ber 2
014
by in
clud
ing
reta
ined
jobs
Ext
ends
the
curre
nt 1
0-ye
ar li
mita
tion
on th
e ca
rryfo
rwar
dof
Hig
h P
erfo
rman
ce
Ince
ntiv
e P
rogr
am (H
PIP
) cre
dits
to 1
6 ye
ars
Sen
ate
Bill
196
Am
ends
the
HP
IP in
com
e ta
x cr
edit
to in
crea
se th
e m
inim
um in
vest
men
t th
resh
old
from
$50
000
to$1
min
the
follo
win
gur
ban
coun
ties:
Dou
glas
thre
shol
d fro
m $
50,0
00 to
$1m
in th
e fo
llow
ing
urba
n co
untie
s: D
ougl
as,
John
son,
Sed
gwic
k, S
haw
nee
and
Wya
ndot
te
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its20
Mid
wes
t reg
ion
upda
te —
Mic
higa
n
Sta
te o
f Mic
higa
nE
ffect
ive
1 Ja
nuar
y 20
12, M
ichi
gan
repl
aced
the
Mic
higa
n B
usin
ess
Tax
(MB
T) w
ith
a ne
w fl
at C
orpo
rate
Inco
me
Tax
(CIT
)S
tate
tax
cred
its a
ssoc
iate
d w
ith th
e M
BT
wer
e el
imin
ated
in fa
vor o
f com
petit
ive
gran
t and
lo
an p
rogr
ams.
The
new
pro
gram
s sh
are
a $7
5m le
gisl
ativ
e al
loca
tion
for F
Y 20
13.
Loca
linc
entiv
epr
ogra
ms
rem
ain
unch
ange
d(r
eala
ndpe
rson
alpr
oper
tyta
xab
atem
ents
,Lo
cal i
ncen
tive
prog
ram
s re
mai
n un
chan
ged
(rea
l and
per
sona
l pro
perty
tax
abat
emen
ts,
tax
incr
emen
t fin
anci
ng, e
tc.).
Rep
eal o
f ind
ustri
al p
erso
nal p
rope
rty ta
x pa
ssed
in D
ecem
ber 2
012.
Sub
ject
to v
oter
ap
prov
al in
Aug
ust 2
014.
Per
sona
l pro
perty
tax
on c
omm
erci
al p
rope
rty is
not
affe
cted
by
the
legi
slat
ion.
Prog
ram
s el
imin
ated
as
of 1
Jan
uary
201
2N
ew p
rogr
ams
ME
GA
inco
me
tax
cred
itsIn
com
e ta
x cr
edit
for j
ob c
reat
ion/
capi
tal i
nves
tmen
t in
MI r
athe
r tha
n a
com
petin
g ju
risdi
ctio
n
MI b
usin
ess
deve
lopm
ent p
rogr
amG
rant
s or
loan
s to
enc
oura
ge jo
b cr
eatio
n/ca
pita
l inv
estm
ent i
n M
I ra
ther
than
a c
ompe
ting
juris
dict
ion
g
Bro
wnf
ield
/his
toric
pre
serv
atio
n ta
x cr
edits
Tax
cred
its to
dev
elop
his
toric
, con
tam
inat
ed, b
light
ed o
r fun
ctio
nally
ob
sole
te p
rope
rties
MI C
omm
unity
Rev
italiz
atio
n P
rogr
amG
rant
s or
loan
s to
dev
elop
his
toric
, con
tam
inat
ed, b
light
ed o
r fu
nctio
nally
obs
olet
e pr
oper
ties
Ren
aiss
ance
zon
e in
cent
ives
Des
igna
ted
tax-
favo
red
deve
lopm
ent z
ones
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its21
Mid
wes
t reg
ion
upda
te —
Neb
rask
a an
d W
isco
nsin
Sta
te o
f Neb
rask
aL.
B. 1
118
esta
blis
hes
tax
ince
ntiv
es fo
r Tie
r 2 d
ata
cent
er p
roje
cts
pj
Dat
a ce
nter
s th
at m
ake
a ne
w in
vest
men
t of a
t lea
st $
200m
and
hire
at l
east
30
new
em
ploy
ees
can
rece
ive
tax
ince
ntiv
es, i
nclu
ding
: a s
ales
and
use
tax
exem
ptio
n, p
erso
nal p
rope
rty ta
x cr
edits
, and
inco
me
tax
cred
its.
LB
1128
esta
blis
hes
the
New
Mar
kets
Job
Gro
wth
Inve
stm
entA
ctL.
B. 1
128
esta
blis
hes
the
New
Mar
kets
Job
Gro
wth
Inve
stm
ent A
ctTh
e la
w p
rovi
des
tax
cred
its fo
r acq
uirin
g a
qual
ified
equ
ity in
vest
men
t. Th
e am
ount
of t
he ta
x cr
edit
is b
ased
on
a pe
rcen
tage
of t
he p
urch
ase
pric
e pa
id.
Sta
te o
f Wis
cons
inM
anuf
actu
ring
and
Agr
icul
ture
Cre
dit
A n
ew c
redi
t equ
al to
a p
erce
ntag
e of
elig
ible
qua
lifie
d pr
oduc
tion
activ
ities
in
the
man
ufac
turin
g an
d ag
ricul
ture
sec
tors
. The
cre
dit i
ncre
ases
ann
ually
: 1
875%
in20
133
75%
in20
145
526%
in20
15an
d7
5%in
2016
1.87
5% in
201
3, 3
.75%
in 2
014,
5.5
26%
in 2
015,
and
7.5
% in
201
6.D
epar
tmen
t of C
omm
erce
mor
e fo
cuse
d on
eco
nom
ic d
evel
opm
ent
thro
ugh
utili
zatio
n of
Eco
nom
ic D
evel
opm
ent T
ax C
redi
ts
Rep
lace
d fo
rmer
zon
e pr
ogra
ms;
stre
amlin
ed p
rogr
am fo
r job
cre
atio
n, c
apita
l
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its22
pp
gp
gj
pin
vest
men
t, em
ploy
ee tr
aini
ng a
nd c
orpo
rate
hea
dqua
rters
(ret
entio
n as
wel
l).
Mid
wes
t reg
ion
upda
te —
Nor
th D
akot
a an
d So
uth
Dak
ota
Sta
te o
f Nor
th D
akot
aTh
est
ate’
sin
cent
ives
prog
ram
sre
mai
nta
rget
edto
war
dsth
eTh
e st
ate
s in
cent
ives
pro
gram
s re
mai
n ta
rget
ed to
war
ds th
e m
anuf
actu
ring,
tech
nolo
gy-b
ased
bus
ines
ses,
agr
icul
tura
l and
en
ergy
sec
tors
Lega
cy F
und
has
near
ly $
1b d
olla
rs in
ass
ets
The
Lega
cy F
und
rece
ives
30%
of t
he s
tate
’s o
il ta
x co
llect
ions
Beg
inni
ng in
201
7, th
e fu
nds
will
be a
vaila
ble
for i
ncen
tiviz
ing
proj
ects
upo
n a
two-
third
s m
ajor
ity a
ppro
val o
f the
sta
te le
gisl
atur
e
Sta
te o
f Sou
th D
akot
aR
emai
ns th
e on
ly s
tate
in th
e na
tion
whe
re c
ompa
nies
do
not p
ay
pers
onal
inco
me,
cor
pora
te in
com
e, in
herit
ance
, bus
ines
s in
vent
ory
or
lt
tpe
rson
al p
rope
rty ta
xes
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its23
Inte
rnat
iona
l dev
elop
men
ts
How
act
ivel
y is
you
r com
pany
invo
lved
in c
aptu
ring
inte
rnat
iona
l bus
ines
s in
cent
ives
and
tax
cred
its?
4%
0%10
%20
%30
%
Ver
y ac
tive
16%
y Activ
e
22% 23%
Min
imal
ly in
volv
ed
Not
cap
turin
g in
tern
atio
nal
ince
ntiv
es
27%
ince
ntiv
es
Don
't fe
el th
ey a
pply
8%D
on't
know
Per
cent
of 6
01 re
spon
dent
sS
ourc
e: E
rnst
& Y
oung
Cre
dits
and
Ince
ntiv
es S
tudy
(201
1)
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its25
pg
y(
)
Glo
bal l
ands
cape
Effi
cien
cy-fo
cuse
d in
cent
ives
Ren
ewab
le re
sour
ces,
ene
rgy
effic
ienc
y an
d su
stai
nabi
lity
Tech
nolo
gy u
pgra
des
and
impl
emen
tatio
nsE
xpan
ded
ince
ntiv
e va
lue
Com
petit
ion
for b
usin
ess
inve
stm
ent i
n a
tight
er e
cono
my
has
led
tola
rger
ince
nti
eb
dget
sto
larg
er in
cent
ive
budg
ets
Dis
aste
r rel
ief
In th
e af
term
ath
of re
cent
nat
ural
dis
aste
rs (T
haila
nd, J
apan
) gov
ernm
ents
hav
e ta
ken
conc
erte
d m
easu
res
to b
oost
thei
r eco
nom
ies
Indu
stry
targ
etin
gG
over
nmen
ts h
ave
begu
n pu
rsui
ng th
e in
tent
iona
l dev
elop
men
t of a
com
petit
ive
adva
ntag
e in
par
ticul
ar s
ecto
rs b
y of
ferin
g in
cent
ives
to p
laye
rs th
roug
hout
the
lh
isu
pply
cha
inS
mal
l and
med
ium
-siz
ed e
nter
pris
es (S
ME
s)S
ME
s ha
ve b
ecom
e a
parti
cula
rly a
ttrac
tive
targ
et fo
r inc
entiv
es in
rece
nt y
ears
due
to
the
impa
ctth
atgr
owth
inth
isse
ctor
can
have
onem
ploy
men
tand
inno
vatio
n
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its26
to th
e im
pact
that
gro
wth
in th
is s
ecto
r can
hav
e on
em
ploy
men
t and
inno
vatio
n
Cor
pora
te tr
ends
and
lead
ing
prac
tices
for
ince
ntiv
es
Cre
dits
and
ince
ntiv
es —
an a
dvan
tage
for b
usin
ess
US
sta
te a
nd lo
cal g
over
nmen
ts o
ffer o
ver 3
,000
cre
dit a
nd
ince
ntiv
e pr
ogra
ms
pg
Virt
ually
any
sub
stan
tial j
ob c
reat
ion
or in
vest
men
t pro
ject
can
ben
efit
in m
ost g
eogr
aphi
es, b
ut a
pplic
able
requ
irem
ents
mus
t be
satis
fied,
su
ch a
s:A
dvan
ce n
egot
iatio
n or
qua
lific
atio
nE
ffect
ive
impl
emen
tatio
nP
rogr
amad
min
istra
tion
and
com
plia
nce
Pro
gram
adm
inis
tratio
n an
d co
mpl
ianc
eIs
you
r bus
ines
s ta
king
adv
anta
ge?
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its28
Why
doe
sn’t
ever
y bu
sine
ss ta
ke a
dvan
tage
?
Top
five
barr
iers
Sur
vey
resu
lts: b
arrie
rs to
sec
urin
g bu
sine
ss in
cent
ives
and
tax
cred
its
Top
five
barr
iers
Ope
ratio
nsto
o bu
sy to
exe
cute
on
the
requ
irem
ents
35%
Pro
gram
requ
irem
ents
too
burd
enso
me
34%
Lack
of t
imel
y in
form
atio
n on
tran
sact
ions
27%
Com
pany
in a
loss
pos
ition
and
cann
ot ta
ke a
dvan
tage
of t
ax c
redi
ts25
%p
yp
g
Diff
icul
t to
coor
dina
te w
ithin
the
vario
us c
ompa
ny d
epar
tmen
ts14
%
Pt
f593
dt
Perc
enta
ge o
f 593
resp
onde
nts
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its29
The
key
to s
ucce
ss: b
eing
par
t of t
he d
ecis
ion
proc
ess
Tax
shou
ld b
e an
impo
rtant
par
t of t
he c
ore
proj
ect t
eam
Trea
sury
Tax
Fina
nce
Exec
utiv
esp
onso
r(s)
Sus
tain
abilit
yFa
cilit
ies/
real
est
ate
and
proj
ect t
eam
Ope
ratio
nsO
pera
tions
Gov
ernm
ent
rela
tions
Hum
anre
sour
ces
Gen
eral
cou
nsel
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its30
Oth
er le
adin
g pr
actic
es a
nd tr
ends
Aud
it ac
tivity
and
cla
wba
cks
on th
e in
crea
seFo
cus
onin
cent
ives
man
agem
entt
echn
olog
yan
dor
gani
zatio
nFo
cus
on in
cent
ives
man
agem
ent t
echn
olog
y an
d or
gani
zatio
nM
ore
com
pani
es fo
cuse
d on
ove
rall
ince
ntiv
es p
roce
ss d
esig
n
Fede
ral a
nd s
tate
bus
ines
s in
cent
ives
and
tax
cred
its31
Que
stio
ns a
nd a
nsw
ers
Than
ks fo
r par
ticip
atin
g
