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© 2019 BlueCap Economic Advisors, LLC

BlueCap Economic Advisors, LLC

55 Avalon Road, Pennington, NJ 08534

Tel: 609-651-0684

Email: info@BlueCapEconomicAdvisors.com

 

Economic Incentives

 

State and local governments are often very aggressive in offering financial incentives to attract and retain jobs and capital investment to their community.  Economic incentives in the form of property tax abatements, cash grants, tax credits, infrastructure assistance, and sales & use tax exemptions are used to offset initial investment costs, reduce ongoing operating costs, and reduce or eliminate tax burdens.  

 

Many of our clients justify new projects and receive capital budget approval based on the availability of economic incentives.  

 

Criteria used by government agencies to determine the level of support they 

may offer to companies include:

 

• Number of jobs involved in the project (new,
   retained, shifted from other locations)
• Average annual salary
• Skill level of jobs, level of employee training
• Amount of capital investment
• Project location
• Industry type
• Technology used
• State and local funding availability
• Political environment

 

 

BlueCap utilizes a four-phase approach to identifying and securing

incentive packages for clients.

 

Phase I - Identify incentives and estimate potential value

•  Develop project summary

•  Evaluate state & local incentives

•  Benchmark past projects

•  Prepare analysis of potential incentives and eligibility criteria

•  Estimate potential incentives value

•  Present findings to client

 

Phase II - Strategy development

•  Identify challenges unique to project

•  Develop business case considering project summary, competing

    locations, and economic impact to the community 

•  Develop negotiation approach with client

•  Client approves final strategy

 

Phase III - Negotiation

•  Develop presentation materials

•  Introduce project to state & local officials

•  Ensure performance measures are appropriate

•  Secure written offers from competing jurisdictions

•  Prepare applications and supporting documentation

 

Phase IV - Compliance

•  Coordinate final approvals and project agreement(s)

•  Prepare master compliance calendar

•  Coordinate compliance data collection among client stakeholders

•  Assess actual performance vs. project commitments

•  Prepare and submit annual compliance reports