Tax Incentive Opportunities for 2010

By James Bowen, CPA, Partner and Michael A. Hydell, CPA, Tax Manager

Recent economic reports suggest that employment losses across the nation should bottom out in the first quarter of 2010.  After that, employers are expected to begin adding jobs and increasing payrolls.  If you expect to be adding jobs next year, then you may be in a good position to receive state and local incentives such as grants and/or tax credits to help offset the cost of rebuilding your workforce.  Proactive planning will help you maximize the value of potential savings.

The Opportunity and Value

State and local government entities throughout the U.S. offer grants, tax credits, subsidized financing, and other inducements for:

  • Job creation and capital investments
  • New technology development
  • Building expansion, environmental remediation, rehabilitation of older buildings
  • Relocation or consolidation
  • Mergers and acquisitions


Incentive awards can range from 10 to more than 50 percent of budgets for capital investment, building expansion/renovation, and technology development projects.

Does Your Project Qualify for Incentives?

Here are some basic criteria to keep in mind:

  • Ten or more new jobs created over three years, OR
  • New technology development spending in excess of $500,000 annually, OR
  • Capital investments of more than $1 million in a year, OR
  • Mergers and acquisitions, OR
  • Relocation or consolidation of facilities or jobs

 

Success Stories

  • A privately held, middle-market manufacturer of plastic components had won a new contract with a customer. The project required the company to hire 50 new employees and purchase new equipment. After negotiations with the state and county, the company was awarded $70,000 in grants and refundable tax credits worth $80,000 over five years.

  • A 100-year-old manufacturer was developing a new, renewable-energy technology. The company was able to secure a $1 million grant from the state to assist with development costs over two years.

  • An urban manufacturer needed to grow, but was surrounded by vacant buildings that were in declining condition. After negotiating with the state, county and city, the company received $1.5 million in grants to acquire and redevelop two neighboring buildings.


For more information, give us a call at 330.762.9785 or email us at:

Jim Bowen, CPA, partner, email
Mike Hydell, CPA, tax manager, email

 

For additional information on business and individual tax incentives for 2010, visit:

Take Advantage of 2009 Tax Incentives Before It's Too Late


Back to Winter 2010 InfoLetter