Capitalize on opportunities when expanding, relocating, or consolidating operations
Where you locate your facilities affects every aspect of your business, from logistics to employee recruitment to your bottom line. State and local governments provide a wide range of tax credits and other financial incentives to encourage investment and job creation. Whether you’re expanding, relocating, or consolidating operations, combining the site selection process with claiming and negotiating these credits and incentives can offer significant opportunities for U.S. companies as well as for multinationals establishing a U.S. foothold.
We help businesses lower costs and increase return on investment by leveraging our strong relationships with state and local economic development agencies to negotiate the best possible tax credits and incentives for our clients. Because these credits and incentives vary significantly from one jurisdiction to the next, planning and analysis are critical.
Our principal-led team includes experienced state and local tax advisors and knowledgeable industry professionals in offices across the U.S. who are adept at helping clients select optimal locations that align with their unique business objectives. We help clients understand the complexities of tax liabilities, compliance obligations, and overlooked opportunities so they can get the most out of state and local tax credits and incentives at their selected sites.
BDO offers state & local tax credits and incentives services to help your organization achieve its goals.
Secure financial incentive packages and discretionary incentives by leveraging relationships with economic development agencies to achieve operational synergies and costs savings. We typically achieve ROI of 25% for most corporate location and expansion projects.
Navigate the multiplier effect of tax credits and incentives by conducting an economic impact analysis and leveraging it during negotiation.
Compare the benefits of different options for site selection through an analysis of both tax and financial operating cost by location. The right location — in terms of logistics, labor availability and quality, regulatory environment, and total costs — is critical for long-term success.
Harness employment tax credit services to support hiring targeted individuals. Secure refunds related to employment tax credits.
Help monetize tax credits and incentives fully by reviewing refunds for any overlooked opportunities or underutilized credits.
Learn how initiatives related to green energy and energy efficiency can qualify for sustainability credits and other tax (and non-tax) incentives.
A coordinated approach allows organizations to align location decisions with available incentives, uncover overlooked or underutilized credits through strategic reviews, and navigate compliance requirements more effectively. Leveraging experienced advisors with strong relationships across jurisdictions can further enhance outcomes by securing more favorable incentive packages tailored to a company’s specific business objectives.
Finding the ideal long-term location requires analysis of many factors, such as proximity to key suppliers and customers, quality of the workforce, energy availability, real estate and business costs, and available incentives. With decades of experience securing some of the largest incentives packages ever offered in North America, we have negotiated billions on behalf of our clients. Our demonstrated methodology is customized to be project specific and is designed to identify, negotiate, and secure the best package of usable incentives. We focus on the compliance process to help ensure that every dollar negotiated is collected.
Statutory tax credits and discretionary business incentives include:
Working across industries including commercial real estate, manufacturing, and retail and consumer, our team helps clients with projects ranging from identifying and evaluating new greenfield sites for major facilities, to locating new corporate headquarters, to advising on back-office relocations and renewals. Our geographic and technical tax knowledge of incentives programs, combined with relationships with key government and economic development professionals, provide our clients with a distinct competitive advantage.
Poor site selection can lead to increased operational costs, supply chain inefficiencies, difficulty in attracting talent, regulatory challenges, and ultimately, reduced competitiveness and profitability.
Businesses may face challenges like understanding zoning regulations, increased utility competition, navigating complex legal processes, and balancing various criteria like cost and accessibility.
Establish a reliable compliance framework that supports consistent data collection, accurate calculations, and timely reporting. Reporting obligations often requires gathering detailed information, such as employment data, payroll figures, and capital investment details, and these requirements and associated deadlines can vary by jurisdiction and incentive type. A third party can help manage these complexities.
No. In order to help maximize incentives offered, it is recommended to have two or more jurisdictions compete for the opportunity. While specific sites may be identified and terms negotiated prior to finalizing incentives, incentives agreements should be established prior to execution of real estate agreements.
Some key considerations for expansion and relocation are:
Work with an advisor who will short-list communities, to help ensure your business is successful. Incentive negotiations are a portion of the overall business cost analysis and should start after a short list of locations (state/county) have been identified.
A strategic credit review is a comprehensive assessment of a business’s operations, investments, and prior tax filings to identify state and local tax credits and incentives that may have been overlooked or underutilized. Through this process opportunities for refunds, credits, or other above-the-line savings may be uncovered. The review also includes analyzing previously filed income and franchise tax returns and developing an action plan to claim eligible credits while maintaining compliance.
They can help lower costs and increase return on investment in both capital and people that will add to a company’s bottom line. If credits were overlooked, refund claims can be filed so these credits are properly reflected on subsequent tax returns. Initiatives related to green energy and energy efficiency can qualify for sustainability credits and other tax (and non-tax) incentives. Additionally, above-the-line savings opportunities like withholding, franchise, and sales tax refunds, can add value even if your business operates at a tax loss.
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BDO Business Incentives & Tax Credits help provide businesses and organizations identify and secure tax credits and incentives available at the federal, state and local level and international jurisdictions.
BDO’s partner-led practice includes professionals with extensive consulting experience within a public accounting environment, former industry professionals, and auditors from state tax departments.
BDO helps companies understand their sales tax exposure, mitigate risk and establish processes and systems to effectively manage ongoing compliance.
BDO helps clients lower their effective property tax rate and generate above-the-line tax savings, while meeting all compliance requirements.
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