fisher- an insider's view of site selection

Roundtable in the Desert

An Insider’s View of Site Selection

Craig S. Fisher Tax Incentives Consultants, LLC

Tax Incentives Consultants, LLC

This presentation will also discuss how consultants interact with clients who have an expansion, relocation or consolidation project.

This presentation will focus on the importance of incentives in the site selection process. This will include which types of programs companies are looking for, the impact of the “but-for” test, and the importance of creativity and flexibility in incentive programs.

In addition, the presentation will discuss the value of income tax related credits, how the Department of Revenue can play an important role in allowing as an incentive modifications to standard income tax rules, the importance of non-cash incentives and how Departments of Commerce and Revenue need to be coordinated so that incentives that are promised can be realized.

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Overview Of Being A Successful Site Selection Consultant

Case Studies

Group Presentations/Discussions

How to Make It Work

What Companies Are Looking For

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Tax Incentives Consultants, LLC 4

You Are the Site Selection Consultant


What are the Goals of being a Successful Site Selection

Consultant?

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Clients

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1. Companies / Businesses

2. Governments / Quasi-Governments

Federal

State

Regional Alliances

County

City

Utilities

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Company / Business Relationships

Trust

“Success” as Defined by your Client

Recurring Engagements

Communication

Remember who’s the star

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Government Relationships

Communication

Remember who’s the star

Trust

Work Ethic

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Provide facts

Groups give short list of potential incentives for the project

Groups discuss potential political issues for the project and how to resolve them

Discuss applicability

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Prospect A:

• Textile Manufacturing Company

• 150 Jobs in 3 different locations (cities)

• 50-75 new jobs over 3 years

• Large Propane/Natural Gas User

• Currently having propane delivered

• Potentially large maintenance expenses upcoming at facilities

• Looking in surrounding states

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Prospect B:

• Distribution Center for manufacturer

• Will have tenant in part of the facility

• Need to make tenant improvements to facility

• 200 Jobs over 3 years, 400 jobs over 5 years

• $1 - 2 million capital expenditures

• Looking to geographically diversify workforce

• Need to train new workforce

• No previous connection to county/city

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Prospect C:

• Specialty Furniture Manufacturer

• 40 - 50 Jobs

• $1-2 million capital expenditures

• Moved before finalizing incentives because of operational considerations, considerations no longer applicable

• Need to train new workforce

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• Tax Credits

• Grants

• Training Assistance

• Property Tax Abatements

• Permits

• Other

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• Trained Employees

• Flexibility

• Financial Support – offset start-up costs

• Programs that fit their project or business

• Creating a partnership

• Other

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Incentives do not make the project.

Business needs to drive the location decision, not incentives.

While incentives will enhance the ROI on a good project, and make a good project better, they will not make a bad project a good project.

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• Unclear or slow process

• Over-verifications

• Applications

• Surprises

• Politics

• Statutory Framework

• No flexibility or discretion

• “But-For” Test

• Coordination of Agencies

• Time Frame

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Income Tax Credits: Job Tax Credit

Investment Tax Credit

Grants: Cost Reimbursements

Discretionary

Training: Done by State/County/City

Reimbursing Company Costs

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Property Tax Abatements

Sales and Use Tax Abatements

State/County/City Financing Tax Increment Financing

Utility Rebates

Permitting / Licensing

Other

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QUESTIONS

&

ANSWERS

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THANK

YOU

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Craig S. Fisher, JD, CPA

Experience:

Craig has over twenty years of experience providing economic development and state and local tax services to companies. He

has provided these services to manufacturers, media companies, pharmaceutical companies and retailers. Craig has assisted

clients in negotiating and obtaining favorable tax and economic incentives related to relocation or expansion plans. He has

guided clients through the process of acquiring transferable tax credits to reduce their state tax burden. He has also led teams in

the design and delivery of strategic business restructuring projects which have benefited his clients by reducing their overall

operating costs and their state tax liability. Additionally, Craig has extensive experience with consulting on income/franchise

tax, sales and use tax and unclaimed property issues for his clients and managing state tax audits.

Education

Juris Doctor, University of New Hampshire School of Law

Bachelor of Accountancy, The George Washington University

Professional Associations & Affiliations

Attorney at the Bar of the Courts of Connecticut

Maryland Certified Public Accountant

Managing Member, Charlotte, NC

704-995-6014

[email protected]

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fisher- an insider's view of site selection

Presentations & Public Speaking

incomefranchise tax

favorable tax

importance of incentives

economic incentives

state tax liability

state tax audits

state tax burden

llcincome tax credits