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Issue No. 3 incentis group Newsletter
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Sept./Oct. 2009
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Greetings!
Welcome to the incentis group Newsletter, the bi-monthly publication designed to keep
you, our valued business partners, in-the-know on incentis group projects and
services and aware of changes in the economic development industry that may benefit your
projects. We hope you find this issue contains information useful in your project
planning.
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Incentives Compliance Services
Through our IncentiCare division, incentis group provides
support and advisory services that aid recipients of incentives in obtaining
and retaining the full value of incentives and credits that they have been granted.
Our experience tells us that as many as 40% of companies that are granted
incentives do not receive the complete value of the packages that they have
negotiated. Such shortfalls are primarily due to insufficient knowledge
of incentives programs and of compliance requirements.
We help our clients ensure they receive the benefits we secure by:
- Identifying and cataloging applicable incentives and
compliance requirements.
- Identifying state and local economic development officials
responsible for compliance.
- Identifying company personnel that are sources of data
necessary to complete compliance reporting.
- Developing a schedule of compliance reporting including
data source notification dates, data collection deadlines, reporting
deadlines, and certification date.
- Customizing a data compilation plan that best fits the
client's internal organization and structure.
- Compiling data and preparing required compliance reports.
- Submitting compliance reports to appropriate public
officials and monitoring certification approvals when appropriate.
- Negotiating retention of incentives when investment, jobs,
payroll, and other project targets are not achieved or maintained.
For further information on IncentiCare's Compliance Services or for assistance realizing the full value of the incentives your firm has been awarded, please contact James Gomochak at 312-421-3482.
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incentis group Success
As a result of incentis group's research and negotiation
expertise, a company making significant investments in order to make a facility
more efficient and to upgrade outdated equipment in the State of California, was awarded
property tax and sales and use tax benefits.
The benefits, approximately $4,500,000 in total, were awarded despite
the fact that the project was focused on increased efficiency and reduced the overall
employment needs at the facility. The
tax benefits were offered to our client based on new investment in
building and equipment as well as advanced technologies that allowed the facility
to remain competitive.
For
information on the services provided during this project or to learn more about
incentives in your area, please contact James Gomochak at 312-421-3482 or
JGomochak@incentisgroup.com.
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Technical Update - Changes to State Incentive Programs
Kentucky Governor Steve
Beshear signed House Bill 3 on June
26, 2009, which includes new and expanded business incentive
programs to encourage job growth and capital investment in Kentucky.
The Incentive changes for
this new Kentucky bill includes the consolidation of four long-standing Kentucky's business incentive programs, the Rural
Economic Development Act, Kentucky Industrial Development Act, Kentucky Jobs
Development Act, and Kentucky Economic Opportunity Zone Act, into a single, more
flexible tax incentive program called the Kentucky Business Investment (KBI)
Program. Effective June 26, 2009 the state is no longer
accepting applications for the former credits. The new economic development and
incentive program is effective for tax years beginning after December 31, 2009.
This business incentive
program provides income tax credits and wage assessments to new and existing manufacturing
companies, regional and national headquarters, agricultural business and
non-retail service or technology related companies that locate or expand
operations in Kentucky.
Increased incentives are available to projects occurring in enhanced incentive
counties.
This new legislation also
expands the Kentucky Enterprise Initiative Act (KEIA) to include a sales tax
refund for capital investments of $500,000 or the purchase of electronic
processing equipment of $50,000. The
term of the agreement for KEIA projects has been extended for up to seven
years.
For existing businesses,
investments ranging from $2.5 million for an existing manufacturing facility
and job retention of at least 85% of full time employment may be eligible to
recover up to 100% of eligible skilled training costs under this new bill.
For Small Businesses,
meeting the definition of KRS 154.12-231 that has fifty or fewer full time employees
there are incentives available under this new program The program requirement
includes, expenditures of at least $5,000 or more of qualifying equipment or
technology and creation of one eligible position over a base employment. The
maximum amount of the credit for each small business is $25,000 per year. The credit may not be used until taxable year
12/31/2011 and
is capped at $3 Million in total credits that may be used under the program.
Additionally, approved
companies that are heavy users of computer and telecommunication equipment now
have the ability to receive a sales tax refund on the purchase of qualifying
equipment costing at least $100 million or more installed at a single location
in Kentucky.
For more information regarding Kentucky
developments please contact Rita Williams at
(513)651-6786 or Rita.Williams@incentisgroup.com.
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Message from the CEO
I believe it is time for each of us to step back, take a
breath and relax, if for only a moment and gain some peace of mind that the
worst of the economic downturn is behind us.
In speaking recently with a number of owners and managers of businesses
in various industries, I have heard very optimistic comments regarding a slow,
but apparent rebound of activity. We
also see an upturn in our business which is typically an indicator of coming economic
activity.
incentis group works closely with companies that are
planning to expand operations, construct new facilities, or grow via
acquisitions. It is obvious to us, that
the number of corporations considering or planning for one or more of these
growth opportunities has increased in the past 60 days. We expect that this interest and planning
will translate to new capital investment and hiring beginning in the fourth
quarter of this year and increasing at a faster pace in 2010.
I encourage you to have
some comfort that economic activity is improving and that better times are
before us.
Larry Kramer
Chief Executive Officer
incentis group
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incentis group is a national
firm of incentives and credit professionals who provides incentive and
credit negotiations on behalf of
Companies that are making acquisitions, routine capital investments,
hiring/training employees, expanding/downsizing facilities and other
activities in the United States,
Canada
and other parts of the world. If
your business is growing or experiencing changes, you may be eligible
for incentives,
credits and other benefits from your Federal, State and Local
Government.
Additional
services offered by incentis group can be located on our web site www.incentisgroup.com or by contacting
our Vice President of Business Development, Karen Warren at 561-493-9558.
Sincerely,
Incentis Group
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