During a recent incentives analysis and benchmarking study, several national site selectors who are also members of the prestigious site selectors guild, were interviewed. Several important factors regarding incentives were noted:
- Flexibility is a must. Some companies will need the majority of the incentives up front or in the first few years of the project to help with cash flow. Others, will want a consistent incentive arrangement. For example, a project that receives a 50% tax abatement for 10 years. One company may want 100% abatement in year 1, and then stair-stepped down over the life of the incentive. Another company will want to count on the 50% abatement each year for ten years.
- Incentives that reduce upfront costs are important. Any incentive that can help a company keep money in its pocket during the higher years of capital outlay, will help the overall financial position of the company.
- Local tax abatement for high capital projects is crucial. Projects are having higher and higher capital investments today than several years ago, and having a local tax abatement option is becoming crucial for winning projects.
- Training programs that help with talent pipeline retention and expansion are as important as infrastructure. Those communities which can offer assistance on the talent/workforce side, will win projects.
