Many state and local governments, as well as community-based organizations, maintain healthy economic development programs. These programs strive to bring jobs and stimulate growth by attracting new business. Increasingly, states across the country are proposing – and passing – wider range tax credits and incentives as they compete for business.
When considering a relocation or expansion, companies often evaluate sites based on a state or city’s demographics and location attributes. Features such as geographic location, available workforce, quality of life and existing infrastructure remain key to site selection analysis. However, tax credits and incentives are starting to play a larger role in these decisions.
While large corporations have historically benefited from custom tax incentive packages, small to mid-size businesses are leveraging tax code and other incentives in evaluating growth opportunities. Among these include special tax credits to attract high-tech manufacturers and broader hiring incentive packages.
While “The Great Recession” brought economic uncertainty, many cash flush companies with strong balance sheets see this as an opportunity for growth. Economic development fuels our nation’s economy—in both good times and bad—and it will propel its recovery.
Click here to view the full digital version of the The Economic Development edition of SML Perspectives.