Archive for category: Insights

Five Points’ 2025 Recap and 2026 Outlook

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As we close out 2025, it is worth reflecting on what this year has meant for our clients and partners.

2025 in Review

  • We supported manufacturers, healthcare providers, and other organizations in securing millions in incentives and tax credits.
  • We guided clients through new programs, including the JETI initiative in Texas.
  • We saw continued demand for NMTC financing, with projects already preparing for 2026 allocations.

Looking Ahead to 2026
We expect continued momentum in reshoring, increased emphasis on workforce development, and stronger focus on sustainability. The permanency of NMTC offers unprecedented stability for companies planning major projects.

Our Commitment
At Five Points, we remain dedicated to helping companies make informed site selection decisions and secure the incentives that turn vision into reality.

How to Work with Economic Developers to Maximize Incentives

Economic developers are essential partners in securing incentives. Yet many companies treat them only as gatekeepers, missing the opportunity to build strong, collaborative relationships.

Best Practices for Engagement

  1. Be Transparent: Share clear project details early to build trust.
  2. Understand Their Goals: Communities want job creation, investment, and long-term impact.
  3. Follow Through: Meeting commitments strengthens credibility for future projects.
  4. Engage Early: Developers are most effective when brought in before a site decision is final.

The Mutual Benefit

When companies and economic developers work together, the results go beyond financial incentives. Communities thrive, and companies gain lasting local support.

The Takeaway

Strong partnerships are as important as the incentives themselves. Treating economic developers as allies creates outcomes that benefit both sides.

The Incentives Year in Review: Biggest Wins and Lessons of 2025

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Looking back at 2025, several themes stand out in the world of economic development incentives.

Major Wins

  • Communities showed strong support for manufacturing and healthcare projects, with several record-setting packages.
  • The rollout of the JETI program in Texas provided a new pathway for large-scale projects.
  • Workforce development programs became more visible and impactful than ever.

Key Lessons

  • Timing remains critical. The companies that engaged early saw the strongest results.
  • Incentives beyond taxes, including training and infrastructure, often provided the most immediate value.
  • Partnerships with local economic developers proved essential to navigating complex negotiations.

Looking Ahead

The lessons of 2025 will inform strategies in 2026. Companies that remain proactive and deliberate will continue to capture the greatest benefits.

Blog 18 — NMTC Permanency: What It Means for Companies Planning Big Projects

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The permanency of the New Markets Tax Credit program has reshaped how companies think about financing. For years, uncertainty about extensions left businesses hesitant to plan projects around NMTC. With permanency secured, that has changed.

Why Permanency Matters

Companies can now confidently include NMTC in long-term capital strategies without worrying about sudden expiration. This opens the door to more projects, particularly in underserved areas.

What Companies Should Do

  • Plan Early: Competition for allocations remains strong.
  • Engage with CDEs: Building relationships ahead of time strengthens the case for support.
  • Integrate NMTC with Other Incentives: Combining financing tools often produces the best outcomes.

Our Role

At Five Points, we are helping clients position projects today for allocations that may close in 2026 and beyond. The stability of NMTC makes it a reliable foundation for growth.

The State of Site Selection: Five Trends Defining 2026 Projects

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As we prepare for 2026, several key trends are shaping the site selection landscape. Companies that understand these shifts will be better positioned to make decisions that support long-term success.

Trend 1: Reshoring Remains Strong

Manufacturers continue to move production closer to U.S. customers to reduce risk and improve supply chain control.

Trend 2: Workforce is the Deciding Factor

Incentives can help, but access to skilled labor remains the most important variable for most projects.

Trend 3: Sustainability is a Priority

Green standards and renewable energy integration are no longer optional. Communities are building programs to support companies that lead in this area.

Trend 4: Incentives Are Becoming More Targeted

States are refining programs to focus on industries such as advanced manufacturing, clean energy, and healthcare.

Trend 5: Competition Among States Intensifies

Communities are investing heavily in infrastructure and incentives to remain competitive in attracting projects.

The Bottom Line

2026 will be a year when thoughtful, data-driven site selection delivers a distinct advantage.

Behind the Numbers: How to Calculate the True Value of Incentives

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When negotiating incentives, it is easy to focus on headline numbers. A 10-year property tax abatement worth millions may sound impressive, but the real question is: what is the actual value to the company?

Key Considerations

  • Net Present Value: A dollar today is worth more than a dollar 10 years from now.
  • Compliance Costs: Reporting and performance obligations can reduce the net benefit.
  • Stacking with Other Incentives: Combining multiple programs may deliver more value than a single large award.
  • Impact on Cash Flow: The timing of benefits matters as much as the total amount.

An Example

A company promised $5 million in abatements over 15 years realized the net present value was closer to $3 million. However, the addition of workforce training and infrastructure support raised the overall benefit to more than $6 million.

The Takeaway

Evaluating incentives requires more than looking at face value. A disciplined financial analysis ensures companies capture the true return on their negotiations.

The New Standard for Green Manufacturing Incentives

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Sustainability is no longer optional. Companies in manufacturing and related sectors are being held to higher standards for energy use, emissions, and environmental impact. Incentive programs have evolved accordingly.

Current Focus Areas

  • Electric vehicle production and infrastructure
  • Renewable energy integration at industrial sites
  • Carbon reduction through advanced processes
  • Recycling and circular economy initiatives

Examples of Support

  • Federal clean energy tax credits
  • State grants for renewable energy adoption
  • Utility rebates for efficiency improvements

Why It Matters

Green incentives reduce upfront costs while helping companies meet regulatory and market expectations. More importantly, they position businesses to attract customers and talent who value sustainability.

Our Perspective

The most successful companies will be those that view sustainability incentives not just as compliance tools but as investments in competitiveness.

Workforce Incentives: The Overlooked Advantage in Location Decisions

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A skilled workforce remains one of the most important drivers of site selection. Yet too often, companies underestimate the value of workforce incentives. These programs not only support hiring but also reduce training costs and improve retention.

Types of Workforce Incentives

  • Customized Training Grants: Funding for job-specific skills programs.
  • On-the-Job Training Subsidies: Wage reimbursements for new hires in training.
  • Partnerships with Technical Schools: Programs that align curricula with employer needs.

Why They Matter

A community’s ability to deliver skilled workers quickly can shorten ramp-up times for new facilities. For companies expanding in competitive industries, workforce incentives may be as valuable as tax savings.

A Case in Point

One manufacturer we supported received more than $1 million in workforce training funds. The result was a well-trained team in place on day one, allowing the facility to meet production targets without delay.

The Bottom Line

Incentives tied to workforce development are not secondary. They are central to the long-term success of a new facility.

Election-Year Impacts: How 2026 Incentives Could Change

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Election years always bring uncertainty, and 2026 will be no exception. For companies planning new projects, understanding how political outcomes might affect incentives is critical.

What to Watch

  1. Federal Policy
    Incentives tied to clean energy, advanced manufacturing, and community development could see changes depending on the priorities of the next Congress.
  2. State Budgets
    State-level incentive programs often adjust following elections as new leadership sets fiscal priorities.
  3. Local Dynamics
    Mayors and city councils influence how aggressively communities pursue projects. Local leadership shifts can reshape incentive negotiations.

How Companies Can Prepare

  • Diversify Site Options: Keep multiple locations under consideration to adapt if programs change.
  • Engage Early: Establish relationships with economic development partners now.
  • Stay Informed: Monitor policy discussions that could affect key programs such as NMTC and workforce grants.

The Takeaway

While no company can control election outcomes, preparation and flexibility ensure that projects remain on track regardless of political change.

Q4 Strategy Check: Preparing Your Project Pipeline for 2026 Incentives

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The final quarter of the year is the time for companies to prepare their project pipelines for the year ahead. For those considering expansions or relocations, planning now can unlock significant incentives in 2026.

Why Start in Q4

Economic development partners and community development entities begin setting priorities months before the new year. Companies that wait until the spring often find that the most competitive opportunities are already in motion.

Steps to Take Before Year-End

  • Confirm Project Scope: Clarify investment levels, timelines, and job creation targets.
  • Identify Eligible Sites: Determine whether locations fall within incentive-qualified areas.
  • Engage Early: Reach out to local and state partners to signal interest.
  • Assess Financing Options: Consider how tools such as NMTC may complement traditional funding.

Positioning for Success

A thoughtful Q4 review can make the difference between an incentive package that closes in 2026 and one that lags behind competitors. At Five Points, we help companies use this time of year to sharpen strategy and strengthen outcomes.

Five Points Strategic Advisors

info@fivepointsstrategies.com

711 Navarro St. | Ste 300-103
San Antonio, TX 78205

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