Archive for category: Insights

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.

Site Selection for Supply Chain Resilience

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Supply chain disruptions have become a defining challenge of the past five years. Companies are rethinking location strategies to ensure resilience in the face of uncertainty.

The Risks of a Fragile Supply Chain

Events from global conflicts to natural disasters have shown how quickly supply chains can be disrupted. Companies dependent on a single port, highway, or region risk major losses when problems arise.

Keys to Building Resilience Through Site Selection

  1. Diversified Access

    Locations with multiple transportation options, from interstates to rail and ports, reduce reliance on a single route.

  2. Proximity to Customers

    Shorter delivery times reduce exposure to bottlenecks.

  3. Local Supplier Ecosystems

    Communities with established supplier networks provide redundancy.

  4. Infrastructure Reliability

    Strong utilities and broadband access support continuity during crises.

A Balanced Strategy

Cost remains important, but resilience carries its own value. Companies that build redundancy into their site selection decisions are better positioned to weather disruptions and protect their customers.

Healthcare and Behavioral Health Projects: A New Era for NMTC

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The healthcare sector, particularly behavioral health, has emerged as one of the strongest fits for the New Markets Tax Credit (NMTC) program. Communities across the country face shortages of care, and NMTC financing is helping fill the gap.

Why Healthcare Projects Are Strong Candidates

Healthcare facilities in underserved areas align closely with NMTC’s mission of community impact. They create jobs, expand essential services, and improve quality of life. Behavioral health facilities in particular are often located in low-income census tracts, making them prime candidates.

Recent Trends

  • Increased demand for outpatient behavioral health services
  • Stronger partnerships between healthcare providers and community development entities
  • Greater emphasis on facilities that integrate behavioral and physical health care

The Financial Advantage

With NMTC, projects can secure below-market financing that covers up to 20 percent of total costs at closing. For facilities that often struggle with thin operating margins, this support can be decisive.

Our Perspective

Healthcare organizations considering new facilities should explore NMTC early. The combination of community need and program alignment makes these projects some of the most competitive and impactful in the allocation process.

Why Mid-Sized Manufacturers Are Winning Big on Incentives

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When people think about economic development incentives, they often picture billion-dollar projects from Fortune 500 companies. The truth is that mid-sized manufacturers are increasingly the ones capturing some of the most impactful packages.

Why Mid-Sized Companies Have an Edge

Large corporations certainly attract attention, but they also come with long timelines and complex negotiations. Mid-sized manufacturers, by contrast, can often move faster and deliver tangible benefits to communities more quickly. That agility is attractive to economic developers.

What Communities Value

Communities are eager to support companies that bring:

  • Steady job creation at sustainable wage levels
  • Local supply chain partnerships
  • Projects that strengthen regional economies without overburdening infrastructure

Examples of Support

Mid-sized firms frequently qualify for:

  • Property tax abatements that cover a meaningful portion of project costs
  • State-funded workforce training tailored to their needs
  • Infrastructure investments to support production growth

The Takeaway

Mid-sized manufacturers should not assume incentives are only for the biggest players. With the right strategy, they can negotiate packages that reduce costs and position their businesses for long-term success.

The End of Texas Chapter 313: What the JETI Program Means for Projects

For years, Chapter 313 provided Texas with one of the most powerful incentive tools in the country. Its expiration left many companies wondering how the state would remain competitive. Today, the Jobs, Energy, Technology, and Innovation (JETI) program is filling that role, but with important differences.

How JETI Differs from Chapter 313

Unlike Chapter 313, JETI is more targeted. It focuses on industries such as clean energy, advanced manufacturing, and technology, requiring companies to demonstrate both job creation and capital investment.

Opportunities for Companies

JETI awards can still provide significant tax savings, but the process is more competitive. Companies that align their projects with state priorities have the best chance of success.

Challenges to Be Aware Of

  • Higher compliance requirements
  • More detailed application processes
  • Limited annual caps compared to Chapter 313

A Strategic Approach

Companies pursuing JETI must be deliberate in site planning and community engagement. At Five Points, we help businesses prepare applications that demonstrate clear economic impact and maximize eligibility under the new program.

Manufacturing Reshoring: How to Choose the Right U.S. Location

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Reshoring continues to gain momentum as manufacturers bring operations closer to U.S. customers. The decision to move production back, however, is only the first step. Choosing the right location is what determines long-term success.

The Drivers Behind Reshoring

Rising overseas labor costs, supply chain risks, and geopolitical uncertainty have made reshoring attractive. At the same time, U.S. incentives and infrastructure investments are creating strong opportunities for manufacturers.

Key Location Factors

  1. Labor Force

    A skilled workforce is non-negotiable. Communities with technical schools and apprenticeship programs can give manufacturers a reliable pipeline.

  2. Logistics Access

    Proximity to customers, suppliers, and intermodal hubs keeps transportation costs under control.

  3. Energy and Utilities

    Reliability and cost of power, water, and broadband often decide between one site and another.

  4. Incentives and Support

    States are competing aggressively for reshoring projects with generous incentive packages.

Long-Term Perspective

A reshored facility should not only solve today’s problems but also position the company for growth. A balanced approach that weighs labor, logistics, and incentives together is the surest path forward.

The Biggest Mistakes Companies Make in Incentives Negotiations

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When companies pursue economic development incentives, the negotiations often determine whether a project captures meaningful value or leaves money on the table. Too often, businesses fall into predictable traps that weaken their position.

Mistake 1: Engaging Too Late

Many leadership teams wait until a site has been chosen before discussing incentives. By then, the leverage is gone. Incentive packages are strongest when communities are still competing for the project.

Mistake 2: Focusing Only on Taxes

Property tax abatements are important, but they are not the whole story. Workforce training, infrastructure improvements, and permitting support can be just as valuable.

Mistake 3: Underestimating the Timeframe

Communities require due diligence, public hearings, and formal approvals. Companies that assume a quick turnaround risk delaying their projects.

Mistake 4: Overlooking Compliance Requirements

Incentives come with commitments. Job creation numbers, capital investment thresholds, and reporting obligations must be carefully managed. Failure to deliver can lead to clawbacks.

How to Avoid These Pitfalls

Successful negotiations require preparation, timing, and a clear understanding of the community’s goals. At Five Points, we guide companies through the process so they can capture the full range of benefits without unintended surprises.

Five Points Strategic Advisors

info@fivepointsstrategies.com

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

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