Archive for category: Insights

NMTC 101: What Companies Need to Know for 2026 Allocations

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The New Markets Tax Credit (NMTC) program remains one of the most powerful financing tools available for projects in underserved areas. With permanency now established, companies that want to benefit from the program in 2026 should begin preparing today.

What Is NMTC?

The NMTC program provides federal tax credits to investors who make qualified equity investments in low-income communities. For companies, this translates into below-market financing that can cover up to 20 percent of project costs at closing.

Who Qualifies?

To be eligible, a project must be located in a qualified census tract and typically involve job creation, community services, or other significant impacts. Manufacturing, healthcare, education, and community facilities are often among the strongest candidates.

Why Plan Now for 2026?

Securing NMTC allocation is competitive. Community Development Entities (CDEs) that distribute credits review projects months in advance. Companies that delay preparation until 2026 may find themselves behind others in line.

Steps to Take Now

  1. Identify Eligible Sites

    Confirm whether your project location qualifies.

  2. Develop a Financing Strategy

    Understand how NMTC would integrate with other funding sources.

  3. Engage with CDEs Early

    Build relationships that strengthen your application.

  4. Work with Experienced Advisors

    The complexity of NMTC transactions requires expertise.

The Takeaway

If your company is planning a project of $10 million or more in an eligible area, the time to begin the NMTC process is now. At Five Points, we guide clients through every stage, from confirming eligibility to closing transactions.

Incentives Beyond Taxes: Hidden Benefits Companies Overlook

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When companies think about economic development incentives, property tax abatements or state tax credits usually come to mind. Those tools are important, but they represent only part of the picture. Some of the most impactful benefits are not tied to taxes at all.

The Overlooked Incentives

Here are three categories of benefits that companies often miss:

  1. Workforce Training Programs
    States and local governments often fund customized training for new or expanding employers. This can include both classroom instruction and on-the-job training, dramatically lowering onboarding costs.
  2. Infrastructure Improvements
    Communities may invest in road upgrades, utility extensions, or broadband expansion to support a new project. These improvements can save millions in capital expenses.
  3. Site Preparation and Permitting Support
    Many jurisdictions fund site grading, environmental remediation, or expedited permitting. These efforts remove barriers that would otherwise delay progress.

Why It Matters

These “hidden” incentives often provide immediate, tangible value. A $1 million road improvement, for example, may not appear on a tax form, but it directly reduces the cost of capital outlay.

A Case Example

One manufacturer we supported received a modest property tax abatement but also $2.5 million in state-funded workforce training and infrastructure support. The latter proved to be the true difference-maker for the project’s return on investment.

The Bottom Line

If a company negotiates only for tax abatements, it is almost certainly leaving value on the table. At Five Points, we help uncover and secure the full spectrum of incentives that communities are willing to provide.

U.S. Tariffs and Canadian Manufacturers: Site Selection Opportunities

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Canadian manufacturers are facing a new reality. U.S. tariffs on certain imports, along with global supply chain pressures, have reshaped the economics of cross-border trade. For many mid-sized Canadian companies, expanding into the United States is no longer optional. It has become a strategic necessity.

The Tariff Pressure
Recent tariff adjustments have increased costs on materials and finished goods, particularly in metals, automotive parts, and machinery. For Canadian firms that export heavily to the U.S., these added costs reduce margins and competitiveness.

The Case for a U.S. Location
By establishing a U.S. footprint, Canadian manufacturers can:

  • Remove tariff exposure on products sold domestically in the U.S.
  • Shorten supply chains and reduce transportation costs.
  • Access U.S. workforce and training incentives not available abroad.
  • Tap into federal programs such as the New Markets Tax Credit (NMTC).

Where the Opportunities Are
The most competitive locations right now for Canadian companies include border states like Michigan, Ohio, and New York, as well as Sunbelt states offering aggressive incentive packages. Locating in NMTC-qualified census tracts can open the door to financing worth up to 20 percent of project costs.

A Realistic Approach
Expansion requires careful planning. Canadian companies must consider labor availability, state regulatory environments, and long-term operating costs. A data-driven analysis and thoughtful negotiations with state and local partners can help ensure success.

Our Role
At Five Points, we have guided Canadian companies in reducing tariff exposure while securing significant incentives for new U.S. facilities. In many cases, the move has turned a business challenge into a growth opportunity.

Why Site Selection Matters More Than Ever in 2025

When companies plan to expand or relocate, the decision often comes down to cost, speed, and risk. In 2025, the stakes are higher than ever. Supply chain disruptions, labor shortages, and shifting state and federal policies have made site selection a strategic imperative, not just a real estate choice.

The Changing Landscape

In the past, companies often prioritized a single factor such as inexpensive land or proximity to highways. Today, leadership teams must balance a wide range of variables: workforce skills, infrastructure, tax environment, utility capacity, and even broadband reliability.

Global uncertainty has added to the challenge. Tariffs, shifting trade policies, and demand for nearshoring mean that companies cannot afford to make location decisions in a hurry.

The Cost of a Poor Decision

A poor location choice raises more than expenses. It can stall a company’s growth. For example:

  • Labor shortages can lead to costly overtime or limit production.
  • Energy constraints may delay expansion plans or require expensive retrofits.
  • Regulatory hurdles can slow permitting by months, disrupting timelines.

By contrast, a well-chosen site can unlock millions in long-term value through incentives, infrastructure investment, and workforce pipelines.

Incentives as a Game-Changer

Economic development incentives are often the difference between a feasible project and one that never leaves the drawing board. State and local governments continue to compete aggressively for projects in sectors such as manufacturing, clean energy, and life sciences. Companies that approach negotiations with a clear strategy can secure grants, abatements, and infrastructure commitments that reshape the economics of their projects.

Looking Ahead

The companies that thrive in the coming years will be those that approach site selection as a deliberate business process rather than a simple real estate move. At Five Points, our role is to help companies navigate the complexity and capture the full value of their investment.

Unlocking Wisconsin’s Incentives for Manufacturers: A Guide to Expanding or Relocating

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When it comes to site selection and expansion, manufacturers are always looking for the most strategic location with the best combination of workforce, logistics, and financial incentives. Wisconsin stands out as a prime destination for manufacturers considering new locations or expansions. With its strong industrial base, skilled workforce, and business-friendly policies, the state offers a variety of incentives designed to reduce costs and accelerate growth. 

Key Incentives for Manufacturers in Wisconsin

  1. Enterprise Zone Tax Credits

Wisconsin offers Enterprise Zone Tax Credits (EZTC) to encourage businesses to expand or relocate in designated enterprise zones across the state. These refundable tax credits are performance-based and can be applied to:

  • Job creation: Incentives for hiring and training workers.
  • Capital investment: Support for building facilities and purchasing equipment.
  • Supply chain development: Encouragement for using Wisconsin-based suppliers.

The amount of tax credit is determined based on company commitments and negotiated agreements with the Wisconsin Economic Development Corporation (WEDC).

  1. Business Development Tax Credits

For manufacturers investing in job creation and capital expenditures, the Business Development Tax Credit (BDTC) offers another powerful incentive. This refundable credit is available to companies that:

  • Expand existing operations.
  • Establish a new facility in Wisconsin.
  • Create and retain high-paying jobs.

Credits are based on wage levels, job creation, and capital investment, making it a compelling reason for manufacturers to choose Wisconsin over competing locations.

  1. Tax Increment Financing (TIF)

Tax Increment Financing (TIF) is a valuable tool for manufacturers looking to develop or redevelop property in Wisconsin. Local governments can create TIF districts to help finance infrastructure improvements, land acquisition, and site preparation, reducing upfront costs for businesses. Manufacturers can benefit from TIF through reimbursements or direct financial assistance to support their expansion or relocation projects.

How Five Points Strategic Advisors Can Help

Navigating Wisconsin’s incentives landscape requires expertise and strategic planning. At Five Points Strategic Advisors, we specialize in identifying and securing the best incentives tailored to your business needs. Whether you are selecting a new site or expanding an existing facility, our team will work with you to maximize available benefits, streamline the application process, and ensure compliance with incentive agreements.

By leveraging Wisconsin’s robust incentive programs, manufacturers can significantly reduce costs, accelerate growth, and gain a competitive edge. Contact us today to explore how Five Points Strategic Advisors can help you make the most of Wisconsin’s opportunities.

Maximizing Savings and Growth: How Manufacturers Can Benefit from South Carolina’s FILOT Program

For manufacturers seeking a competitive advantage in site selection and expansion, South Carolina offers a compelling incentive: the Fee-in-Lieu-of-Tax (FILOT) program. Designed to reduce property tax burdens, FILOT provides significant cost savings for qualifying businesses, making South Carolina an attractive destination for new investments. Understanding how to leverage this program effectively can enhance a company’s financial outlook and long-term success. 

Understanding the FILOT Program

South Carolina’s FILOT program allows eligible manufacturers and other capital-intensive businesses to negotiate a lower assessment ratio and lock in their millage rate for up to 30 years. This replaces the traditional property tax structure, which typically applies a 10.5% assessment ratio to manufacturing properties. Under FILOT, manufacturers can reduce this to as low as 6%, resulting in substantial tax savings.

 Key Benefits for Manufacturers

  1. Lower Property Tax Liabilities – By reducing the assessment ratio and stabilizing the millage rate, manufacturers can lower their overall tax burden, freeing up capital for reinvestment.
  2. Long-Term Cost Predictability – The ability to fix the millage rate for decades provides financial stability, allowing businesses to plan with confidence.
  3. Incentives for Large-Scale Investments – The program is particularly advantageous for manufacturers making significant capital investments, as it enhances return on investment by reducing long-term tax costs.

Eligibility and Requirements

To qualify for FILOT, manufacturers must meet specific criteria:

  • A minimum capital investment, typically $2.5 million within a five-year period.
  • Approval from the local county council, as FILOT agreements are negotiated at the county level.
  • Commitment to maintaining the investment and job creation commitments outlined in the agreement.

In some cases, manufacturers investing $400 million or more may qualify for the Super FILOT, which offers even lower assessment ratios and extended benefits.

How Manufacturers Can Maximize FILOT Benefits

  1. Engage Early with Local Officials – Since FILOT agreements require county approval, early discussions with economic development representatives and local government leaders can help streamline the process.
  2. Bundle with Other Incentives – FILOT can be combined with additional state and local incentives, such as job tax credits, infrastructure grants, and sales tax exemptions, to maximize savings.
  3. Work with Site Selection Experts – Navigating FILOT negotiations and structuring agreements effectively can be complex. Partnering with experienced advisors, like Five Points Strategic Advisors, ensures manufacturers secure the most favorable terms.

How Five Points Strategic Advisors Can Help

At Five Points Strategic Advisors, we specialize in helping manufacturers navigate the complexities of the FILOT program. Our team provides expert guidance in:

  • Assessing Eligibility – We evaluate whether a manufacturer’s planned investment qualifies for FILOT and other incentives.
  • Negotiating Favorable Terms – Our experts work directly with county officials and economic development agencies to structure the most advantageous agreement.
  • Maximizing Incentive Stacking – We identify opportunities to combine FILOT with other state and local incentives, optimizing cost savings.
  • Ensuring Compliance – We assist businesses in meeting FILOT requirements, helping them maintain eligibility and avoid potential pitfalls.

By leveraging our expertise, manufacturers can secure the best possible FILOT terms, reduce costs, and position themselves for long-term success in South Carolina.

Conclusion

For manufacturers considering South Carolina for a new facility or expansion, the FILOT program is a powerful tool to enhance profitability and long-term growth. By reducing property tax obligations, stabilizing costs, and encouraging large-scale investments, FILOT makes South Carolina a premier destination for industrial growth. Working with expert advisors like Five Points Strategic Advisors ensures businesses unlock the full potential of this program, positioning themselves for sustainable success in the Palmetto State.

Unlocking Economic Growth: How Local Developers Can Leverage the New Markets Tax Credit to Attract Businesses

For local economic developers, securing investment and fostering economic growth is a constant challenge. Communities must leverage every available tool to attract businesses, create jobs, and enhance local prosperity. One powerful yet often underutilized tool is the New Markets Tax Credit (NMTC) program. This federal incentive can serve as a game-changer, offering a financial edge that competing communities may not have.

Understanding the New Markets Tax Credit Program

The NMTC program was established to stimulate investment in economically distressed areas by providing tax credits to investors who finance businesses and projects in qualifying census tracts. Essentially, it offers investors a 39% tax credit over seven years on investments in businesses or economic development projects located in eligible communities.

For local economic developers, this means that businesses looking to expand or relocate can benefit from significant financial incentives, making investment in their community more attractive. However, the NMTC program can be complex, requiring expertise to navigate the process efficiently.

A Competitive Advantage for Your Community

Not all communities are eligible for NMTC funding. The program is restricted to designated low-income census tracts, meaning that local economic developers who work within these areas have a unique advantage. By integrating NMTCs into their economic development strategy, they can offer businesses an additional incentive that many other communities cannot.

Companies seeking expansion are drawn to areas that offer the best mix of location, workforce, and financial incentives. The NMTC program can serve as a tipping point for decision-makers evaluating multiple site options. With the ability to lower capital costs and enhance project feasibility, NMTCs provide a compelling reason for businesses to invest in qualifying communities. 

Overcoming New Markets Tax Credit Complexity with Five Points Strategic Advisors

While the benefits of the NMTC program are clear, many economic developers and businesses hesitate to pursue it due to the program’s perceived complexity. This is where Five Points Strategic Advisors comes in. Our team specializes in guiding clients through the intricate process of securing NMTC financing, ensuring that projects maximize their benefits while minimizing administrative burden.

Our experts assist economic developers by:

  • Identifying Eligibility: We help determine whether a project is located within a qualifying census tract and assess its potential for NMTC funding.
  • Structuring the Investment: We work with developers, investors, and community organizations to structure transactions that maximize financial benefits.
  • Navigating the Application Process: The NMTC application and allocation process can be daunting. We provide step-by-step guidance to streamline approvals and compliance.
  • Connecting with Key Stakeholders: Our extensive network of investors, Community Development Entities (CDEs), and lenders ensures that projects gain access to critical financing sources.

By partnering with Five Points Strategic Advisors, local economic developers can confidently offer NMTCs as an incentive without the burden of navigating the program alone.

Take Action: Harness NMTCs for Your Community

Local economic developers should view NMTCs not as a challenge, but as an opportunity to set their community apart. By integrating NMTCs into their business attraction strategies, they can unlock new sources of capital, drive investment, and create lasting economic impact.

If you’re looking to explore how NMTCs can work for your community, Five Points Strategic Advisors is here to help. Our team of experts simplifies the process, allowing economic developers to leverage this powerful tool with confidence. Let’s work together to turn opportunity into growth.

Contact Five Points Strategic Advisors today to learn how we can help you navigate the NMTC program and attract the investment your community deserves.

The End of Chapter 313 and the Rise of JETI: A Shift in Texas Economic Incentives

For years, Texas was one of the most aggressive states in the country when it came to using tax incentives to attract large capital investments. At the heart of its strategy was the Chapter 313 program, formally known as the Texas Economic Development Act. However, the program was allowed to expire at the end of 2022, leading to significant changes in how Texas approaches corporate site selection and economic development. In its place, the Texas Legislature introduced the Jobs, Energy, Technology, and Innovation Act (JETI), but the transition has been anything but smooth.

The Rise and Fall of Chapter 313

Chapter 313 was established in 2001 as a way to encourage large-scale capital investment in Texas by providing school district property tax abatements for qualifying projects. Companies that committed to certain job creation and investment thresholds could receive substantial property tax reductions for up to 10 years, making Texas an attractive destination for businesses in industries such as manufacturing, energy, and technology.

By the end of the program, it was approving approximately 50 projects per year, playing a crucial role in the state’s economic growth. However, despite its success in attracting investment, Chapter 313 faced increasing criticism. Detractors argued that the program lacked sufficient oversight, leading to cases where companies received tax breaks without delivering on promised job creation. Additionally, critics pointed out that the program disproportionately benefited renewable energy projects, something that became a point of contention in the state’s political landscape.

Ultimately, the Texas Legislature opted not to renew Chapter 313, and it officially expired on December 31, 2022.

The Introduction of JETI: A Different Approach to Incentives

With the expiration of Chapter 313, Texas lawmakers sought to craft a new incentive program that would address some of the criticisms of its predecessor while still keeping the state competitive for large-scale corporate investments. This effort resulted in the passage of the JETI Act in 2023.

JETI introduced a more restrictive framework for tax incentives. One of the most notable differences is that renewable energy projects are no longer eligible. Under Chapter 313, renewable energy projects—particularly wind and solar developments—had made up a significant portion of the program’s beneficiaries. The exclusion of these projects under JETI signals a major shift in Texas’ economic development priorities, favoring traditional industries such as manufacturing, oil and gas, and semiconductor production.

Additionally, JETI imposes stricter requirements for job creation and capital investment. It also includes more stringent oversight mechanisms to ensure that companies receiving incentives are delivering on their commitments.

A Slow Start for JETI

Despite the introduction of JETI, the transition away from Chapter 313 has been anything but seamless. In the first year of JETI’s implementation, only a handful of projects have been approved—far fewer than the 50 or so projects that were typically approved annually under Chapter 313.

The slow adoption of JETI raises questions about whether Texas remains competitive in attracting major corporate investments. With fewer companies applying for incentives, there is concern that the state’s ability to attract large-scale projects could diminish, especially in industries that require significant upfront capital investment. 

The Future of Texas Incentives

The expiration of Chapter 313 and the slow rollout of JETI mark a significant shift in Texas’ economic development strategy. While JETI aims to create a more transparent and accountable incentive structure, its reduced scope and eligibility criteria could lead to fewer investment opportunities for the state. In response, local economic developers have continued to step up to assist with economic development, working to bridge the gap left by the transition from Chapter 313 to JETI.

For companies evaluating Texas as a potential site for investment, understanding these changing incentive landscapes is crucial. Firms looking to capitalize on available benefits must carefully assess whether their projects qualify under JETI or if alternative state and local incentives may be a better fit. Five Points Strategic Advisors is here to assist businesses in navigating these complexities, ensuring they make informed decisions and maximize available opportunities.

As Texas policymakers continue to assess the effectiveness of JETI, businesses and economic development professionals will need to stay informed and proactive in navigating the new incentive framework. Whether JETI will ultimately prove successful or lead to further adjustments remains to be seen, but what is clear is that Texas’ approach to economic incentives has entered a new era.

The Politics of Corporate Site Selection: Why Economic Development Must Remain Apolitical

In the world of corporate site selection, the process of choosing where to invest and expand operations is often framed as a purely economic exercise. Companies assess key factors such as workforce availability, infrastructure, supply chain logistics, and market access. However, economic development incentives and policy frameworks are frequently intertwined with state and local politics, leading to a perception that corporate site selection is a political decision. Despite this perception, economic development must remain firmly apolitical, driven by data, long-term business strategy, and shared community benefits.

The Real Drivers of Corporate Site Selection

When businesses evaluate locations for new facilities, their focus is on operational efficiency and long-term sustainability. Key considerations include:

  • Workforce Quality and Availability: The depth of the local talent pool in relevant industries is often the primary driver of site selection decisions.
  • Infrastructure and Logistics: Proximity to highways, ports, rail, and airports, along with utility reliability, are critical.
  • Regulatory and Business Climate: Companies look for stable regulatory environments that support business growth.
  • Quality of Life: The ability to attract and retain skilled employees depends on factors like education, healthcare, housing, and cultural amenities.

Incentives—whether tax breaks, grants, or infrastructure investments—are just one part of the equation. They rarely make up for fundamental deficiencies in a location’s business climate or workforce readiness.

The Role of Incentives and the Political Landscape

State and local governments often compete aggressively for business investment, using incentives to tip the scales in their favor. These incentives can become politically contentious, as elected officials champion—or oppose—economic development deals based on broader political ideologies.

While debates over the appropriateness of certain incentives are valid, companies must navigate this landscape with a focus on economic fundamentals. A site selection decision should never be seen as an endorsement of a particular political ideology. Instead, it should be framed as a commitment to economic growth, job creation, and community investment.

Why Economic Development Must Stay Apolitical

  1. Business Stability Requires Policy Consistency: Companies making multi-million—or billion-dollar—investments need certainty in tax policies, regulations, and incentives. An overly politicized economic development process risks creating instability that discourages investment.
  2. Companies Serve Diverse Stakeholders: Businesses operate in a global economy and serve customers, employees, and shareholders across political spectrums. Aligning too closely with any political movement can alienate key stakeholders.
  3. Long-Term Growth Over Short-Term Politics: Political administrations change, but corporate investments last for decades. Site selection decisions should be based on long-term economic viability, not shifting political landscapes.
  4. Community Impact Should Be the Focus: Economic development should be judged by tangible benefits—job creation, wage growth, infrastructure improvements—not political narratives.

Balancing Incentives with Strategic Growth

While incentives play a role in attracting investment, they should never be the sole determinant in site selection. Companies must take a holistic approach, ensuring that the selected location aligns with their strategic growth plans, workforce needs, and operational goals. Transparency in the decision-making process helps reinforce that these choices are based on economic merit rather than political influence.

Moreover, economic development professionals and policymakers must work together to create competitive business environments that are attractive regardless of political affiliation. When states and municipalities focus on long-term economic fundamentals—such as education, workforce training, and infrastructure investment—they create conditions that drive sustainable growth, reducing the reliance on incentives as a political bargaining tool.

Conclusion

Corporate site selection is an economic decision first and foremost. While the political environment may influence incentives and public perception, businesses must remain steadfast in their commitment to objective, data-driven decision-making. By keeping economic development apolitical, companies, policymakers, and communities can foster an environment where growth and prosperity transcend political divisions, ensuring lasting benefits for all stakeholders.

State-by-State Guide to Available State and Local Incentives for Manufacturers

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Choosing the right state for a manufacturing facility involves evaluating the available state and local incentives. These programs can help offset costs, improve profitability, and foster growth. Here’s a comprehensive state-by-state guide to some of the most notable incentives available for manufacturers:

Alabama

Alabama actively supports manufacturing through a combination of tax incentives, workforce training programs, and infrastructure development grants. Key programs include:

  • Alabama Industrial Development Training (AIDT): Offers no-cost workforce training services to companies creating new jobs. Eligibility typically requires the creation of a minimum number of jobs, which varies by industry.
  • Investment Credit: Provides a credit of up to 1.5% of qualified capital investment costs annually for 10 years. Companies must meet job creation thresholds, often requiring at least 50 new jobs.
  • Property Tax Abatements: Exempts non-educational property taxes for up to 10 years on new facilities, with minimum investment requirements that vary by region.

Arizona

Arizona combines tax credits and exemptions with incentives for renewable energy and advanced manufacturing industries. Programs include:

  • Quality Jobs Tax Credit Program: Provides $9,000 per new job over three years for manufacturers creating at least 25 new jobs paying above the state median wage.
  • Renewable Energy Tax Incentives: Targets manufacturers in the renewable energy sector, offering up to 10% of capital investment as a refundable credit.
  • Accelerated Depreciation: Reduces property taxes by accelerating the depreciation schedule for personal property.

California

California’s incentives focus on technology, sustainability, and workforce development, despite its higher cost environment. Programs include:

  • California Competes Tax Credit: Offers income tax credits based on job creation and investment. Minimum requirements include significant capital investments and job creation tailored to project size.
  • Sales and Use Tax Exemptions: Exempts purchases of manufacturing equipment and R&D materials, with no minimum investment requirements.
  • Workforce Training Funding: The Employment Training Panel subsidizes training costs for workers in advanced manufacturing.

Florida

Florida’s incentives focus on reducing costs for high-impact industries. Key programs include:

  • Qualified Target Industry (QTI) Tax Refund: Provides $3,000 to $8,000 per new job created, depending on wages and location. Companies must create at least 10 high-wage jobs.
  • Sales Tax Exemptions: Exempts manufacturing equipment and electricity from state sales tax, applicable to operations demonstrating over 50% manufacturing activity.
  • Economic Development Transportation Fund: Grants up to $2 million for infrastructure improvements tied to job creation, requiring a significant capital investment.

Georgia

Georgia offers robust incentives for manufacturers, particularly in rural areas. Programs include:

  • Job Tax Credits: Provides up to $4,000 per job annually for five years, with lower thresholds for rural or less-developed areas.
  • Investment Tax Credits: Credits range from 1% to 5% of qualified investments, depending on the region and industry. Minimum investments start at $500,000.
  • Quick Start Training Program: Offers free, tailored workforce training for manufacturers, with no minimum job requirements.

Indiana

Indiana’s low tax environment is complemented by targeted manufacturing incentives. Programs include:

  • Hoosier Business Investment Tax Credit: Grants a tax credit equal to up to 10% of qualified investment costs. Requires significant capital investment and job creation.
  • Skills Enhancement Fund (SEF): Provides training grants covering up to 50% of eligible costs, requiring a commitment to workforce growth.
  • Industrial Recovery Tax Credit: Targets redevelopment of vacant industrial facilities with significant rehabilitation requirements.

Michigan

Michigan focuses on advanced manufacturing and revitalizing existing industrial areas. Key incentives include:

  • Michigan Business Development Program (MBDP): Offers grants or loans for projects creating at least 50 jobs and meeting capital investment thresholds.
  • Sales and Use Tax Exemptions: Exempts industrial processing equipment from sales tax, applicable to manufacturers with significant production operations.
  • Property Tax Abatements: Provides abatements of up to 50% for new or expanding facilities, with minimum investment requirements set by local jurisdictions.

New York

New York provides a range of incentives for manufacturers, with an emphasis on targeted industries and regions. Programs include:

  • Excelsior Jobs Program: Offers up to 6.85% of wages as tax credits for creating at least five jobs and investing $500,000.
  • Sales Tax Exemptions: Exempts machinery, equipment, and utilities used in production.
  • Industrial Development Agencies (IDAs): Provide customizable local incentives, including tax abatements and low-interest loans.

Ohio

Ohio’s incentives support job creation and infrastructure improvements. Programs include:

  • Job Creation Tax Credit (JCTC): Refundable tax credits equal to a percentage of payroll for new jobs created. Requires commitments to create a minimum number of jobs and payroll.
  • Ohio Enterprise Zone Program: Offers property tax abatements for up to 15 years in designated zones, with required capital investment levels.
  • Workforce Training Grants: Funds up to 50% of eligible training costs for new or incumbent workers.

South Carolina

South Carolina’s incentives focus on workforce development and export-oriented industries. Programs include:

  • Job Development Credits: Rebates payroll taxes for projects meeting job creation and investment thresholds, often requiring significant capital investment.
  • Economic Development Bonds: Provide funding for infrastructure projects tied to job creation.
  • Sales Tax Exemptions: Exempts manufacturing equipment, raw materials, and energy from sales tax.

Tennessee

Tennessee offers competitive incentives tailored to advanced manufacturing. Programs include:

  • FastTrack Job Training Assistance Program: Provides grants for workforce training based on job creation, often requiring at least 25 new jobs.
  • Tennessee Industrial Infrastructure Program: Offers grants for infrastructure development, requiring substantial investment.
  • Property Tax Abatements: Local abatements for companies meeting investment and job creation thresholds.

Texas

Texas combines low taxes with targeted incentives for manufacturers. Programs include:

  • Texas Enterprise Fund (TEF): Grants range from $1,000 to $10,000 per job created, requiring significant capital investment and job creation.
  • Sales Tax Exemptions: Covers machinery, equipment, and materials used in production, with no minimum investment requirement.
  • Freeport Exemptions: Provides tax relief on goods-in-transit within 175 days, with local approval required.

Virginia

Virginia’s incentives support both job creation and infrastructure development. Programs include:

  • Virginia Jobs Investment Program (VJIP): Offers up to $1,000 per job created for training costs, requiring a minimum of 25 jobs in manufacturing.
  • Major Business Facility Job Tax Credit: Provides a $1,000 credit per job for businesses creating at least 50 new jobs.
  • Enterprise Zone Grants: Cash grants for businesses meeting investment and job creation thresholds in designated zones.

Wisconsin

Wisconsin emphasizes manufacturing and innovation with its incentives. Programs include:

  • Manufacturing and Agriculture Tax Credit: Reduces the effective tax rate for manufacturers to nearly zero, with no minimum requirements.
  • Training Grants: Funds up to 50% of workforce training costs, requiring a commitment to skill development.
  • Property Tax Exemptions: Exempts manufacturing equipment from property taxes, with no specific thresholds.

Conclusion

Every state offers unique incentives tailored to attract manufacturing businesses. By carefully evaluating the options available, companies can find the perfect location that aligns with their operational needs and growth strategies. This guide serves as a starting point for understanding the diverse incentives across the United States. For detailed information, consult local economic development agencies or state departments of commerce.

Five Points Strategic Advisors

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San Antonio, TX 78205

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