Archive for category: Insights

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.

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.

Five Points Strategic Advisors

info@fivepointsstrategies.com

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

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