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Report | The complex world of municipal incentives


As companies consider where to locate their offi ce headquarters, manufacturing plants, data centers or other support functions, it is also important to determine not only which location provides the most competitive labor talent, minimizes distribution costs and provides the lowest real estate costs, but also where the company has the opportunity to capture the best package of incentives.
While incentives should never be the main driver in site selection, they can make a huge difference in the overall costs for a given project. Incentives typically are tax-oriented, and in some cases, when the investment is substantial, the state selected for a facility can completely change the company’s tax position. It is, therefore, imperative that your adviser has both real estate and tax expertise in navigating through each prospective state’s tax statutes.

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