The true value of incentives can be examined - and ultimately realized - only after understanding the needs of the company and, more specifically, the project. Defining the project scope and key parameters is the first and most essential step. Project scope and key parameters are typically captured in an initial work session between Truth IC and company representatives. Five elements are critical and negotiations cannot begin until these are established by the project team:
The reasons for pursuing incentives are simple:
1) reduce or eliminate project costs, and
2) effectively reduce project delivery times.
Truth IC provides expert consultation to maximize economic development incentives to support your business. We provide strategy, proposal evaluation, negotiation, deal structuring, documentation and final administration of benefits.
Maximum incentive commitments for your business
ADVANTAGE: Truth IC will develop an incentive strategy with priorities once an understanding of the project scope and key parameters have been established or shared. The priorities may be as simple as overall cost reduction (i.e. tax avoidance). They might otherwise be a specific set of solutions to more complex challenges (i.e. workforce, logistics or infrastructure). In every case, Truth IC possesses the experience and expertise gained from hundreds of incentive engagements to maximize support for your business.
1. Project Description
2. Capital Investment
3. Number and Types of Jobs
4. Wage Levels
Whether by resolution or contract, incentive offers must be formalized in order to be binding and enforceable. ADVANTAGE: Truth IC will lead the process of documentation assuring your deal terms are authentic and clearly reflect the "best and final" offer from negotiations. We'll manage formal approvals and agreements including an outline of reporting requirements and due dates.
Truth IC understands the dynamics of incentive negotiations. Our approach is to emphasize the compelling characteristics of the opportunity you're creating and avoid adversarial negotiation. Strong, positive relationships in the community of choice will help assure your long-term success. ADVANTAGE: Truth IC brings broad experience to the negotiating table - economic and community development, government, public affairs and private industry. We understand how culture, performance requirements/limitations and operating environments effect negotiations. The benefits of a project are not always obvious and some degree of "translation" is often required to maximize understanding and support. These subtle strengths, and more, enhance our negotiating ability and improve your position.
Economic development incentives are programs and policies, typically instituted by government, to attract or grow business, thereby gaining the benefits of job creation and capital investment. Most governments utilize economic development incentives although they vary by location and jurisdiction. They may be a distinct array of programs or a set of complex policies intended to facilitate deal making. In virtually every case, incentive programs are implemented as a means of improving or shaping economies by influencing the decision-making of companies.
While incentives are not a substitute for sound fundamentals in a business location, the net impact of obtaining support is an improvement in the return-on-investment context related to your project. An even more successful project will be completed quickly and begin contributing to your company's profitability sooner than later. There are many examples of economic development incentives:
Income Sales and Property Taxes
Truth IC will develop a formal request for proposals (RFP) and issue it to short-listed locations. The RFP is a refined exercise and emphasizes the priorities from the incentive strategy. ADVANTAGE: our experience assures an effective RFP process with definitive timing for Q&A, persistent follow-up and attentiveness to deadlines.
Leadership transitions, management team and project team changes often disrupt the efficient processing of incentive awards and benefits. ADVANTAGE: Truth IC provides you with dependable, administrative processing and represents you before issuing bodies as needed. We'll provide post-project monitoring and compliance to ensure you receive the incentives you were awarded, and on a timely basis.
Truth IC will review incentive/credit proposals and assess the potential range for improving offers. The key at this stage is to analyze the true value of the incentive packages and clearly illustrate the differences between various programs and offers for your benefit. ADVANTAGE: our evaluation will identify the value and impact incentive/credit offers have relative to your project and provide a road map for negotiations.