Rotunno, P.C., in Chicago, where he focuses on alcoholic beverage
and hospitality law, and public policy issues, including economic
development.
Two First National Plaza
20 South Clark Street, 29th Floor
Chicago, Illinois 60603
312.279.6912 Phone
312.630.7939 Fax
wodonaghue@kftrlaw.com
www.kftrlaw.com
packages for qualifying companies can
substantially offset startup, relocation
and expansion costs. A comprehensive
cost-benefit analysis will reveal just how
much businesses can save and which
states offer the most attractive economic
development incentives.
Incentives are typically tied to
wages, and job creation and retention
goals. They include tax credits, tax
exemptions, tax reductions, low-cost
loans, cash grants and employee training
reimbursements. Many communities
offer their own breaks that businesses
can couple with state programs to create
a strong return on investment.
Generally, the more jobs a company
creates and the longer it agrees to stay
put, the more lucrative the offers. Some
packages are designed for specific
high-growth industries, while others
aim to lure companies to economically
distressed neighborhoods, often known
as "enterprise zones." Operating costs
lower taxes and reduced regulations.
new companies or retain existing ones
has never been more intense. States often
try to outbid each other because they
don't want to get left behind. The U.S.
economy is still sputtering, and many
governments continue to feel the pinch.
Companies working to identify the ideal
location and incentive package need to
make sure that moving to or expanding in
another state will improve profitability.
It's important to evaluate how a
relocation or expansion will affect
operating expenses not just labor
costs. Is it possible to finance the
development without negatively affecting
core activities? Will current cash flow
support the investment? Sound financial
planning is the foundation of a strong
growth strategy.
When looking to move or expand,
business-friendly states may be good
have reduced taxes and favorable
unemployment insurance rates. But
companies must balance potential
savings with the overall business
environment. A careful analysis should
address the following:
workforce?
advantage?
base?
infrastructure and a favorable tax
rate, but if the business has to sink
significant money into finding and
training employees from scratch, it might
be better to look elsewhere. The right
community can help even a struggling
organization turn a negative situation
into a positive outcome.
Fuel Growing Businesses