January 13, 2017

Plug Into Incentives

Are you interested in growing or relocating to the Greater Cincinnati area? Money and savings from the state, local and federal incentives may be available. Miller-Valentine partners with REDI Cincinnati and provides answers to the important questions you need to ask.

REDI works with more than 160 partners to provide a unified response to the business growth needs of companies and serves as a link to financial and regulatory resources for new and emerging businesses. They also provide connections to the best experts in the area that can help take startups to the next level, as well as grow existing companies.

Below is just a sampling of some frequently asked questions to which REDI can provide advice and guidance:

When should a business owner start thinking about economic incentives?As soon as possible. Why? Because when a business owner signs a lease or publicly commits to a location, incentives are no longer available.

Beyond incentives, REDI is equipped to help a company make a location decision swiftly and simply. REDI can make introductions to the right people in local or regional government and can provide information on state loan or grant opportunities. Part of REDI’s services includes site searches for clients and introductions to commercial real estate professionals if needed.

How does Ohio stack-up compared to other states for incentives?
Incentives are only one piece of the puzzle. Ohio, specifically, has a very competitive tax structure. REDI Cincinnati can guide a business owner considering a state’s long-term tax structure when weighing an incentive deal. An incentive offer could offset higher taxes. The JobsOhio structure allows Ohio to be more creative in assisting companies establishing a business in the Greater Cincinnati region.

How does Cincinnati compare to other cities for incentives?
According to REDI, incentives are just the icing on the cake. In their experience, companies will not decide to locate in a specific city or state based solely on an incentive offer. From geographic location and distance from customers to cost of living and a region’s specific culture, all of these factors weigh in for a company determining where to locate. Greater Cincinnati’s 15-county, three-state footprint continues to offer competitive opportunities for companies in the biohealth, food and flavoring, information technology, manufacturing, and shared services industry sectors.

Do economic incentives really matter in the site selection process?
Incentives are usually the last piece of the puzzle. They are typically only one deciding factor when equal sites are on the table.

What range of economic incentives can you expect to receive?
Incentive offers are based on a variety of factors and are unique to every company interaction. Offers range from small to large, depending on the individual company’s situation. Ohio’s incentives fall into three main categories, including tax credits, loans and grants and are always matched to the company’s unique need.

What will I have to do to actually receive the economic incentives
procured?
After REDI or someone from an organization like Miller-Valentine Group helps you and your company determine which incentives to pursue, that incentive package must be approved by the state. In Ohio, REDI will work with you to request incentives from JobsOhio. REDI’s partner organizations in Kentucky and Indiana do the same with their state governments. Once incentives are approved, the economic development organization will guide you through the next steps and requirements to ensure your company remains eligible to receive the negotiated incentive.

What are clawbacks?
Clawbacks occur when a company doesn’t complete the requirements necessary to comply with the negotiated incentive deal. We don’t see this happen often, but in the rare case when it does, the company must pay the state back for the negotiated incentive. As long as a company is open and honest with its economic development partner from the beginning, we can help guide it away from potential pitfalls that could result in clawbacks. No one – from the company to the state organization offering the incentive – want to see a company fail and have to go through a clawback process.

What are retention incentives?
Competitive growth – jobs and capital investment – can be incentivized for both companies coming to the region and those growing locally. That said, incentives cannot be viewed as long-term financial fixes. REDI can help a company consider opportunities for state grants or loans along with traditional incentives. These programs offer funding to fill specific company needs – from building acquisition and capital costs associated with technology to research and development and public roadway improvement.

Just as no two projects are the same, no two incentive offers are the same.  Companies should always consider the available incentives and match their need to the programs offered. Every incentive package is unique and designed to meet the specific needs of the client. For more information contact Peter Marrocco 513-774-8400.