Business Incentives Optimization

Cutting cash costs and increasing Return On Investment (ROI) are critical to every business. Often overlooked are the tax credits, business incentives, discretionary grants and other economic development incentives offered by federal, state and local governments in return for the Company’s investments in Capital and Human Resources.

Our Grants and Tax Incentives practice has improved clients’ ROI by more than $500 million since the beginning of the Great Recession by obtaining maximum value from government-funded economic development incentives, such as a discretionary tax credit, relocation incentive, discretionary grants, or economic development grants.

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REMINGTON EXPANSION AND RELOCATION, ALABAMA

* Consolidation of multiple production locations to state-of-the-art production and R&D facility in Huntsville, AL.
* Reuse of 800,000+ sq. ft. industrial campus fully modernized for advanced manufacturing and R&D. 

  • Up to 1,800 new positions created.

  • Provided comprehensive Site Selection, Incentives Strategy, and Government Relations Services

    Incentives Value: $162,500/New Position  
     TOTAL>$290 MILLION

STEP 1: IDENTIFY OPPORTUNITIES TO OPTIMIZE LOCATION INCENTIVES

The first step in maximizing business incentives value is matching the investments the company has made and will be making against the state and local business incentives programs in the company’s host communities. SCOUT Economics professionals come to their assignments with an intimate knowledge of the eligibility criteria and trigger events for all the relevant economic development incentive programs in the host jurisdictions. The company’s plans are then laid out and presented to state and local governments in a “program-ready” format, so that they fit as well as practicable, the government’s eligibility criteria for high-value business incentive programs.

We anticipate the upcoming investments, or “trigger events” that will create significant financial incentive opportunities, such as:

STEP 2: DEMONSTRATE THE ECONOMIC AND FISCAL IMPACTS OF THE COMPANY'S PRESENCE IN THE STATE/COMMUNITY

Elected officials need to be educated about the quantitative benefits the company’s investments in the community will bring. The best way to do that is to present them with a rigorous, quantitative analysis that relies on widely accepted methods and data sources. SCOUT Economics provides clients with an economic and fiscal impact analysis to support maximum economic development incentives value. This analysis will answer the following questions from Government officials:

  • “What quantifiable benefits will the community receive from the Company’s investment?”; and,
  • “How can state and local governments afford the business incentives package the company is seeking? “
  • In other words, “What will the company's planned investment’s impacts be on the State’s economy and the treasuries of State and municipal governments?
    • SCOUT Economics applies the “gold standard” of econometric methodologies and input-output models to produce a compelling document that makes independently developed and easily defended estimates of the company's contributions to:
      • Gross State Product
      • Statewide direct and indirect Household Income
      • Full-time direct and indirect Employment
      • Statewide direct and indirect Tax and other Government Revenues (Fiscal Impact)

STEP 3: NEGOTIATE FOR HIGH-VALUE INCENTIVES
SCOUT Economics professionals have decades of experience on the government side of the negotiating table. They know what motivates elected officials about the company’s projects, as well as what might turn them off about a particular economic development grant or relocation incentive. They are aware of the intergovernmental fiscal and political relationships and that awareness is brought to bear to the benefit of our clients..