Economic Development & Government Incentives
Our EDGI Team’s ongoing goal is to help our clients identify opportunities, negotiate agreements, understand and manage their obligations, and more in response to government-stimulated economic development.
Members of Foley’s Economic Development and Government Incentives (EDGI) team, along with our strategic partners in Foley’s Government Solutions, Tax, Real Estate, and Environmental groups, with offices in 21 cities across 9 states and the District of Columbia, can provide guidance across the full array of federal, state, and local incentive initiatives. Our team includes members who have directly managed state and regional economic development programs and who have advised State Leadership about their economic development portfolios. In short, Foley has a full range of tools and experience ready to assist with your government incentives needs.
Foley boasts unparalleled experience when it comes to guiding clients through the federal, state, and local government incentives process. Whether it be identifying available programs, assessing qualifications, or assisting through the application process, Foley’s team has a deep bench of experience and relationships which allow you to achieve maximum results. Our team members have worked with all major federal programs, and with most state and local programs throughout our multi-city, multi-state platform.
Negotiating Incentive Agreements
We stand ready to guide you through successful negotiations, armed with knowledge of the programs, the stakeholders, and the process.
Our expertise extends to:
- New Market Tax credits, low income housing tax credits, and historic credits
- Tax increment financing
- Redevelopment agreements
- Workforce development and retention agreements
- Opportunity Zones
- Foreign Trade Zone designation and state free port exemptions
- Business improvement districts
- Sales, use, withholding, and real and personal property tax abatements and rebates
- Environmental remediation and other tax credits
- The creation and management of special purpose, improvement, and development districts
Tax incentives are a critical part of the financial stack for any significant capital project or business expansion. There are a myriad of options offered by states and local jurisdictions ranging from real and personal property tax abatements, recoupment of employee withholding taxes, tax increment and tax-exempt financings, discretionary exemptions for sales and use taxes, as well as income tax credits, which can be refundable regardless of tax liability. It is critical to understand which incentives provide the most meaningful relief to your specific federal and state tax footprint. Not all tax incentives are interchangeable and the costs of management and compliance must be balanced against the net present value of the benefits.
Workforce Development Incentives
Workforce attraction, development and retention is a significant and continuing challenge facing many businesses. With a continued focus on new technologies and research and development, as well as maintaining legacy manufacturing operations, state and local jurisdictions have additional tools for those businesses with opportunities to expand or maintain operations in their jurisdiction to attract and develop employees. These include training grants, offset payments, and other forms of support geared to attracting, developing, and retaining your workforce.
Compliance and Management
Most credit and incentive agreements contain company obligations for employment levels, taxable revenue, and/or capital investment. Especially in these uncertain times, it is important to review your current and future obligations under such agreements and implement monitoring to ensure that obligations are met and information is timely reported. Foley stands ready to advise regarding opportunities to renegotiate or terminate obligations in a forward-looking manner.
Workouts and Terminations
Especially in these uncertain times, consideration should be given to the impact of changes in circumstances. We stay abreast of key programs and closely monitor how governmental entities are reacting to changes in the market. This allows us to effectively advise you about your options, and to assist you in obtaining a best-available solution to your particular situation.