Business Facilities - April 2008 - (Page 14)

COVER STORY Businesses On The Move However, investment in these countries makes sense for the right companies that need access to markets or natural resources. In smaller, highly centralized, and wealthy states such as Singapore, or some of the Persian Gulf states, decisions can often be made quickly and Take a Look at us Now! Greater Binghamton, New York Take your Business to the Next Level! Site Selection Business Incentives Financial Assistance Conﬁdential Consultation Broome County Industrial Development Agency PO Box 1510, Binghamton, New York 13902 www.bcida.com | 607-584-9000 Your full-service business development partner #0724 at www.BusinessFacilities.com 14 APRIL 2008 financial support for the right projects may sometimes be significant. Because these countries are keen to diversify their economies, they may even take a direct financial interest in projects that reflect their economic development priorities. However, many developing countries lack the financial means to provide such support and their incentives programs often center on tax abatements or duty reductions. But opportunities for favorable business arrangements still exist. For example, in countries such as Egypt or Malaysia that still regulate industries through import duties or local content requirements, there is the potential for crafting incentives arrangements that can reduce the costs of these regulations to an investor. BF: Can you identify some types of financial incentives that companies should be cautious of, ones that might seem beneficial on paper, but don’t always prove to be in practice? Do any specific examples you have dealt with come to mind? POWELL: To begin, companies need to be realistic in their expectations of the gains they may receive from business incentive programs. That said, there are two types of incentives that our clients sometimes say they approach with caution: tax credits and cash rebates. Traditional tax credits based on job creation and/or capital investments are often not applicable in all business tax circumstances; therefore, tax credits may not be fully utilized by many companies. Even though companies may be entitled to large tax credit incentives, the actual value and impact of a tax credit on a project will depend on whether a company can utilize the http://www.bcida.com http://www.bcida.com http://www.BusinessFacilities.com

Table of Contents Feed for the Digital Edition of Business Facilities - April 2008

Business Facilities - April 2008 Contents First Word Snapshots Corporate Moves: Ohio Businesses On the Move Corporate Moves: Nebraska If You Build It, They Will Come A Tale of Two Industries Economic Transformation In the Islands Diversity: A New York State of Mind Growing in the Sun Key Kansas Industries Get a Boost How To Choose the Right Commercial Real Estate Broker Missouri Downtowns Dare to Dream Advertiser Index Ask the Expert

Business Facilities - April 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.