An estimated 50% of credits and incentives go unclaimed every year. Ryan will ensure your company takes advantage of every opportunity to capitalize on growth, expansion, consolidation, divestiture, relocation, and more.
What we needed, and what Ryan helped us obtain, was a 'package' of tax credits and business incentives to make it feasible for us to develop a new facility and expand into new markets.
Credits and Incentives
Competitive businesses should take an active approach to credits and incentives, and Ryan has a full-service approach to help your company realize and maximize those key opportunities.
Ryan professionals work with the client to develop a strategy for communicating the company’s plans in a compelling way to the company’s regional and local jurisdictions. Our delivery includes detailed presentations emphasizing the strong points in each project proposed and how it aligns with the overall goals of the company. This approach ensures that officials clearly understand the positive regional economic impact the project will deliver to its community. We also assist with the negotiation and execution of the actual incentives package. And by leveraging the largest Property Tax and Transaction Tax practices in the United States, Ryan has the capability to prepare utilization studies and projections of the anticipated benefits. Ryan’s team of professionals ensures timely preparation and filing of all required applications and compliance reports. We carefully monitor the compliance process to ensure that our clients receive the full incentive benefits over the entire agreed-upon term.
Our comprehensive credits and incentives review process instills confidence in our clients that no stone has been left unturned. We work hard for our clients, and we measure our success by their satisfaction with our results.
Key Opportunities Used to Secure Credits and Incentives
- Establishing new facilities
- Consolidating facilities
- Increasing employment within a state
- Retention of labor intensive operations
- Incurring costs for training initiatives
- Expanding existing facilities
- Relocating facilities
- Incurring significant research and development expenditures
Credits are a strategic way to offset state income and franchise tax liabilities. When maximized, they can keep significant capital within the coffers of a business. Credits can often be claimed retroactively, creating further savings opportunities. Laws generally allow credits to be carried back or forward if the taxpayer’s current liability is insufficient to exhaust those credits.
Available Types of Credits
- Film and television production
- Research and development
- Empowerment zone
- Green and brownfield
- Enterprise zone
- Environmental/pollution control
- Work opportunity tax credit
- Indian employment
- Job creation
- High wages
- Historic tax credit
Incentives are another integral part of the business environment, provided to promote growth and strengthen a company’s presence in area and regional locations. Discretionary incentives are generally negotiated with economic development officials in advance of a public announcement regarding a project. These incentives can include both tax benefits (e.g., credits, abatements, and exemptions) and non-tax benefits (e.g., grants, loans, and streamlined permitting).
Available Types of Incentives
- Cash grants
- Payroll tax credits and rebates
- Land grants or cost reduction
- Tax increment financing
- Income/franchise credits and exemptions
- Forgivable loans
- Payment in lieu of tax agreements
- Sales tax exemptions and refunds
- Training grants
- Industrial revenue/development bonds
- Impact and permit fee waivers
- Infrastructure assistance
- Low-interest loans
- Utility rate reductions
- Real and personal property tax exemptions, abatements, and rebates
Choosing a favorable location for your business can be a significant competitive advantage. Effective site selection mitigates risk, reduces cost, and avoids potential adverse short- and long-term conditions. Ryan’s analytical, quantitative, and qualitative site selection process involves measuring the needs of a new project against the merits of potential locations. However, every project requires a unique approach, and Ryan’s experienced and practiced professionals can help businesses define this approach. From the beginning of the development process, Ryan’s site selection teams play a significant role in planning and defining a detailed evaluation of each project’s needs. Our professionals help define the required project criteria your company will need even before you open a map. These characteristics can include workforce needs, supply chain needs, transportation requirements, physical and operating conditions, regulatory issues, tax environment and more. We work hands on with local and regional governments and economic development organizations to secure a variety of tax and relocation incentives. Our team assists with negotiations and compliance to ensure that each project receives maximum benefit and meets its specified obligations.
Ryan's Site Selection Services
- Negotiating incentives
- Defining project scope and criteria
- Site acquisition
- Research and community analysis
- Incentive compliance
- Finding qualified brokerage firms
- Market studies
- Evaluating local and regional government proposals
Site Selection Characteristics
- Labor markets
- Transportation and infrastructure
- Site and building suitability
- Workforce training and resources
- Political climate
- Site preparation
- Utility infrastructure
- Supply chain needs
Ryan's Tax Credit Services practice is a strategic investment intermediary for sourcing, structuring, and marketing tax-motivated investments, serving investors, project developers, buyers, and sellers of tax credit-based products. Our Tax Credit Services professionals provide superior returns for our clients by originating and monetizing a broad offering of tax credit-based investments in the following markets:
- Affordable Housing
- Film Production
- Historic Rehabilitation
- Renewable Energy
Benefits of Tax Credit Transactions
- Reduced Taxes
- Increased Cash Flow
- Improved Shareholder Value
- Community Outreach
- Public Relations
Economic Value Streams
- Project Income
- Federal Incentives
- State Incentives
- Credit Certificates
- Investment Tax Credits
Tax credits are federal- and state-authorized incentives to implement public policy and provide both social and industrial stimulus. In an effort to encourage the private sector to provide a public benefit, government has implemented tax laws that provide a dollar-for-dollar reduction of corporate tax liability for investments in projects that might not occur if tax credits were not available.
While there are numerous tax credit programs, all are designed to promote social and economic benefit within their respective industries. The Tax Credit Services practice focuses on those tax credit programs that generate the most substantial federal and state tax benefits. Our tax professionals work directly with our clients to implement the most profitable tax credit transactions available. And, our Tax Credit Services professionals have vast experience structuring these investments with funding through tax dollars instead of corporate cash.
Ryan’s Credits and Incentives team of professionals can add value to your business’s capital investment project by decreasing cost of capital through New Markets Tax Credit (NMTC)-based financing. The NMTC program was enacted under the Community Renewal Tax Relief Act of 2000 and is administered by the Treasury’s Community Development Financial Institutions (CDFI) fund. The NMTC program is intended to promote private-sector equity investment in traditionally low-income communities for the purpose of economic and community development. The program was recently extended through 2019.
The NMTC is a tax credit that is monetized and then utilized in the form of a significantly below-market rate interest only loan. By structuring the NMTC transaction properly, a project can obtain substantial cash flow at the project’s inception, thus decreasing a company’s cost of capital and increasing the rate of return. The potential up-front cash benefit for qualified projects can range between 15–20% of the projected capital investment. Projects costing between $8 million and $30 million are ideal.
All states qualify for NMTC benefits; however, the states below have been identified as underserved and receive higher priority for funding.
Priority States and Territories
- West Virginia
- Puerto Rico
- Northern Mariana Islands
- U.S. Virgin Islands
Integrated End-to-End Tax Services
Ryan is focused on your overall tax performance—providing innovative solutions to the underlying causes of the errors we identify—and creating greater opportunities to measure and improve your efficiency, develop a more strategic approach to tax, and deliver outstanding value to your shareholders.