Types of Site-Selection Incentives
There are basically two types of incentives offered to corporations by communities, cities, or states vying for your facility. The first category is called “as of right” incentives, because they are available to any company that meets a certain set of criteria. Thus, for all practical purposes, no negotiation is required.
The second category—and the most potentially lucrative and desirable for your company—is a myriad of options called “specially negotiated” incentives, which are secured exclusively for your company in exchange for certain requirements and guarantees. As these are dynamic and virtually limitless in number, it is important that you or your agents be knowledgeable and up-to-date on them.
For example, at Ady International Company, we have often negotiated for our clients incentive types of which community leaders were completely unaware—until we suggested them—and that they were eager to put on the table once educated about them.
Examples of some “specially negotiated” incentives we have secured for clients include but are not limited to:
- Custom tax apportionment
- Employee relocation assistance
- New onsite daycare center
- New highway construction
- New technical school at site
- Infrastructure improvements
- Removal of zoning restrictions
- Nonrefundable cash grants
- Temporary building space
- Customized training assistance
- Utility rate concessions
Find out more about Ady International Company Incentive Negotiations