Much like selling a family home and moving to a new location, relocating a business is a huge decision. While there are many considerations, the primary decision point usually comes down to one thing. Money. Will your business be more profitable in a different location? Some states offer tax incentives that provide just the boost you need to be confident in your relocation plans. Let’s take a look at some examples of tax incentives that will make you want to move your business today.
Nearly half of the U.S. offer tax incentives for companies that will create and keep jobs in their state. Some states offer a fixed dollar amount per job created, others tie the size of the credit to the income tax withholdings associated with the job being created.
In addition to federal tax credits for research expenses, many states have adopted measures that are modeled on the federal tax credit for research. These incentives may be in the form of low interest rates for loans, or as an R&D tax credit. More than 30 states offer tax credits for R&D expenses, with varying rates. Many states base the size of the tax credit on the amount of R&D funds being expended - the more R&D funds invested, the higher the tax credit.
Some states have additional research incentive programs in place. For example, North Carolina businesses are offered a generous 20% credit to businesses that conduct their research in partnership with an institution in the North Carolina public higher education system.
Some states will offer tax credits off income, franchise, or insurance premiums for the investments businesses make in renewable energy sources. Credits can be obtained for investments in equipment, construction, installation, and even advertising of renewable energy products. Incentives may be given for: solar, wind, hydro, geothermal and biomass applications on commercial and industrial facilities, including photovoltaic (PV), daylighting, solar water-heating and space-heating technologies.
Some states offer tax incentives for businesses that relocate in distressed areas. Others may offer incentives to utilize or construct state transportation infrastructure such as ports, rails and industrial roadways. Still others may provide incentives for recycling programs, and discounts for international trade agreements. Also, exemptions from sales and/or use taxes may be offered for business equipment, utilities, and other materials being procured locally.
Every state has an incentive to attract and keep new businesses in their locale, but some states go further than others. Be sure to carefully research state-by-state all the tax incentives you might realize by relocating your business. You might be surprised at how welcoming the business climate is in the states you’re considering a move to.
Discover tax breaks and incentives available to businesses in Currituck County!
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