"The Kansas House moved forward with legislation Tuesday requiring the Kansas Department of Commerce and state legislative auditors to bring an unprecedented level of transparency to income and property tax breaks awarded to businesses to recruit and retain jobs." Said Tim Carpenter of Dodge CIty Daily Globe. This is fantastic news in the tax incentive realm. The bill will mandate the commerce departments to publicly provide detailed information regarding large incentive programs. This will create a checks and balances with allocations of state funds and tax payer dollars. Full article below.
Concerns were raised last week when news outlets reported Foxconn was planning to scale back or suspend the manufacturing plant in Racine county. Foxconn did confirm last Friday those were false allegations. However, the startle refueled the debate on their incentive package and it's long term benefits, or lack there of, to Wisconsin. "This $4 billion tax break package is one of the largest corporate attraction packages in US history as measured by jobs" The heart of the debate is whether or not the jobs that Foxconn committed to creating, will still exist after the subsidy package expires. This is why ENJEN takes pride in fixing the disproportionate allocation of government funds. Providing everyday companies the same opportunity as the Amazons, Boeings, and Foxconns of the world. When the "everyday" companies receive these benefits this is contributing to organic job growth. ENJEN helps companies grow and ultimately create jobs that will not disappear when the metaphorical well of incentives runs dry. Full article below.
The research and development (R&D) tax credit is a general business tax credit. Many companies are unaware that they may qualify for them. Simply put, R&D refers to the work a businesses does to contribute towards innovation, or an introduction of products or procedures. In general, pharmaceutical and technology companies tend to spend the most in R&D. However, Amazon ranked number one is 2018 spending 16.1 million in R&D. (https://www.strategyand.pwc.com/innovation100) For more information on research and development tax credits please see the full article below.
Hillary Gowins of Crains Chicago business asserts that Edge tax credits do not actually create jobs in Illinois. Gowins used the shutdown of Deerfield, IL's major pharmaceutical company, Takeda, as an example of this. Within the years of 2003-2013 Takeda committed to creating 586 jobs and as a result, received over $60 million in tax credits. However, the issue is not the program itself. The problem is the disproportionate allocation of the program's funds. ENJEN provides small to mid market companies the same opportunities for governments incentives as the Boeings, Amazons, and Foxconns of the world. As a result, jobs are organically created. That is a profoundly more responsible use of taxpayer dollars. Full Article below.
Consumers have the potential to get up to $7,500 in tax incentives from the federal government for purchasing an electric vehicle; in addition to local credits and rebates. The amount one would get back depends on battery capacity and the individuals tax situation. This is only one example of a variety of tax incentives that are available. We love tax incentives! ENJEN has an unparalleled success rate for exceeding the median award for the typical high growth company. We are the power fueling, your long term organic growth!
Alejandra Cancino's article on tax incentives provides some interesting insights on Illinois edge incentives as well as corporate tax incentives in general. Cancino discusses the 43 million dollar incentive package that was given to Motorola for a cell phone assembly line in Mchenry Country. According to state data more than $500 million was spent on business incentives in the fiscal year of 2016 in Illinois alone. Full article listed below.
General Motors has greatly benefited from the federal tax break "net operating loss carry forward". This year alone they have avoided paying 18 million in federal taxes due to previously filing for bankruptcy. Additionally, at the end of last year GM still has 8.6 billion in future domestic tax credits. GM also received a $7,500 credit that buyers get for purchasing plug in cars. Furthermore, GM was awarded tens of millions in research grants in a variety of departments, such as energy. This is a great example of tax incentives at work. Full article below.
Amazon's H2Q is to be located in Crystal City in Arlington, Virginia as well as Long Island City in Queens, New York. As stated by Amy Plitt in NY Curbed, New York will be giving amazon up to 1.7 BILLION in subsidies. In exchange, Amazon is committing to creating 25,000 new jobs in addition to building a school. Despite popular belief, you do not need to be a large company to qualify for government incentives. ENJEN takes pride in contributing to organic job growth by negotiating maximum benefits for mid market companies.
Full article listed below.
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