One of the keys to business success and profitability is to operate from the right location under the right economic conditions. The focus on proper business site selection has been increasing due to new demographics, competitive pressures, new strategic sourcing techniques, more sophisticated distribution methodologies, increased shareholder scrutiny, business expansion, merger/acquisition activity, changing technologies, and cost containment efforts.

Site Selection Factors  Business site location decisions today - for both expansions and moves - are made based on state-by-state comparisons driven by a combination of several business, market, location, supplier, distribution, infrastructure and cost factors. One of these key factors is the availability of effective and material state and local business site selection incentives.

Obtaining State Business Incentives  Every year, state and local governments award billions of dollars in site selection incentives to those businesses throughout the country who actively seek these benefits as part of their site location or expansion decisions. Incentive awards generally need to be carefully requested, negotiated and documented in advance of expansion or site selection decisions. Working with the company and its other advisors, we arrive at a plan for seeking available incentives early on as part of the overall site location or expansion decision process.

Business Incentive Background  In addition to assisting businesses with their expansion and site selection needs throughout the country, McGrath North has worked with business and government in developing industry leading incentive programs for its home state of Nebraska. Our state business tax incentive clients include small and medium-sized businesses as well as large multi-national companies operating in virtually every industry, such as food processing, information technology, services, insurance, manufacturing, processing, retail, research and development, financial, data processing, construction and distribution.

Representative Projects

• Designed, drafted and lobbied passage and enactment of most of Nebraska's tax and economic development incentive programs, including:

  LB 775 - Employment and  Investment Growth Act  LB 312 - Nebraska Advantage Act Nebraska Manufacturing Sales Tax Exemption LB 829 - Quality Jobs Act Nebraska Employee Capital Gain Exclusion  LB 830 - Nebraska Redevelopment Act

  Single Factor Sales Corporate Income Tax Formula  LB 620 - Invest Nebraska Act Corporate Income Tax Throwback Repeal  Nebraska Job Training Fund Accelerated Depreciation Equipment Property Tax

• Obtained over $250 million of incentives for projects totaling over $2.0 billion of capital investment and over 10,000 new jobs for businesses engaged in the following types of activities:

  Research and Development Headquarters  Financial Services Data Processing Software Development  Manufacturing & Processing Telecommunication

  Computer System Design  Distribution Storage & Warehousing  Technology Licensing  Ethanol Transportation  Insurance

• Obtained various rulings and approvals from state and local authorities on issues impacting tax incentive programs.
• Comparison and determination of most favorable state tax and incentive programs for site selection projects amongst competing states.
• Represented clients in applying for, negotiating and obtaining state and local tax incentives and tax increment financing and resolving disputes with state authorities involving incentive programs.
• Represented clients in obtaining job training and CDBG grants.