[2015 Top Site Selection Factors Ranking: #11]
States want to make the winning offer that maximizes project-cost feasibility and reduces operating costs through incentive packages customized to a potential client’s needs.
State and community incentive offers can include land acquisition, infrastructure construction or improvement, low-interest financing, tax credits, and low-cost energy, to name just a few. Companies are most attracted to cash-equivalent incentive programs that help offset operating costs, such as cash-refundable job-creation tax credits and property tax abatements.
An increasingly popular (and important) incentive is training partnerships to help companies close the skills gap. Jobs are increasingly technical, specialized, and skills less transferable between industries and employers.
Although incentives can add up into an attractive package, they can be a bit distracting from fully evaluating other key site selection factors. Most site consultants agree that incentives shouldn’t be considered until there is a short list of three to five final potential locations. At this point these locations all look very similar in terms of key factors such as human capital, tax liability, real estate, infrastructure — it is at this juncture that incentives can help offset project and operating costs and make a significant impact in the final decision. View the Georgia Business Incentives brochure.