The Incentive Compliance Process
The process will be different for each
State Job Creation or
Economic Development Program,
but there are basic steps that most programs require you to follow in order to fully realize your incentives.
ICS can help with the final, most critical and complicated steps of the
Incentive Compliance Process:
Contact us for a
of where you are in the process!
Read more about the FULL process that applies to most
State Job Creation and Economic Development Programs:
Your Company decides to expand, creating new jobs and incurring certain 'eligible costs', so you apply to the economic incentive programs through in your state, often called State Job Creation Programs.
In the language of the incentive process, this is called a 'project'.
After applying to and qualifying for an economic incentive program, an initial dialogue takes place between your company and your state to negotiate the total amount of incentives for your company's project.
Project-specific terms and conditions will also be discussed.
If your company's project receives preliminarily approval, your company and your state will enter into a Memorandum of Agreement (aka Tax Incentive Agreement) with your company.
This defines the minimum requirements for achieving Final Approval and Redeeming your incentives.
Next, your company fulfills the initial project requirements and provides your state with the appropriate documentation in connection with the project's eligible costs.
Eligible costs will only include costs incurred after the date of preliminary approval.
For projects not
located in enhanced
In the form of
a legal resolution,
the local jurisdiction formalizes
to the incentives.
Your company has reached the minimum requirements and is now eligible to activate the full terms of your state's Tax Incentive Agreement.
Often times, your state will forward a binder of instructions on how to activate your account. You can immediately give that binder to our specialists!
Your company fills out and submits the additional necessary paperwork to Activate the recovery period, which should be no later than two years from the date of Final Approval.
Remember... Activating your recovery period immediately may not be the best way for you to maximize incentives. We can help you find the most profitable time to Activate!
Either monthly or quarterly, your company reviews your payroll records, calculates the amount of incentives to which you are entitled and redeems those incentives in the form of Tax Credits.
This is where our software can handle all the heavy lifting involved in performing calculations that comply with the stipulations of your project's Tax Incentive Agreement.
Monthly, Quarterly, and Annual Reporting
Monthly, quarterly, or annually, your company submits the appropriate paperwork to demonstrate your compliance with your state's Tax Incentive Agreement.
Just like the monthly and quarterly reports, our software is designed to ensure your company submits a fully compliant Annual Report...
And we ensure