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Types of Economic Development Incentives for Businesses

What are Economic Development Incentives for Businesses?

An economic development incentive is generally known as cash or non-cash (tax benefits, in-kind support) assistance provided by federal, state, and local governments. These incentives are employed to attract or retain business operations within their jurisdiction. Incentives come in many forms, from financial support to in-kind-support, and tax credits.

What are the Different Types of Business Incentives?

There are three categories when it comes to types of economic incentives. These categories are statutory by right, statutory negotiated, and discretionary negotiated.

  • Statutory by Right: Economic development incentives that are considered statutory by right are benefits that a company can earn by right if that company meets certain thresholds or performs specific activities.
  • Statutory Negotiated: Similar to the statutory by right incentives, statutory negotiated incentives are earned by meeting certain thresholds or performing specific activities, but require additional planning. Pre-applications and/or pre-approvals are necessary prior to securing and receiving the benefit.
  • Discretionary Negotiated: Discretionary incentives are only earned through a process of negotiation. The allocation of these incentives is at the sole discretion of the government. These types of incentives are often left unused by businesses that lack expertise in this area. This is where Maxis Advisors excel.
Why Pursue Economic Development Incentives?

Incentives are used to attract and retain business. They can offset up-front costs through lowered real estate costs, cash grants, infrastructure improvements, and more. Additionally, incentives can offset ongoing operational costs through payroll tax rebates, free workforce training programs, lowered utility rates, and more. These incentives are put in place to ‘woo’ companies and win their business.

Don’t Leave Money on the Table!

To not aggressively pursue incentives is to leave money on the table. Historically, Maxis’ clients have left 70-90% of available funding behind, simply because they were unaware of the opportunity or lacked the expertise in strategic negotiation. These opportunities are available from the planning stages of a new operation through the lifespan of the business. Whether a company is building a new facility, expanding an existing facility, or performing substantial routine capex, there are incentives to be earned.

Let the Experts do the Work

Maximizing credit & incentives opportunities requires a comprehensive understanding of the state and local economic development landscape, access to critical data, strategic negotiation experience, and a consistent focus. Maxis Advisors’ team of experienced former-economic development officials and incentives experts help companies increase ROI by as much as 20% or more through our comprehensive services. We do the leg work so that you can focus on what matters most to you and your company.

Get in touch with Maxis Advisors today! Let’s talk about your next project.

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Our clients say it best. Here are just a few reviews from our clients who represent a variety of industry types, companies, and geographic areas.

Damien Lamendola

Having you on this project was one of the best decision’s we made.  We won’t do another project without you.

Mr. Damien Lamendola
President & CEO, WellDyne, Inc. - Centennial, Colorado

David M. Walsh

Hiring you was one of the best decisions we made on our project.  You accommodated our management style and you really added value. We appreciate everything you've done for us.

Mr. David M. Walsh
Sr. Vice President, Manufacturing & Service, Mitsubishi Power Systems Americas, Inc. - Orlando, FL

Suzanne Rudy

We have found the benefit of using DAI to be twofold; (1) their ability to focus on the task at hand and (2) the knowledge and expertise they bring to this area of the project.

Ms. Suzanne Rudy
Corporate Treasurer, RF Micro Devices. - Greensboro, North Carolina

Alan Asbury

I am sure you know this but your clients think you guys walk on water.  We’re looking forward to working with you.

Mr. Alan Asbury
Controller, Mountaire Farms. - Lumber Bridge, North Carolina

Robert Heuts

We’ve worked successfully with DAI on several multimillion-dollar projects and our experiences with them have been mutually beneficial.  They clearly define expectations for their projects up front and are very easy to work with.

Mr. Robert Heuts
Executive Director, Lee County Economic Development Corporation - Sanford, North Carolina

Kelly Moore

We were delighted to collaborate with Maxis Advisors to secure incentives for our new manufacturing location in Winston-Salem. The partnership and dedication of their team have been instrumental in streamlining the process, enabling us to remain focused on operational needs while maximizing our potential and accelerating our growth. We are grateful for their support and look forward to the remarkable opportunities that lie ahead.

Mrs. Kelly Moore
Chief Financial Officer, Tex-Tech Industries

Thanh Nguyen

Maxis Advisors played a critical role in helping us navigate the complexities of selecting a location and securing incentives for our first production facility. From the beginning, they understood our priorities and provided guidance to ensure our final location supported our construction timeline, Department of Energy grant goals, and long-term operational needs. Most importantly, their team’s strong relationships with states and communities matches our organization’s culture and values, and we are grateful to have them as a partner.

Mr. Thanh Nguyen
Senior Vice President, 6K Inc.

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