Economic Development Incentives are a financial tool designed by state and local governments to foster job creation and stimulate business growth. It is clear that these incentives can substantially offset a participating company’s anticipated costs for expanding its business. Nixon Peabody’s attorneys are uniquely qualified to assist our clients in identifying, negotiating, and claiming such incentives with our depth of experience in taxation, government relations, public finance, real estate, environmental affairs, and regulatory matters. We have the ability to realize and maximize these incentive packages for companies who are involved in:
- Job creation
- Capital investment
- Creation of new facilities (e.g., plants, HQs, etc.)
- Relocation of existing operations
- Specific industries (e.g., life sciences or energy)
Nixon Peabody has the ability to quickly and accurately identify the most effective and applicable incentive programs for our clients. These incentives can be statutorily provided or are negotiable with a state or municipality. Some of the more significant incentives available include:
- Tax credits against or exemptions from property, sales/use, and income taxes
- Direct subsidies such as cash grants
- Payment in Lieu of Tax (PILOT) programs
- Tax-Increment Financing (TIF) arrangements
- Family and dependents (e.g., where one’s spouse or dependents reside)
Nixon Peabody lawyers who focus on incentives are located throughout the country. This network allows our lawyers to transfer best practices across jurisdictional boundaries while leveraging their significant local contacts.
- Property and Sales Tax Rulings—Successfully sought and obtained favorable letter rulings from the Massachusetts Department of Revenue for a New Markets Tax Credit project that resulted in over $5 million of tax savings.
- TIF Arrangements—Negotiated and implemented TIF arrangements in Boston, Billerica, and North Attleborough, Massachusetts, that significantly reduced state income and local property taxes with one project alone resulting in more than $30 million of tax benefits.
- PILOT Agreements—Negotiated and drafted PILOT agreements in Massachusetts and New York that eliminated perpetual property tax disputes between a business and the municipality where it was located.