Ohio, a state in which WMS has won millions in tax credits for its clients, continues to award incentives on a regular basis. Most recently, five northwest Ohio business projects were awarded such generous incentives as a 60% tax credit for five years, worth $450,300; a 50% tax credit for seven years, worth $133,000; a 55% tax credit for seven years, worth $124,300; a 55% tax credit for seven years, worth $327,500; and a 50% tax credit for five years, worth $123,000 for expanding businesses and new job creation as well as job retention. Ohio is not alone in offering such incentives. Guilford County, NC has offered over $800,000 in a fourth round of tax credits since 1999 to one business for its most recent expansion. Meanwhile, Missouri has recently approved a Brownfield Redevelopment Program worth up to $1.6 million. Such brownfield tax credits, found in many states, help to offset costs involved in the cleanup of environmentally damaged sites and the building of new facilities on those sites.
The Robeson County, North Carolina commissioners approved approximately $250,000 in tax incentives for the expansion of a manufacturing company, which will include the hiring of 20 to 40 new employees at above average wages. The company will receive $50,000 per year for five years in tax credits.
And it is not only individual companies being targeted for these tax incentives. Entire industries are the focus of these incentives aimed at stimulating state and local economies - from biotechnology to manufacturing to media. In April, the House of Representatives in Connecticut approved a major jobs bill that offer some of the best tax incentives in the U.S. to attract companies to film their productions in Connecticut, assist start-up businesses, and phase out the local property tax on manufacturing machinery and equipment. The incentives provide for a 25 percent tax credit on production costs ranging from $50,000 to $1 million. For productions costing more than $1 million, the corporate tax credit rises to 30 percent - essentially providing filmmakers with a discount for every movie made in Connecticut. Besides movies, the tax credits would apply to television commercials, documentaries, video games, infomercials and music videos. There is also a provision for approximately $35 million for a series of programs that tie educational research to potential commercial applications in an effort to commercialize research being conducted
Federal Government Supports Business Growth
The federal government also continues to be a source of a wide range of financial incentives - from new hire tax credits to incentives related to production and sale of nonconventional fuels.
Countries Use of Financial Incentives Increasingly Popular
You do not have to look far to find financial incentives throughout the world. Many countries are focused on encouraging businesses to increase investment in research, development and training through tax incentives. Canada provides a wide range of financial incentives from new hire and training to research and development incentives on the federal and provincial level to meet the demands of businesses growing and expanding. South Africa, for example, the deduction for current research and development expenditure is being increased from 100% to 150%, while the depreciation allowance for capital expenditure will also be increased, according to the 2006 national budget. South Africa may also be extending its learnership tax allowance, set to expire in October, to October 2011, and increase maximum initial allowances.
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