The Broussard Economic Development Corporation plays a crucial role in shaping the future of Broussard. A key element in our arsenal is the strategic use of business incentives, which are instrumental in turning economic visions into reality. Understanding the intricacies of these incentives, how they function, and the optimal timing for their use is vital.
There are two primary categories of incentives: statutory and non-statutory. Statutory incentives, embedded in law, are often provided by state or federal governments. These are available to businesses that meet specific criteria, offering benefits like state-level training, tax abatements, and rebates tied to investment or employment targets. Federal tax credits and other advantages are also available for businesses in specific areas such as Empowerment Zones, Enterprise Zones, distressed downtowns, Brownfield areas, HubZones (especially for federal contract competitions), and disaster recovery areas like the Gulf Coast’s GO Bonds.
On the other hand, non-statutory incentives are more flexible. Also known as elective or discretionary incentives, they are negotiated on a case-by-case basis. They can be offered by state, parish, or local governments, as well as by private sector economic development supporters and utilities. These may include loans, tax abatements, cash incentives, rebates, site preparation and infrastructure assistance, and land discounts.
The competition for private capital investment is intense, and incentives often play a critical role in a business’s decision on where to locate. Mastering these incentives to foster economic growth requires experience and a nuanced understanding. Fundamental principles include treating incentives as a precious community resource, tailoring them to the specific needs of prospective businesses, ensuring they align with community development goals, and having a deep understanding of the types of companies targeted for attraction and those already established in the community.
Professionalism in formulating and negotiating local incentives is crucial for success in this high-stakes field. Visit https://developbroussard.com/business-relocation/#incentives to discover the incentives and programs your business can benefit from this year! The BEDC is your local resource, so feel free to contact us with any questions you may have.
Reference: Louisiana Community Development Newsletter https://bit.ly/4ba7hGb