Teleseminar: What You Wish You Knew About Your QTI Project

Last week I presented a FREE teleseminar to Florida businesses to help with their QTI incentive projects.  This FREE teleseminar was developed after hearing the concerns of businesses that there is no guidance for the QTI program after a project is awarded.  These businesses faced the challenge of not knowing enough to successfully track and report their QTI goals to the State.

In this 1-hour teleseminar, we covered the following:

- Four major reasons why businesses do not get their FULL scheduled payment.

-  General requirements of the QTI program. 

- Review of the 60+ page QTI agreement.  The agreement terms were broken down into simple day-to-day language that the "ordinary" person would understand. 

- Why it is important to track incentive goals each year to ensure that the company WILL meet the requirements to receive FULL payments each year.

The next teleseminar is scheduled for the month of August.  Stay tuned for more information on dates and times.

If you would like to find out more about this and other services offered by MarLynn Consulting, give us a call at (850) 727-0293.  We look forward to partnering with you on ALL of your incentive project needs.



Margo Thomas
MarLynn Consulting Group, LLC
2012 Start-Up Business of the Year

Margo Thomas, owner of MarLynn Consulting is an expert in economic incentive grants compliance management.  For nine years, she assisted the State of Florida in analyzing incentive data to determine if a business met the requirements to qualify for its scheduled payments.  Today, she helps businesses in incentive programs like Florida's QTI track and report their project goals to the State. She provides guidance and training to businesses participating in economic development incentives to ensure they receive ALL of the money awarded under their incentive project agreement.

Florida gets a "C" grade for Following the Dollars and Turning Them Into jobs

I read a Post On Politics which  hightlighted the results of a report by Good Jobs First (a non-partisan, nonprofit based in Washington, D.C.).  According to the report, Florida's ability to trackand creating jobs which bring decent wages meets the national average. Click on link for details http://bit.ly/vjMGQj. 

Have you taken advantage of any of Florida's incentive programs, like QTI, Closing Fund or Workforce Training Grants? What has been your experience?

Hit Your QTI Target On the First Try?

I’ve learned, over the years that many businesses celebrate receiving a QTI award. And obtaining a QTI award is awesome! However, a business will not receive the scheduled payments unless it demonstrates that it has successfully hit all of the established QTI target goals.

Knowing ahead of time what is required eliminates the “unknown”. When it comes to any economic incentive project, you must ensure that your target goals are in sight at all times. For this reason, I usually recommend that my clients start aiming at their economic incentive target goals as soon as an incentive agreement is executed. Waiting until your incentive report is due to determine if you have met your goals is TOO LATE.

To see the full article on Tallahassee Chamber's blog, click the link: http://bit.ly/vf0MUw

Florida told to track cash incentives

I read an article this morning in the Miami Herald and thought it was worth sharing with you. See full (http://bit.ly/sAH7V8). Economic incentive programs like QTI are usually scrutinized because taxpayers want to ensure that the State is accountable for the dollars being used to support these programs. Often, economic incentive programs are criticized when businesses fail to meet the obligations established under their incentive program agreement. I agree that a business should not receive State funds under these programs if the criteria for receiving the award are not satisfied.

Like any contractual agreement, a business must make every effort to ensure that the requirements of its incentive agreement are at the fore-front at all times. My clients are encouraged to be proactive with their economic incentive project(s). Rather than waiting until the report is due, I usually suggest that my clients consistently analyze their incentive goals during the year to avoid surprises at the end of the year. Clients who adhere to this recommendation are more likely to succeed with meeting their incentive project goals as they are able to make adjustments before the requirements are due.

If you want to ensure that your company satisfies its economic incentive commitments so that your company does not show up on this list in the future, give me a call at 850-727-0293. As an experience Incentives Consultant, I will hold your hand through the compliance process. Together, we will ensure that your company is able to receive ALL of its scheduled economic incentive payments.

The names of companies that received state incentives, but didn't create jobs has been released....

Today (10/27/2011) , the Department of Economic Opportunity (formerly OTTED) released the names of six companies it says received state incentive money to create jobs but didn't deliver as many jobs as promised. View full article at http://bit.ly/v3HkWa.

Reading this article solidified my belief that businesses participating in State economic incentives should properly manage their incentive projects to guarantee that they meet their project requirements. If these companies had tracked their incentive project goals during the year, they may not have fallen short of their project requirements.

Call us now (850-727-0293) to find out how you can successfully track your project goals, demonstrate that you've met your incentive project requirements, and receive a full refund/credit from your State incentives. If I were you, I wouldn't wait until December. By then, it may be too late!

With a million Floridians still out of work, Gov. Rick Scott has a tall mountain to climb if he's to make good on his promise to create 700,000 new jobs over the next six years.

This was another interesting article. Gray Swoope, Florida's Enterprise Florida head and soon to be Secretary of Commerce met with local business & political leaders in Pensacola to discuss Governor Scott's job creation plan. Read the full article here - http://bit.ly/pgNf17

Florida Black Business Investment Board

The Florida Black Business Investment Board (FBBIB) provides access to capital for black entrepreneurs and business owners. The FBBIB also provides technical and procurement assistance.  Black entrepreneurs and business owners get access to financing (direct loans and loan guarantees) through FBBIB’s network of partners called black business investment corporations (BBICs).

Loan terms and pricing are established based on individual circumstances and credit risks of the business owner.  Loans may be provided for general business costs – equipment or inventory purchases, business start up or franchise purchases, real estate purchases, working, etc.  An eligible business owner must be black AND a Florida resident. If a corporation, LLC or partnership applies for the loan, the business entity must be a Florida entity with at least 51% ownership and management by a black Florida resident.  Since these loans are partly funded with public dollars, they must serve a public purpose, such as job creation or retention.

Are you trying to get access to additional capital for your business, call me at (850) 727-0293

How To Leverage Available Incentives

I read this article and thought it was worth sharing. It brings home the point that although some companies are taking advantage of economic incentives, they are still missing out on other incentive opportunities. Maybe because because they don’t know that other incentives exist, or they feel it is too much of a bother to pursue them. That is where I come in...... I can help you take the guess-work out of Florida incentives

http://realpoints.dmagazine.com/2011/07/terry-darrow-manufacturing-money-with-business-and-economic-incentives/#comment-726

Guest Blog for Tallahassee Chamber: Why businesses should train their team

Here's the link to my guest blog post with the Chamber about the benefits o training your team.

http://talchamber.com/2011/07/05/the-benefits-of-training-your-team/

Business growth cuts surprise officials

Valerie Whitney wrote and article in the Daytona Beach News Journal about cuts made to the GrowFL and SBDC (Small Business Development Center) funding. Thought I'd share it with you. Click the link below to read the full article.

 

http://www.news-journalonline.com/business/local-business/2011/05/28/business-growth-cuts-surprise-officials.html

Ask Margo: Frequently Asked Questions About Economic Incentives (Final)

Finally, we are at the last post for this series.  Again, I want to remind you that this series is based on questions or concerns I've encountered over the years, while working with the State's agent for managing a number of its major incentive projects. I've also been getting calls recently from businesses with the same the same questions and concerns.  As such, I decided to prepare this list for your review.  If your burning question is not included in any of these posts, send me an email at info@marlynnconsulting.com and I will add them to the list.

Now, here is the final post of Frequently Asked Questions related to incentive programs:

What are the benefits of working with a consultant, rather than doing it myself?

Although managing your project and proving to the State that you meet the scheduled requirements are not difficult, it is time consuming and requires knowledge of the incentive program. As such, I believe the greatest benefit of working with a consultant is you’ll have the benefit of an expert to manage your project and report your incentive commitments to the State. Ultimately, this frees up your team’s time to focus on the real reason why you are in business – to provide excellent client service and to increase your business’ revenue.

If you choose a consultant to provide full compliance services, the consultant acts as your Compliance Department. As a result, you won’t have to worry about your incentive commitments, because someone else if monitoring those commitments on your behalf. If you choose to manage your project on your own, but you feel you need some quality control to ensure that your analysis and annual reports are appropriate and accurate, you may work with a consultant to provide an oversight review. This process gives you peace of mind, knowing that your project’s reporting package will be reviewed and approved in a timely manner. Another option, if you choose to manage your project on your own would be to have your team participate in a training program to ensure that they have the tools needed to successfully manage and report your project commitments. Again the benefit is the peace of mind, knowing that your project is in good hands.

Feel free to comment or send me an email at info@marlynnconsulting.com if you have other questions that you want answered. I look forward to hearing your comments, questions and concerns about your incentive project. 

Ask Margo: Frequently Asked Questions About Economic Incentives (III)

The posts of the past three weeks have included a list of questions/concerns I’ve received from a number of businesses enquiring about their incentive projects. I promised to provide some additional questions/concerns that you may be interested in. The following list encompasses questions I’ve received over the years, as well as others that may not have been asked yet, but will come up. If your burning question is not included, email them to me at info@marlynnconsulting.com and I will add your question to the list. If you haven't had the opportunity to review the previous blogs, I encourage you to check them out now.

Why is managing my incentive project so important?

In my experience, many businesses do not worry about their incentive projects until it’s time to submit their reports to the State for approval of their payments. The problem with this method is it does not give you an opportunity to make adjustments if you do not meet one or more of your project requirements at the end of the year. Usually, if you fail to meet one or more of your incentive commitments, you will not only lose the scheduled payment for that year. You will also forfeit any remaining payments under your incentive agreement.

Can I manage my incentive project on my own?

Sure you can! With some assistance, most businesses are capable of monitoring and reporting their incentive project commitments on their own. I would suggest, however, that the team working on your project participate in a training program to ensure that they know the specific requirements for your project. The State requires specific documentation to confirm that your business qualifies to receive a payment. To ensure timely review and approval of your payment, your team should be familiar with the types of documentation and the methods used by the State to analyze your requirements to confirm that you’ve met those requirements.

How would you help me manage my project?

A consultant assisting a business with management of its incentive project should perform periodic reviews of the business’ incentive obligations to ensure that the business is on track to meet those obligations. At Marlynn Consulting, we perform periodic analysis of your incentive requirements during the year and provide you with a report of our results. Our report also details any findings or recommendations that we believe will help you to meet your project goals.

Ask Margo: Frequently Asked Questions About Economic Incentives (Part II)

As I stated in last week's post, I’ve been receiving calls from a number of businesses enquiring about their incentive projects and voicing their concens. I promised to provide some additional questions/concerns that you may be interested in. Again, this post is a continuation of  Frequently Asked Questions.

The following list encompasses questions I’ve received over the years, as well as others that may not have been asked yet, but will come up. If your burning question is not included, email them to me at info@marlynnconsulting.com and I will add your question to the list.

What happens if I miss my QTI goals and don’t qualify for the scheduled payment?

Usually, if a company does not qualify for one of its payment, that business will LOSE its QTI project. What this means is that the business’ annual QTI claim application will be denied. You will not receive a payment for the year you miss one or more of your incentive commitments and you will also lose any remaining payments scheduled under your incentive agreement.

However, if the State has approved an Economic Recovery Extension (ERE), you may be provided an opportunity to apply for the extension if your project is denied.

What is an Economic Recovery Extension (ERE)?

Usually when there is an extreme economic downturn, the State’s Legislators approve an ERE to assist QTI Businesses whose project goals may have been negatively affected. The ERE allows a business that was unable to meet one or more of its job requirements to extend the project’s job commitments by one or two years.

My payment was denied, what happens now?

With most incentive programs, if a business’ scheduled payment is denied because it did not meet one or more of its project’s commitments, that business’ incentive project will be terminated. What this means is that business will not receive the payment for that year. Nor, will it receive any remaining payments scheduled under its incentive agreement.

The QTI program has a concession that allows you to extend your job requirements by one or two years. However, the extension is not always available. For the other programs, this extension is not an option. If your incentive requirements are not met, you will LOSE your project and forfeit ALL remaining scheduled payments.

What if I don’t qualify for my Quick Action Closing Fund payment?

The Closing Fund program is a little bit different than the QTI and other incentive programs, in that businesses approved for a Closing Fund project are paid at the beginning, once the project is approved. In this case, if your business does not meet one or more of its Closing Fund goals, you will be responsible for repaying the State a portion of the money you received – plus interest and penalty.

Ask Margo: Frequently Asked Questions about economic incentives (Part I)

Recently, I’ve been receiving a number of calls from businesses that are participating in Florida incentives. Some of their concerns have been related to what needs to be done to qualify for their payments, how to prepare for their reporting requirements and, what happens if they are unable to meet the schedule requirements?

My guess is if some businesses have asked these questions, there may be others who have the same concerns. As a result, I thought it would be fitting to answer some of these questions here. The following list encompasses questions I’ve received as well as others that may not have been asked yet, but will come up. If your burning question is not included, email your questions to me at info@marlynnconsulting.com and I will add your question to the list. To avoid information overload, I will present these questions in a series of posts. So, I urge you to return next week. 

My QTI project has been approved! Now what? What’s the NEXT step?

Congratulations! You’ve worked hard to negotiate your incentive project. You should give your team a pat on the back for a job well done. The NEXT type in the incentive process is to prove to the State that you meet the requirements to receive your payment. However, before you can do that effectively, I strongly suggest you make the decision to assign someone to manage the project on your behalf. If you choose to use a consultant for this process, you should find someone who is an expert on economic incentives, and who is familiar with the compliance management process. Be aware that most Incentive Consultants ONLY prepare their client’s annual reporting because it is profitable for them. If you choose to utilize your team, you need to participate in a training program that will provide you with the tools needed to successfully manage and report your project commitments.

Why is it taking so long to receive my payment?

Many businesses ask this question after their claims have been submitted to the State’s agent for review and approval. Unfortunately, the payment process takes some time. Project claim applications and supporting documents are due to the State’s agent by January 31^st of each year. The agent is responsible for analyzing your incentive claim application and support documents to confirm that you satisfy your incentive project commitments in order to receive your payment.

The State’s fiscal year begins July 1^st of each year. As such, the State cannot make a payment until the funds are available. In addition, the State CANNOT make a payment until it has received the local match (usually 20%) from the participating local government. For example, if a business submitted its claim in January 2011 (the State’s 2011/2012 fiscal year), the State will receive most of the local match payments in the local governments corresponding 2011/2012 fiscal year, which begins October 1^st each year. What this means: if your County or City chooses to make its payment in October is, the State will process your payment once it receives the County or City’s local match payment. Therefore, it is safe to say that most businesses do not receive their scheduled payments until the last quarter of each year.

Stay tuned to next week's update of FAQ. As always, if you have any questions about tax incentives, feel free to contact me at info@marlynnconsulting.com.

Does the Cost of An Incentives Consultant Outweigh The Benefits? Part II

In my earlier post, I discussed how a business may consider using an Incentives Consultant to help guide them through the incentives process. To continue this discussion, I urge you to consider the potential consultant's experience with tax incentive programs and their associated requirements.

After your project has been approved by the grantor agency and an agreement has been negotiated, you may wish to continue your relationship with your current consultant, hire a new consultant, or utilize your staff to monitor and prepare the required compliance reports.  Whichever strategy you choose for this stage, ensure that the person(s) assigned to your project is truly knowledgeable of your project’s compliance requirements.  This is extremely important, as this is the part of the incentives process where you begin receiving your scheduled payments.  Again, in order for you to achieve any benefit, your consultant should be knowledgeable of economic development incentives and their requirements.  Your consultant should also be efficient, to ensure accurate and timely reporting. Essentially, your consultant’s goal is to ensure that you maximize your incentives payments.

Based on my experience, a business may be justified in hiring a professional consultant to assist with obtaining government incentives. A business should also consider whether it is better to use a consultant to assist with the monitoring and reporting functions of the business' compliance requirements. If your consultant adds value to the incentives process for your company, I believe the benefits outweigh the cost.

If you believe an incentives consultant will make participation in the incentives process, contact me at info@marlynnconsulting.com.

Presentation: City of St. Mark's Commission Meeting

Last night, I participated at the City of St. Mark's monthly Commission meeting.  I presented on Florida economic incentives (i.e. tax breaks in the form of credits, refunds and grants).  It was an amazing experience.  My goal was to inform smaller communities about the availability of these incentives and briefly describe some of their benefits. 

My BIG questions: If I offered you a check for $25,000 for training your employees, would you take it?  What if you had to do the training anyway, would the $25,000 check encourage you to get a move on it?

The responses: What's the catch? It's free money, sure I would take it!

Ultimately, what I wanted to get across to the audience was, the money is available each year.  As small business owners, we have to be willing to get help.  No man is an island.  We cannot exist in a vacuum.  And, although some business owners may consider this a hand-out, when you think about it, it is really your money.  If you pay taxes, consider a tax incentive as the government returning some of your money back to you to help with your growth and training needs.

So, I ask this question again, "If I offered to give you a check for creating, retaining or training your employees, would you take it?"

SURE YOU WOULD!!! 

Why not start now? Email me at info@marlynnconsulting.com so we can discuss how you can start receiving money from to help your business grow.

Marlynn Consulting's Ribbon Cutting Ceremony

OK guys, this week was a busy one.  First, I participated in my Ribbon Cutting Ceremony at Tallahasse Chamber of Commerce on Monday - WOOWEE!! 

Monday afternoon found me at a Manufacturers Association of Florida meeting, where I learned about developments in the manufacturing industry as they prepared for “Manufacturers Day At The Capital”.

On Tuesday and Wednesday I spent my days at the DoubleTree Hotel in downtown Tallahassee, where the following meetings took place:

·         Rural and Urban Working Group

·         Competitiveness Working Group

·         Technology, Entrepreneurship & Capital Committee

·         Global Commerce & Investment Committee

·         Florida Life Sciences Council

·         Legislative Policy Committee

·         Board & Stakeholders Meetings

There was a great wealth of information provided at these meetings related to Florida’s economy, economic incentives, and Florida’s key industries.  The general consensus of the group was to determine how to keep the State’s competitiveness to bring in new and retain existing Florida jobs.

On Thursday, the Office of Small Business Advocate held a Small Business Issues Forum in Tallahassee to figure out what burning issues were affecting small businesses.  Business owners voiced concerns about the following topics:

·         Regulations affecting licensed businesses, but lack of penalties for competitors who are not licensed.

·         Difficulty in finding out information from one source, rather than having to look all over the internet.

·         Doing business with State government.

·         Contracting issues for minority-owned and other small businesses.

On Friday, I joined a List Building Challenge call with Emily Morgan (www.virtualfabulosity.com). Finally, on Saturday I will participate in a Toastmasters training workshop. Then, it is time for a little "Rest & Relaxation"

Need Money For Your Business?

Are you familiar with Economic Incentives?

Has your business participated in any tax incentives in the past?

For those of you who are unfamiliar with tax incentives, here is a simple explanation of what an economic development incentive is:

Economic incentives are simply tax breaks provided by the government to stimulate the local economy and encourage business growth.  Economic incentives are commonly available as tax refunds, tax credits, or grant reimbursements.  There are a number of Florida tax incentives, which include tax refunds like QTI (Qualified Tax Refund) and Brownfield Redevelopment; discretionary payment programs like Quick Action Closing Fund (QACF) and HIPI (High Impact Performance Incentives); tax credits like Enterprise Zone, Capital Investment and Commmunity Contribution Tax Credit (CCTCP); and training grants like Incumbent Worker Training (IWT) and Quick Response Training (QRT).

Other programs include, but are not limited to The Economic Gardening and Black Business Loan Programs.

Contact me by email info@marlynnconsulting.com if you wish to find out if you qualify for a tax break under economic incentives.

Florida Economic Development Incentives (Part I)

In order to compete for high quality jobs, the Florida offers a number of economic incentive programs to suit your business’ individual need.   Many of these incentives are geared toward new companies, expanding companies, or those considering relocating.  Other types of incentives assist with employee training. Some companies receive incentive funds if they are located  in special areas.  For today’s post, I'm providing details of some incentive opportunities.  To avoid this post being too long, I will present these over a number of posts.  Stay tuned for a number of ways you can SHARE THE COST of growing your business.

TARGETED INDUSTRY INCENTIVES

Qualified Targeted Industry Tax Refund (QTI):   A tool available to encourage quality job growth in targeted high value-added industries.  Eligible companies must be in a target industry; create at least 10 net new full-time Florida jobs (if an expansion project, increase employment by at least 10 percent); and pay at least 115% of the state or county’s average annual wage.  Qualified companies may be eligible for a minimum tax refund of $30,000.  Additional funds are provided to companies whose location is in an enterprise zone, brownfield redevelopment area or designated rural area.

High Impact Performance Incentive Grant (HIPI): This incentive is a negotiated grant used to attract and grow major high impact facilities in Florida.  Eligible projects must operate within designated high-impact sectors (Life Sciences, Financial Services, Transportation Equipment Manufacturing, or Semiconductors); create at least 100 new full-time equivalent Florida jobs (if a R&D facility, create at least 75 new full-time equivalent jobs) in a three-year period; and make a cumulative investment in the state of at least $100 million (if a R&D facility, make a cumulative investment of at least $75 million) in a three-year period.  Once awarded, the business may be awarded 50 percent of the eligible grant upon commencement of operations and the balance of the awarded grant once full employment and capital investment goals are met.

Brownfield Redevelopment Bonus Refund (BFR): This incentive is available to encourage redevelopment and job creation within designated brownfield areas.  To qualify, a company must locate within a brownfield area; be certified as QTI business as defined in Section 288.106, F.S., or be a business that can demonstrate a fixed capital investment of at least $2 million in mixed-use business activities, including multi-unit housing, commercial, retail, and industrial in brownfield areas, or at least $500,000 in brownfield areas that do not require site cleanup; create at least 10 new permanent Florida full-time jobs with benefits (including health insurance at a minimum), excluding construction and site remediation jobs; and show that the project will diversify and strengthen the economy of the area surrounding the site.  A company may receive a tax refund equal to 20 percent of the average annual wage of the new jobs created in a designated brownfield area up to a maximum of $2,500 per new job created.

Send me an email at info@marlynnconsulting.com to find out more about these incentive opportunities.