Ringling Bros. Circus Will Remain in Manatee County

Feld Entertainment announced that it is moving its production headquarters from the City of Palmetto to the City of Ellenton.  According to the article in the Herald Tribune (http://www.heraldtribune.com/article/20120130/article/120139968), the company is relocating to accommodate growth. With this move, Feld Entertainment will be able to retain 148 current jobs and create an additional 235 new jobs in Manatee County.  

Feld Entertainment will get some assistance from economic incentives like the QTI and Quick Action Closing Fund programs.

Skilled manufacturing jobs emerge in South Florida

I recently read an article written Marcia Heroux Pounds of the Sun Sentinel about the increase of skilled manufacturing jobs in S. Florida.  According to the article, businesses like Nipro Diagnostics (formerly Home Diagnostics) and MAKO Surgical are providing high skilled, high wage manufacturing jobs.  Another company, ProSolus Pharmaceuticals committed to adding 45 headquarters jobs. The former Pennyslvania company is also considering a lab and manufacturing plant as well, which will further increase the potential for additional jobs in S. Florida.  To see the full article, click on the link: http://sunsent.nl/zevaZe.

Companies like these can benefit greatly from Florida's Workforce Training Grants.  These grants help defray the cost of training their workforce to increase their efficiency, competitiveness and ultimately their profitability.

QTI Compliance Reporting Process

Over the years, businesses have inquired about the economic incentive compliance process.  In this blog post, I wanted to provide you with a list of important dates and timelines associated with the Claims or Payment Process of Florida's economic incentive programs, like QTI.

Important Dates/Timelines	QTI Claim Process
October / November	Business Receives Claim Application from the State’s Agent - It is usually at this time that businesses are alerted about their incentive project.
December 31st	QTI Jobs and Wage Implementation date - Business has to meet its project goals by this date.
January 31st	Claim Application due - Businesses are required to submit their claim application to Sharpton, Brunson & Company (agent for Department of Economic Opportunity) for review and approval of the scheduled payment. This is the most crucial part of the economic incentive compliance process.  In order to receive the scheduled payment, a business must prove to the State that the obligations set forth in its incentive agreement have been met.  The claim application must be supported by accurate data and reported in a format acceptable by the State. Business have an opportunity to request a one-time 30 day extension.
March 1st	QTI Claim Application due – if an extension was granted, a business has until this date to submit its claim application and ALL supporting documents to the State's agent for processing.
January - June	Sharpton, Brunson & Company (SBC) verifies that the compliance goals have been achieved.  Once SBC verifies that the business is eligible to receive its scheduled payment, a recommendation is prepared and submitted to the State for approval/denial of the payment.
July 1st	July 1st marks the beginning of the State's 2012/2013 fiscal year.  Funds for economic incentive programs, like Brownfield and QTI are appropriated by the State to begin processing payments.  Once The Department of Economic Opportunity (DEO) receives the local match payments from local governments, they begin the payment approval process.  When a business' claim application and supporting documents are approved, the business is notified of either an approval or denial of its scheduled payment.  The payment is made within 21 business days if there are no disputes.

Remember that this process is similar for most claim-based economic development incentive programs as well.  So, if you are a participant of a Quick Action Closing Fund Program or the Brownfield Redevelopment and Qualified Defense and Space Contractor Tax Refund Programs, you will follow this process.

In order for your claim process to be as efficient as possible, you must be proactive with your project.  Do not wait until the payment request is due to begin analyzing your project goals.  To find out how we can help you maximize your payment, give me a call (850-727-0293) or email me at mt@marlynnconsulting.com.

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.

Get Your Incentive Reports Right The First Time

The other day, I noticed a gentleman shooting arrows at a target. It was amazing to see that he was able to hit his mark, even from a far distance.

His ability to successfully hit his target probably came from the following:

·         Learning from others’ experiences
·         Determining which type of bow was best
·         Implementing the tools and skills he learned

I immediately thought about economic incentive programs like QTI. I can appreciate that there are a required targets a business must hit before it can qualify for its annual QTI payments. Unfortunately, many businesses miss their QTI target goals because their aim is off. 

Typically, a business being awarded an economic incentive award is celebrated. This is for a good reason. The community is excited that a business has made a decision to grow here. However, it is imperative that the business owners understand that the business must hit all of its incentive goals in order to receive the scheduled award payments.

Just like someone participating in the sport of archery for the first time, a business must learn the rules of the game.

To successfully hit a QTI target on the first try, the following must be done:

• Learn from others who’ve had experience with the QTI program
• Determine why one method of documenting QTI goals is better than another
• Master the skills needed to track and report QTI project results
• Implement the tools and skills learned to accurately prove to the State that the QTI goals have been met

Knowing ahead of time what is required eliminates the “unknown”. When it comes to any economic incentive project, a business must ensure that its target goals are in sight at all times. For this reason, I usually recommend that my clients start aiming at their QTI target goals at the beginning of the year, rather than waiting until the report is due to determine whether they meet their goals. By then, it may be TOO LATE.

What Not To Do With Your QTI Project

In my last blog post for Tallahassee Chamber of Commerce, I explained that the biggest mistakes usinesses make with their incentive projects (like QTI) are:

1. Not tracking project commitments
2. Not communicating
3. Assigning an inexperienced Project Manager
4. Submitting inadequate documentation

View full post here http://bit.ly/tbaJ2E.

Is Lack of Communication Costing You a Full QTI Refund?

While having a discussion about economic development incentives, someone asked “what is one of the BIGGEST issues that cause a breakdown in the incentives process? After thinking about it for a minute, I recognized that lack of communication may be one of the biggest factors that negatively affects the incentives process.

My reasoning behind this statement is based on past experiences working with economic incentive projects like QTI (Qualified Target Industry Tax Refund Program). Over the years, I've noticed that after a business' management is approved for an incentive project, it  celebrates and assigns a staff to manage the project. Unfortunately, since the project administrator has not been involved earlier, he/she may not be knowledgeable enough to successfully manage the project.

Fast forward one year later and its time to qualify for the incentive payment.  After receiving the notification, questions like, “What is this project about?”; or “How did the State come up with our commitment?” are asked.  If the project administrator was involved from the beginning, he/she would know about the project and itscommitments. 

Failure to communicate about an incentive project prior to the reporting deadline may be detrimental.  If you do not track your compliance goals, you may learn too late that you do not qualify to receive your incentive payment. Alternatively, you may find that you qualify for your incentive payment, but the stress of reporting at the last minute may prove to be an overwhelming task.

What Should Happen: Management is responsible for providing enough information to allow the project administrator to successfully manage the incentive project. The project administrator should then set up a system to periodically monitor compliance goals to keep track of the commitments. When the reporting deadline approaches, the project manager would be in a better position to effectively prove that the company achieved its commitments to qualify for the incentive payment.

Of course, if this process seems to be too much for the project administrator, I'd suggest communicating the need to hire an Incentives Consultant to assist with managing the project early on.

As you can see, communication does play a significant role in determining the success or failure of an incentive project. I recently worked with a client who was overwhelmed with the QTI reporting process. She was unsure of what was required, but her manager insisted that she figure it out on her own. Eventually, I was able to help her through the process. As a result, her company was able to secure the full refund.

If you would like to have someone hold your hand through your economic incentives reporting process, give us a call 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

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.

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.

How Small Businesses Are Rebounding With Tax Incentives (Tax Credits)

I recently read an article on Bloomberg.com, titled: "Small Business Is Hiring, but Very Carefully."  The article indicated that in past recessions, small businesses led the rebound, now they're relying on part-time workers and more productivity with fewer people.  The article also discussed an interview with the CEO of a sales promotion company who let go some of his full-time salespeople as a result of the downturn in the economy. The company later kept these employees on as contractors, reducing payroll costs.  

While reading this article I thought about a conversation I had with a local economic development agency.  Florida and local communities within Florida offer tax incentives to businesses to help with their growth and training needs.  There are even greater opportunities for companies located in enterprise zones, brownfield redevelopment, urban and rural areas.  THE PROBLEM? Many small businesses do not take advantage of these opportunities!

As a small business owner, have you thought about getting money to help train your employees?  Or, maybe you’d prefer a tax credit on business equipment and materials?  In a down economy, as a small business owner, you should be excited these opportunities exist.

I hear you asking, what if my business isn’t in Florida?  That is definitely not an issue.  I assure you that your local community offers similar tax incentive programs.  I strongly suggest you contact your local economic development agency and inquire about available tax incentives.  Whatever your situation is, don’t you think you owe it to yourself to at least check these out?

Email me at info@marlynnconsulting.com to find out what incentives are available.  I can also help with other State incentives.

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"

IT’S THAT TIME AGAIN!!

If you are a participant of the State of Florida’s Qualified Target Industry Tax Incentive (QTI) program, you should have received your QTI Claim Application by now.  It is time to prove to the State that you have met your QTI compliance goals for 2010. 

Have you analyzed your payroll data to determine if you successfully achieved your QTI compliance goals?

Have you analyzed your tax data to determine if you qualify for a full refund?

TIP: If you haven’t started preparing your compliance reports don’t fret, you still have time.  The State gives you an opportunity to request a one-time 30-day extension, which gives you some additional time.  Please note – your request must be in writing.  This gives you until March 2^nd to submit your claim application and supporting documents to the State’s agent responsible for verifying your claims.

It is your responsibility to ensure that all required documentation is submitted to support satisfaction of your compliance goals/commitments.  Proper documentation will result in timely review of your QTI claim package, which will ultimately result in timely payments.

For additional information on how to analyze your payroll data to determine whether you qualify for a tax refund; how to determine the amount of refund you will receive; or what type of documentation you are required to submit, contact me by email at info@marlynnconsulting.com.

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.