Economic Development

Economic Development

Companies and businesses expanding or relocating ask: what is economic development and how does it apply to me? Economic development is best defined as the creation of wealth through jobs, investment, and other mechanisms that benefits and enhances the community. Economic development programs are a way for states and municipalities to encourage positive economic development in their communities. One way they can promote economic development is through credits and incentives. These attract new businesses and retain existing ones which results in new investment and jobs in the area. Economic development projects can be awarded in the form of discretionary cash grants, refundable tax credits, non-refundable tax credits, real property tax abatements, personal property tax abatements, sales and use tax exemptions, utility cost exemptions, and many more industry specific programs. It is beneficial to stress the importance of economic development ppt because it aids communities in increasing the quality of life and providing jobs to people. When people have higher paying jobs, they tend to spend and invest more money in their communities. Likewise, the investments flow into the community and goes into the pockets of local businesses whether it be construction companies or design companies. These investments strengthen local economies so economic development programs get a return on their investments. The following are characteristics of economic development: increased economic activity, enhanced quality of life, and the community benefiting. Economic developers and city planners take these characteristics into consideration when deciding how to award economic development programs. Economic development combines the public and private sector when local governments offer economic development programs to business and investment projects. McGuire Sponsel’s Credits and Incentives team can help businesses looking to invest and add jobs take advantage of economic development programs and help them save money.

Economic Development Examples

A general example of economic development and economic growth is when a company promises to invest millions into a project in a local community and create jobs for the residents which leads to higher paid citizens and increased quality of life. This type of investment stimulates the local economy and is beneficial to everyone living inside the area. Examples of economic development in a community are a company sponsoring a project in an abandoned building within the area. By renovating and uplifting a previously distressed parcel of land, the project has successfully economically developed that area and benefitted the locals. Hopefully, the project has started a trend of investing in similar buildings in the area which would be to the community’ advantage. Another example of economic development in a community is when a government entity incentivizes a business with a refundable corporate income tax credit which causes the project to choose that state and community for its location. Expansion, relocation, and retention are all types of economic development that McGuire Sponsel can help secure incentives for. These types of economic development either enhance the existing facilities a project may have, grow to another location, add a regional headquarters, or reward the business for retaining high-wage jobs within a community. There are 5 theories of economic development pdf that aid in the determination of economic development policies and how local and state officials are authorized to dispense financial awards.

Why Is Economic Development Important

Some features of economic development pdf are job creation, job retention, and capital investment. All these factors contribute to growing wealth and quality of life within a community. The impact of poverty on economic development pdf is expected to lessen as more jobs are introduced to an area and wealth is distributed. Not only are most of the jobs incentivized expected to be high paying, but the taxes generated by new economic development projects increases tax revenue which can be reinvested back into the community. Some measures of economic development pdf are the number of underutilized buildings, high wage jobs, and key industry establishments. The scope of economic development pdf can be extended to the actual projects investing and coming into the area but also the results of having those types of projects brought in. For example, a consequence of hundreds of jobs being created is more people living in a community so more taxes being generated. Expansion, relocation, and retention are all types of economic development pdf that McGuire Sponsel can help secure incentives for. People often stress the importance of economic development pdf because it benefits the community in many ways such as providing more high paying jobs, more taxes for public programs, and community revitalization. When people ask, “Why is economic development important?”, a local economic developer would answer that it uplifts a community and revitalizes the economy with the influx of jobs and investment. Why is economic development important to a country? It helps its citizens’ communities and boosts the national economy.

Economic Development Program

A common economic development program that McGuire Sponsel helps their clients procure is tax credits. Many states offer tax credits that companies can use against their corporate income taxes. There are tax credits for every type of economic development project, but there are also some that are industry specific. States also offer community economic development grants that are granted on a discretionary basis and can be used to offset up-front costs such as construction materials for a new building. Common economic development administration grants consider job training expenses and can often reimburse for those costs. Community economic development strategies often stress the importance of pursuing incentives early in the project process. Businesses want to secure any grants or credits before breaking ground so economic authorities have reason to incentivize them. Local economic authorities like to get a head start so they have time to negotiate and best help their communities. Here are some economic development programs examples: discretionary cash grants, refundable tax credits, non-refundable tax credits, real property tax abatements, personal property tax abatements, sales and use tax exemptions, utility cost exemptions, and many more industry specific programs. What is community economic development? It is where a community is invested into and receives benefits like jobs and new tax revenue that increases public funds.

Economic Development Jobs

An economic development job description would most likely include the responsibilities of project management, state and local knowledge, and critical thinking skills. Economic development analyst salary, economic development manager salary, and economic development director salary is based upon relevant background experience in the field, education level, and previous work experiences. While there is no economic development degree required to achieve an economic development salary, it is recommended that someone applying has at least a bachelor’s degree. Entry level economic development jobs can come from any educational background if they are willing to apply critical thinking skills, understand economic development and public policy, and are quick learners. If someone is passionate about pursuing a career in economic development, they should become a certified economic developer to increase their credibility and become more well-rounded in the subject. Location can play a role in economic development jobs salary and what government level someone is on. There are role and responsibility differences for people on the state and local levels because the programs they would be administering and educating about are different. An economic development job description would have some of these key words: community outreach, communication skills, and collaboration.