Our Location Advisory team worked with an healthcare services provider to procure incentives in Iowa for an expansion.
Our Location Advisory team worked with an automotive repair equipment provider to procure incentives in Missouri for an expansion.
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Manufacturing is often hailed as the poster child for economic development. Many communities actively seek manufacturing businesses through incentives due to its substantial capital investment, job creation, and community identity (e.g., “Made in [State]” label). However, these economic incentives are not solely reserved for the manufacturing sector, as communities increasingly strive to diversify their business landscape.
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The company, with the guidance and collaboration of McGuire Sponsel’s Credits and Incentives team, requested and received an Economic Development for a Growing Economy (EDGE) tax credit.
This chemical manufacturer had plans to expand. McGuire Sponsel helped negotiate a workforce training grant despite a fast-paced timeline.
In Area Development, Ben Worrell, MBA, discusses how to navigate critical communication to identify potential solutions when a company cannot meet the original parameters set by its project.
Client Snapshot
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Healthcare Services ProviderIowa
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Jobs & Investment144 New Jobs,
$60M Investment -
Project TypeExpansion
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Project ObjectiveIncentive Procurement
Healthcare Services Provider
Client Profile
This healthcare services company is a leading provider of behavioral healthcare services across the United States. They provide services in various settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers, outpatient clinics, and therapeutic school-based programs. The client approached McGuire Sponsel to negotiate incentives for their new location on their behalf.
Process
The client asked McGuire Sponsel to secure incentives for their $60-million expansion project that is expected to create 144 jobs in Iowa. Our Location Advisory team submitted an application on their behalf for the Targeted Jobs Withholding Tax Credit pilot program, which helps companies expand by providing access to capital through withholdings or tax credits for the growth and expansion of targeted businesses. While states aren’t commonly incentivizing job creation in the healthcare industry, healthcare jobs are qualified for incentive programs in Iowa.
The Iowa Economic Development Agency team was easy to work with and greatly supported the project. Our Location Advisory team will work with the client to procure the Council Bluffs Urban Renewal program when the construction is finished in early 2025. The process of negotiating and procuring the tax credit took about six months, resulting in a tax credit valued at $1,897,541.
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$1,897,541
Targeted Jobs Withholding Tax Credit