Economic Development Strategies & Solutions
Incentives Reporting and Compliance
There is a far greater level of evaluation and scrutiny of economic development projects than ever before. Governments are monitoring recipients' annual job creation and retention, average wages and capital investment levels that have been contractually agreed upon. Annual performance contracts typically contain clawback provisions that require a company to reimburse funds awarded if requirements are not meet. One recent state audit found that only 54.9% of companies receiving economic development incentives fulfilled their obligations; many either failed to create the required number of jobs or simply did not file required documentation before the deadline.
Failing to file compliance documents properly and in a timely manner is one way to trigger a clawback of incentives. Annual reporting requirements are sometimes neglected due to staff turnover or changes at the C-Suite level. Economic Development Strategis & Solutions will assist your company with compliance requirements of state and local incentive agreements. We are proud to offer an affordable alternative for private and public sector entities to annual incentive reporting compliance to help alleviate defaults. When advantageous, we will also work with both parties to renegotiate contracts to retain jobs if necessary.