In the past year, the global mobility industry has seen noticeable increases in state and local governments offering enticing relocation incentives to draw economic development and add to growing employment numbers. But how are these incentives helping companies recruit new talent to relocate? And how do transferees and companies take advantage of these incentives?
Working with a corporate relocation services company can help make sure that you are getting the most out of the available relocation incentives. There are various incentives for those looking to perform group moves or office moves from state to state. Understanding these plans and policies is the first step in taking advantage of them.
Here we have broken down some of the relocation incentives in 3 quickly growing states. All of these states are seeing an increase in population due to incentives and business-friendly environments, and these numbers should continue to grow as work from home precautions begin to end for in-office positioned employees.
Attracting Companies and Talent
Many states have heavily invested in development strategies that are solely focused on attracting companies within specific industries into relocating their operations to their state. Commonly targeted organizations reside in high revenue/high wage industries, such as technology, R&D, and manufacturing companies. State relocation incentives are often rich with benefits, making it difficult for companies to ignore. Let’s use Colorado, Arizona, and Texas as gleaming examples. Each of these states has focused on developing partnerships focused on attracting and relocating companies to their particular states and municipalities, in hopes of bringing in more revenue and tax dollars to the state.
Key Colorado relocation incentives:
- Job Growth Incentive Tax Credits – A performance-based state income tax credit equal to 50% of the FICA paid by a business, based on the net new growth from jobs created
- Strategic Fund Incentives – A cash payout based on wage levels of the net new jobs created
- Location Neutral Employment – An incentive that combines Job Growth Incentive Tax Credits and a Strategic Fund Incentive
- Training Grants – Reimbursement of job training designed to increase transferable skills to enhance long term employment opportunities
- Industry Accelerated Grants – A collection of grants that promote growth and sustainability
Key Arizona relocation incentives:
- Quality Job Credits – Up to $9,000 in tax credits over 3 years for each new qualifying job
- Training Grants – Up to 75% reimbursement of job training per employee and up to $8,000 for each new employee in a rural area
- Facility Tax Credits – 10% of capital investment, up to $20,000 per qualified job created in manufacturing or R&D
- Research & Development – An income tax credit for R&D (24% for first $2.5M, plus 15% in excess of $2.5M)
Key Texas relocation incentives:
- Enterprise Project – If project investment is equal to or greater than $5 million or more, then refund amount is up to $2,500 per job up to a maximum of 500 jobs created/retained
- Double Jumbo Enterprise Project – If the project investment amount is equal to or greater than $150 million and less than $250 million, then the refund amount is $5,000 per job up to a maximum of 500 jobs created
- Triple Jumbo Enterprise Project – If the project investment amount is equal to or greater than $250 million then the refund amount is $7,500 per job up to a minimum of 500 jobs created. The maximum refund available is $3.75 million
Weighing the Benefits
While most of these incentives are not lucrative enough to make a company want to move on the spot, they do serve as added bonuses to those companies that are actively looking to make a move within the next year or two. The next question becomes how do you know you’re making the best relocation decision for your company and employees? Working with a certified corporate relocation services company will help to ensure that state economic incentives and your relocation strategy provide your organization with the advantages it needs to thrive and grow. . But what has to be considered when drafting up relocation policies and operation decisions?
Establishing new operations or relocating existing ones is not an easy decision. Companies must weigh the cost/benefit of moving operations, in addition to the impact on employees. At GMS, we make every effort to support companies with the necessary analysis for informed decision-making. This may include salary and cost of living comparisons, housing evaluations and site studies, educational comparisons, pre-decision services, and more!
Why GMS Is the Answer
If you’re looking to take advantage of incentives for these states, or just collecting information in general for relocating employees, it is always a good idea to sign on with a proven and experienced relocation company. You’ll want to use a company that specializes in group moves and office moves.
Global Mobility Solutions (GMS) is here to help you with all of your relocation services needs. Our team of experts holds over 20 relocation certifications and can assist with any kind of corporate move, no matter the scale. We also won’t blindside you with hidden or non-disclosed fees. All of our pricing is upfront and honest. Not to mention, we will tailor your policies and procedures to make sure your employees are maximizing any available state incentives, along with ensuring all of their relocation needs are being met. Our team can help you move to or from not just Arizona, Colorado, or Texas, but globally as well.
Reach out to GMS today online if you’re ready to start getting info about working with a certified relocation services company. Or to speak to a team member directly, call 1-800-617-1904.
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