Incentives Compliance
For our compliance clients, we act as an extension of their internal teams when we perform incentives compliance work. We work directly with the HR, Legal, Finance and other departments within the company to provide a seamless approach and to act as a conduit to gather all information relevant to incentives compliance. Our experience with similar engagements has proven this approach is beneficial and allows for effective communication and management of the engagement while reducing stress on our clients’ resources and staff.
Not only does Compass Key utilize a collaborative approach in working directly with the client’s various departments but we also work in conjunction with the state and local agencies to submit the most accurate information to optimize our clients’ incentives portfolio.
Below is a sample of the Economic Development Incentives programs for which we offer compliance services:
Georgia Jobs Tax Credit
The State of Georgia offers the Job Tax Credit (JTC) to companies bringing new jobs to the State, if the company satisfies specific criteria.
Eligible companies within specific industry codes must satisfy certain new job criteria, depending on the tier of the county the project is located in. Counties are designated as Tier 1, 2, 3, 4, or a have a special Tier Designation such as Opportunity Zone, Military Zone, Less Development Census Tract, or Bottom 40 depending on their economic health. The minimum job creation numbers and tax credit amounts are determined by county tiers. The credit can range from $1,250 to $4,000 per job and can be used to offset 50% or 100% of Georgia Tax Liability, with some Tiers allowing for remaining credits for use withholding tax. As Tier levels can change year to year, it is important to keep track of the Tier changes to preserve the higher benefit and to timely file a Notice of Intent if the new change can negatively impact the Tier from prior year benefits.
Companies wishing to claim Georgia Jobs Tax Credit must complete Form IT-CA. This includes determining which employees are eligible to include in the credit calculation and creating month-end headcounts for the first year the tax credit is claimed and for the year immediately prior. If your company is interested in the Georgia Jobs Tax Credit and needs assistance in completing the Georgia Jobs Tax Credit compliance, the Compass Key Site Solutions team can provide the expertise needed.
Illinois Economic Development for a Growing Economy (EDGE) Tax Credit
Companies who are party to an Illinois Economic Development for a Growing Economy (EDGE) Tax Credit Agreement must submit initial and continuing documentation to secure the annual tax credit for each year of the agreement’s term. EDGE agreements run for 10 years once “triggered” by meeting the headcount and investment requirements for the project.
Recipients are given 2 years to meet these requirements and then must trigger the start of their tax credit terms by submitting “Initial Issuance” documentation. This includes:
1. Agreed Upon Procedure Report – a report signed by a Certified Public Accountant, attesting that the Recipient in fact created and/or retained the requisite number of jobs, and invested the agreed-to amount in capital expenditures at the project site,
2. Exhibit D – a signed form articulating the job creation and/or retention number and capital investment totals, and
3. Exhibit D-N and D-R – detailed employee information for eligible employees qualifying as new and/or retained for purposes of the credit (please note, not all employees are eligible under the terms of the EDGE credit agreement).
EDGE Tax Credit Recipients are also required to file the following additional reports with DCEO:
1. Annual Corporate Accountability Report
2. Vendor Diversity Report
3. Sexual Harassment Report
If your company is a party to an EDGE Tax Credit Agreement with the Illinois Department of Commerce and Economic Opportunity (DCEO), and would like assistance with the annual EDGE Tax Credit compliance to obtain and maximize your credit, Compass Key Site Solutions is excited and able to help.
Tennessee FastTrack Training Grant
The State of Tennessee offers a robust training reimbursement incentive, called the FastTrack Job Training Assistance Program (FJTAP). Eligible companies expanding in the state may be party to a FastTrack agreement with the State. In order to claim the FastTrack funds, companies must determine eligible employees, and submit the requisite compliance forms, including eligible employee month-end headcounts at project locations. If your company is a party to FastTrack Job Training Assistance Agreement, and would like assistance with the FastTrack compliance to obtain your reimbursement, Compass Key Site Solutions is excited and able to help.