Baker Tilly credits and incentives success stories – Fluid power systems manufacturer

Fluid power systems manufacturer

Client challenge

• Baker Tilly represented a large manufacturer of fluid power systems in opening a new plant that was creating 110 new jobs and investing more than $30 million in the plant, equipment, and working capital

Baker Tilly approach

• Conducted multistate tax and cost analysis of sites in seven states and then selected the two most suitable
• Performed preliminary review of credits and incentives and prepared DCF analysis
• Assisted client with the buy vs. lease decision, including analysis of local property tax burden
• Reviewed final credits and incentives package and contract with state economic development agency

Results

• Commitment with a NPV of between $3 million and $4 million, including cash award of $800,000, training grants, partial property tax abatement, sales/use tax refunds, expanded R&D credit, investment credits, jobs credits, and in-kind assistance