Our client is a grocery store chain in the process of opening 100 new stores across the Midwest - most of which are located in leased rehabilitated retail space. Our client requested that the sites be evaluated for possible credits and incentives opportunities.
The Baker Tilly team was selected based on our depth of knowledge in the area of government funding through tax credits and incentives programs. We work closely with our client to evaluate opportunities to benefit from credits and incentives programs for new store locations including property tax incentives, sales tax sharing, job creation funds, EB-5, and New Markets Tax Credits.
As a result of our on-going evaluation services, the client has knowledge of credit and incentive possibilities for each potential store location which they use to make informed site selection decisions. Once a site is chosen, we assist our client to negotiate and structure tax credits, grants, sales tax sharing, and property tax incentives. On occasion, we assist our client’s landlords and development partners to secure incentives thereby allowing our client to achieve more favorable lease terms.
A specific example of success was demonstrated when Baker Tilly identified an incentive program that allowed the client to benefit from a reduced commercial property assessment, decreasing the amount of property taxes due annually. Baker Tilly was able to negotiate a five year extension of the typical five year program for a ten year benefit. The reduced assessment allowed the grocer to have property tax savings of approximately $1 million.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.