A few reasons why businesses should consider seeking tax incentives...

 

Tax incentives can reduce a company's overall tax burden and increase cash flow. Common tax incentives include tax credits, tax deductions, tax exemptions, and tax abatements. These can lower a company's taxable income and what they owe in taxes.

Tax incentives can make major business investments more affordable. Incentives like investment tax credits or property tax abatements may offset some of the costs of things like new equipment, expansion projects, R&D, etc. This can make these big investments more feasible.

Incentives can be used to influence business behavior and drive growth. Governments often use tax incentives to encourage activities like job creation, renewable energy use, development in certain areas, exporting, etc. The incentives provide motivation for businesses to align with policy goals.

Competitive factor - Incentives can help attract new businesses or get existing ones to stay/expand in a certain jurisdiction versus moving elsewhere. Sites with attractive incentives gain a competitive edge.

Specific industries or projects may qualify for targeted incentives. Programs for manufacturing, tech/R&D, redevelopment zones, etc. can help certain businesses the most. Firms should identify what's available for their sector.

The process of claiming and using incentives taps companies into expert advice. Economic development agencies help connect firms with relevant programs and compliance assistance.