Pub. 3 2021 Issue 5

13 nebraska society of cpas W W W . N E S C P A . O R G • New Markets Job Growth Investment Act Funding: Funding for expanding companies in “low-income” areas of Nebraska, funded by federal and Nebraska tax credits. • State Trade Expansion Program Funds: Grants that help companies defray the cost to market internationally and assist with identifying potential international buyers. • Manufacturing Equipment Sales Tax Exemption: Sales tax exemption for purchases of manufacturing equipment and repair parts. • City/County Infrastructure “Entitlements”: Funding assistance or cost sharing for infrastructure improvements needed for expansion project. • Pollution Control Sales Tax Refund: Refund of sales tax paid on equipment used in cont rol l ing indust r ial or agricultural waste. • Nebraska Transportation Innovation Act Grants: State grants to offset the cost of transportation improvements needed for an economic development project. • SBIR/STTR Grants: The Smal l Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs provide Nebraska matching grants for companies that have received federal grants. • Nebraska Advantage Research &Development Tax Credits: Nebraska income tax credits for companies that incur research and experimental expenditures in Nebraska. • Nebraska Academic Research & Development Grants: Matching competitive grants for research and development activities done in conjunction with a Nebraska college or university. • Talent Recruitment & Retention Tax Incentive: Employee shareholders of corporations may exclude the capital gains on the sale of their stock from Nebraska income tax. The availability of most incentives is normally dependent on the team actually identifying, seeking, and applying for the incentives before undertaking a project expansion or relocation. Often these incentives need to be negotiated with the state or local communities as part of an overall site selection and incentive package. The CPA’s Role in Nebraska Business Expansions A CPA is normally one of a company’s most important advisors. Business leaders involve CPAs in making key decisions, finding business opportunities, and financing a company’s growth. So, when a company has an expansion opportunity, it is natural that CPAs should be deeply involved in the process of providing business expansion assistance in at least the following ways: • Business or Project Planning • Economic Assessments • Project Financial and Cash Flow Analysis • Identifying Potential Project Incentives • Leveraging Community Relationships • Incentive Annual Compliance Requirements • Working Closely With the Company’s Business Expansion Team Healthy, Growing Companies A healthy, growing company will seek expansion opportunities throughout its life. The oft-repeated line that says, if you aren’t growing, you’re dying, is true. Those companies that take their foot off the gas pedal end up with disastrous results. It can precipitate a slide down a slippery slope. It can turn off the interest of possible successors and business buyers. It can result in the loss of your customer base, which begins to see your company as no longer responsive to their growing needs. Over the past several years, companies have become much more analytical in making decisions on their expansion policies. In addition to a focus on strong internal (so-called organic) growth, a strong overall expansion policy will focus on consistently looking for opportunities to purchase other businesses, to expand at existing or new sites, and to develop or acquire new technology and business models. The CPAs who deploy their talents as part of the company’s business expansion team have an opportunity to be of tremendous help to the continued growth and success of their business clients and the growth of jobs throughout our Nebraska communities. t Nick Niemann and Mat t Ot temann are partners with McGrath North Law Firm. As members of McGrath North’s Business Expansion Team, they collaborate with CPAs to help companies accomplish their business moves and expansions. See their website at www.NebraskaInc ent ive s .com for more information on Nebraska incentives, including their Nebraska Business ExpansionDecisionGuide, which providesmore information on the listed incentives. Youmay also contact Niemann or Ottemann at (402) 341-3070 or at nniemann@mcgrathnorth.com or mottemann@mcgrathnorth.com , respectively.