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Driving Value through Global Credits & Incentives Planning

Governmental entities often create incentive packages to attract investment and create job opportunities in their geographies. Generally awarded based on job creation or economic impact, incentive packages may include both tax and non-tax incentives, and span a wide array of statutory incentives, from clean energy, production tax credits or other capital incentives designed to attract investment. These incentive packages can total in the millions or billions of dollars, with the size of the incentive package based upon the magnitude and nature of the proposed business project.

Drive Value for Your Organization through Global Credits & Incentives Planning

Capturing the value of incentives can be complicated, and many companies don’t know where to start.

In a recent Deloitte poll of roughly 50 multi-national companies, 76% indicated their company could benefit from globally pursuing and managing tax credits, incentives, and grants, but only 21% responded that their company currently takes this type of global approach. A significant divide exists between a global strategy and approach that could drive value, and the real-life processes that companies have in place.

 

Deloitte Tax LLP recently hosted a global credits and incentives virtual conference for clients to address this organizational challenge and potential opportunity – how to consider and develop a value-add credits and incentives plan in a post-COVID-19 environment. The conference brought together thought leaders focused on the post-pandemic economic recovery, sustainability and environmentally focused incentives, incentive regimes offered in the EU and United States, digitization of business, and how to stand up a global credits and incentives program within an organization. “This is exactly what I need for the business”, said one medical technologies client in attendance, and “Very informative and inspiring,” said another consumer goods client who joined the conference.

Securing incentives for one-off investments is important, but it is more important to develop a repeatable process to identify potential investment incentives, small or large, on a global basis and in a manner that enhances their ROI.

If you are interested in attending future Deloitte global credits and incentives conference offerings or would like additional information on global credits and incentives, please email me or specialist Angela Xu at angxu@deloitte.ca. You can also find more information on Deloitte’s global innovation and investment incentives practice or the incentives available to your organization, by clicking this link.

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