Issue link: http://www.insightdigital.biz/i/312675
22 | /insight on manufacturing • May 2014 w w w.in s i g h t o n m f g . c o m O n e q u e s t i O n i h e a r O f t e n f r O m manufacturers is, "Can you find me free money for (blank)?" Whether it's worker training, facility expansion or new equipment, this idea of 'free money' is usually based on an assumption that governments give money to help businesses grow. While this assumption has a kernel of truth, the reality is more complex. Government incentives are available to assist growing businesses, but the funds are seldom "free." using public money typically requires extensive applications and reporting. While grants are sometimes available, more oen support takes the form of reimbursements or low- interest loans. incentives differ widely across the levels of government. Local governments have few tools at their disposal, but those they have are relatively powerful. Counties offer some financial assistance that tends to have lots of strings attached. e state offers incentives to reduce a company's tax liability, and has workforce training grants available in conjunction with the technical college system. understanding all of these options can make your head spin! here are a few things manufacturers should know to leverage available incentives: » tax increment financing (tif) – Local governments (cities, villages and towns) can create tax increment districts where increases in property value (that is, growth) generate more tax revenue, and that increased revenue is used to fund projects such as infrastructure improvements or direct incentives to developers and manufacturers. supporting manufacturing is a specific goal of tif. e spending can only be done in and around designated areas, so talk to municipal staff to see if you are eligible. Visit www.revenue.wi.gov/slf/tif.html. » revolving Loan funds (rLf) – every county has a rLf from which it can make short-term loans to businesses. e details of each fund vary from county to county. Generally speaking they are seeded with federal dollars, so there are numerous strings attached to the money. to avoid the most onerous requirements, manufacturers should consider using these for major equipment purchases. at way the asset becomes the collateral for the loan, and you don't need to worry about following complex federal hiring rules. » Wisconsin fast forward – e state Department of Workforce Development administers a new grant program intended to address the "skills gap" between jobs that employers need to fill and the workers who are seeking employment. a competitive application process evaluates needs, and awards funds to the best projects. Collaboration is viewed favorably, and a portion of the funds is specifically designated for manufacturers. Visit Know your incentives Government funding can help your facility grow, but don't expect 'free money' INSIGHT FROM ... Josh Dukelow, existing industry manager for the Fox Cities Regional Partnership Local governments have few tools at their disposal, but those they have are relatively powerful. Counties offer some financial assistance that tends to have lots of strings attached. The state offers incentives to reduce a company's tax liability, and has workforce training grants available in conjunction with the technical college system.