.jpg)
How prepared we are to adapt to our new economic circumstances will make a difference in the outcomes achieved. Some clients have asked whether business incentives will disappear as the federal government wrestles with new demands and lower revenues. State and local governments, especially those with balanced budget requirements, will be even more constrained.
We cannot direct the wind, but we can adjust the sails.
Thomas S. Monson
Interestingly, history indicates this may not be the case. Federal agencies and many state and local governments have already responded to the COVID-19 crisis with programs designed to ensure that businesses survive. With the heightened need to increase employment opportunities, this support is likely to continue. Companies that have made investments and created jobs may have business and economic incentives agreements in place whose requirements are now impossible to meet according to the timelines anticipated when agreements were signed. The important response is to understand the exposures and develop a strategy to approach each commitment. At the same time, a great many companies have been designated as “essential services” and are hiring and investing to keep up with unexpected increases in demand.
While there are more questions than answers at this juncture, this paper will highlight important topics and outline some preliminary considerations for business decision makers regarding incentive programs, whether their businesses are facing cutbacks or growth in the current environment.