DAPC looks to stay ahead of tax incentive rule changes
When companies are seeking to expand operations and either add to or locate in Polk County, they usually get a pretty good deal to boost the local economy.
Whether it be tax abatements or installing utilities ahead of time on a site, the
Incentives were previously not considered taxable income by the Internal Revenue Service (IRS), but now they will be nationwide and will likely require changes to how local authorities seek to entice industrial prospects to Polk County.
Getting the conversation started on how those incentives will change was one of the goals of the latest Development Authority of Polk County meeting for the month of October.
DAPC President and CEO Missy Kendrick said new rules were put in place for how incentives provided by local and state governments would be taxed on a national level are now in place, and with the changes will come a change in strategy on how to provide incentives in the future.
“As we go into negotiations with companies, that will now probably become part of the discussion on how we structure things,” Kendrick said. “More importantly, I’m not sure if we’re going to now be required to provide 1099 forms for those incentives on the value of those incentives, and who might be responsible for providing those tax forms for companies.”
She explained that there are still a lot of unanswered questions about the change made when lawmakers passed tax cuts in late 2017, and that those will likely be answered once new regulations are passed down from the IRS.
“They’ll have to be in place by the end of this year,” she said.
Mainly she didn’t want DAPC board members to be surprised by future changes, and that honestly “we don’t yet know how it is going to all shake out.”
One thing Kendrick did point to was that an even playing field is now in place nationwide since incentives directly provided to a company will now be considered taxable income for that company.
How in the future the DAPC looks to get industrial partners to settle down in Polk County will be figured out once a clear understanding of regulations are in place.
Meanwhile, the organization will be helping one local teen complete a project meant to help drive people outdoors and utilize a new opportunity along the Silver Comet Trail if further approval is given by the Polk County Commission.
Local scout and Rockmart High School student Parker Crawford, who is seeking to complete his requirements to become an Eagle Scout, sought additional help with the project for only administrative purposes from the DAPC.
“They asked the Development Authority to be the fiscal agent for that,” she said.
Kendrick added that due to Boy Scouts of America rules about the receiving organization of a group not be in control of any donations made to the project, they’ve been asked to step in and help with the plan to move forward with construction of the disc golf course on county-owned property on Hendrix Road.
The project was previously brought before the County Commission for discussion in past months, and now is moving forward as Crawford gets ready for completion. He’s seeking donations to help with construction as well.
His idea for a Fish Creek-based disc golf course along the Silver Comet Trail on county-owned property on Hendrix Road started as early as January when he and his father Rick Crawford came before County Commissioners seeking permission to use the land.
It would be a first for Polk County since none so far have been established locally.
DAPC members saw no issue with allowing Kendrick to move forward with helping Crawford’s project.
The organization also heard from members of the LEAD Polk Class of 2018 who came to discuss their time in the program and class project.
Kendrick also discussed her forthcoming preparations for the forthcoming University of West Georgia Economic Forecast Breakfast, and a trip to In the Woods on the same day on Oct. 30 for the annual State of the Community event.