Export Services
Opening a company in the USA
ExportUSA opens US incorporated companies in all of the United States. We can open both LLCs and corporations
https://www.exportusa.eu/opening-a-company-exportusa.php
(+1) 718-5225575
(+1) 718-5225575
Investment incentives from American states like West Virginia, North Carolina, South Carolina, Tennessee, Ohio, Alabama, Michigan, New Jersey. State investment incentives take the form of tax breaks and tax credits for establishing production facilities in the United States.
Entering the American market through direct investments offers various tax advantages. On this page, we have selected some American states that offer favorable taxation for investors, in addition to other production incentives. The United States is the country with the highest level of foreign direct investments in the world, the so-called Foreign Direct Investment (FDI). By FDI, we mean investment in a foreign country through the opening of a local office with production facilities or the purchase of financial assets of a foreign company, in this case, American. Below are the hot spots for FDI in the USA. The administrative-fiscal system of the United States consists of three interacting levels: federal, state, and local. Each of these levels individually presents a more or less extensive possibility of granting production incentives.
At the state level, the range of production incentives is broader than at the federal level and has characteristics that vary depending on the type of investment, the location to which the investment is destined, and the social protection measures connected to the investment itself. Each individual state guarantees specific tax breaks (so-called "tax credits"), meaning tax deductions connected to certain types of investments. To obtain one or more of these tax breaks, a company must meet certain requirements that vary from state to state. The most common tax breaks are related to:
Numerous states provide a series of tools aimed at financing production activities in America, such as:
Below are the incentives for companies looking to invest in: Georgia, Wisconsin, West Virginia, North Carolina, South Carolina, Tennessee, Alabama, Ohio, Michigan, and New Jersey.
In Georgia, companies can benefit from significant tax breaks through various tax incentives that support job creation, technology investments, and manufacturing activities.
QUALITY JOBS TAX CREDIT (QJTC)
Is granted to companies that create and maintain new jobs paid at least 110% of the county's average wage.
INVESTMENT TAX CREDIT
Available to existing manufacturing and telecommunications companies, with tax credits ranging from 1% to 5%
Port Tax Credit Bonus
Can be combined with the QUALITY JOBS TAX CREDIT (QJTC) or the Investment Tax Credit if the company meets the requirements of one of these programs and increases imports or exports through Georgia's ports.
RETRAINING TAX CREDIT
Provides tax credits for employee training.
TAX CREDITS FOR R&D ACTIVITIES conducted in the state of Georgia.
SALES TAX EXEMPTION IN GEORGIA [varies from 6% to 9%] for a wide range of expenses that manufacturing companies incur for their activities in the state.
In Wisconsin, various tax incentives are available for economic development, aimed at stimulating employment, business investments, and economic growth.
Tax Credits for Economic Development: These are intended for companies that create new full-time jobs and/or make significant capital investments.
Investment Tax Credit Program in manufacturing facilities in the state of Wisconsin (MIC)
Investment Tax Credit for Food Processing Facilities and the construction of Warehouses for Food Products.
Transportation economic assistance (TEA) Wisconsin offers incentives for completing road, rail, port, and airport projects that create and/or maintain jobs in the state.
Hiring Incentives: The state offers various hiring and job training incentives for businesses in Wisconsin.
Business Development Assistance: Support programs are available to stimulate new investments in Wisconsin by companies already present in the state.
State incentives for Professional Training of employees.
Tax increment financing (TIF) Municipalities and counties offer TIF to finance public costs associated with a development and private investment project.
Sales Tax Exemption in Wisconsin.
West Virginia's central location facilitates connections. From here, 50 percent of the U.S. market and a third of Canadian consumers can be reached within four days of trucking. Tax breaks in West Virginia are available for companies that make a manufacturing investment that creates at least 20 jobs.
For example, a company that invests and creates 20 jobs is entitled to a 20% tax break; if it creates 200, the break increases to 25%, reaching up to 30% if the investment creates 280 new jobs. Companies investing in West Virginia can also receive a reimbursement of up to $2,000 for each apprenticeship contract. Types of activities eligible for tax breaks following an investment include:
Additional tax benefits are available for relocating headquarters, investments in the hi-tech sector, coal mining activities, agricultural sector, urban development, and small businesses.
North Carolina plays a pivotal role in the internationalization of the U.S. economy.
One of the most exciting aspects of foreign trade with North Carolina is the presence of 4 Foreign Trade Zones (FTZ), plus 7 sub-zones with similar characteristics, but established exclusively for single companies.
These areas are legally considered outside the USA and were established to facilitate trade flow with foreign countries, as they feature simplified customs procedures. Imports can enter these zones without being thoroughly examined by customs and without paying duties - usually applied upon clearance. Duties are only applied after the goods leave the Foreign Trade Zone following a sale.
Other tax incentives concern the Real Estate sector. The U.S. government offers grants for renovating unoccupied buildings, expanding existing local businesses, and expanding healthcare facilities. Additionally, in North Carolina, inventory and raw materials are exempt from property tax. Concerning industrial machinery, they are exempt from sales tax and use tax. This category is subject to a privilege tax of only 1%. Other tax benefits in North Carolina concern electricity, fuel, and natural gases used for production. Their retail sale and industrial use are exempt from sales tax and use tax.
The predominant industrial sectors in South Carolina are automotive (40%), industrial machinery production (21%), followed by rubber production (9%), electrical machinery (7%), and plastics (6%). The industries that are expanding the most are advanced materials production, agribusiness, aviation, automotive, rubber production, and renewable energy. South Carolina attracts foreign investments thanks to a qualified workforce, substantial tax benefits, and a business-friendly legal system. This is confirmed by the presence of over 1200 international establishments employing approximately 115,000 workers. The most interesting tax incentives in South Carolina are as follows:
Tennessee hosts over 900 foreign manufacturing investments, employing approximately 123,000 people. A very lean tax system makes Tennessee particularly attractive to foreign investors. For example, Tennessee does not impose personal income tax on wages earned as salary. Therefore, labor costs are lower than the American average. The incentives offered to companies making production investments in Tennessee include tax incentives and job training reimbursements. For example, a tax credit of $4,500 is granted for every job created. If a company creates at least 100 jobs, the tax credit increases to $5,000. Tax incentives are primarily based on the number of jobs created, the amount of capital invested, and the type of production activity. Tax incentives in Tennessee are exclusively intended for the following types of industries or activities:
Regarding taxes common to all types of activities, the so-called Basic Business Taxes include:
Ohio is a major international investment destination in the United States, with nearly 4,000 facilities controlled by over 1,000 foreign companies from 47 countries (source: Ohio Development Services Agency). Together, these international companies employ 215,560 employees in Ohio. Ohio's strategic location in the heart of the U.S. Midwest provides extensive access to 60% of U.S. consumers.
Numerous state incentives are designed to promote manufacturing investment in Ohio. The Job Creation Tax Credit Program, for example, offers a tax deduction at the discretion of the entity, varying from 25% to 55% for a period of 5 to 7 years, to companies that create at least 10 full-time jobs. The Jobs Ohio Economic Development Grant program, on the other hand, provides investment incentives to finance manufacturing, R&D, technology, and distribution projects involving substantial capital investment and job creation. These incentives, granted at the state's discretion, can be used to purchase machinery and equipment or for acquisition and infrastructure construction expenses. Among other incentives are grants aimed at promoting workforce training and tax exemptions on the purchase of machinery and equipment used in the production process.
Various international companies such as Airbus and Mercedes Benz have invested in manufacturing facilities in Alabama. Foreign companies from about 30 countries invested approximately $1 billion in 2014, employing about 87,000 local workers.
There are several incentive programs for the development of small and medium-sized enterprises in Alabama, such as the Certified Capital Company Program, which provides alternative financing to bank funds for companies with a higher risk profile. Alternatively, Industrial Revenue Bonds (IRBs) can be used as a long-term financing resource for investment projects related to building construction and equipment installation.
Numerous tax deductions are also offered by the State of Alabama. For example, an investment incentive is the 1.5% deduction on investment expenses for qualified projects lasting 10 or 15 years. The Jobs Credit consists of a reimbursement of up to 3% on the payrolls of employees who meet the required criteria. Various services are aimed at employee training in Alabama to encourage retraining and workforce development.
The Michigan industries most involved in FDI are the manufacturing sector (60%) and wholesale trade (20%). Approximately 180,000 people work for foreign companies that have invested in Michigan, a figure that highlights how foreign direct investments contribute positively to the state's development. The incentives mainly concern the redevelopment of underdeveloped areas, which are consequently tax-exempt. There are as many as 30 areas exempt from:
Investments in redevelopment zones last about 10-15 years; to benefit from these tax breaks, one must own land in the area.
Additional tax breaks, besides those concerning redevelopment zones, include:
New Jersey's strategic position has always attracted numerous international companies. In fact, the presence of two airports and ports at the state's ends, the Port Authority of New York and New Jersey, the third busiest port in North America, along with the strategic proximity to New York, make this state a magnet for foreign investments. In 2014, the number of workers employed by foreign companies in New Jersey was 244,800. Various incentives are offered by the state to support the establishment of production facilities on state soil.
The Grow NJ Assistance Program grants tax deductions ranging from $500 to $5,000 per job per year to companies that create jobs in specific areas of New Jersey. There are also various programs offering forms of financing through Bond Financing or long-term direct loans for manufacturing companies that meet the required criteria.
Finally, various tax exemptions are available on electricity and natural gas consumption for production facilities. For example, production facilities classified as Urban Enterprise Zones (UEZ) that employ at least 250 full-time employees, with at least 50% working in the production process, can benefit from these tax advantages.
ExportUSA opens US incorporated companies in all of the United States. We can open both LLCs and corporations
https://www.exportusa.eu/opening-a-company-exportusa.php
ExportUSA handles applications for all types of United States visas. We specialize in applications for work visas.
https://www.exportusa.eu/us-visas-exportusa.php
ExportUSA has created a program for finding distributors in the mechanical, engineering, machinery, and industrial goods sector.
https://www.exportusa.eu/distributors-industrial-machinery-exportusa.php
ExportUSA handles the accounting for all types of American companies and all types of businesses. In addition to bookkeeping, we prepare and present end-of-year income statements as well as quarterly [or monthly, depending] sales tax statements.
https://www.exportusa.eu/accounting-services-exportusa.php
ExportUSA offers an efficient and advantageous personnel recruitment service for the hiring of managers in the American market.
https://www.exportusa.eu/personnel-recruitment-exportusa.php
ExportUSA offers a well-established market research and product positioning service. We put our experience and direct contact with importers, distributors, and representatives in numerous sectors in the United States to use.
https://www.exportusa.eu/market-research-exportusa.php
ExportUSA offers all logistics services for the United States. We have a warehouse in Ohio that we make available to our clients
https://www.exportusa.eu/logistics-services-exportusa.php