Article
Five tips for securing state and local government incentives
Jun 30, 2025 · Authored by Brad E. Elmer
Every year, governments across the U.S. invest billions of dollars to support private projects that create positive economic and community impacts. Developing strategies for these local government incentives can be daunting. They should be developed with as much research and analysis as a pitch to private investors. To help you get started, we’ve curated the following tips to help you understand the financial capabilities and desired return on investment for public sector investors to maximize the results of your next opportunity.
1. Know your audience
When pursuing incentives, you will encounter people passionate about topics ranging from poverty, job creation and community impact to construction disruption in the area and the design of your parking lot. Understanding the issues that matter to decision-makers in your desired area is critical. Always begin the conversation by seeking to understand their priorities. Listen, ask questions, conduct your own research and show that you truly care about the project and its potential benefits to the community. The time spent learning about your audience will pay dividends as discussions progress and projects receive funding.
2. Understand the rules of the game
Incentives rules come in the form of legislation, ordinances, policies and administrative codes. The key is to do your homework: read the rules and ask for help if needed. With a thorough understanding of the regulations, you'll be equipped to challenge ideas and optimize the outcome of your efforts.
3. Sell the benefits
When presenting your project, it’s crucial to highlight the benefits it brings to the community. Incentives exist because cities and organizations want to encourage specific initiatives. Ask yourself how your project aligns with their goals. Are you adding jobs, improving the environment and/or expanding their tax base? Review planning documents, mission statements and websites to articulate how you are helping them achieve their objectives. By addressing how your project helps them achieve their objectives, you foster a sense of collaboration and shared purpose. Aligning your project's benefits with their goals transforms it into a collective effort, ensuring greater support and success.
4. Study the past
When working with public entities, you have greater access to financial information than in most other environments. Before beginning discussions, ensure you understand how a community’s finances or incentive program affects its ability to offer incentives and how they’ve done so in the past. Steps to take:
- Review financial statements to get a clear picture of the community’s financial health.
- Determine potential funding availability to understand what resources might be available. Research previous awards to see what types of projects have been funded before.
- Examine cases where exceptions have been made to identify any flexibility in the incentive program.
Use this knowledge to shape an agreement that maximizes value for your company.
5. Lock in terms before committing
Your leverage in securing incentives hinges on your ability to walk away or adjust your project plan. Initiate conversations early in your project’s development. Communities are most capable of supporting your initiative when you are still evaluating feasibility.
Need help? Baker Tilly’s incentives advisory specialists bring decades of experience to assist companies in securing funding for their projects. Let us help you build a compelling case for your company and project.
