Written by: Blair Westmoreland – Director, Credits & Incentives
Credits and incentives have evolved from a tactical tax consideration into a strategic lever that influences where companies invest, how projects are structured, and how capital is deployed for long-term growth, yet many organizations still pursue incentives in silos. Government Affairs and Real Estate teams often lead discussions with state and local partners, Treasury and Corporate Development teams model project economics, Tax teams evaluate utilization, and Legal teams structure agreements. Each function plays a meaningful role, but when they operate independently, even sophisticated organizations encounter the same avoidable gaps.
Projects move too quickly for incentives to be fully incorporated. Negotiations proceed without complete financial or tax data. Incentives are awarded but never monetized. These outcomes are rarely the result of poor execution. More often, they reflect a lack of alignment across teams that influence incentive strategy.
Why Alignment Matters in Incentive Strategy
Incentives sit at the intersection of government engagement, financial modeling, tax capability, legal compliance, and real estate execution. No single department has full visibility into all five. The organizations that consistently capture meaningful incentive value are those that coordinate expertise early and move together at the pace of the project. Cross-functional alignment strengthens negotiation positions, reduces risk, and improves the likelihood that incentives deliver their intended value.
Where Incentive Value is Won or Lost
Most incentive shortfalls are not caused by policy limitations or execution errors. They are caused by timing gaps, disconnected teams, and incomplete information. Cross-functional alignment closes those gaps before they impact value.
Real Estate as the Catalyst for Incentive Opportunity
Real Estate plays a pivotal role in this model because it is often the first signal that a project is viable. Site searches, letters of intent, land negotiations, and facility planning determine which jurisdictions are eligible for incentives and whether statutory timelines can be met. When Real Estate moves independently, incentives become reactive. Government Affairs is engaged after locations are narrowed. Tax is asked to evaluate benefits after key decisions are made. Treasury is forced to model scenarios that no longer reflect the deal.
When Real Estate is integrated early, the dynamic changes. Incentive-eligible locations are identified before sites are narrowed, and incentive negotiations run in parallel with real estate negotiations. Site control, permitting, and incentive commitments are aligned, and LOI language protects the pursuit of incentives without slowing the transaction. In this model, Real Estate is not simply a consumer of incentives; it is a creator of incentive opportunity.
Government Affairs and the Power of a Unified Narrative
Government Affairs often serves as the first interface with state and local partners. Their relationships, credibility, and understanding of public sector priorities shape how a project is positioned from the outset. However, outreach alone is not enough. Effective advocacy requires early coordination with internal teams that define the project’s financial, tax, and operational realities.
When Government Affairs is aligned with Real Estate, Treasury, and Tax, incentive discussions range from general requests to well-supported business cases. Treasury’s modeling and Tax’s forecasting allow Government Affairs to present a credible economic footprint, strengthening negotiations and accelerating decision making.
Incentives are Stronger When Teams Are Aligned
From site selection to agreement execution, incentives perform best when internal teams move together. Learn how DMA helps organizations build alignment across functions to improve outcomes throughout the incentive lifecycle.
Treasury and Corporate Development: Translating Incentives into Value
Treasury and Corporate Development translate incentives into financial outcomes. Without early insight from other teams, modeling becomes theoretical or retrospective. Cross-functional alignment allows Treasury to quantify incentive value before sites are selected or capital is invested. Leadership gains a clearer view of how incentives affect returns, payback periods, and capital allocation decisions.
Tax: Ensuring Incentives can be Used and Monetized
Tax provides essential technical clarity on whether incentives can be used, when they can be monetized, and how they interact with the company’s filing footprint. When engaged early, Tax helps Government Affairs shape realistic incentive expectations, informs Real Estate on site-specific tax implications, and provides Treasury with accurate assumptions for modeling. This avoids overestimating benefits or underestimating compliance obligations.
Legal: Protecting Value through Proactive Involvement
Legal ensures that negotiated incentives can be executed and sustained. When involved too late, Legal is often asked to mitigate risk after commitments are made. In a cross-functional model, Legal plays a proactive role. Agreements are structured with compliance and operational realities in mind, protecting value rather than constraining it.
Alignment is the Differentiator
Incentives are not secured through a single conversation or function. They are won when organizations present a unified strategy supported by financial, tax, legal, real estate, and community insight. Silos slow down the process and introduce risk. Alignment expands opportunity and increases the likelihood that incentives deliver lasting value.
If your teams are already collaborating or just beginning to build a more aligned approach, DMA can help maximize the value of your credits and incentives strategy. Contact us to get started.
Credits and Incentives Done Right
Contact DMA to maximize the value of your credits and incentives strategy.