New corporate headquarters receives additional funding through negotiated business development tax credits

Client Background

Two Wisconsin technology companies had experienced significant growth over recent years and their individual corporate headquarters were becoming too small to allow for their continued growth. The leadership of both companies wanted to remain in Wisconsin and co-locate in a shared headquarters building, but had to overcome rising office rental rates and limited access to highly skilled labor in their preferred location. The project required additional funding to make the preferred location financially feasible and competitive with alternate locations.

The Baker Tilly Approach

Baker Tilly developed a strategy that included applying for and negotiating business development tax credits from the Wisconsin Economic Development Corporation (WEDC). The tax credits are refundable, meaning any credits not used to offset their state tax liability will be refunded to the companies.

Results Achieved

Baker Tilly negotiated for the firms to receive $600,000 in tax credits because of their job growth and capital investment. The additional capital allowed the companies to develop 35,000 square feet of Class A office space at a cost of $8 million to be split between them in a desirable urban location.