CONTACT INFORMATION:

Frank Berardi: (732) 657-5030 ext. 12; frank.berardi@tnt-ntci.com Roy Goldman: (732) 657-5030 ext. 10; roy.goldman@tnt-ntci.com

Tax Credit & Incentives Roundtable Presentation

SOBEL & COMPANY May 9, 2012

Agenda

• Introductions

• Our Incentive Continuum and overview of tax credits & incentives available nationwide

• How to identify incentive opportunities

• Opportunities specific to NJ, NY, PA

• ‘Demo’ of the Web-Survey process

• Other T&T Services

• Next Steps and Wrap-up

Opportunities Overview: The Incentive Continuum

PAST PRESENT FUTURE

• Indian Employment Credit • Katrina WOTC • Limited state ‘piggy-back’

credits

• Work Opportunity Tax Credits

• All state ‘piggy-back’ credits

• Wage subsidies

• Federal Empowerment Zone • Renewal Community Credits • Limited State Enterprise/Tier

Zone Credits • Statutory incentives

• State Enterprise/Tier Zone Credits

• Statutory incentives. • Training Grants • Energy Incentives

• Negotiated Incentives • Grants & Rebates • Abatements • Exemptions

• Purchase Tax Benefits to substantially reduce tax liabilities.

Hiring and Employment

Credits:

Location Based

Incentives:

Tax Benefit Exchange:

Examples of Location Based Incentives Location-Based

Credits & Incentives Negotiated Economic Credits & Incentives Training Incentives

Tax Benefit Exchange

State Enterprise Zones / Geographically-Based Credits

Federal Empowerment Zones and Renewal Communities

State Point-of-Hire Tax Credits

Job Creation Tax Credits Investment Tax Credits Industry Specific Credits Energy Credits Training Tax Credits Inventory Tax Credits Personal Property Tax

Credits Charitable Contribution

Tax Credits Child Care Credits Education Credits

Statutory Credits and Incentives

Cash Grants Employee Training Grants Sales & Use Tax Exemptions Property Tax Abatements Sales Tax Sharing

Agreements Infrastructure Grants Fast Tract Permitting &

Approvals Fee Waivers Low Cost Financing Free or Reduced Cost

Equipment Utility Rate Reductions Energy Abatements or

Rebates Truck Grants and Rebates

Federal Training Grants

State Training Grants State Training Tax

Credits State Wage Subsidies

Many states offer non-certificate programs

Some states Offering Certificate Programs with Inventory include:

Connecticut Florida Georgia Louisiana Massachusetts Michigan New Jersey Oklahoma Pennsylvania Rhode Island

Comprehensive Tax Credits and Incentives Service

Tax Benefit Exchange at a Glance

Many states allow the exchange of Tax Benefits

• Purchase is safe and risk free • Save between 7% to 14% on your state taxes • Exchanged benefits can be used against a

variety of taxes, including Income, Franchise, Bank and Premiums

• No investment vehicles such as a partnership or joint venture

• Inventory currently available in 12 states

6

Tri-State Incentive Opportunities New Jersey

• Urban Enterprise Zone

• Business Employment Incentive Grant Program (BEIP)

• Business Retention and Relocation Assistance Grants (BRAGG)

• Urban Transit Hubs • Tax Benefit

Exchange Certificate Program

New York

• New York Excelsior Jobs Program

• New York Youth Credit

• NYC Commercial Expansion Program (CEP)

• NYC Relocation And Employment Assistance (REAP)

• NYC Industrial And Commercial Abatement Program (ICAP)

Pennsylvania

• Keystone Opportunity Zone (KOZ)

• Keystone Innovation Zone (KIZ)

• Job Creation Tax Credit

• Opportunity Grant Program

• Tax Benefit Exchange Certificate Program

Employment Credits & Incentives At A Glance

FEDERAL CREDITS

• WOTC up to $9,600 per

new hire • Empowerment Zones

up to $3,000 per employee

• Indian Employment Credit up to $4,000 per employee

• New Veteran’s WOTC credit of up to $9,600 per new hire

STATE CREDITS

• Up to $37,000 per new

hire • “Piggy-back” with the

WOTC process • Eligibility varies by

state, including targeted veterans, unemployed, disabled, zone residents and TANF recipients

WAGE SUBSIDIES

• Generally up to $2,000

in cash reimbursement for hiring the unemployed

• Vary by state and dynamic

• New Programs for Veterans are in process

Capturing Employment Credits Through Web-based Screening

• On-boarding notification by auto-feed or self-service

• T&T provides wage & credit reports for tax returns

• Applicant auto-linked to e-survey via AMS/ATS, internal e-application

• Applicant instructed to access e-survey via link or shortcut, OR….

T & T Survey completed & 8850/other

forms e-signed.

Verification # assigned and

forms stored in data-base

T&T processes data/forms/

documents to Certifying Agencies

T&T tracks status of submissions

thru certifications/

appeals

Web-Survey Advantages

Application Advantages

• Use in conjunction with any AMS vendors including (Taleo/Kronos, etc.) an internal product OR with a conventional paper application. • Increased participation and errors of omission eliminated • Reduction of information requested from applicants/new hires • Implement with either a paper or web-based application

Process Advantages

• Capture information for both federal and state programs • Changes in forms or documentation managed centrally • New forms distribution eliminated • Less work for field locations • Actual tax credit forms produced only for eligible population • More productive follow-up on missing forms or documentation

Comprehensive Unemployment Insurance Cost Containment Services

CLAIMS ADMINISTRATION

TAX ADMINISTRATION

DIFFERENTIATORS

• Timely claims response • Education & Training • Addressee of Record • Winning Hearings

• Tax Rate Verification • Benefit Charge

management • Voluntary Contribution/ • Joint Acct. Reviews • Initial Audit & Review • Payroll feed flexibility • Synergies with NTCI • No cost Employment

Verification ‘add on’

• Additional questions?

• We hope that you came away with a better understanding of available credits and incentives!

Wrap-up and Next Steps

Slide Number 1Slide Number 2Opportunities Overview: The Incentive ContinuumExamples of Location Based IncentivesSlide Number 5Tax Benefit Exchange at a GlanceTri-State Incentive OpportunitiesEmployment Credits & Incentives �At A GlanceCapturing Employment Credits �Through Web-based ScreeningWeb-Survey AdvantagesComprehensive Unemployment Insurance �Cost Containment ServicesWrap-up and Next Steps