INCENTIVE ALERT: Leveraging Incentives to Fight COVID-19

HICKEY’s Incentives and Research team highlight recent incentive programs developed to support manufacturing with the call to action for medical, PPE, and other critical needs items…

 

With a desperate plea for life-saving medical and personal protective equipment to fight the COVID-19 crisis, companies are stepping up across the country to increase delivery, and in many cases, shift production altogether to join the effort.  On the latter, from the fashion industry to the automotive sector, we are witnessing an incredible mobilization of manufacturing the nation hasn’t seen since the second world war.

States and communities are now leveraging government support programs and incentives to support companies in making the shift.  Since the outbreak of the disease, governments and economic development organizations have rolled out loan financing, technical support, cash grants, and even property tax abatements, to provide assistance to companies shifting production.

Below are state and local examples of these initiatives across the United States, as compiled by the Hickey Incentives Research Team.  For more information on these programs, as well as, other economic recovery incentives around the world, please visit our new resource online:

incentives.hickeyandassociates.com

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Economic Recovery Incentives Research

New Incentive Program Examples for Medical Needs, PPE Production

State of Maryland

A new $5 million incentive program, the Maryland COVID-19 Emergency Relief Manufacturing Fund, was rolled out in the State of Maryland to support state manufacturers to produce personal protective equipment and other critical needs items.  The new program will be allocated as grants of up to $100,000 for eligible manufacturers to support one of the following missions:

  1. Increase existing capacity to produce critical needs items; or,
  2. Quickly pivot operations to produce critical needs items

Grant awards will be based on the total investment and applicants must be established Maryland businesses with proven experience and financial stability to be successful.  Eligible costs that may be covered by the grants include machinery and equipment, raw materials, and operating expenses related to the increased/shifted production, among other capital expenses.

Funding will be determined on a case-by-case basis, with priority set for highest needs within the state healthcare system.  For awardees, 50% of the monies will be disbursed at award notice, and the remaining 50% received upon completion with proof of expenses.  Learn more about the Maryland grant program on the official state website.

Lancaster County, South Carolina

To recruit businesses manufacturing life-saving medical products, Lancaster County Council unanimously approved new incentives for eligible companies committing to the county.  Led by the Lancaster County Department of Economic Development, the incentive opportunities being deployed for eligible businesses include the following:

  • 100% abatement of all property taxes for 10 years
  • Donated land at county-owned business parks for the new facility
  • Fast track permitting for construction of the production facility

Life-saving medical products include pharmaceuticals, vaccines, medical devices, and medical equipment.  Companies must be currently selling eligible products in the United States, or has received federal approval to sell but are not currently manufactured in America.

Existing incentives from Lancaster County and the State of South Carolina may still also be utilized for eligible projects.  Projects must make a commitment to locate in Lancaster County on or before December 31, 2021.  For additional information on the incentive programs, visit the following announcement online.

 

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