Deal-Closing Economic Incentive Funds from States Lure Big Corporate Investments

by Kelley Rendziperis, on May 15, 2018 9:23:50 AM

When a company is evaluating whether to make an investment during the site selection process, there is often a cost gap that needs to be bridged to make a state and/or community more competitive.  This gap may be wide or narrow, but either way, it is imperative for a jurisdiction to have the tools necessary to compete for high profile projects. After considering all statutory and quasi-discretionary economic incentive programs available, the primary means to bridge any remaining cost gap is with deal-closing funds. This article summarizes a few state deal-closing funds and projects which were awarded such funds.


The Governor’s Quick Action Closing Fund allows Arkansas to provide cash grants to attract new business or economic development to the state or to keep existing business in the state. Historically, Arkansas’ Quick Action Closing Fund has been offered with few restrictions. The following chart depicts projects which benefited from Arkansas’ deal-closing fund, which has disbursed in excess of $150 million since its inception.

Company AR Location Industry Function Incentive Value ($M) Capex ($M) Jobs Created
DBG Group Conway Headquarters 0.65 0 200
Envoy Air Little Rock R&D 0.5 2 60
Remington Outdoor Jonesboro Manufacturing 1 13 110
FMH Conveyors Lonoke Manufacturing 2.5 0 84
SIG Sauer Jacksonville Manufacturing 0.8 0 50


Like Arkansas, and many other states, Florida’s deal-closing fund is also named the Quick Action Closing Fund. This fund, as well as the rest of Florida’s incentive programs, has been the subject of controversy over the past two legislative sessions and currently remains unfunded, despite Gov. Rick Scott’s pleas for $200 million. Since Florida’s deal-closing fund has been unfunded over the past two years, the following sampling of projects represent incentives awarded in 2016.

Company FL Location Industry Function Incentive Value ($M) Capex ($M) Jobs Created
KLX Aerospace Solutions Hialeah Headquarters 1.70 48 400
Thales Orlando Manufacturing 3.50 23 500
KLS Martin Group Jacksonville Manufacturing 0.42 5 25
Arthrex Naples Manufacturing 5.90 63 560
Abel Ribeiro da Silva White Springs Manufacturing 0.69 60 45


To close the deal, Georgia utilizes its Regional Economic Business Assistance (REBA) Program. REBA funds may be used to finance various fixed-asset needs of a company including infrastructure, real estate acquisition, construction, or machinery and equipment.

Company GR Location Industry Function Incentive Value ($M) Capex ($M) Jobs Created
Assurant Duluth IT Support Center 0.34 2 335
Amazon Macon Distribution Center 1.56 0 500
S&S Activewear McDonough Distribution Center 0.25 0 300
Meggitt Rockmart Manufacturing 0.80 30 211
Irving Group Moncton Macon Manufacturing 1.00 400 200


Nevada’s Catalyst Fund was created in 2011 and to date was awarded to 19 companies, totaling approximately $10M. The fund incentivizes the expansion or relocation of businesses that will quickly result in the creation of high-quality, primary jobs in Nevada. Recent projects awarded grants from the Catalyst Fund are:

Company NV Location Industry Function Incentive Value ($M) Capex ($M) Jobs Created
Mary's Gone Crackers Reno Manufacturing 2.23 19 220
Hyperloop Tech, Las Vegas Infrastructure 9.92 121 89
Bently Heritage Minden Infrastructure 0.10 10 12
Barclays Henderson Business Services 1.13 8 150
Grand Rounds Reno Business Services 0.15 1 70

New Mexico*

LEDA, the Local Economic Development Act, is a law that established New Mexico’s deal-closing fund. The program is administered at the city or county level and its goal is to reward projects which reflect a ratio of 10:1 private investment to LEDA funds. Some recent LEDA recipients of the $45 million-dollar fund are as follows:

Company NM Location Industry Function Incentive Value ($M) Capex ($M) Jobs Created
Leprino Foods Co.  Roswell Manufacturing 0.20 15 5
Carenet Healthcare Services Albuquerque Business Services 0.79 3 244
Vitality Works Albuquerque Manufacturing 0.55 0 80
PreCheck Alamogordo Business Services 0.15 0 30
UbiQD Los Alamos Headquarters 0.65 1 20


The Texas Enterprise Fund (TEF) is known as the largest deal-closing fund in the nation. After calls for transparency and more reporting, the program has set guidelines upon which the funds can be awarded. At a high level, the TEF requires a local match, a minimum number of jobs and wages that exceed the country average wage of the desired location.  Recent TEF awards include the following:

Company TX Location Industry Function Incentive Value ($M) Capex ($M) Jobs Created
JSW Steel Baytown Manufacturing 3.40 500 500
Smith & Nephew Ft. Worth Manufacturing 0.73 29 100
Gartner Irving Business Services 4.30 12 800
Golden State Foods Burleson Manufacturing 2.70 70 150
Cognizant Tech Solutions Irving IT Support Center 2.11 8 1,090


The Commonwealth’s Opportunity Fund is a discretionary incentive available to secure a business location or expansion project for Virginia. The level of capital investment and job creation required is dependent upon the location, as well as a local match.

Company VA  Location Industry Function Incentive Value ($M) Capex ($M) Jobs Created
Nestle Rosslyn Headquarters 1.73 5 150
Appian Corp. Tyson Corner Headquarters 4.00 28 600
Tessy Plastics Lynchburg Manufacturing 0.20 9 34
MicroStrategy Tysons Corner Headquarters 1.00 6 300
Panacea BioMatx Danville Manufacturing 0.51 6 70


In addition to state deal-closing funds, local communities frequently have funds available to make grants for infrastructure, capital investment or training. In our experience, even if it is used infrequently, establishing a deal-closing fund is necessary to quickly compete for desired high impact projects.

Note that the incentive values reflected in the charts above oftentimes include other economic incentive programs and are not solely from deal-closing funds. If you have any questions about these projects or deal-closing funds, please contact me at

* Data Source: IncentivesMonitor, a service from WAVTEQ Limited. 


Topics:ManufacturingEconomic IncentivesEconomic DevelopmentSite Selection GroupSite SelectionLocation Advisory



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