Economic Incentive Compliance Considerations for the New Year

As the calendar turns and businesses dive into a new year of opportunity, one item should rise to the top of every project manager’s to-do list: meeting economic incentive compliance obligations tied to incentive programs. Whether your company receives tax credits, grants, or other forms of public funding, the beginning of the year is the perfect time to ensure all documentation, reporting, and performance metrics are up to date.

When economic incentives are awarded, whether federal, state, or local, they often come with statutory and/or contractual conditions, such as job creation targets, investment thresholds, progress reporting, wage or benefit requirements, compliance with laws and regulations, community engagement obligations, and performance-based milestones. Staying compliant is not just about meeting the letter of the agreement; it is about preserving your reputation and maintaining eligibility for future opportunities.

Missing a filing deadline or failing to meet reporting requirements can result in penalties, forfeited incentives, or public scrutiny. Beginning preparations early in the year gives your team ample time to verify data, correct discrepancies, and ensure accurate submissions. Many of these deadlines fall within the first quarter, which can make managing them particularly challenging.

New Year, New Economic Incentive Compliance Habits

Here are a few proactive steps companies can take to stay ahead:

1. Review all active incentive agreements. Confirm what reports or milestones are due in Q1 and throughout the year.
2. Update your internal economic incentive compliance calendar. Assign ownership for each reporting requirement and set reminders well before deadlines.
3. Audit your data. Validate job numbers, capital investment figures, and other key metrics before submission.
4. Engage with program administrators. If circumstances have changed, communicate with administrators. Early transparency goes a long way.
5. Document everything. Good recordkeeping protects you in the event of reviews or audits, and in some instances, maintaining records for a significant period is a program requirement.

Set the Tone for the Year Ahead

Economic incentive compliance may not be glamorous, but it is a cornerstone of responsible growth. Companies that start the year with a clear focus on meeting their obligations set themselves up for smoother audits, stronger partnerships, and renewed eligibility for upcoming economic incentive opportunities/applications.

Need a Little Help Staying on Track?

If you are looking for a more efficient and organized way to manage economic incentive compliance, SSG would welcome the opportunity to showcase IncenTrak®, our purpose-built economic incentive compliance software platform. IncenTrak® streamlines economic incentive tracking, reporting, and documentation, helping your team stay organized, confident, and audit-ready all year long.

Furthermore, if your organization could use expert guidance on meeting compliance requirements, our experienced team is here to help. From data verification to full economic incentive compliance management, we can support you with every step of ensuring your projects remain in good standing.