Complying with Incentive Requirements

What does garnering compliance and negotiating amendments to agreements entail?

Complying with incentive requirements ensures that all parties adhere to the terms of economic development incentives. In the context of Florida economic development, this can include tax credits, grants, or other financial assistance provided to businesses.

Need help with a matter related to garnering compliance with economic development incentives? Schedule your consultation today with a top economic development attorney.

Which Florida and federal regulations apply to garnering compliance with economic development incentives?

The Florida Statutes, particularly Chapter 288 (Commercial Development and Capital Improvements), outline various economic development programs and their respective requirements. Additionally, the Florida Administrative Code, particularly Rule 73C-23 (Economic Development Incentive Applications), provides further guidance on the administration and compliance of state economic development incentives.

At the federal level, the Internal Revenue Code contains provisions for tax credits, such as the New Markets Tax Credit (26 U.S.C. § 45D), which may apply to economic development projects. However, companies receiving federal incentives must also adhere to relevant federal laws and regulations to maintain compliance.

What are common issues regarding garnering compliance that lead to litigation?

The following issues are among the most common in litigation involving compliance issues:

• Disagreements Over Performance Metrics: Parties may dispute the specific terms of an agreement, such as job creation numbers or capital investment targets, leading to potential litigation.
• Misrepresentation or Fraud: A party may face accusations of falsifying information or making false promises to secure incentives, which can result in litigation if discovered.
• Breach of Contract: Failure to comply with the terms of an incentive agreement may lead to a breach of contract claim, with the aggrieved party seeking damages or enforcement of the agreement.
• Regulatory Compliance Issues: A company may face litigation if it fails to comply with applicable federal, state, or local regulations tied to the incentives received.
• Economic or Market Changes: Unforeseen economic shifts may lead to disputes over the enforceability of incentive agreements or the necessity for renegotiation.

What are effective measures to minimize the risk of litigation over compliance with incentive requirements:

Implementing the following strategies may help mitigate risk:

• Ensure Clear and Precise Terms: Draft incentive agreements with specific and unambiguous terms that clearly detail performance metrics, compliance deadlines, and penalties for non-compliance.
• Monitor Performance: Regularly track and document progress towards meeting incentive agreement requirements to address potential issues proactively.
• Maintain Open Communication: Foster strong relationships with all parties involved in an incentive agreement, including government agencies and other stakeholders, to facilitate open dialogue and preempt potential disputes.
• Consult Legal Counsel: Engage experienced legal counsel to review and advise on incentive agreements, regulatory compliance, and potential risks related to market-based forces.
• Plan for Contingencies: Include provisions in incentive agreements that address potential market changes or other unforeseen circumstances, such as force majeure clauses or renegotiation options, to minimize the risk of litigation.
• Conduct Due Diligence: Thoroughly research and evaluate potential incentive opportunities and their associated risks, ensuring the company is well-prepared to meet all requirements and obligations.

When a set of facts is appropriate to meet litigation requirements, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

Frequently Asked Questions

1. How can companies ensure they meet the requirements of economic development incentives in Florida?

Companies should closely monitor their performance against the terms of the incentive agreement, maintain open communication with relevant government agencies, and consult with legal counsel to ensure they comply with all applicable regulations.

2. What happens if a company fails to meet the requirements of an incentive agreement due to unforeseen market changes?

If a company cannot meet the requirements due to market changes, it can seek to renegotiate or amend the incentive agreement to reflect the new circumstances. The company should work closely with relevant stakeholders and legal counsel to ensure any changes comply with applicable laws and regulations.

3. What role does legal counsel play in ensuring compliance with incentive requirements and negotiating amendments to agreements?

Legal counsel helps navigate complex regulatory environments, guiding compliance with federal and state regulations. They can also draft and review incentive agreements to ensure clarity and flexibility, advise on risk management strategies, and represent the company in negotiations or disputes related to the agreement.

Have more questions about governance or operations for your business?

Crucially, this overview of garnering compliance and negotiating amendments to agreements does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.