UPDATE: The OIX Integrates 3,500+ Statutory Tax Credit Programs Into Its Credit and Incentive Software

The integration with CCH’s IntelliConnect And Business Incentives Navigator Product Suite delivers updated information on thousands of statutory programs in a timely manner.

 

Commerce Clearing House (CCH) is a provider of best-in-class software solutions for tax, accounting and audit workers. The OIX and CCH recently announced the integration of CCH’s IntelliConnect and Business Incentives Navigator Product Suite into The OIX Credits and Incentives (“C&I”) discovery platform. This new combination will provide The OIX customers with detailed information on available economic development programs at the federal, state and local level.  In addition, as the database is maintained by CCH in real-time, customers will receive legislative updates (on both existing and new programs enacted) to help them identify and take full advantage of available C&I programs.

The new product enhancement offers OIX customers the ability to identify available incentives through precise and granular filtering based on contemplated investments.  The result is a strategic planning and roadmap tool for optimizing the decision making process and maximizing the profitability of C&I assets. Danny Bigel, Founder of The OIX stated, “The importance of properly managing a C&I portfolio cannot be overstated. Maintaining compliance, regulations, filing requirements and rules and regulation amendments are all essential factors in ensuring the optimal financial impact is achieved and for avoiding problems such as slippage, recapture claw back, or in the worst case forfeiture. Integrating CCH’s “IntelliConnect and Business Incentives Navigator Product Suite” into our tax credit software provides OIX customers with enhanced research capabilities. This is only the latest example of our relentless drive to constantly improve our platform and remain the innovation and value creation leader. ”  

Mr. Bigel added, “In the coming months, our incentive program database will continue to grow as we add expanded international C&I program coverage as well as advanced modules that will compute, compare, calculate and analyze available incentives. Our sole mission at The OIX is to deliver technology that allows our customers to use the full potential of every applicable C&I program to escalate profitability and create game-changing margin expansion, all while advancing good corporate citizenship and helping improve local communities.”

Stay tuned for more!

Credits & Incentives: Creating a Strategic Advantage

The complexity and confusion surrounding tax preparation can be daunting while running a business, regardless of size. Whether you’re a small, midsize or large multinational, the number of variables that must be considered in relation to an entire organization’s tax liabilities pose a complex challenge. A constantly changing tax landscape can impact your bottom line – most recently resulting from the 2017 Tax Cuts and Jobs Act (TCJA). Add to that a multi-state jurisdictional footprint and international activities and you then have a formula for complexity, confusion and missed opportunities. Over the last several decades we have witnessed a tirade of progressive fiscal policy that has resulted in an explosion of economic incentives and benefits issued by all levels of governments on a global level. These economic development programs and the assets they produce are too often overlooked in the day-to-day process of managing traditional tax compliance despite the significant and material cash flow derived and/or the reduction of your company’s annual tax bill.

 

Tax Credits & Incentives: The Inevitability of a Growing Asset Class

 

We are referring to tax credits and incentives (C&I), and you and your company have likely already considered the financial benefits as part of your investment decision-making process and the strategic decision-making process.  These assets are the byproduct of direct investment, job creation and certain enterprise behavior (through the adherence to government policy initiatives and economic development program rules and regulations). The most typical outcome provides a dollar-for-dollar reduction that can be applied against tax liabilities owed to various levels of government (federal, state, local and international), but other benefits can include cash rebates, refunds, grants, abatements or certain government guarantees designed to promote good corporate citizenship and a win-win scenario.

Historically, many business leaders have thought of tax credits and incentives as a “nice-to-have” that was usually nothing more than incremental and marginal economic benefits – or an opportunity for local politicians to tout community development campaign promises. However, as governments around the world have become more and more competitive in their attempts to stimulate their economies, attract the best firms, innovation and job creation to their communities, these incentives have grown to be material in every sense of the word. For example, while some of our constituents at The OIX manage a small handful of incentives that produce several million dollars of benefits, others are managing several dozens or hundreds of these assets resulting in over $1.0 billion + of economics and direct bottom-line impact, and regardless of magnitude, often a small team consisting of just a few people are making this happen. Think about that for a second; tax and incentive professionals at some of the largest companies in the world are adding potential billions or more to their companies’ bottom line.

As more and more companies come to appreciate the scope and potential materiality of these types of assets, tax credit and incentive professionals will become more and more valuable to their company’s competitiveness and profitability. It is truly an exciting time to be a tax professional who understands the C&I world. And yes, we said tax planning and execution is exciting!

Of course, C&I assets are not without controversy, as evidenced by the uproar caused, most recently, by Amazon’s HQ2 location selection and the multi-billion-dollar C&I packages they have received. Opponents of C&I often decry these programs as “corporate welfare” and nothing more than handouts. To add to the contention, various economic impact studies have produced wildly different assessments of actual economic impact. However, many of the anti-C&I studies ignore ancillary benefits – as the analysis is circumspect and ill-equipped to value the trickle-down effect, as well as to measure the long-term permanent infrastructure, quality jobs, and community development befits that these programs foster. But let’s be real here…what choice do governments have when it comes to attracting top tier businesses, innovation, and jobs to their locales?  The government has but one tool in its arsenal to surgically stimulate economic behavior and its outcome to enhance the quality of life within its borders.  Yes, C&I as smart fiscal policy.

 

The Effect of C&I Policy

 

The fact is that the balance of power between economics and politics has been shifting over the past 70 years (and really since the Reformation and Renaissance) and while many factors contribute to this shift, the most prevalent is caused by the advent and deployment of real-time, global information infrastructure and information technology that allows businesses to operate on a global level and manage assets in real-time. At the same time, the government remains local and geographic in nature and has decreasing ability to dictate economic behavior it seeks from a business. Progressive fiscal policy that results in the most beneficial outcome requires lawmakers to judiciously legislate programs that make sense and provide measurable returns to taxpayer investment.

So, the trend in C&I policy (from industry expanse to huge leaps in dollar amounts and number of programs enacted – most recently, as an example, Opportunity Zone incentives created through the 2017 TCJA) – all point to the inevitability that democratic capitalists governments really don’t have a choice but to find smarter and more efficient ways to incentivize businesses to stimulate growth.  For companies and the recipients of these assets, the need to ensure compliance with the terms and requirements that these packages offer is ever more increasing. This is acerbated by new regulatory disclosure and reporting mandates governed by FASB Topic 832, set to take effect in 2020.  Said another way, good corporate citizenship and smart political policy goals can co-exist in a mutually beneficial environment provided that there is enough visibility to ensure that all parties are living up to their piece of the bargain. (More on this in a future OIX Blog Post.)  Unfortunately, historically, this asset has been a “grey” area for many C&I professionals and recipients. But fortunately, through advances in information technology and dedicated asset management solutions to address the sector there also lies the key to maximize the value of C&I programs and their benefits, and of course, we’re talking about The OIX’s tax credit software

 

The Power of Credits and Incentives

 

In our view, credit and incentives are the most powerful and effective policy tools that government has at its disposal to surgically stimulate economic behavior that it deems vital to the growth and economic activity within its borders. Our goal at The OIX is champion smart C&I incentive policy and their use, and we deliver the technology to ensure that all parties in the ecosystem are doing their part to create the mutually beneficial economic outcomes as intended.

Through this weekly blog, we will make the case that tax credits and incentives should become a strategic component of every company’s financial planning process – from acquisitions, procurement, divestitures, hiring, capital market activities, facility development, and everything and anything that is considered when running a business in today’s hyper-competitive global arena, where winning and competing on the margins is essential. This rapidly growing asset class will continue to expand, and the companies that are best prepared to utilize and leverage policy will see higher margins and greater long-term profits.

Please feel free to ask us any questions, we would really love to hear from you, you can reach us at info@TheOIX.com

Stay tuned for more…

Welcome to The OIX Blog

So, how is it pronounced? We say it like it is spelled – The OIX (oʊ-aɪ-ɛks). Here at The OIX, you will find a group of tech-go-getters, policy-enthusiasts, economic-development-pioneers, adventure-seekers, as well as the cloud-based technology home of the world-class OIX Tax Credits & Incentives Platform!

We know what you are thinking. Tax Credits? Tax Incentives? These subjects are normally associated with other words like snooze, dry, boring, confusing, etc. And yes, historically the subject of credits & incentives (C&I) could be described as any of those words. However, as these types of assets take on an ever-greater role in helping companies profit and succeed in today’s hyper-competitive world, we intend to demonstrate to you that far from being boring, these hidden gems are interesting, compelling in nature and fascinating at their core – and most importantly, financially and operationally material to overall corporate success regardless of size or location.

 

The OIX Community Blog

This blog is intended as a two-way conversation with you, our readers, on subjects related to and surrounding C&I. Throughout these conversations we will share educational knowledge (from nuggets to five-course meals) for you to snack on throughout your week, give you some informational bits on the latest news and issues affecting C&I, and lastly and certainly most importantly enlighten you with a variety of perspectives and insights regarding this asset class so you can be in a position to leverage the tax code and help your organization compete and win on the margins.

Don’t be alarmed if our conversations start with subjects like football stadiums, M&A activity or renewable energy. Trust us when we say C&I’s are a game changer for every business that fosters job creation and community investment, across all geographies, and we are here to talk about it with you in gory detail. Even more importantly we would like to learn from you.

 

Our goal: Educate. Inform. Enlighten. So you can: Compete. Profit. Excel.

 

Moving forward we will share with you our perspective on the state-of-the-art technologies, strategies and best practices emerging in the C&I arena. But just as importantly, we will discuss where the industry may be heading. This will include discussions on the future of technology innovation in the C&I world and explore such things as big data, artificial intelligence, and advanced analytics, and the role of blockchain in the coming years. We will bring you interviews and insights from thought leaders across every aspect of the industry to share their ideas with our readers.

By bringing to light these real-life case studies, our goal is to share best practices across the industry. When combined with deep analysis of government policies and objectives, we will hopefully create insights that will impact our readers’ competitiveness in the marketplace.

But our intentions don’t stop at education and best practices – we aim to assist our clients in their professional goals, as we believe many of tomorrow’s corporate leaders will spring from the ranks of C&I experts and thought leaders who are our customers. As they say, knowledge is power, and our clients have command of a niche knowledge set which, when combined with cutting edge technologies, will give them unprecedented influence and status in their organizations. As one professional in the apparel retail industry remarked recently: “Six years ago we didn’t have a single tax credit or incentive. Today, we won’t open a store or hire a person without first considering what incentives are available to us. We compete on the margin and these assets can make a huge difference.” This is a common refrain we hear day in and day out and our clients are poised to ride this emerging trend to corporate success and professional growth.

Stay tuned!

 

Past to Present

The OIX was founded in 2012 as a marketplace platform to enable businesses to transact in C&I assets on a principal-to-principal dynamic (i.e. trade tax credits) in order to create more value for everyone in the C&I ecosystem. In particular, The OIX sought to and achieved, vast reductions in the friction between buyers and sellers. The end result: Both buyer and seller got a better deal.

Although our marketplace was and is the single most successful and robust trading platform of its kind, our long-term goal had always been to use that technology as a sort of bridge to building an enterprise SaaS solution to help companies manage tax credits over the life cycle of these complex financial instruments. The trading platform was our initial effort to generate revenue while we learned how to address the complex dynamics of managing every kind of C&I from around the world. We’re happy to say that after years of hard-core R&D and working with clients in real time, in late 2017 we achieved that goal and in early 2018 we pivoted out of trading as a primary business (we still partner with the best brokers in the world who use our system to assist our clients optimize their tradable C&I assets) and into the de facto standard for enterprise SaaS management of C&I assets.

Our long-term vision was always that as this asset class grew in materiality and complexity, companies of all sizes would need to get control of their C&I portfolios and enhance their value to the organization. Today, our technology spans the entire ecosystem of C&I asset management in a unified, secure, collaborative, cloud-based enterprise solution that tackles these three challenges in one eloquent solution:

 

1)     OIX Advisory Solutions – we partner with the best of breed advisory firms of all sizes to deliver an integrated and seamless solution to determine what tax credits and incentives are best for your situation around the globe.

2)     OIX Credits and Incentives Platform – once you have secured C&I assets for your particular situation, you need to intensively manage those assets through their lifecycle. No other solution comes close to the breadth and depth and ease of use of The OIX platform.

3)     OIX Brokerage Solutions – and when your C&I assets are maturing, you have the option of instantly connecting with our brokerage partners to optimize the value of tradeable tax credits that you cannot use internally.

 

Head on over to the products page for more information on our Tax Credit Software

In conclusion, The OIX is focused on the end-to-end enterprise management of C&I portfolios.

So keep a look out for our next blog as we dive deeper into who The OIX is and how we are pioneering the future of tax credits & incentives…

Welcome to the party of Tax Credits and Incentives!

If you just can’t wait for our next blog to go live, we totally understand!  Just move on over to our homepage to find out more about The OIX’s tax credit and incentive management solutions, or visit our Press Page for current and archived media coverage and thought leadership initiatives.

Please feel free to ask us any questions, we would really love to hear from you, you can reach us at: info@TheOIX.com