The tax environment can vary significantly from state to state and region to region. Device companies need to investigate the state, county, and city tax structures, because some areas provide more competitive business tax structures than others. When selecting a site, businesses should seek those areas that have tax structures designed to reward investment and innovation. Corporate income tax, unitary taxation, sales and use taxes, unemployment tax, workers compensation, property taxes, and inventory taxes are factors that should be researched. Another variable companies should consider when comparing potential sites is tax credit incentives.
Some states offer investment and enterprise zone tax credits, as well as sales tax exemptions.
For device companies that clean parts and assemblies, or use chemicals or gases in quantity, it is necessary to be aware of local environmental regulations. A coordinated permitting process can help new companies address environmental laws. In Colorado, for example, the Department of Public Health and Environment administers the environmental protection programs, emphasizing pollution prevention in partnership with the business community. Other states have similar departments that assist companies by serving as the key point of contact, providing accurate and timely information regarding permitting and regulatory requirements. As the medical device industry becomes more global, it is increasingly important for firms to be part of a transportation system that can move people and materials both locally and throughout the world.