Incentives for Economic Development

Economic development incentive programs encourage private investment through tax relief or other incentives to bring economic gain to an area. A common vehicle for providing the incentive is the establishment of particular geographic areas (e.g., Enterprise Zones or Tax Increment Financing districts) where taxpayers in the area are given favorable tax treatment or the local government commits anticipated increased tax revenues to improvements in the geographic area. Many states also have programs that target particular industries and investments that meet specific public goals such as job creation and property renovation.