State & Local Incentives Guide
States and localities compete hard for relocated jobs and capital. The categories below are common across the U.S.; the specific amounts, caps, and eligibility are set per program and change frequently.
Common incentive categories
- Job creation / hiring tax credits — State credits per new job created and retained over a commitment period. (State economic development agency / department of revenue)
- Investment / capital investment credits — Credits against state income/franchise tax for qualifying capital spent on the new site. (State economic development agency / department of revenue)
- Property tax abatement — Phased reduction or exemption of real-property tax for a set number of years. (County / municipal industrial development agency (IDA))
- Grants & forgivable loans — Cash grants or loans forgiven if hiring/retention targets are met. (State EDA / local economic development corporation)
- Workforce training grants — State-funded training reimbursement for new and upskilled workers. (State workforce / labor agency)
- Relocation & closing-cost assistance — Help with moving, site prep, or building acquisition soft costs. (Local economic development corporation)
- Free rent / tenant-improvement (TI) — Lease incentives (months free, TI allowance) offered by landlords to fill space. (Private landlord / broker (market, not government))
- Sales & use-tax exemptions — Exemption on equipment, machinery, or construction materials for the project. (State department of revenue / taxation)
Who administers them
State economic development agencies (often called Commerce or EDA) lead large projects; county and municipal industrial development authorities (IDAs) handle property-tax abatements and local grants; utilities run their own economic-development programs.
Incentive amounts, caps, and clawback terms are program-specific and revised by each legislature. Confirm current terms directly with the official agency and your tax advisor before relying on them in a board case. ReloFig does not publish state-by-state dollar figures because they change too often to cite reliably.
How to pursue them
- Engage the state EDA early — incentives are negotiated, not automatic, and require a committed job/capital number.
- Compare total package (tax + grant + abatement + TI), not any single line.
- Model the net after incentives using the Program Budget tool.
whrg.com, www.crowell.com, www.kpmg.com, www.calt.iastate.edu, www.congress.gov, www.irs.gov, finance.yahoo.com, jilaniplace.com, www.vectorinstallations.com, www.vectorinstallations.com, ocnjdaily.com, agmoving.com, lincolnmoving.com, www.dir.ca.gov, sam.gov, www.fmcsa.dot.gov, www.bls.gov, www.worldwideerc.org, www.atlasvanlines.com, www.cbre.com, www.irs.gov. Figures are model benchmarks, not quotes. ReloFig never sells your information.