This post is adapted from Sarah Gutschow’s recent article on the C2ER blog.
C2ER recently completed its annual update of the State Business Incentives Database. As part of the database review process, C2ER researched every U.S. state and territory to ascertain information on what programs have been created, repealed or altered during each state’s most recent legislative sessions. Based on this research, combined with extensive outreach to representatives in every state and territory, the Database now reflects the present status of the more than 1,900 state business incentives in operation around the country.
The State of State Business Incentives 2015 report summarizes the findings from this review. Most striking is the overall growth in the number of state business incentive programs. Since the new millennium, the overall number of state incentive programs targeted to businesses has more than doubled, from less than one thousand in 1999 to nearly two thousand today. The report takes a closer look at the different types and purposes of business incentive programs administered by states and how state incentive portfolios have changed over the past few years in response to recent economic trends, with notable examples of recent state incentive activity.
- State economic development agencies administer less than 50% of state incentive programs
- Capital access or capital formation is the category of business need supported by the largest number of state incentive programs and has experienced the most recent growth
- Tax credits remain the most popular program type, followed by grant programs, but there has been a slow down in new tax credit program creation in recent years