The C2ER State Incentives Database is one of my go-to resources. The database contains searchable information on over 2,000 incentives offered by US states and territories. C2ER recently completed its annual update and has shared some interesting trends and findings from its research.
Trends
The total number of incentive programs continues to increase, but the pace of new incentive program creation has slowed. While 2025 showed something of a spike in new programs, the broader trend suggests that states are rolling out fewer new incentives than in the 1990s and 2000s.
Several new programs in 2024 and 2025 are focused on boosting childcare resources, including the Nebraska School Readiness Tax Credit and Child Care Nonrefundable Tax Credit, Utah Child Care Business Tax Creditand Alabama Childcare Facility Tax Credit.
Looking ahead, C2ER anticipates states will launch additional export support, workforce, and recruitment incentives to support domestic manufacturing. In addition to manufacturing, C2ER also expect states will continue to “prioritize workforce initiatives and programs like childcare or housing to support a robust workforce.”For more information, please see the original blog on the C2ER website.
Incentivizing Innovation
- States are competing to attract entrepreneurs and develop the next technology hub. Most states are employing combinations of incentives for research and development (R&D) and venture capital (VC) funding.
- R&D tax incentives are the primary vehicle states use, but many also offer grants to encourage R&D. States continue to offer incentives to encourage equity investment, either by directly financing startups or via venture capital firms.
- On average, a US state offers three VC or R&D incentives.
For more information, please see the original blog on the C2ER website.
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