Companies that are starting up, moving or expanding may be able to tap into state and local economic development incentives to save significant money and improve profitability. With 12.1 million people unemployed nationally, states, in particular, are bidding against one another to attract and retain business.
Incentives include tax credits, tax exemptions, tax reductions, low-cost loans, cash grants and employee training reimbursements (see Table 1, p. 38). Many communities offer their own breaks that companies can couple with state programs to offset costs when relocating or adding new facilities. Incentives are usually tied to employment: The more jobs a company plans to create, the more attractive the deals.