Incentives
Economic development tax incentives are exceptions to regular tax rules meant to achieve an economic goal by encouraging people or businesses to do something that they otherwise would not have done. Often, that “something” is to locate a company in a certain area, create or keep jobs, or invest in equipment and facilities. When policymakers offer tax breaks to lure businesses from other states, they often are using economic development tax incentives. The same is true when they offer tax credits to companies that hire more workers.