H&A releases new Spring 2019 report on Credits & Incentives in the United States
Report is now available online
Economic development in the United States is driven by a number of economic, political, and social factors. One of the key factors driving companies in their ultimate location decisions are economic development incentives.
While economic development incentives are rarely the primary factor, they can very well be a key part of a company’s final location choice. Every day, economic development projects are supported with incentives that come in many different shapes and forms, which could include a state corporate income tax credit, a workforce training grant, or even an investment in public infrastructure. With pre-approved processes and approval procedures in place, the vast majority of economic development incentives move forward with little to no attention and interest from the general public.
However, over the recent months, economic development incentives have been on the forefront of a number of high-visibility projects in the United States. None more so than Amazon’s “HQ2” project and Toyota-Mazda’s joint manufacturing effort – both of contemplate significant investments with historic levels of job creation. As of the publishing of this report, the HQ2 project remains without complete closure, as the investment is now uncertain in New York City.
“However, over the recent months, economic development incentives have been on the forefront of a number of high-visibility projects in the United States.”
Even with controversy, economic development incentives will certainly continue to be a critical part of any corporate location decision. Elected officials and policymakers are not pulling back from their support for business, but their tactics for doing so will continue to evolve.
As we’ve seen over the past year, a sustained focus throughout state capitols in the United States will be on transparency and ensuring a return on investment for taxpayers. Most corporate leaders understand the need for these policies, as long as proprietary data is protected and burdensome regulations do not become a long-term risk for the business.
With a shift in political leadership across the country following the 2018 midterm elections, business executives will be closely watching the policies of newly elected officials in driving economic development. New governors in states like Illinois and Florida, both of which have had controversial incentive situations in recent years, will provide a fascinating view into the future of economic development and, ultimately, the competitiveness of their respective states.
“With a shift in political leadership across the country following the 2018 midterm elections, business executives will be closely watching the policies of newly elected officials in driving economic development.”
As many will focus on the national battle this coming year with the upcoming primary clash for the White House, the ongoing battle across the country will wage on between states competing for business. Whether garnering the media’s attention or not, economic development incentives will remain a key element of the fight.