Evaluating State and Local Business Tax Incentives

  title={Evaluating State and Local Business Tax Incentives},
  author={Cailin Ryan Slattery and Owen M. Zidar},
  journal={ERN: Business Taxes \& Subsidies (Topic)},
This essay describes and evaluates state and local business tax incentives in the United States. In 2014, states spent between $5 and $216 per capita on incentives for firms in the form of firm-specific subsidies and general tax credits, which mostly target investment, job creation, and research and development. States with higher per capita incentives tend to have higher state corporate tax rates. Recipients of firm-specific incentives are usually large establishments in manufacturing… 


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