G/SCM/N/253/USA  
 
9 May 2014  
(14-2855)  Page: 1/297  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE 
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON 
SUBSIDIES AND COUNTERVAILING MEASURES 
UNITED STATES 
The following notification, dated 25 April 2014, is being circulated at the request of the Delegation 
of the United States. 
 
_______________ 
 
 
Enclosed please find the new and full notification from the United States, pursuant to Article XVI:1 
of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures for 
the 2011 and 2012 fiscal years (1 October 2010 through 30 September 2012). Information on 
programs granted or maintained at sub-federal levels in the United States is included in Attachment 1. 
 
As noted in previous notifications from the United States, insofar as the notification obligation is a transparency-oriented provision that, pursuant to Article 25.7 of the Subsidies Agreement, carries no legal weight as to the actual identification or measurement of a subsidy, its status as an 
actionable subsidy, or its trade effects, the United States has included certain activities in this 
notification which arguably are not (or are not always) "specific subsidies" within the meaning of the Agreement. 
 G/SCM/N/253/USA 
 
- 2 - 
 
  TABLE OF CONTENTS 
  
Page 
FEDERAL PROGRAMS ........................................................................................................ 5
 
1   AGRICU LTURE ............................................................................................................. 5  
1.1   EXPORT ASSIST ANCE PROGRAMS ................................................................................ 5  
1.1.1   The Dairy Export In centive Progra m (DEIP) ................................................................ 5  
1.2   AGRICULTURAL DOMESTIC SUPPORT PROGRAMS ........................................................... 6  
1.2.1   Agriculture Income Support and Mark eting Assistance for Co vered Commodities .............. 6  
1.3   OTHER AGRICULTURAL PROGRAMMES ......................................................................... 11 
1.3.1   Expensing of Multi-period Livestock and Crop Production Costs ..................................... 11 
1.3.2   Treatment of Loans Forgiven  Solvent Farmers as  if Insolvent ....................................... 12 
1.3.3   Capital Gains Treatment of  Certain Agricult ural Income ............................................... 13 
2   ENERGY & FUELS (ENERGY DEVELOPMENT, STORAGE AND TRANSPORTATION & 
OTHER RELATED SECTORS) .............................................................................................. 13 
2.1   Energy Supply – Renewable Energy Resources .............................................................. 13 
2.2   Energy Conservation Prog rams – Transporta tion Sector ................................................. 15 
2.3   Energy Conservation Programs  - Building Techno logies Office ......................................... 16 
2.4   Energy Conservati on - Industry  Sector ........................................................................ 17 
2.5   Fossil Energy Research and Development ..................................................................... 18 
2.6   Innovative Technology  Loan Guaran tee Program ........................................................... 19 
2.7   Advanced Technology Vehicles Manufacturing Loan Program (ATVM) ................................ 20 
3   OTHER ENER GY AND FUELS .......................................................................................... 21 
3.1   Expensing of Exploration and Developmen t (E&D) Costs for Oil, Gas and othe r Fuels .......... 21 
3.2   Excess of Percentage over Cost Depletion for Oil, Ga s and Othe r Fuels ............................. 22 
3.3   Alternative Fuel  Production Credit ............................................................................... 23 
3.4   Capital Gains Treatmen t of Royaltie s on Co al ................................................................ 24 
3.5   Energy Efficient Appliance Credit ................................................................................. 24 
3.6   Alcohol Fuel Credit .................................................................................................... 25 
3.7   Biodiesel and Rene wable Diesel Credit ......................................................................... 26 
3.8   Alternativ e Fuels Credit ............................................................................................. 27 
3.9   Credits for Investment in Advanced Coal Facilities and Advanced Gasification 
Facilities .................................................................................................................... ..... 27 
3.10   Advanced Energy  Property Credit .............................................................................. 28 
3.11   Deduction for Investment in Increased Refinery Capacity .............................................. 29 
3.12   Amortization of Geological  and Geophysical Expenditures ............................................. 30 
4   FISH ERIES .................................................................................................................  30 
4.1   Fisheries Fina nce Progra m (FFP) ................................................................................. 30 
4.2   Saltonstall-Kennedy Grant Program: Fisheries Research and Development ........................ 31 
4.3   Sea Grant ................................................................................................................ 32 
4.4   Columbia River Fishery Deve lopment Program (M itchell Act) ........................................... 33 G/SCM/N/253/USA 
 
- 3 - 
 
  5   LUMBER & TIMBER ...................................................................................................... 35 
5.1   Capital Gains Treatment of Certain Timb er Income ........................................................ 35 
5.2   Expensing of Multi-pe riod Timber Gr owing Costs ........................................................... 35 
5.3   Expensing and Seven-Year Amortiza tion for Reforestat ion Expenditures ........................... 36 
6   MEDICAL .................................................................................................................... 37 
6.1   The Office of Nuclear Physics, Isotope Development and Production for Research 
and Applications Program .................................................................................................. 37 
6.2   Orphan Drug Tax Credit ............................................................................................. 38 
7   METALS, MINERALS AND EXTRACTION (N ON-FUEL) ......................................................... 38 
7.1   Emergency Steel Lo an Guarant ee Program ................................................................... 38 
7.2   Excess of Percentage over Cost Depletion for Non-fuel Minerals ....................................... 39 
7.3   Expensing of Exploration and Deve lopment Costs for No n-fuel Minerals ............................ 40 
8   SHIPYARDS ................................................................................................................ 41 
8.1   Assistance to Smal l Shipyards Gr ant Program ............................................................... 41 
9   TEXTILES .................................................................................................................. . 42 
9.1   The Textile/Clothing Techno logy Corporation Program (TC2) ........................................... 42 
10   TIMEPIECES AND JEWELRY ......................................................................................... 43 
10.1   The Insular Possessions Watch and Jewelr y Programs. ................................................. 43 
11   OT HER .................................................................................................................... . 44 
11.1   Empowerment Zones ............................................................................................... 44 
11.2   New Market s Tax Credit ........................................................................................... 45 
11.3   New York Liberty Zone ............................................................................................ 46 
11.4   Gulf Oppo rtunity Zone ............................................................................................. 47 
11.5   Midwestern Disaster Area ......................................................................................... 47 
ATTACHMENT  1 .............................................................................................................. 49  
SUB-FEDERAL PR OGRAMS .............................................................................................. 49  
Alabama ....................................................................................................................... .. 49 
Alaska ............................................................................................................................ 57 
Arizona ....................................................................................................................... ... 61 
Arkans as ...................................................................................................................... .. 69 
California ........................................................................................................................ 73 
Colorado ......................................................................................................................... 75 
Connecticut ..................................................................................................................... 77 
Delaware ...................................................................................................................... .. 93 
District of Colombia .......................................................................................................... 99 
Florida ....................................................................................................................... .. 101 
Georgi a ....................................................................................................................... . 112 
Hawaii .......................................................................................................................... 120  
Idaho ......................................................................................................................... .. 123 
Illinois .......................................................................................................................... 126  
Indian a ....................................................................................................................... . 139 G/SCM/N/253/USA 
 
- 4 - 
 
  Iowa .......................................................................................................................... .. 143 
Kansas  ........................................................................................................................ . 145 
Kentuc ky ......................................................................................................................  146 
Louisiana ..................................................................................................................... . 150 
Maine ........................................................................................................................... 160  
Maryland ......................................................................................................................  164 
Massachusetts ............................................................................................................... 173  
Michigan ....................................................................................................................... 178  
Minnesota ..................................................................................................................... 188  
Mississippi ................................................................................................................... . 190 
Missour i....................................................................................................................... . 196 
Montana .......................................................................................................................  202 
Nebraska ......................................................................................................................  204 
Nevada ........................................................................................................................  205 
New Hampsh ire ............................................................................................................. 209  
New Jers ey ................................................................................................................... 210 
New Mexico .................................................................................................................. 2 18 
New York ...................................................................................................................... 222  
North Caro lina ............................................................................................................... 230 
North Dako ta ................................................................................................................ 2 37 
Ohio .......................................................................................................................... .. 240 
Oklahoma ..................................................................................................................... 243 
Oregon ......................................................................................................................... 252  
Pennsylvania ................................................................................................................. 255 
Puerto Rico ...................................................................................................................  258 
Rhode Island ................................................................................................................. 259  
South Caro lina .............................................................................................................. 2 61 
South Dako ta ................................................................................................................ 2 62 
Tennessee .................................................................................................................... 262 
Texas ........................................................................................................................... 269  
Utah .......................................................................................................................... .. 276 
Vermont .......................................................................................................................  280 
Virginia ...................................................................................................................... .. 281 
Washington ................................................................................................................... 287  
West Virginia ................................................................................................................. 291  
Wisconsin .....................................................................................................................  294 
Wyoming ...................................................................................................................... 296 
 G/SCM/N/253/USA 
 
- 5 - 
 
  FEDERAL PROGRAMS 
1  AGRICULTURE 1.1  EXPORT ASSISTANCE PROGRAMS 1.1.1  The Dairy Export Incentive Program (DEIP) 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012. 
 
2. Policy objective and/or purpose 
 In June 1991, USDA published program criteria governing the selection of commodities and 
countries under the DEIP. These criteria take into account:  
 
 Trade Policy Effect - the expected contribution of the initiative in furthering U.S. trade 
policy objectives;  
 Export Effect - the potential to develop, expand, or maintain markets for U.S. 
agricultural commodities;  
 Effect on Non-subsidizers - the possible effect s on non-subsided exports of agricultural 
products; and 
 Subsidy Requirements - the expected benefits compared with the expected costs of the 
initiative.  
 
Effective 1 July 1995, the terms of the Uruguay Round Agreement on Agriculture established annual ceilings by commodity with respect to maximum quantity and budgetary expenditures 
permitted for export subsidies. Section 148 of  the Federal Agricultural Improvement and 
Reform (FAIR) Act authorized the use of DEIP to any destination in the world for the purpose of market development provided those shipments are not otherwise restricted by U.S. law.  
 
3. Background and authority 
 The Farm Security and Rural Investment Act of  2002 amended Section 153 of the Food Security 
Act of 1985 to mandate the Commodity Credit Corporation (CCC) operate the DEIP through 
31 December 2007. The Food, Conservation, and Energy Act of 2008, P.L. 110-246, enacted 
18 June 2008, re-authorized the program through 31 December 2012. The American Taxpayer 
Relief Act and Appropriations (ATRA) PL 112-240, enacted on 2 January 2013, extended the 
authority for this program through 30 September 2013.  
4. To whom and how assistance is provided 
 
Payments may be made in cash, CCC-owned commoditi es, or generic certificat es on a bid basis to 
entities that sell U.S. dairy products for export. Export sales under the program must be in 
addition to, and, to the extent practicable, no t displace, commercial export sales of U.S. dairy 
products. Eligible dairy products, in bulk, are butter, butter oil, anhydrous milk fat, non-fat dry milk, whole milk powder, cheddar cheese, mozzarella cheese, cream cheese, feta cheese, and 
Gouda cheese.  
 5. Amount 
 There were no dairy export subsidies in fiscal years 2011 and 2012.  6. Duration 
 The Food, Conservation, and Energy Act of 2 008, P.L. 110-246, enacted 18 June 2008, 
re-authorized the program through 31 December 2012. As noted above, it was extended by the 
ATRA through 30 September 2013. 
 G/SCM/N/253/USA 
 
- 6 - 
 
  7. Trade effects 
 
The CCC bonuses offered are intended to enable U.S.  exporters to compete at  commercial prices in 
selected foreign markets. The program enables exporters to offer prices that are competitive with 
those being offered by other countries' exporters in these selected foreign markets.  
 1.2  AGRICULTURAL DOMESTIC SUPPORT PROGRAMS 
1.2.1  Agriculture Income Support and Mark eting Assistance for Covered Commodities  
1. Period covered by notification 
 
The period covered is fiscal years 2011-2012. For some programs, payments are reported on a 
crop marketing year or calendar year basis. 
 2. Policy objective and/or purpose 
 The policy objectives are to: (1) stabilize, support, and protect farm income and prices; (2) help ensure adequate supplies of quality food, feed and fiber; and (3) assist in the orderly marketing of 
farm commodities.  
 3. Background and authority 
 
Income support and marketing assistance progra ms were authorized by the Commodity Credit 
Corporation (CCC) Charter Act, the Agriculture Adjustment Ac t of 1938, as amended, the 
Agricultural Act of 1949, as amended, the Farm Security and the Rural Investment Act of 2002, 
Public Law 107-171, enacted 13 May 2002. Other authorities include the American Jobs Creation 
Act of 2004, the Fair and Equitable Tobacco Refo rm Act of 2004 (P.L. 108-357) and Section 32 of 
the Agricultural Adjustment Act of 1935. The Food, Conservation, and Energy Act of 2008, 
P.L. 110-246 was enacted on 18 June 2008 and authorizes most commodity and disaster 
programs. The American Taxpayer Relief Act and Appropriations (ATRA) PL 112-240, enacted on 2 January 2013, extended the authority for most of these programs through crop year 2013.  
4. To whom and how is assistance provided 
 
(a) Direct Payments 
 
The Direct Payment Program provides payments to eligible recipients on farms enrolled for the 2008 through 2013 crop years. Payments are computed using the historical base acres and 
payment yields established for the farm. Payments are not tied to current or future production of 
specific crops, the amount of production, or the price of the crop. Eligible producers are not confined to producing crops for which they were receiving payments, and can choose not to produce any crop, with limited exceptions for fruits and vegetables. The Food, Conservation, and 
Energy Act of 2008 extended Direct Payments through the 2012 crop year. As noted above, it was 
extended by the ATRA through crop year 2013.  
Historical base acres and payment yields were established for the following commodities: barley; 
corn; grain sorghum; oats; other oilseeds (canola, crambe, flax, mustard, rapeseed, safflower, sesame and sunflower, including oil and non-oil varieties); peanuts, rice, excluding wild rice; 
soybeans; upland cotton; and wheat.  
 Total expenditures by fiscal year:   
FY 2011 – $4,745 million  
FY 2012 – $3,837 million 
 
(b) Counter-cyclical Payments Program 
 Counter-cyclical payments are available to covered commodities whenever the effective price was 
less than the target price. The effective price is eq ual to the sum of 1) the higher of the national 
average farm price for the marketing year, or the national loan rate for the commodity and 2) the direct payment rate for the commodity. The payment amount equals the product of the payment G/SCM/N/253/USA 
 
- 7 - 
 
  rate, the payment acres, and the payment yield. Covered commodities include: barley; corn; grain 
sorghum; oats; other oilseeds (canola, crambe, fl ax, mustard, rapeseed, safflower, sesame and 
sunflower); peanuts, beginning in 2003; rice, excluding wild rice; soybeans; upland cotton; and wheat. Dry peas, lentils, and chickpeas were added under the 2008 Farm Act. Payments were 
computed using the historical base acres and payment yields established for the farm. Payments 
were not tied to current or future production of specific crops, the amount of production, or the 
price of the crop. Eligible producers were not confined to producing crops for which they were 
receiving payments, and could choose not to produce any crop.  
 The Food, Conservation, and Energy Act of 2008 ex tended the Counter-cyclical Payments program 
through the 2012 crop year. As noted above, it was extended by the ATRA through crop 
year 2013. 
 Total expenditures by fiscal year:  
 
FY 2011 – $124 million  FY 2012 – $10 million 
 
(c) Non-recourse Marketing Assistance Loans and Loan Deficiency Payments (LDPs) for Wheat, 
Feed Grains, Upland cotton, ELS Cotton (recourse only), Rice, Peanuts, Oilseeds, Tobacco, Wool, 
Mohair, Honey, Small Chickpeas, Lentils, and Dry Peas. 
 
The Food, Conservation, and Energy Act of 2008 ex tended the Marketing Assistance Loan program 
through the 2012 crop year. As noted above, it was extended by the ATRA through crop 
year 2013.The program provides commodity-secured loan funds to producers for a specified period 
of time (typically 9 months), after which producers may either repay the loan and accrued interest or transfer ownership of the commodity amount pledged as collateral to the Commodity Credit 
Corporation (CCC) as full settlement of the loan, wi thout penalty. Loans can also be repaid at a 
rate less than the sum of original loan rate plus accrued interest when market prices are below commodity loan rates. Producers can also receive a loan deficiency payment in lieu of taking out a 
loan. Loan rates are fixed in the legislation. 
 
Total expenditures by fiscal year (combined market ing loan gains, loan deficiency payments, and 
certificate exchange gains):  
 
FY 2011 – $0  FY 2012 – $61 million 
 
(d) Average Crop Revenue  Election (ACRE)  
 An optional revenue-based counter-cyclical prog ram, Average Crop Revenue Election (ACRE) 
program, is available beginning with the 2009 crop year, as an alternative to receiving 
counter-cyclical payments. Producers on a farm with covered commodities and/or peanuts can elect to participate in the ACRE program for all covered commodities and peanut acreage on the 
farm. Once they elect to participate in ACRE, producers on the farm must remain in the program 
for the duration of the 2008 Act. As noted above,  it was extended by the ATRA through crop 
year 2013. For ACRE participants, direct paymen ts are reduced by 20 per cent and marketing 
assistance loan rates are reduced by 30 per cent on enrolled farms. Under the ATRA, producers 
could elect to enroll or unenroll in ACRE for the 2013 crop year no matter what their election was under the 2008 Farm Act.  
Total expenditures by marketing year:  
 
FY 2011 – $431 million  
FY 2012 – $11 million 
 Price Support for Milk and Sugar 
 (e) Dairy Products  The 2008 Act replaced the Milk Price Support Program of the 2002 Act with the Dairy Product Price 
Support Program. This program is effective for calendar years 2008-2012 and requires the G/SCM/N/253/USA 
 
- 8 - 
 
  Secretary to support the price of cheddar cheese, butter and nonfat dry milk through purchases of 
such products at prices not less than $1.13 per pound for cheddar cheese in blocks, not less than $1.10 per pound for cheddar cheese in barrels, not less than $1.05 per pound for butter, and not less than $0.80 per pound for nonfat dry milk. The American Taxpayer Relief Act and 
Appropriations (ATRA) PL 112-240, enacted on 2 Ja nuary 2013, extended the authority for most of 
these programs through 30 September 2013.  
Net expenditures by fiscal year:  
 
FY 2011 – $29 million  FY 2012 – $0 million  
 
The Food, Conservation, and Energy Act of 2008 re-authorized the national dairy market loss payments program through 30 September 2012. Under the program, producers enter into Milk 
Income Loss Contracts. A monthly direct payment is made to qualifying dairy farm operators when 
the monthly Class I price in Boston (Federal Marketing Order 1) is less than $16.94 per cwt. The payment quantity per farm operator shall no t exceed: 2.4 million pounds for the period 
1 October 2007–30 September 2008; 2.985 million pounds for the period 1 October 2008–
31 August 2012 for each fiscal year; and 2.4 million pounds beginning 1 September 2012 for each fiscal year. The $16.94 price is adjusted by the percentage that the National Average Dairy Feed Rations Cost exceeds $7.35/cwt for any month for period from 1 January 2008–31 August 2012. 
Target cost of feed rations increased to $9.50/ cwt beginning 1 September 2012. These provisions 
were extended by the ATRA through 31 August 2013 at 45% of the rate used for 2012 and for September 2013 at 34% of the 2012 rate.  
 
The 2008 Act defined payment rates for three specific periods:  
 From 1 October 2007-30 September 2008, 34 per cent of difference between 
$16.94/cwt (as adjusted for feed costs) and Class I price in the Boston milk marketing order for the applicable month; 
 
 From 1 October 2008–31 August 2012, 45 per cent of difference between $16.94/cwt 
(as adjusted for feed costs) and Class I price in the Boston milk marketing order for the applicable month;  
 
 For period starting 1 September 2012 and thereafter, 34 per cent of difference 
between $16.94/cwt (as adjusted for feed costs) and Class I price in the Boston milk 
marketing order for the applicable month.  
 
Total expenditures by fiscal year:   
FY 2011 – $1 million  
FY 2012 – $403 million 
 
(f) Sugar 
 The non-recourse marketing loan program was continued under the 2008 Food, Conservation, and 
Energy Act through fiscal year 2013. As noted ab ove, it was extended by the ATRA through 
30 September 2013. The loan rate for raw cane sugar is:   
 18 cents/pound in FY 2009. 
 18.25 cents/pound in FY 2010. 
 18.50 cents/pound in FY 2011. 
 18.75 cents/pound in FY 2012-2013. 
 
The loan rate for refined beet sugar is:   
 22.9 cents/pound in FY 2009. 
 128.5 per cent of loan rate for raw cane sugar in FY 2010-13. 
 
The sugar program operates under a "no-cost" provision. There were no expenditures on this 
program in fiscal years 2011 or 2012.  G/SCM/N/253/USA 
 
- 9 - 
 
  Other Commodity Products  
 
(g) Tobacco  
Under the Tobacco Transition Payment Program (Tob acco Quota Buyout), Title VI of the American 
Jobs Creation Act of 2004, the Fair and Equi table Tobacco Reform Act of 2004 (P.L. 108-357), 
22 October 2004, eligible tobacco quota holders and producers will receive payments under this 
program in 10 instalments in each of the 2005 th rough 2014 fiscal years. Transition payments will 
be based on the Basic Quota Levels determined for each farm. For quota holders, payments are based on ownership shares in the farm and for producers, payments are based on shares in the risk of producing quota tobacco on the farm du ring the years 2002, 2003 and 2004. Payments are 
funded through assessments on tobacco product manufacturers and importers. Payments are not 
based on current or future tobacco production or price, and there is no requirement to produce any commodity. The legislation also terminated the U.S. Department of Agriculture's tobacco price and 
income support program at the end of the 2004 marketing season.  
 Total expenditures by fiscal year:  
 
FY 2011 – $953 million  FY 2012 – $953 million 
 
(h) Special Competitiveness Program for Extra-Long Staple (ELS) Cotton 
 The Special Competitiveness Program for ELS cotton was continued under the Food, Conservation, 
and Energy Act of 2008 through 31 July 2013. Payments are made to domestic users and 
exporters when the world market price was below the U.S. price for four consecutive weeks and 
the lowest priced competing ELS cotton was less than 134 per cent of ELS loan rate.  
 
Total expenditures by fiscal year:   
FY 2011 – $0 million 
 FY 2012 – $0 million 
 (i) Economic Adjustment Assistance for Users of Upland Cotton 
 
The 2008 Act initiated economic adjustment assistance payments to domestic users of upland cotton for all documented use of upland cotton on a monthly basis, regardless of the origin of the 
upland cotton. The payments are set at $0.04 per pound for the period beginning 1 August 2008 
and ending 31 July 2012. Subsequently, the app licable payment rate is reduced to $0.03 per 
pound.   
Total expenditures by fiscal year:  
 
FY 2011 – $77 million 
 FY 2012 – $60 million 
 Disaster Assistance and Risk Management  Assistance for Agricultural Producers 
 
(j) Disaster payments  The Food, Conservation, and Energy Act of 2008 established five new disaster assistance 
programs. The programs provides disaster assistance payments to producers of eligible 
commodities (crops, livestock, farm-raised fish, and honey bees) in counties declared by Secretary of Agriculture to be "disaster counties", including counties contiguous to disaster counties and any 
farms with losses in normal production of more than 50 per cent in calendar year. Supplemental 
Agricultural Disaster Assistance is effective only for losses incurred as result of a disaster, adverse weather, or other environmental condition that occurs on or before 30 September 2011. 
Five disaster assistance programs are included. The American Taxpayer Relief Act and 
Appropriations (ATRA) PL 112-240, enacted on 2 Ja nuary 2013, extended the authority for four of 
five of these programs through 30 September 2013.  G/SCM/N/253/USA 
 
- 10 - 
 
  1. Supplemental Revenue Assistance Payments (SURE) are made to eligible 
producers on farms in disaster counties that incurred crop production or crop-quality losses or both during crop year. Provides payments at 60 per cent of difference (if greater than zero) between disaster assistance program guarantee 
and total farm revenue, where revenue includes all crops produced on farm. The 
authority for SURE was not extended after 2012. 
 
 Total expenditures by crop year:  
    CY 2010 – $252 million     CY 2011 – $1,442 million  
 
2. Livestock Indemnity Payments provides payments to eligible producers for 
livestock death losses in excess of normal mortality due to adverse weather. 
Indemnity payment rate is 75 per cent of market value of applicable livestock on 
day before death, as determined by Secretary. 
 
 Total expenditures by calendar year:  
    CY 2010 – $18 million    CY 2011 – $42 million 
 
3. Livestock Forage Disaster Program payments are available to eligible producers of 
covered livestock for grazing losses due to drought or fire on public managed land. 
Payment rates are based on monthly feed costs. 
   Total expenditures by calendar year:  
 
   CY 2010 – $35 million    CY 2011 – $264 million  
4. Emergency Assistance Program for Livestock, Honey Bees, and Farm-Raised Fish 
provides emergency relief to eligible producers of livestock, honey bees, and farm-raised fish for losses due to disease, adverse weather, or other conditions not 
covered by the Livestock Indemnity Progra m or by the Livestock Forage Disaster 
Program. Total payments are limited to $50 million per year.  
 
 Total expenditures by calendar year:  
    CY 2010 – $9 million    CY 2011 – $8 million  
 
5. Orchard and Nursery Tree Assistance Program provides assistance to eligible 
orchardists and nursery tree growers for trees  lost to natural disasters. Assistance 
includes reimbursement of 70 per cent of the cost of replanting trees in excess of 
normal mortality and reimbursement of 50 per cent of the cost of salvaging damaged trees and preparing land to replant trees. 
 
 Total expenditures by calendar year:      CY 2010 – $6 million 
   CY 2011 – $4 million  
 (k) Non-insured Assistance Program 
 
Under the Agricultural Risk Protection Act of 2000 (PL 106-224), producers of crops not currently insurable under other programs receive benefits if the Secretary of Agriculture determines that 
producers have suffered a 50 per cent yield loss. The Food, Conservation, and Energy Act of 2008 
raised fees paid by producers. These prov isions were extended by the ATRA through 
30 September 2013.   G/SCM/N/253/USA 
 
- 11 - 
 
  Total expenditures by fiscal year:  
 
FY 2011 – $71 million 
 FY 2012 – $254 million 
 
(l) Crop insurance  
Various types of yield and revenue insurance are available each year. Indemnities are paid when 
yields or revenue fall below the guaranteed level. The Food, Conservation, and Energy Act of 2008 mandates a target statutory loss ratio (indemnities divided by premiums) of 1.0. Benefits are reported as the premium subsidies on a marketing year basis  
  
Total expenditures by marketing year:   
Marketing year 2010 – $4,712 million 
 Marketing year 2011 – $7,461 million   
Other Programs 
 
(m) Grazing Livestock on Federal Land  
Net budget outlays (minus producer fees) for livestock grazing on public range land in 16 Western 
States:   
FY 2011 – $46 million 
 FY 2012 – $54 million   
(n) Trade Adjustment Assistance (TAA) for Farmers  
 The American Recovery and Reinvestment Act of 2009 reauthorized and modified the TAA for Farmers program. Producers of commodities certified as suffering losses due to import competition 
during the period 1 October 2009 through 31 December 2010, could apply to receive information, 
technical assistance, and support to develop and implement Business Adjustment Plans.  
FY 2011 – $34 million 
 FY 2012 – $41 million  
5. Duration 
 
The policies described were generally in effect for fiscal years 2011-2012. However, not all policies or programs were in effect or made payments for both years.  
 
6. Trade effects 
 
It is difficult to determine to what extent, if any, these programs have affected trade, given the 
existence of other policy instruments that affect agricultural trade.   
1.3  OTHER AGRICULTURAL PROGRAMMES
1 
1.3.1  Expensing of Multi-period Li vestock and Crop Production Costs 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 To ease record-keeping for small farm businesses.   
                                               
1 All the programmes in this section are tax-related,  authorized under the US Internal Revenue Code.  G/SCM/N/253/USA 
 
- 12 - 
 
  3. Background and authority 
 
Section 263A of the Internal Revenue Code, enacted as part of the Tax Reform Act of 1986.   
4. Form 
 
Income tax concession.  
 
5. To whom and how assistance is provided 
 The production of livestock and crops with a production period of two years or less is exempted 
from the uniform capitalization rules. Farmers producing any goods for sale with a production 
period of two years or less may elect not to capitalize costs.   
6. Amount 
 
The revenue loss was $130 million in 2011 and $130 million in 2012.  
 
7. Duration 
 Indefinite.  
 
8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 1.3.2  Treatment of Loans Forgiven Solvent Farmers as if Insolvent 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.   
2. Policy objective and/or purpose 
 
To address certain consequences of farm credit crises.  
 
3. Background and authority 
 
Sections 108 and 1017 of the Internal Revenue Code, enacted as part of the Tax Reform Act 
of 1986.   4. Form 
 Income tax concession.   
5. To whom and how assistance is provided 
 
Farmers are granted special tax treatment by being forgiven the tax liability on certain forgiven 
debt. Normally, the amount of loan forgiveness is accounted for as a gain (income) of the debtor, 
who must either report the gain or reduce his re coverable basis in the property to which the loan 
relates. If the debtor elects to reduce basis and the amount of forgiveness exceeds his basis on the 
property, the excess forgiveness is taxable. However,  in the case of insolvent (bankrupt) debtors, 
the amount of loan forgiveness never results in an  income tax liability. Farmers with forgiven debt 
are considered insolvent for tax purposes, and thus qualify for income tax forgiveness. This relief applies only if at least 50 percent of the taxpayer's gross receipts for the three tax years preceding 
the tax year in which the discharge of indebtedness occurs is attributable to farming.  
 6. Amount 
 The revenue loss was $20 million 2011 and $40 million in 2012.   G/SCM/N/253/USA 
 
- 13 - 
 
  7. Duration 
 
Indefinite.   
8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
1.3.3  Capital Gains Treatment of Certain Agricultural Income 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 To ensure that when farmland is sold, any immature, unharvested crops growing on the land are treated for tax purposes as part of the land and not as personal property ready for sale to 
customers.  
 3. Background and authority 
 
Section 1231 of the Internal Revenue Code.  
 4. Form 
 Income tax concession.   
5. To whom and how assistance is provided 
 
Certain agricultural income, which would normally be taxed as ordinary income, such as receipts from the sale of unharvested crops sold together with farmland, can be treated as capital gains. 
Income tax rates for individuals on ordinary income ranged from 10 percent to 35 percent in 2009 
and 2010. For individual taxpayers, long-term capital gains are taxed separately from other income at a maximum rate of 15 percent.  
 
6. Amount 
 
The revenue loss was $630 million in 2011 and $880 million in 2012.  
 7. Duration 
 
Indefinite; this has been a permanent provision since at least 1954.  
 8. Trade Effects 
 It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
2  ENERGY & FUELS 
(ENERGY DEVELOPMENT, STORAGE AND TRANSPORTATION & OTHER RELATED SECTORS) 
2.1  Energy Supply – Renewable Energy Resources  
1. Periods covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 
2. Policy objective and/or purpose 
 
To lead the national effort to develop renewable energy technologies, to accelerate acceptance and 
use of renewable energy technologies and to impr ove the United States' overall economic, energy G/SCM/N/253/USA 
 
- 14 - 
 
  security, and environmental health through the development of clean, competitive power 
technologies.   3. Background and authority 
 This program is administered by Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EERE). Legislative authority derives from:  
 
P.L. 93-409, "Solar Heating and Cooling Demonstration Act of 1974" 
  P.L. 93-410, "Geothermal Energy Research, Development and Demonstration Act of 1974"   P.L. 94-163, "Energy Policy and Conservation Act" (EPCA) (1975) 
 P.L. 94-385, "Energy Conservation and Product Act" (ECPA) (1976) 
 P.L. 95-91, "Department of Energy Organization Act" (1977) 
P.L. 95-590, "Solar Photovoltaic Energy Rese arch, Development, and Demonstration Act of 
1978" 
 P.L. 95-618, "Energy Tax Act of 1978"  P.L. 95-619, "National Energy Conservation Policy Act" (NECPA) (1978) 
 P.L. 95-620, "Power plant and Industrial Fuel Use Act of 1978" 
 P.L. 100-12, "National Appliance Energy Conservation Act of 1987"  P.L. 100-615, "Federal Energy Management Improvement Act of 1988" 
P.L. 101-218, "Renewable Energy and Energy Efficiency Technology Competitiveness Act 
of 1989" 
 P.L. 101-549, "Clean Air Act Amendments of 1990" 
P.L. 101-575, "Solar, Wind, Waste, and Geothermal Power Production Incentives Act 
of 1990" 
 P.L. 102-486, "Energy Policy Act of 1992"  P.L. 104-271, "Hydrogen Future Act of 1996" 
 P.L. 106-224, "Biomass Research and Development Act of 2000" 
 P.L. 109-58, "Energy Policy Act of 2005"   P.L. 110-140, "Energy Independence and Security Act of 2007"  P.L. 110-234, "The Food, Conservation, and Energy Act of 2008" 
 
4. Form 
 
Grants, cooperative agreements, cooperative re search and development agreements (CRADAs)2 
and other forms of collaboration accomplished through consortium-based activities between government laboratories and private industry. 
 
5. To whom and how assistance is provided 
 Participation in the program is determined through various competitive procedures, which are open 
to all eligible private parties. 
 6. Amount 
 Fiscal years 2011 and 2012 annual appropriations (approximate dollars in millions) were as follows:  
 
                                               
2 The term "CRADA" has a specific meaning as a re sult of legislation and regulations developed to 
implement a variety of U.S. technology promotion and commercialization programs. Generally, however, a CRADA is a negotiated, contractual agreement between a federal agency or agency laboratory and a private 
sector partner or partners (including universities and independent research institutions) in which the parties 
agree on the designation of personnel,  facilities, equipment and other resour ces to a collaborat ive R&D activity, 
as well as to the disposition of any intellectual proper ty which the R&D yields. A CR ADA is just one of several 
legal instruments or mechanisms through which governme nt agencies work in part nership with business and 
academia in pursuit of shared or complementary R&D objectives. Examples of other such instruments are 
"cooperative agreements", contracts and grants.  G/SCM/N/253/USA 
 
- 15 - 
 
   FY 2011 FY 2012 
   
Hydrogen & Fuel Cell Technologies    95.8  103.6 
Bioenergy Technologies  180.0  199.3 
Solar Energy Technologies  259.6  103.6 
Wind Energy Technologies    78.8   93.3 
Geothermal Technologies     37.0   37.9 
Water Power Technologies    29.2   58.8 
 
7. Duration 
 
The renewable energy resources programs are no t subject to any fixed completion date. Their 
continuation is contingent upon ongoing annual appropriations and authorizations by Congress.  
8. Trade Effects 
 
In light of the scope and nature of the R&D activiti es being assisted, it is not possible to determine 
what, if any, trade effects may ev er result from this program. 
 2.2  Energy Conservation Programs – Transportation Sector 
1. Periods covered by the notification 
 
The period covered is fiscal years 2011 and 2012.   
2. Policy objective and/or purpose 
 
To develop more energy-efficient and environmentally friendly highway transportation technologies 
(for both cars and trucks) that meet or exc eed performance expectations and environmental 
requirements and that will enable the United States to use significantly less petroleum and reduce greenhouse gas emissions.   
3. Background and authority 
 
This program is administered by DOE's Office of Energy Efficiency and Renewable Energy Vehicle 
Technologies Office (EERE-VTO). Legislative authority derives from:  
 
P.L. 95-91, "U.S. Department of Energy Organization Act" (1977) 
 P.L. 102-486, "Energy Policy Act of 1992"  
 P.L. 109-58, "Energy Policy Act of 2005"   P.L. 110-140, "Energy Independence and Security Act of 2007"  
4. Form 
 
Assistance under the program is provided through grants, cooperative agreements, CRADAs and 
other forms of collaboration accomplished through consortium-based activities between 
government laboratories and private industry.   
5. To whom and how assistance is provided 
 
Participation in the program is determined through various competitive procedures, which are open to all eligible private parties.  
 
6. Amount 
 
Fiscal years 2011 and 2012 annual appropriations (approximate dollars in millions) are as follows: 
 G/SCM/N/253/USA 
 
- 16 - 
 
   FY 2011 FY 2012 
   
Total, Vehicle Technologies Office  293.2  328.8 
   
Applicable Vehicle Technologies Sub-Programs    
   
Innovations  121.3  144.0 Emerging Technologies  111.3  113.6 Systems Integration   17.6   19.9 Market Barriers   43.0   43.5 SBIR/STTR
3    0    7.8 
 
7. Duration  
 
The Vehicle Technologies Office is not subject to any fixed completion date. Its continuation is contingent upon ongoing annual appropriations and authorizations by Congress.  
8. Trade Effects 
 
In light of the scope and nature of the R&D activities being assisted, it is not possible to determine 
what, if any, trade effects may ev er result from this program. 
 2.3  Energy Conservation Programs  - Building Technologies Office 
1. Periods covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
2. Policy objective and/or purpose 
 
The mission of the Building Technologies Office (BTO) is to develop technologies, techniques, and 
tools for making residential and commercial buil dings more energy efficient, productive, and 
affordable.   
3. Background and authority 
 
Legislative authority derives from:   
P.L. 94-163, "Energy Policy and Conservation Act" (EPCA) (1975) 
 P.L. 94-385, "Energy Conservation and Production Act" (EPCA) (1976)  P.L. 95-91, "Department of Energy Organization Act" (1977) 
 P.L. 95-619, "National Energy Conservation Policy Act" (NECPA) (1978) 
 P.L. 95-620, "Power Plant and Industrial Fuel Use Act of 1978"  P.L. 96-294, "Energy Security Act" (1980) 
 P.L. 100-12, "National Appliance Energy Conservation Act of 1987" 
 P.L. 100-357, National Appliance Energy Conservation Amendments of 1988"  P.L. 100-615, "Federal Energy Management Improvement Act of 1988"  P.L. 102-486, "Energy Policy Act of 1992" 
 P.L. 109-58, "Energy Policy Act of 2005"  
 P.L. 110-140, "Energy Independence and Security Act of 2007"  
4. Form 
 
Assistance under the programs is provided thro ugh grants, cooperative agreements, CRADAs and 
other forms of collaboration accomplished through consortium-based activities between 
government laboratories and private industry.   5. To whom and how assistance is provided 
 Participation in the programs is determined through various competitive procedures, which are open to all eligible parties.  
                                               
3 Small Business Innovation Research/Small Business Technology Transfer G/SCM/N/253/USA 
 
- 17 - 
 
  6. Amount 
 
Fiscal years 2011 and 2012 annual appropriations (approx imate dollars in millions) are as follows:  
 
 FY 2011 FY 2012 
   
Total, Building Te chnologies Office  207.3    219.2 
   
Applicable Sub-programs    
   
Innovations   13.3    10.9 Emerging Technologies   45.8    48.4 Systems Integration   91.2    88.6 Market Barriers   57.0    66.8 SBIR/STTR
4     0      4.5 
 
7. Duration 
 The program is not subject to any fixed completion date. Its continuation is contingent upon ongoing annual appropriations and authorizations by Congress.  
 
8. Trade Effects 
 
In light of the scope and nature of the R&D activities being assisted, it is not possible to determine 
what, if any, trade effects may ev er result from this program.  
 2.4  Energy Conservation - Industry Sector 
1. Periods covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 
2. Policy objective and/or purpose 
 
The goal of the Industrial Technologies Program (ITP) was to reduce the energy intensity of the 
U.S. industrial sector through a balanced portfolio of collaborative technology investments, validation, and dissemination of information on energy-efficiency technologies and best energy 
management and operating practices that are used and replicated. This reduction in energy 
intensity reduces carbon emissions and improves national energy security, climate and 
environment, and economic competitiveness.   
In fiscal year 2012, ITP became the Advanced Manufacturing Office (AMO). AMO's goal is to 
research, develop, and demonstrate at a convin cing scale new energy-efficient manufacturing 
processes and materials technologies to reduce the energy intensity and life-cycle energy 
consumption of manufactured products and promote a corporate culture of continuous 
improvement in energy efficiency among existing facilities and manufacturers. 
 3. Background and authority 
 These programs are administered by the Department  of Energy, Office of Energy Efficiency and 
Renewable Energy, Office of Industrial Technologi es (OIT). Legislative authority derives from:  
 
P.L. 94-163, "Energy Policy and Conservation Act" (EPCA) (1975) 
 P.L. 94-385, "Energy Conservation and Production Act" (ECPA) (1976) 
 P.L. 95-91, "Department of Energy Organization Act" (1977) 
 P.L. 95-619, "National Energy Conservation Policy Act" (NECPA) (1978)  P.L. 95-620, "Power Plants and Industrial Fuel Use Act of 1978"  P.L. 96-294, "Energy Security Act" (1980) 
P.L. 101-218, "Renewable Energy and Energy Efficiency Technology Competitiveness Act 
of 1989" 
 P.L. 102-486, "Energy Policy Act of 1992" 
                                               
4 Small Business Innovation Research/Small Business Technology Transfer. G/SCM/N/253/USA 
 
- 18 - 
 
   P.L. 109-58, "Energy Policy Act of 2005"  
 P.L. 110-140, "Energy Independence and Security Act of 2007"  P.L. 112-210, "American Energy Manufacturing Technical Corrections Act" (2012)  
4. Form 
 
Assistance under the programs is provided thro ugh grants, cooperative agreements, CRADAs and 
other forms of collaboration accomplished through consortium-based activities between 
government laboratories and private industry.   5. To whom and how assistance is provided 
 Participation in the programs is determined through various competitive procedures, which are open to all eligible private parties.  
 
6. Amount 
 
Fiscal years 2011 and 2012 annual appropriations (approx imate dollars in millions) are as follows:  
  
 FY 2011 FY 2012 
   
Total, ITP, AMO  105.9   115.6    Applicable Sub-programs    
   Innovations   34.5   38.7 
Emerging Technologies   45.7   55.9 
Systems Integration    1.2    0.3 Market Barriers   24.4   17.7 SBIR/STTR
5    0    2.9 
 
7. Duration 
 
The program is not subject to any fixed completion date. Its continuation is contingent upon 
ongoing annual appropriations and authorizations by Congress.   8. Trade Effects 
 In light of the scope and nature of the R&D activities being assisted, it is not possible to determine what, if any, trade effects may ev er result from this program.  
 
2.5  Fossil Energy Rese arch and Development 
1. Periods covered by the notification 
 
The period covered is fiscal years 2011 and 2012.   2. Policy objective and/or purpose 
 The program's goal is to create public benefits  by enhancing U.S. economic, environmental, and 
energy security. The program carries out three ty pes of activities: (1) managing and performing 
energy-related research that reduces market barriers to reliable, efficient and environmentally-
sound production and use of fossil fuels for domestic consumption and power generation and conversion to other fuels such as hydrogen; (2) partnering with industry and others to advance 
clean and efficient fossil energy technologies toward commercialization in the U.S. and 
international markets; and (3) supporting the development of information and policy options that benefit the public by ensuring access to adequa te supplies of affordable and clean energy.  
 
                                               
5 Small Business Innovation Research/Small Business Technology Transfer G/SCM/N/253/USA 
 
- 19 - 
 
  3. Background and authority 
 
The program is administered by the DOE Office of Fossil Energy. Legislative authority for the 
program derives from the Department of Energy Organization Act (1977), P.L. 95-91; 21st Century 
Nanotechnology Research and Development Act (2003), P.L. 108-153; Energy Policy Act of 2005, 
P.L. 109-58; America COMPETES Act of 2007, P.L. 110-69; Energy Independence and Security Act of 2007, P.L. 110-140; and America COMPETES Act of 2010, P.L. 111-358. 
 
4. Form, to whom and how assistance is provided 
 To ensure that federally funded research and de velopment technologies and analyses are relevant 
to market and public needs, and transferred to co mmercial applications, the Office of Fossil Energy 
participates in joint partnerships with industry utilizing mechanisms such as cost-shared contracts and CRADAs. 
 
5. Amount 
 
Fiscal years 2011 and 2012 Appropriations (approximate dollars in millions) are as follows:  
 
 FY 2011 FY 2012 
   
Total, Fossil Energy Research and Development 585.1 533.7 
   
Applicable Programs    
   
Coal 389.7 368.4 
Natural Gas Research  0.0 15.0 
Petroleum - Oil Technology 0.0 0.0 
Unconventional Fossil Energy Technologies 0.0 5.0 
Plant and Equipment (e.g., maintenance costs) 20.0 16.8 
Fossil Energy Environment Restoration 10.0 7.9 
Cooperative Research and Development  0.0 0.0 
 
6. Duration 
 
While it is not subject to any fixed completion date, the program's continuation is contingent upon 
ongoing annual appropriations by the Congress.   
7. Trade effects 
 
In light of the scope and nature of the activities being assisted, it is not possible to determine what, if any, trade effects may ev er result from this program.  
 
2.6  Innovative Technology Loan Guarantee Program 
1. Periods covered by the notification 
 
The period covered is fiscal years 2011 and 2012.   
2. Policy objective and/or purpose 
 
To further the President's advanced energy initiative by encouraging early commercial use of new or significantly improved technologies in energy projects. Projects supported by loan guarantees 
will help fulfil the Administration's goals of increasing affordable, reliable, secure, and clean 
sources of energy for the United States.   
3. Background and authority 
 
The 1703 Loan Guarantee Program is authorized un der Title XVII of the Energy Policy Act of 2005 
(Pub L. 109-58). The 1705 Loan Guarantee Progra m is authorized under Title XVII of the Energy 
Policy Act of 2005 (Pub L. 109-58), as amended by Section 406 of the American Recovery and 
Reinvestment Act of 2009 (P.L. 111-5). See the statutes codified at 42 USC §§ 16511-16516.  G/SCM/N/253/USA 
 
- 20 - 
 
  4. Form 
 
Loan guarantees.   
5. To whom and how assistance is provided 
 
Section 1703 of Title XVII of the Energy Policy Act of 2005 (as amended, the "Act") authorizes 
DOE to provide loan guarantees for renewable energy systems, advanced nuclear facilities, 
advanced fossil technologies, efficient end use energy technologies, and other specified types of projects that use advanced technologies in commercial-scale projects that avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases. Section 406 of the 
American Recovery and Reinvestment Act of 2009, P.L. 111-5, amended Title XVII of the Act to 
add Section 1705, a temporary program for the rapi d deployment of renewable energy, electric 
power transmission and leading edge biofuel projects.  
 
6. Amount 
 
Fiscal years 2011 and 2012 Appropriations (approxim ate dollars in millions) are as follows: 
  
 FY 2011 FY 2012 
   
Section 1703 Innovative Technology Loan Guarantee Program 0.0 169.6 
Section 1705 Temporary Loan Guarantee Program 0.0     0.0 
 
Under published regulations for Section 1703, DOE may issue guarantees for up to 100 per cent of 
the amount of a loan, subject to the Act's limitation that DOE may not guarantee a debt instrument for more than 80 per cent of the total cost of an eligible project. By policy, certain of 
the guarantees issued under Section 1705 cover only 80% of the amount of the loan. Under 
Section 1702 of the Act, as amended, the "credit subsidy cost" (a United States government accounting concept) of a guaranteed loan may be pa id with a combination of appropriated funds (if 
available) and borrower payments. To date, Congress has appropriated $169.9 million to pay the 
"credit subsidy cost" of loan guarantees issued under Section 1703 for renewable energy and 
energy efficiency projects. The "credit subsidy costs" of all other Section 1703 loan guarantees are expected to be paid by the borrowers. The "credi t subsidy costs" (as of closing) of all loan 
guarantees issued under the Section 1705 temporar y program were paid with  appropriated funds. 
 7. Duration 
 No loan guarantees may be issued under the Section 1705 program after 30 September 2011. There is no similar deadline under Section 1703.  
8. Trade Effects 
 
Given that this is a relatively new program and in light of the activities being assisted, it is not 
possible to determine what, if any, trade e ffects may ever result from this program. 
 2.7  Advanced Technology Vehicles Manufacturing Loan Program (ATVM) 
1. Periods covered by the notification 
 
The period covered is fiscal years 2011 and 2012.   
2. Policy objective and/or purpose 
 
The ATVM loan program provides loans to automobile and automobile parts manufacturers for the 
cost of reequipping, expanding, or establishing ma nufacturing facilities in the United States to 
produce advanced technology vehicles or qualif ied components, and for associated engineering 
integration costs. 
 G/SCM/N/253/USA 
 
- 21 - 
 
  3. Background and authority 
 
The ATVM loan program was established by Sectio n 136 of the Energy Independence and Security 
Act of 2007 (Pub L. 110-140). See the statute codified at 42 USC §17013.  
4. Form 
 
Direct loans  
 
5. To whom and how assistance is provided 
 Section 136 of the Energy Independence and Se curity Act of 2007 established an incentive 
program – the Advanced Technology Vehicles Manufacturing Loan Program – consisting of direct 
loans to support the development of advanced tec hnology vehicles and associated components in 
the United States. The ATVM loan program supports the President's goal to create green jobs in 
the automotive and component manufacturing indust ries and will help ensure that new advanced 
technology vehicles (ATVs) meet a higher standard (125 per cent of the 2005 base year CAFE fuel efficiency standards) than similarly classed conv entional technology vehicles. In fiscal year 2010, 
Section 136 was amended to include ultra-efficient vehicles within the definition of advanced 
technology vehicles (Pub L. 111-85).  6. Amount 
 Fiscal years 2011 and 2012 there was no money appropriations for this program.  
7. Duration 
 
No specified sunset date. 
 
8. Trade Effects 
 Given that this is a relatively new program and in light of the activities being assisted, it is not 
possible to determine what, if any, trade e ffects may ever result from this program. 
 3  OTHER ENERGY AND FUELS
6 
3.1  Expensing of Exploration and Developmen t (E&D) Costs for Oil, Gas and other Fuels 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 
To encourage the development of domestic oil, natural gas and coal resources.  
 3. Background and authority 
 In the case of successful investments in domestic oil and gas wells, intangible drilling costs, such 
as wages, the costs of using machinery for grading and drilling and the costs of unsalvageable 
materials used in constructing wells, may be ex pensed for tax purposes rather than amortized 
over the productive life of the property. Integrated oil companies may currently deduct only 70 percent of such costs and amortize the remain ing 30 percent over five years. The same rule 
applies to the exploration and development costs of surface stripping and the construction of 
shafts and tunnels for other fuel minerals. The expensing provision is authorized under 
sections 263(c), 291, 616-617, 57(2), and 1254 of the Internal Revenue Code of 1986. The expensing of intangible drilling costs was originally established in a 1916 Treasury regulation with 
the rationale that such costs were ordinary operating expenses. Limitations on expensing for 
integrated oil companies were applied in 1976 and later years.   
                                               
6 The programmes in this section are tax-related, authorized under the US Internal Revenue Code.  G/SCM/N/253/USA 
 
- 22 - 
 
  4. Form 
 
Income tax concession.   
5. To whom and how assistance is provided 
 
Fuel mineral producers are permitted accelerated deductions from taxable income.  
 
6. Amount 
 The revenue loss was $500 million in 2011 and $470 million in 2012.  
 
7. Duration 
 
Indefinite.  
 8. Trade Effects 
 It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 3.2  Excess of Percentage over Cost Depletion for Oil, Gas and Other Fuels 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 
2. Policy objective and/or purpose 
 
To stimulate the supply of oil and gas, compensate producers for the high risks of prospecting, and 
relieve the tax burdens of small-scale producers.   3. Background and authority 
 Independent ( i.e., non-integrated) oil and gas producers and other fuel mineral producers and 
royalty owners are generally allowed to take percentage depletion deductions rather than cost 
depletion on limited quantities of output for tax purposes. Under cost depletion, outlays are 
deducted over the productive life of the property based on the fraction of the resource extracted. 
Under percentage depletion taxpayers deduct a percentage of gross income from mineral 
production at rates of 15 percent for oil, gas an d oil shale, and 10 percent for coal. The deduction 
is limited to 50 percent of net income from the property, except for oil and gas where the 
deduction can be 100 percent of net property income. For domestic production from marginal wells, the 100 percent of net income limitation has been suspended for taxable years before 
1 January 2012. Additionally, the percentage deplet ion deduction for all oil and gas properties may 
not exceed 65 percent of the taxpayer's overall income and is limited to 365,000 barrels per year 
per taxpayer. Production from geothermal deposits is eligible for percentage depletion up to 
65 percent of net income, but with no limit on output and no limitation with respect to qualified 
producers. Unlike depreciation or cost depletion, percentage depletion deductions can exceed the cost of the investment.  
 
Percentage depletion is authorized under sections 611-613, 613A, and 291 of the Code. Percentage depletion for oil and gas goes back to 1918 or before and was extended to coal and most other minerals in 1932. The Tax Reduction Act of 1975 eliminated the percentage depletion 
allowance for major oil and gas companies and reduced the rate for independents to 15 percent 
for 1984 and beyond.  
4. Form 
Income tax concession.  
 5. To whom and how assistance is provided 
 G/SCM/N/253/USA 
 
- 23 - 
 
  Independent fuel mineral producers and royalty owners are permitted deductions from taxable 
income for percentage depletion.   6. Amount 
 A deduction from income is allowed for the greater of cost or percentage depletion. Percentage depletion is 15 percent of revenue for non-integrated oil and gas producers and 10 percent for coal 
producers. The revenue loss was $1,190 million in 2009 and $890 million in 2010.  
 7. Duration 
 
Indefinite.  
 8. Trade Effects 
 It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
3.3  Alternative Fuel Production Credit 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 
2. Policy objective and/or purpose 
 
To provide incentives for the private sector to increase the development of alternative domestic 
energy resources because of concern over oi l import dependence and national security. 
 
3. Background and authority 
 
The Energy Policy Act of 2005 provided a temporary income tax credit equal to $3 (generally adjusted for inflation) per Btu oil barrel equivalent for coke and coke gas produced in the United 
States at qualified facilities and sold to unrelated parties. The credit is available for coke or coke 
gas produced during a four-year period beginning on the later of 1 January 2006, or the date the qualified facility was placed in service. Qualified facilities do not include facilities that produce 
petroleum-based coke or coke gas. The amount of credit-eligible coke produced at any one facility 
may not exceed an average barrel-of-oil equivalent of 4,000 barrels per day.  
4. Form 
 
Income tax concession.   
5. To whom and how assistance is provided 
 
Producers and royalty owners of qualifying produc tion are permitted credits against federal income 
tax.  
 6. Amount 
 The revenue loss was $10 million in 2011 and $20 million in 2012.   7. Duration 
 Provision expired 31 December 2011.   
8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 G/SCM/N/253/USA 
 
- 24 - 
 
  3.4  Capital Gains Treatment of Royalties on Coal 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 
2. Policy objective and/or purpose 
 
To encourage the development of the domestic coal industry.  
 3. Background and authority 
 
The capital gains tax treatment is authorized und er sections 1231 and 631 of the Internal Revenue 
Code. When the capital gain rate is below the regular tax rate, the owner is not entitled to percentage depletion provided in section 613 of the Internal Revenue Code.  
 
4. Form 
 
Income tax concession.  
 5. To whom and how assistance is provided 
 
Sales of certain coal under royalty contracts can be treated as capital gains for tax purposes. 
Income tax rates for individuals on ordinary income ranged from 10 percent to 35 percent in 2007 and 2008. For individual taxpayers, long-term capital gains are taxed separately from other 
income, generally at a maximu m tax rate of 15 percent.  
 6. Amount 
 The revenue loss was $60 million in 2011 and $90 million in 2012.   7. Duration 
 Indefinite.   
8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
3.5  Energy Efficient Appliance Credit 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012. 
 2. Policy objective and/or purpose 
 To encourage the manufacture of energy efficient appliances.   
3. Background and authority 
 
A tax credit is allowed to a manufacturer for th e production of energy efficient dishwashers, 
clothes washers, and refrigerators. A manufacturer's cumulative credit is limited to $75 million for 
all taxable years beginning after 31 December 2007 and before 31 December 2011 with the 
exception that the $200 refrigerator credit and th e $250 clothes washer credit are not limited. In 
2011 the aggregate credit amount allowed may not exceed $25 million per manufacturer with the 
exception of the most energy efficient clothes wash ers and refrigerators. The Energy Policy Act of 
2005 added the credit for energy efficient appliances. The Emergency Stabilization Act of 2008 modified the tax credit amount and standards for energy efficient household appliances produced 
after 2007. The Tax Relief, Unemployment Insura nce Reauthorization, and Job Creation Act of 
2010 modified the tax credit amount and standards for energy efficient household appliances G/SCM/N/253/USA 
 
- 25 - 
 
  produced after 2010 and modified the aggregate credit amounts allowed per manufacturer. The 
credit is authorized in section 45M of the Internal Revenue Code.  4. Form 
 Income tax concession.   
5. To whom and how assistance is provided 
 
The credit reduces income taxes for manufacturers that produce qualifying appliances.   
6. Amount 
 
The revenue loss was $280 million in 2011 and $210 million in 2012.  
 
7. Duration 
 
The provision applies to appliances produced before 31 December 2013.  
 8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 3.6  Alcohol Fuel Credit 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 
2. Policy objective and/or purpose 
 To encourage the substitution of alcohol fuels produced from renewable sources for gasoline and 
diesel fuel.  
 3. Background and authority 
 There is a tax credit or payment for alcohol used as a fuel. This credit is equal to 45 cents per gallon for alcohol (60 cents for methanol) used as a fuel. Small producers of ethanol are eligible 
for a 10 cent per gallon income tax credit up to 60 million gallons of alcohol per year. In addition, 
a credit is available for cellulosic biofuel production. The credit for cellulosic biofuel is $1.01 per gallon. The credit is included in a taxpayer's income.   
The alcohol fuel credits are authorized by sectio ns 38, 40, 6426, and 6427 of the Internal Revenue 
Code. The alcohol fuel credits were enacted as part of the Crude Oil Windfall Profit Tax of 1980, at the rate of 40 cents per gallon for alcohol that was 190 proof or more, and 30 cents per gallon for 
alcohol between 150 and 190 proof. The credits were increased in 1982 and 1984. The Omnibus 
Reconciliation Act of 1990 reduced the credits to 54 cents and 40 cents for ethanol and ethanol blends and introduced the 10-cent-per-gallon income tax credit for small ethanol producers. In 
1998, the Transportation and Equity Act for the 21
st Century reduced the alcohol fuel credit, as 
described above. The American Jobs Creation Ac t of 2004 eliminated reduced rates of excise tax 
for most alcohol-blended fuels and substituted th e current rules providing for income and excise 
tax credits or direct payments. The credit for alcohol fuel was lowered from 51 cents per gallon to 
45 cents by the Heartland, Habitat, harvest, and horticulture Act of 2008. The credit for cellulosic 
biofuel was also enacted by this legislation. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extend ed the alcohol fuel credits expiring at the end 
of 2010 through 2011. Mixtures of a by-product of  the manufacturing of pulp and paper (black 
liquor) and diesel fuel were excluded from the ce llulosic biofuel credit by the Health Care and 
Education Reconciliation Act of 2010. 
 
4. Form 
 Income tax concession, excise tax concession, or direct payment for fuels containing alcohol. G/SCM/N/253/USA 
 
- 26 - 
 
  5. To whom and how assistance is provided 
 
The small ethanol producer credit reduces the income tax liability of qualifying producers. All other credits reduce federal income or excise tax of, or result in a direct payment to, qualifying 
producers, blenders, or users.  
 6. Amount 
 The revenue loss was $7,020 million in fiscal year 2011 and $3,680 million in fiscal year 2012.   7. Duration 
 The credits expired 31 December 2011 except fo r the cellulosic biofuel credit, which expired 
1 January 2013. 
 
8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 3.7  Biodiesel and Renewable Diesel Credit 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.   
2. Policy objective and/or purpose 
 
To encourage the substitution of biodiesel and renewable diesel for diesel fuel.  
 
3. Background and authority 
 There is a tax credit for biodiesel or renewable diesel used as a fuel. This credit is equal to $1.00 
per gallon for biodiesel (including agri-biodiesel). In addition, small producers of biodiesel are 
eligible for a 10 cent per gallon income tax credit. The credit is included in a taxpayer's income.   
The biodiesel and renewable diesel credits are authorized by sections 38, 40A, 6426, and 6427 of 
the Internal Revenue Code. The biodiesel credit was enacted as part of the American Jobs Creation 
Act of 2004. The renewable diesel credit was enacted and the biodiesel credit was extended as 
part of the Energy Policy Act of 2005. The Emerge ncy Stabilization Act of 2008 increased the credit 
for recycled biodiesel from $0.50 per gallon to $1.00 per gallon and extended the credits through 
31 December 2009. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation 
Act of 2010 extended the biodiesel and Renewable Diesel credits through 2011. 
 
4. Form 
 
Income tax concession, excise tax concession, or direct payment for fuels containing biodiesel.  
 5. To whom and how assistance is provided 
 The small biodiesel producer credit reduces the income tax liability of qualifying producers. All other credits reduce federal income or excise tax of, or result in a direct payment to, qualifying producers, blenders, or users.  
 
6. Amount 
 
The revenue loss was $780million in fiscal year 2011 and $90 million in fiscal year 2012.  
 7. Duration 
 The credit expired 31 December 2011.   G/SCM/N/253/USA 
 
- 27 - 
 
  8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
3.8  Alternative Fuels Credit 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012. 
 2. Policy objective and/or purpose 
 
To encourage the substitution of alternative fuels for gasoline and diesel fuel.  
 3. Background and authority 
 An excise tax credit is available for alternative fuels including liquefied petroleum gas, P Series fuels, compressed or liquefied natural gas, liquefied hydrogen, liquefied fuel derived from coal 
through the Fischer-Tropsch process, compressed or liquefied gas derived from biomass, or liquid 
fuel derived from biomass. For coal-to-liquids produced after 30 September 2009 through 30 December 2009, the fuel must be certified as having been derived from coal produced at a gasification facility that sequesters 50 percent of such facility's total carbon dioxide emissions. The 
sequestration percentage increases to 75 percent for fuel produced after 30 December 2009. The 
alternative fuel credit is 50 cents per gallon of al ternative fuel or gasoline gallon equivalents. The 
excise tax credit was enacted as part of the Sa fe, Accountable, Flexible, Efficient Transportation 
Act of 2005. The Tax Relief, Unemployment Insura nce Reauthorization, and Job Creation Act of 
2010 extended the alternative fuel credit through 2011 and eliminated the credit for any fuel (including lignin wood residues, or spent pulping liquors) derived from the production of paper or 
pulp (black liquor). The credit is authorized in  sections 6426 and 6427(e) of the Internal Revenue 
Code.   4. Form 
 Excise tax concession.   
5. To whom and how assistance is provided 
 
The credit reduces the excise tax of, or result in direct payment to, qualifying producers, blenders, 
or users. 
 6. Amount 
 
The revenue loss was under $160 million in 2011 and $310 million 2012.  
 7. Duration 
 The tax credit expired on 31 December 2011 (excep t in the case of hydrogen). In the case of 
hydrogen, the credit expires on 30 September 2014.  
 
8. Trade Effects 
 It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
3.9  Credits for Investment in Advanced Coal Facilities and Advanced Gasification 
Facilities 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012. 
 G/SCM/N/253/USA 
 
- 28 - 
 
  2. Policy objective and/or purpose 
 
To encourage the development of advanced technology facilities for generating electricity from coal and synthesis gas.  
 
3. Background and authority 
 
Under the first round of credit allocations, taxpayers are allowed investment credits of 20 percent 
for investments in integrated gasification combined cycle (IGCC) facilities and gasification facilities and 15 percent for investments in other advances coal facilities. The credit is subject to a national limitation of $800 million for the IGCC credit, $500 million for other advanced coal facilities, and 
$350 million for gasification facilities. The credit was adopted as part of the Energy Policy Act of 
2005. This provision is authorized in sections 48A and 48B of the Internal Revenue Code.  
Under the second round of credit allocations, the credit rate is increased to 30 percent for new 
IGCC and other advanced coal projects. An additional $1.25 billion of credits can be allocated to qualifying projects. Under the second round of cred it allocations, qualifying projects must include 
equipment which separates and sequesters at least 65 percent of the project's total carbon dioxide 
emissions. Under the second round of credit allocati ons, the gasification project credit is increased 
to 30 percent. An additional $250 million of credit s can be allocated to qualified projects that 
separate and sequester at least 75 percent of carbon dioxide emissions. The credit was adopted as 
part of the Emergency Stabilization Act of 2008. Th is provision is authorized in sections 48A and 
48B of the Internal Revenue Code.  
4. Form 
 
Income tax concession.  
 
5. To whom and how assistance is provided 
 The credit reduces federal income taxes for taxpayers investing in qualified facilities.  
 
6. Amount 
 
The revenue loss was $370 million in 2011 and $380 million in 2012.  
 7. Duration 
 The tax credit applies to investments after 8 August 2005.   8. Trade Effects 
 It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
3.10  Advanced Energy Property Credit 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012. 
 2. Policy objective and/or purpose 
 
To stimulate economic growth, create jobs, and reduce greenhouse gas emissions by supporting 
investments in green energy manufacturing.  
3. Background and authority 
 
A 30-percent credit is available for investment in qualified property used in a qualified advanced 
energy manufacturing project. A qualified advanced  energy project is a project that re-equips, 
expands, or establishes a manufacturing facility fo r the production: (1) property designed to be 
used to produce energy from renewable resources;  (2) fuel cells, microturbines, or an energy 
storage system for use with electric or hybrid-electric vehicles; (3) electric grids to support the G/SCM/N/253/USA 
 
- 29 - 
 
  transmission of intermittent sources of renewabl e energy; (4) property designed to capture and 
sequester carbon dioxide; (5) property designed to refine or blend renewable fuels or to produce energy conservation technologies; (6) qualified plug-in electric drive motor vehicles, qualified plug-in electric vehicles, or components which are designed specifically for use with such vehicles; 
and (7) other advanced energy property designed  to reduce greenhouse gas emissions. Up to 
$2.3 billion in credits may be allocated.  
The credit was adopted as part of the American  Recovery and Reinvestment Act of 2009 and is 
authorized in section 48C of the Internal Revenue Code.  4. To whom and how assistance is provided 
 The credit reduces federal income taxes for taxpayers investing in qualified projects.   
5. Amount 
 
The revenue loss was $430 million in 2011 and $580 million in 2012.  
 
6. Duration 
 There is a 1-year period from the time of accept ance for the taxpayer to satisfy the requirements 
for certification, and then a 3-year period from th e time of certification to place the property in 
service. The placed-in-service deadline for most projects is 2017.  
7. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
3.11  Deduction for Investment in  Increased Refinery Capacity 
1. Period covered by the notification 
 
The period covered is fiscal years 2009 and 2010. 
 2. Policy objective and/or purpose 
 To encourage investments in increased refinery capacity.   
3. Background and authority 
 
Refiners are allowed to deduct 50 percent of the costs they incur to increase refinery capacity. The deduction was adopted as part of the Energy Policy Act of 2005. This provision is authorized in 
section 179C of the Internal Revenue Code.  
 4. Form 
 Income tax concession.   
5. To whom and how assistance is provided 
 
The credit reduces federal income taxes for taxpayers that incur costs to increase refinery capacity.  
 
6. Amount 
 
The revenue loss was less than $770 million in 2009 and $760 million in 2010.  
 7. Duration 
 The tax credit applies to costs incurred after 8 August 2005 for property placed in service before 1 January 2012.   G/SCM/N/253/USA 
 
- 30 - 
 
  8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
3.12  Amortization of Geological  and Geophysical Expenditures 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012. 
 2. Policy objective and/or purpose 
 
To encourage oil and gas exploration.  
 3. Background and authority 
 Taxpayers are allowed to amortize costs incurred in exploring for oil and gas. For costs incurred 
in 2006, amortization was permitted over two years for both integrated and non-integrated oil 
companies. For costs incurred after 2006 and before 20 December 2007, amortization was 
permitted over five years for integrated oil comp anies. For costs incurred after 19 December 2007, 
amortization is permitted over seven years for integrated oil companies. The amortization deduction was adopted as part of the Energy Po licy Act of 2005. The amortization period was 
increased by the Tax Increase Prevention an d Reconciliation Act of 2005 and the Energy 
Independence and Security Act of 2007. This pr ovision is authorized in section 167(h) of the 
Internal Revenue Code.  
 
4. Form 
 
Income tax concession.  
 5. To whom and how assistance is provided 
 
The credit reduces federal income taxes for taxpayers that incur costs in exploring for oil and gas.  
 6. Amount 
 The revenue loss was less than $120 million in 2011 and $90 million in 2012.   
7. Duration 
 
Amortization is available for costs incurred in tax years beginning after 8 August 2005.   
8. Trade Effects 
 
It is not possible to estimate what, if any, trade effects may result from the use of this provision. 
 
4  FISHERIES 
4.1  Fisheries Finance Program (FFP)  
(Prior to 1996, this program was known the Fisheries Obligation Guarantee (FOG) Program.)  
 1. Period covered by the notification 
 
The period covered is fiscal year 2011 and 2012.  
 2. Policy objective and/or purpose  
 The purpose of FFP is to provide fixed-rate financing with a term equal to the estimated useful life of the equipment financed. The predecessor program – the FOG Program – which operated from 
1972 through 1996, provided government-backed loan guarantees to the U.S. commercial fishing 
sector for the construction, reconstruction, replacement and, under certain circumstances, the purchase of fishing vessels. Since 1991, the program has been barred by NOAA policy and G/SCM/N/253/USA 
 
- 31 - 
 
  Congressional directives from financing any project that could be construed to lead to 
overcapitalization of any fishery. In 1996, the program's regulations were amended to reflect this change in policy.   
In 1996, the FOG Program began providing direct loans, and the name of the program was 
changed to the Fisheries Finance Program. Over time, FFP lending authority was extended to include aquaculture, vessel buybacks, Individual Fishing Quota (IFQ) purchases and Community 
Development Quota loans.  
 3. Background and authority 
 
Background is provided above. The statutory authority for the FOG Program and FFP is Title XI of 
the Merchant Marine Act, 1936, as amended and now recodified at 46 U.S.C. 53701, et seq. This 
program is administered by the National Marine Fisheries Service (NMFS).  
 
4. Form 
 
The FFP program provides direct loans to the fishing and aquaculture industries. The interest rates 
charged on FFP loans are 2 percentage points abov e comparable maturity Treasury bond yields as 
of the date of the loan closing.   
5. To whom and how assistance is provided 
 
Under the FFP, loans are provided directly to individuals or business enterprises that have qualified 
projects. 
 6. Amount 
 In light of the many loans currently outstanding, and variations in amortization schedules and interest rates, the calculation of any subsidy amount, and especially the subsidy per unit, is not readily attainable. It is important to note, that due to the market interest rates charged on these 
loans and the relatively low default rate, FFP is a self-financing program. In addition the FFP 
charges application fees, frequently requires gu arantees and secondary collateral and forecloses 
loan collateral. All of these factors have result ed in no net outflow of government funds.  
 
Below is a table showing the total amount of loans that have been authorized since 2009. (If this 
program provided a subsidy, the benefit would be based on the difference between the interest 
rate charged under the program and the amount the firm would pay on a comparable commercial 
loan.)  
TYPE OF LOAN FY09 FY10 FY11 FY12 
Traditional $30 $59 $59 $36 
Halibut/Sablefish IFQ   $8   $8 $10   $6 
 
7. Duration 
 
Indefinite. 
 8. Trade effects 
 
Since 1991 , the FFP has been barred by NOAA policy and Congressional directives from financing 
any project that could be construed to lead to ov ercapitalization of any fishery. Because of this 
policy, and because any subsidy element that might be attributable to this program is small or 
non-existent, the trade effects from this prog ram are likely to be minimal, if any.  
 4.2  Saltonstall-Kennedy Grant Program:  Fisheries Research and Development 
1. Period covered by the notification 
 
The period covered is fiscal year 2011 and 2012.   G/SCM/N/253/USA 
 
- 32 - 
 
  2. Policy objective and/or purpose 
 
This program uses funds derived from duties collected on fishery imports to fund a wide range of research and development grants that mostly support effective conservation and management of 
U.S. fisheries and fisheries communities by increasing the biological, economic, and social 
information needed for sound management.  
3. Background and authority  
 
The legislative authority for this program goes  back to the Saltonstall-Kennedy Act of 1954. 
However, the current grant program was established by the American Fisheries Promotion Act 
of 1980, which amended the Saltonstall-Kennedy Act (15 U.S.C. 713c-3(c)). The National Marine 
Fisheries Service administers the program.   
4. Form 
 
Grants are awarded annually on a competitive basis.  
 
5. To whom and how assistance is provided 
 This program is open to: citizens or nationals of the United States; citizens of the Northern 
Mariana Islands (NMI), Republic of the Marshall Islands, Republic of Palau, or the Federated States 
of Micronesia, corporations, partnerships, associations, or other non-Federal entities, non-profit or otherwise (including Native American tribes) within the meaning of section 2 of the Shipping Act 
of 1916, as amended. Federal employees and Fi shery Management Councils and their employees 
are ineligible. Projects are selected for funding through a competition/call for proposals announced in the Federal Register .  
 
6. Amount 
 It is difficult to estimate a subsidy per unit for a diverse R&D (S-K) grant program. In the 
years 2011 and 2012 there were no awards made due to a lack of appropriated funds. It is 
anticipated that both a competitive and national program will be funded in FY 2013.   
7. Duration 
 
Indefinite.  
 
8. Trade effects 
 The trade effects if any, of this program are negligible, due to the program's emphasis on product 
quality/safety and promotion of progress toward sustainable fisheries. Moreover, much of the 
results of research conducted with Saltonsta ll-Kennedy funds are in the public domain.  
 
4.3  Sea Grant 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 
The Sea Grant College Program provides grants to carry out research that addresses many aspects 
of the long-term economic development, enviro nmental stewardship, and responsible use of 
ocean, coastal, and Great Lakes resources, in cluding commercial fisheries and aquaculture. 
National strategic focus areas for research, education, and outreach include: a safe and 
sustainable seafood supply; healthy coastal ecosystems; sustainable coastal development; and hazard resilient coastal communities. A majority of research grants are intended to support 
effective conservation and management of U.S. fisheries, rather than to assist commercial 
activities. However, a small number of Sea Grant projects benefit industry, and, for that reason, in the interests of transparency, this program has been included in this notification.   G/SCM/N/253/USA 
 
- 33 - 
 
  3. Background and authority  
 
In 1965, Sea Grant Colleges were first identified through an amendment to the National Science Foundation Act of 1950, and, in 1966, the program was formally established with passage of the 
National Sea Grant College and Program Act. More than 200 individual colleges and universities in 
thirty-two state Sea Grant College Programs currently participate in this program.   
4. Form 
 
Direct federal grants are normally paid to an academic institution or other organization.   
5. To whom and how the assistance is provided 
 
Grants may be provided to institutions of higher education (including Sea Grant College, Sea Grant 
Institute or other institutions), non-profit organizations, commercial organizations, state, local and 
Indian tribal governments, and individuals. Each Sea Grant College Program administers a "request for proposal" (RFP) process to address state priorities, in addition to RFPs for National 
Strategic Investments administered by the National Sea Grant Office. The National Marine 
Fisheries Service headquarters administers a separate RFP process to elicit proposals with a national scope.   
6. Amount 
 
The large majority of grants under this program support research that does not directly provide 
economic benefits to the fishing industry. Therefor e, it is difficult to determine the value of any 
subsidy that may be provided under this progra m. Total program appropriations (fisheries and 
non-fisheries) for fiscal year 2011 were $61.4 million. Of that 2011 amount, approximately 
$3.3 million were devoted to research focuse d on commercial fisheries and approximately 
$5.5 million were devoted to research focused on aquaculture. Total appropriations (fisheries and non-fisheries) for fiscal year 2012 were $62.2 million. Of that 2012 amount, approximately $2.7 million were devoted to research focuse d on commercial fisheries and approximately 
$5.3 million were devoted to research focused on aquaculture. 
 7. Duration 
 Federal grants for research and development under the Sea Grant program are provided annually, although some of the projects are multi-annual. The duration of the program itself is indefinite.  
 
8. Trade effects 
 The Sea Grant Program is not an industry or tr ade promotion program. Very little of the funds 
provided directly impact the U.S. fishing industry . Additionally, much of the results of research 
conducted with Sea Grant funds is in the public do main. In light of these considerations, the trade 
effects of this program, if an y, are likely to be minimal. 
4.4  Columbia River Fishery Deve lopment Program (Mitchell Act)  
1. Period covered by the notification 
 
The period covered is fiscal year 2011 and 2012.  
 2. Policy objective and/or purpose  
 
The Mitchell Act (16 USC 755-757; 52 Stat. 345) authorizes the Secretary of Commerce to carry 
on activities for the conservation of fishery resources in the Columbia River Basin. The Mitchell Act specifically directs the establishment of salm on hatcheries, the conduct of engineering and 
biological surveys and experiments, and the insta llation of fish protective devices. It also 
authorizes agreements with state fishery agencies  and construction of facilities on state-owned 
lands. The major objective of this program has traditionally been to mitigate the negative effects 
of lost salmon habitat caused primarily by the building of dams for hydroelectric power and 
irrigation projects, and also by other land-use factors, such as agriculture, logging, and urban 
development.  G/SCM/N/253/USA 
 
- 34 - 
 
  With the listing of many of the Columbia River Basin salmon and steelhead populations under the 
Endangered Species Act, substantial changes have been and will continue to be required of the Mitchell Act Program. The Mitchell Act environm ental impact statement (EIS) will be finalized 
in 2013 and will provide a basis to inform the policy  direction for hatchery production in the future 
and the distribution of future Mitchell Act funding. 
 3. Background and authority 
 The Columbia River Fishery Development Program was authorized by the Mitchell Act (Public Law 75-502, May 11, 1938). It has evolved into a program which funds state agencies and tribal hatcheries, irrigation screens and fishways, and monitoring, evaluation, and reform (MER) projects 
in the Columbia River. The program has received federal appropriations since 1950, and is funded 
by general appropriations legislation.   
4. Form 
 
The United States Government provides operating grants to Columbia River Fisheries Development 
Program salmon hatcheries run by the Oregon Department of Fish and Wildlife (ODFW), the 
Washington Department of Fish and Wildlife (WDFW), the Confederated Tribes and Bands of the Yakama Nation (YN) and the U.S. Fish and Wildlife Service (USFWS), Department of Interior. In addition, the program funds irrigation screens and fishways operated by ODFW, WDFW, the Idaho 
Department of Fish and Game (IDFG), and YN, and funds MER projects conducted by ODFW, 
WDFW, YN, USFWS, and the Nez Perce Tribe (NPT).   
5. To whom and how assistance is provided 
 
The funds are provided to the ODFW, the WDFW, IDFG, the YN and the NPT through Cooperative 
Agreements. Funds are also provided to the US FWS through an intergovernmental transfer.  
 6. Amount 
 
In fiscal years 2011 and 2012, the appropriation under the Mitchell Act Program was stable at 
$15,868,000 annually. this funded: the operatio n and maintenance of hatchery programs in 
Oregon and Washington states; funded necessary MER projects for Mitchell Act funded hatchery 
operations in Washington, Oregon and Idaho stat es; and funded screening and passage projects in 
Washington, Oregon, and Idaho states.   
7. Duration 
 
Indefinite.   
8. Trade effects 
 
The basic purpose of salmon hatcheries is to mitigate habitat and other losses associated with 
other federally-supported activities, to restore depleted salmon resources, and help to recover 
listed salmon and steelhead. The contribution of Columbia River hatchery-reared fish to the commercial harvests in waters off Washington, Oregon, and California and off Alaska varies from 
year to year given natural variability but the Mitchell Act funded hatcheries contribute substantially 
to the economic value of the commercial (tribal and non-tribal) and recreational fishery in general. A recent economic analysis by TCW Economics concluded that the Mitchell Act funded hatchery production contributed $36 million in personal in come to the regional economy and 871 jobs based 
upon hatchery production of approximately 70 million juvenile salmon and a catch of 252,000 
adults in the commercial, recreational and tribal fisheries in the Columbia River, Pacific Ocean and Puget Sound, based on 2007 data from (TCW Economics 2010). It is generally accepted that 
Mitchell Act funded hatchery production has no discernible trade effect. 
 G/SCM/N/253/USA 
 
- 35 - 
 
  5  LUMBER & TIMBER 
5.1  Capital Gains Treatment of Certain Timber Income 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 To encourage domestic timber production.   3. Background and authority 
 The capital gains tax treatment is authorized und er sections 1231 and 631 of the Internal Revenue 
Code. The provision was originally enacted in 1943.  
 
4. Form 
 
Income tax concession.  
 5. To whom and how assistance is provided 
 
Certain timber income can be treated as capital gains for income tax purposes. Income tax rates 
for individuals on ordinary income ranged from 10 percent to 35 percent in 2009 and 2010. For individual taxpayers, long-term capital gains are taxed separately from other income at a 
maximum rate of 15 percent.  
 6. Amount 
 The revenue loss was $60 million in 2011 and $90 million in 2012.   7. Duration 
 Indefinite.   
8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
5.2  Expensing of Multi-period Timber Growing Costs 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012. 
 2. Policy objective and/or purpose 
 The ability to expense indirect costs of timber growing was based on the view that these costs 
were maintenance costs, and thus deductible as ordinary costs of a trade or business. Following a 
series of revenue rulings and court cases over the years distinguishing between what expenses 
might be deductible and what expenses might be capitalized, the Tax Reform Act of 1986 included uniform capitalization rules which required indirect expenses to be capitalized in most cases. Where the application of these rules was deemed  to be unduly burdensome, exceptions were 
provided.  
 3. Background and authority 
 Generally, costs must be capitalized when goods are produced for inventory used in one's own trade or business, or under contract to another pa rty. Timber production, however, was specifically 
exempted from these multi-period cost rules and permitted to subject such costs to current G/SCM/N/253/USA 
 
- 36 - 
 
  expensing. This expensing is authorized by se ctions 162 and 263A(c) (5) of the Internal Revenue 
Code.   4. Form 
 Income tax concession.   
5. To whom and how assistance is provided 
 
Timber owners can expense, rather than capitalize, certain costs from taxable income.   
6. Amount 
 
The revenue loss was $250 million in 2011 and $270 million in 2012.  
 
7. Duration 
 
Indefinite.  
 8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 5.3  Expensing and Seven-Year Amortiza tion for Reforestation Expenditures 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 
2. Policy objective and/or purpose 
 To promote reforestation on private timberlands.  
 
3. Background and authority 
 
Expensing is allowed for up to $10,000 invested annually in clearing land and planting trees for the 
ultimate production of timber. Reforestation expe nditures beyond this amount may be amortized 
over a seven-year period. Without this preference, reforestation expenditures would have to be 
capitalized and could be recovered (deducted) only when the trees were sold or harvested years 
later. These provisions are authorized by sect ion 194 of the Internal Revenue Code. They were 
originally enacted in the Recreational Boating Safety and Facilities Improvement Act of 1980 and 
were modified by the American Jobs Creation Act of 2004.  
 
4. Form 
 
Income tax concession.  
 5. To whom and how assistance is provided 
 Allows taxpayers to recover the reforestation costs on an accelerated basis in computing taxable income.   
6. Amount 
 
The revenue loss was $60 million in 2011 and $60 million in 2012.  
 
7. Duration 
 
Indefinite.  
 G/SCM/N/253/USA 
 
- 37 - 
 
  8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
6  MEDICAL 
6.1  The Office of Nuclear Physics, Isotop e Development and Production for Research 
and Applications Program 
1. Period covered by the notification 
 
This notification covers fiscal years 2011 and 2012.   
2. Policy objective and/or purpose 
 
The mission of the isotope program is to maintain the infrastructure required to support the 
national need for a reliable supply of isotope prod ucts, services, and related technology used in 
medicine, homeland security applications, and scientific research.   
3. Background and authority 
 
The DOE Office of Science, Office of Nuclear Physics manages the program. The program's operations are financed from a revolving fund established by the 1990 Energy and Water 
Appropriations Act, 1990 (Public Law 101-101), as amended by the Energy and Water 
Development Appropriations Act, 1995 (Public Law 103-316). All receipts from isotope sales and services are deposited into the fund, including annual Energy and Water Development 
Appropriations. Annual Congressional appropriatio ns generally are used for infrastructure at 
certain DOE laboratories at which isotopes are produced.  
4. Form 
 
Financial assistance is provided in the form of the annual Congressional appropriations. DOE sells commercial isotopes at full-cost recovery or above th at level, which includes direct costs related to 
the production of a specific isotope, as well as infrastructure costs. Research isotopes are sold on a 
direct cost recovery basis, which does not include a share of the hot cell infrastructure expense.   
5. To whom and how assistance is provided 
 
Isotopes are sold to a variety of commercial and research institutions in the medical, industrial, 
and research communities – commercial and non-commercial – both in the United States and 
abroad.   6. Amount 
 Production expenses associated with the manufacture, processing, and distribution of isotopes are recovered from sales revenue. Infrastructure costs are covered in part by an annual Congressional 
appropriation. For fiscal year 2011, the appropriated budget amount was $19.67 million, and in 
fiscal year 2012, the amount was $19.08 million.   
7. Duration 
 
The activity is of indefinite duration; the program operates with a revolving fund and maintains financial viability through its revenues from sales.  
 
8. Trade effects 
 
Even if it were possible to quantify trade effects that might ensue from a program of this nature, it 
is doubtful that this particular program has led to any meaningful trade effects. The isotopes made available have been sold throughout the world to over 250 customers, primarily for medical 
research. 
 G/SCM/N/253/USA 
 
- 38 - 
 
  6.2  Orphan Drug Tax Credit 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
2. Policy objective and/or purpose 
 
To encourage research on drugs for rare diseases or conditions.  
 
3. Background and authority 
 The provision provides a 50 percent tax credit for qualified clinical testing expenses incurred in 
testing of certain drugs for rare diseases or conditions, referred to as "orphan drugs". Qualified 
testing expenses are costs incurred to test an or phan drug after the drug has been approved for 
human testing by the Food and Drug Administration (FDA), but before the FDA approves it for 
sale. A rare disease or condition is one that affects less than 200,000 persons in the United States, 
or affects more than 200,000 persons, but for which there is no reasonable expectation that businesses could recoup the costs of developing a drug for such disease or condition from US sales 
of the drug. The credit originally was enacted as a temporary provision in 1983 under the Orphan 
Drug Act, and was extended on several occasions.  The credit expired after 31 December 1994, and 
later was reinstated for the period 1 July 1996, through 31 May 1997. The Taxpayer Relief Act of 1997 made the credit permanent. The orphan drug credit is authorized under section 45C of the 
Internal Revenue Code.  
 4. Form 
 Income tax concession.   
5. To whom and how assistance is provided 
 
Taxpayers undertaking qualified research on orphan drugs receive a credit against federal income tax.  
 
6. Amount 
 
The revenue loss was $700 million in 2011 and $840 million in 2012.  
 7. Duration 
 Indefinite.   8. Trade Effects 
 It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
7  METALS, MINERALS AND EXTRACTION (NON-FUEL) 
7.1  Emergency Steel Loan Guarantee Program 1. Period covered by the notification 
 
This period covered is fiscal years 2011 and 2012.   2. Policy objective and/or purpose 
 The overall purpose of this program is to assist steel companies injured since the beginning of the 
steel import crisis in 1998.  
 
3. Background and authority  
 
The Emergency Steel Loan Guarantee Act of 1999  was signed into law on 17 August 1999. The 
Guarantee Board, consisting of representatives of  the Federal Reserve System, the Securities and G/SCM/N/253/USA 
 
- 39 - 
 
  Exchange Commission, and the Department of Co mmerce, administer the programme and has the 
authority to guarantee loans until 31 December 2011   4. Form 
 The program guarantees loans up to 95 per cent of the principal amount of loans provided by 
private lenders.  
 
5. To whom and how assistance is provided 
 The program guarantees loans provided to qua lified steel companies by private banking and 
investment institutions in accordance with rules established by the Guarantee Board. The Board 
has the authority to make commitments for guarantees of loans up to $1 billion. The amount guaranteed to any single qualified steel company may not exceed $250 million.  
 
6. Amount 
 
The Board received an application for guarantee of a $250 million loan in September 2002 that 
was approved for guarantee in March 2003. The guaranteed loan was issued in August 2003 and repaid in May 2008. This was the third and final loan guarantee issued under the programme.   
7. Duration 
 
The Board's authority to issue guarantees expires 31 December 2011. Currently there are no 
applications pending under this program.  
 8. Trade Effects 
 It is not possible to estimate what trade effect s, if any, may result from this program.  
 7.2  Excess of Percentage over Cost  Depletion for Non-fuel Minerals 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012. 
 
2. Policy objective and/or purpose 
 
To encourage the development of the domestic non-fuel mineral industry. 
 3. Background and authority 
 
The provisions permit most non-fuel mineral extractors to make use of percentage depletion rather 
than cost depletion, with percentage depletio n rates ranging from 22 percent for sulphur to 
5 percent for sand and gravel. Percentage deplet ion is authorized by sections 611-613 and 291 of 
the Code. Percentage depletion similar to its cu rrent form was provided in 1932 at 23 percent for 
sulphur and 15 percent for metal mines. From 1932 to 1950, percentage depletion was extended to most other minerals. The Revenue Act of 1951 granted it to more minerals. In 1954, still more 
minerals were granted the allowance. In 1969, the top depletion rates were reduced. The Tax 
Equity and Fiscal Responsibility Act of 1982 reduce d the allowance for corporations that mined iron 
ore by 15 percent. The Tax Reform Act of 1986 raised the cutback in corporate allowances of iron ore from 15 to 20 percent.  
 
4. Form 
 
Income tax concession.  
 5. To whom and how assistance is provided 
 Non-fuel mineral extractors are permitted deductions from taxable income for depletable expenditures equal to the larger of percentage or cost depletion.   G/SCM/N/253/USA 
 
- 40 - 
 
  6. Amount 
 
The revenue loss was $580 million in 2011 and $560 million in 2012.  
7. Duration 
Indefinite.  
 8. Trade Effects 
 It is not possible to estimate what, if any, trade effects may result from the use of these provisions.   
7.3  Expensing of Exploration and Development Costs for Non-fuel Minerals 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 To encourage the development of domestic non-fuel mineral industry.   3. Background and authority 
 These provisions permit certain capital outlays associated with exploration and development of n o n - f u e l  m i n e r a l s  t o  b e  e x p e n s e d  r a t h e r  t h a n  depreciated over the life of the asset. These 
provisions are authorized by sections 263, 263A, 291, 616-617, 56 and 1254 of the Internal 
Revenue Code. Expensing of mine development expenditures was enacted in 1951 to reduce ambiguity in the then existing treatment of, an d to encourage, mining. The provision for mine 
exploration was added in 1966. The Tax Equity and Fiscal Responsibility Act of 1982 limited 
expensing for corporations to 85 percent; the remaining 15 percent must be depreciated.   4. Form 
 Income tax concession.   
5. To whom and how assistance is provided 
 
Non-fuel mineral producers and royalty owners ar e permitted expensing of certain capital outlays 
associated with the development of non-fuel minerals rather than amortization over the life of the 
mine for federal income tax purposes.   6. Amount 
 The revenue loss was $60 million in 2011 and $50 million in 2012.   
7. Duration 
 
Indefinite.  
 
8. Trade Effects 
 It is not possible to estimate what, if any, trade effects may result from the use of these 
provisions.  
 G/SCM/N/253/USA 
 
- 41 - 
 
  8  SHIPYARDS 
8.1  Assistance to Small Shipyards Grant Program 1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 The Small Shipyard Grant Program (SSGP) provides grants for capital and related improvements to qualified small shipyard facilities to foster efficiency, competitive operations, and quality ship construction, repair, and reconfiguration. Grant funds may also be used for maritime training 
programs to foster technical skills and operationa l productivity. For the purposes of this program, 
small shipyards fall into two categories: those with fewer than 600 employees, and those with between 600 and 1200 employees. 
 
3. Background and authority 
 
In 2006, Public Law 109-163, the National Defense Authorization Act for Fiscal Year 2006, 
authorized the U.S. Maritime Administration (MARAD) to establish a program to provide assistance in the form of grants, loans, and loan guarantees to small shipyards for capital improvements, and for maritime training programs in communities whose economies are substantially related to the 
maritime industry. The program has been manage d by MARAD since then under the authorization 
of various pieces of legislation. In FY 2009, the American Recovery and Reinvestment Act (ARRA) provided $100 million to the program in addition to normal annual appropriations. The additional 
funds formed part of the US government's stimul us in response to the economic downturn of 
2008-09 and were not continued after FY 2009.  
P.L. 109-163, National Defense Authorization Act for Fiscal Year 2006 
P.L. 110-161, Consolidated Appropriations Act, 2008 P.L. 110-417, National Defense Authorization Act for Fiscal Year 2009 P.L. 111-5, American Recovery and Reinvestment Act of 2009 
P.L. 111-8, Omnibus Appropriations Act, 2009 
P.L. 111-117, Consolidated Appropriations Act, 2010 P.L. 112-10, Department of Defense and Full-Year Continuing Appropriations Act, 2011 
P.L. 112-55, Consolidated and Further Continuing Appropriations Act, 2012 
 P.L. 113-6, Consolidated and Further Continuing Appropriations Act, 2013   
4. Form 
 
Federal grants may fund 75 per cent of the cost of  a project, matched by a contribution of 25 per 
cent by the beneficiary shipyard. 
 
5. Amount 
 
Congress first funded the program with $10 million  through the Consolidated Appropriations Act 
of 2008. In fiscal year 2011, the total amount appropriated for the SSGP was $9.98 million. The entire amount was disbursed in the form of grants. In fiscal year 2012, the total amount 
appropriated for the SSGP was $9.98 million. The entire amount was disbursed in the form of 
grants.  6. Duration 
 The SSGP has operated under various authorities beginning in 2006. It has provided funding to shipyards since 2008. 
 
7. Trade effects 
 
It is not possible to determine what, if any, trade effects may result from this program. 
 G/SCM/N/253/USA 
 
- 42 - 
 
  9  TEXTILES 
9.1  The Textile/Clothing Technology Corporation Program (TC2) 1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012 
 2. Policy objective and/or purpose 
 The Textile/Clothing Technology Corporation is a non-profit membership organization designed to stimulate economic growth in the US textile and apparel sector. It has programmes to demonstrate advanced equipment and techniques, to educate participants in the sector, and to do 
basic research. Only the basic research element is funded by the federal government through a 
grant from the US Department of Commerce (DOC). The basic research is performed internally by 
the organization and, in part, by external entities  on a contractual basis. The results of the basic 
research are made available throughout the textil e and apparel sector of the United States. No 
production subsidies are provided under this programme.   
3. Background and authority 
 
The programme is administered by DOC's Office of Textiles and Apparel. Authorization and funding for the programme is provided for as part of the annual budget and appropriations process for 
the DOC.  
 4. Form 
 Assistance is provided under this programme in the form of grants.  
 
5. To whom and how assistance is provided 
 
A grant is provided to the Textile/Clothing Technology Corporation following the presentation of a proposal describing the research projects which will be undertaken.  
 
6. Amount 
 
Appropriations (approximate dollars in millions).  
 2011 - $0.0   2012 - $1.7 
 
7. Duration 
 Grants were first distributed under the programme in 1981. Authorization and funding for this 
program is provided as part of the annual budget and appropriations process for the Department 
of Commerce. The congressionally-mandated financial assistance is made to this organization which is specifically named by statute and for which funds are set aside in the Department's 
appropriations. Funding for this program was terminated in 2011. 
 8. Trade Effects 
 In light of the scope and nature of the R&D activities being assisted, it is not possible to determine what, if any, trade effects may ever result from this programme. While it is anticipated that successful research projects may lead to the de velopment of technologies that would enable 
companies in the textile and apparel sector to im prove their productivity, TC2 assistance does not 
directly benefit the production or export of particular companies or products.   G/SCM/N/253/USA 
 
- 43 - 
 
  10  TIMEPIECES AND JEWELRY 
10.1  The Insular Possessions Watch and Jewelry Programs. 1. Period covered by the notification 
 
The period covered is calendar year 2011 and 2012 
 2. Policy objective and/or purpose 
 The insular watch and jewelry programs are designed to encourage watch and jewelry production in the US insular possessions and thereby stimulate development of the insular economies.  
3. Background and authority 
 
The US Department of Commerce and the US Department of the Interior jointly administer the 
Insular Possessions watch program under Public Law 97-446, as amended by Public Law 103-465, 
Public Law 106-36 and Public Law 108-429. The wa tch program provides for duty exemptions and 
duty refunds in the form of negotiable production incentive certificates. 
 
The US Department of Commerce and the US Depart ment of the Interior also jointly administer 
the Insular Possessions jewelry program under Public Law 97-446, as amended by Public Law 103-465, Public Law 106-36 and Public Law 108-429. Public Law 106-36 amended additional 
US notes to chapter 71 of the Harmonized Tariff Schedule of the United States ("HTSUS") to 
provide a duty-refund benefit for any article of je welry within heading 7113 that is a product of the 
US Virgin Islands, American Samoa, Guam and the Northern Mariana Islands in accordance with 
the provisions of the note in chapter 71 and ad ditional US Note 5 to chapter 91. The jewelry 
program is also administered by the US Depart ment of Commerce and the US Department of the 
Interior. The jewelry program, like the watch program, provides for duty refunds in the form of 
negotiable production incentive certificates, but does not provide for duty exemptions.  
 4. To whom and how assistance is provided 
 
The assistance is provided to watch and jewelry producers located in the US Virgin Islands, 
American Samoa, Guam and the Northern Mariana Islands. At present, there are producers only in the US Virgin Islands. 
 
The watch program establishes an annual allocation for watches and watch movements assembled in these areas to enter the United States free of duty. Both the watch and jewelry programs 
provide production incentive certificates that authorize a duty refund from Customs and Border 
Protection ("CBP") on (HTSUS non-column 2) ar ticles that have entered the United States 
duty-paid. The subsidy amount is based on the duty foregone on the finished watches and watch movements, as well as the value of the production certificates issued to watch and jewelry 
companies. Since the watches, the watch moveme nts and jewelry produced under the programs 
already receive duty-free entry into the Customs te rritory of the United States, the certificate is 
negotiable and may be transferred to another comp any having a record of duty-paid imports. The 
value of the certificate is based on the producer's average creditable wages per unit shipped free 
of duty into the United States multiplied by a factor of 90 per cent for the first 300,000 units and 
by declining percentages in additional incremen ts up to a maximum of 750,000 units for watches 
and watch movements and 10,000,000 units for jewelry. 
 G/SCM/N/253/USA 
 
- 44 - 
 
  5. Amount 
 
Production Incentive Certificate ("PIC")  
Year (1) Product Total Amount (2) 
2011 Watches $905,198 2011 Jewelry $885,085 
2012 Watches $943,504 
2012 Jewelry $1,024,763 
 
(1) The PIC is based on the wages and shipments made  during the above mentioned, calendar year.  
 
(2)  One per cent is deducted from the total amount of the duty refund shown above to cover the 
administrative costs of processing by CBP. 
 
Duty Exemption Amount (3) 
2011 $7,304 
2012 $167,264 
 
(3)  The amount of the duty paid was calculated  by using an approximate total trade ad valorem 
equivalent rate of 6 per cent multiplied by the total yearly amount of the invoices billed to customers. The duty refund amounts are preliminary estimates.  
 
6. Duration 
 
The watch program annual allocation for watches and watch movements assembled in these areas 
to enter the United States free of duty is authorized through 2015 as is the production incentive 
duty refund certificate for watch and jewelry program participants.  7. Trade Effects 
 Although the precise trade effects cannot be determined, the benefits from these programs account for less than 1% of US annual personal  domestic consumption of watches and jewelry. 
(Department of Commerce, Bureau of Economic Analysis) Also, the watches and jewelry covered 
by the program are only shipped into the United States market.  
11  OTHER 
11.1  Empowerment Zones  1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 The purpose of this assistance is to encourage re vitalization of distressed areas. Nominated areas 
must meet population, distress, size, and poverty rate criteria in order to be eligible, ensuring that 
assistance is targeted to areas experiencing hi gh economic distress. The use of tax incentives 
reflects a desire to encourage the private sector, guided by market forces and supported in a non-bureaucratic fashion through government assistance, to be a driving force behind the increased economic activity. Some restrictions on the types of business activities and investments 
were imposed in order to limit potential abuses.  
 3. Background and authority 
 The Omnibus Budget Reconciliation Act of 1993 prov ided for the designation of nine empowerment 
zones (3 rural and 6 urban). The Taxpayer Relief Act of 1997 added 22 empowerment zones 
(5 rural and 17 urban), and the District of Columbia Enterprise Zone (DC Zone). The Community 
Renewal Tax Relief Act of 2000 added 9 empowerment zones (2 rural and 7 urban). State and local governments jointly nominated distressed areas and proposed strategic plans aimed at economic and social revitalization. Rural empowerm ent zones were designated by the Secretary of 
the Department of Agriculture, while urban empowerment zones were designated by the Secretary G/SCM/N/253/USA 
 
- 45 - 
 
  of the Department of Housing and Urban Development. The tax provisions for empowerment zones 
and the DC Zone are found in sections 1391 through 1400B of the Internal Revenue Code.   Qualified businesses located in empowerment zones are eligible for the following federal tax 
incentives: (i) an employment tax credit for 20 percent of the first $15,000 of qualifying wages 
paid to employees who live and work in the em powerment zone; (ii) an additional $35,000 per 
year of expensing, instead of depreciation, of ca pital investments by small businesses; and (iii) a 
new category of tax-exempt private activity bonds. In addition, taxpayers may elect to defer 
capital gains from certain sales and re-investments in qualified empowerment zone assets.   Incentives for the DC Zone include the employment tax credit, increased expensing and tax 
exempt financing incentives available in empowerment zones, plus an exclusion for capital gains 
on qualified assets held more than 5 years.   
4. Form 
 
Income tax concession.  
 
5. To whom and how assistance is provided 
 The employment tax credit and an additional $35,000 per year of expensing are provided when 
the recipient business completes its tax return. No registration is needed to qualify for the tax 
incentives. The new category of tax-exempt private activity bonds requires a local initiation and State offering of the bonds. The subsidy is reflected in the lower interest rate charged on the 
bonds because interest income on them is excluded from federal taxable income. The capital gains 
incentives are provided to investors in qualified zone assets by reducing the amount of capital income subject to tax.  
 
To qualify for the employment credit, substantially all of the employee's services must be provided 
in the zone. The $35,000 of additional expensing is targeted to assist small businesses because 
the benefit of expensing begins to phase out when investment exceeds $2,000,000. To qualify for 
the expensing, businesses must also meet other criteria, such as having at least 35 percent of 
employees who reside in the zone. Businesses located in empowerment zones are eligible for the new category of tax-exempt bonds. Up to $3 mi llion per business per zone in bond funding and 
$20 million per business for all zones is available. The exclusion of capital gains from qualified DC 
Zone assets held more than 5 years does not apply to gains earned before 1998 or after 2016.   
6. Amount 
 
The revenue loss was $980 million in 2011 and $670 million in 2012.   
7. Duration 
 
Tax incentives have been available since the first zones were designated on 21 December 1994. 
Empowerment zone tax benefits are generally scheduled to expire on 31 December 2013. DC Zone 
tax benefits expired on 31 December 2011.   
8. Trade Effects 
 
It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
11.2  New Markets Tax Credit 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 2. Policy objective and/or purpose 
 To encourage capital investment in businesses located in economically distressed areas.   G/SCM/N/253/USA 
 
- 46 - 
 
  3. Background and authority 
 
The Community Renewal Tax Relief Act of 2000 created the new markets tax credit under section 45D of the Internal Revenue Code.  
 
4. Form 
 
Income tax concession.  
 5. To whom and how assistance is provided 
 
A tax credit is applied to taxpayers who make an  equity investment in a Community Development 
Entity (CDE). The credit amount is equal to 5 percent of the investment for each of the first 
three years and 6 percent for each of the following 4 years. A CDE is any domestic firm whose 
primary mission is to serve or provide investment capital for low-income communities or 
individuals. A fixed amount of equity investment is eligible each year for the credits, which is apportioned to CDEs through a competitive application process. The total amount of equity 
investment eligible for the credit is $3.5 billion in 2011 and $3.5 billion in 2012.  
 6. Amount 
 
The revenue loss was $820 million in 2011 and $900 million in 2012.  
 7. Duration 
 This credit first became effective in 2001, and credit allocations to qualified CDEs will be made through 2013.  
 
8. Trade Effects 
 It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
11.3  New York Liberty Zone 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.   
2. Policy objective and/or purpose 
 
To encourage the redevelopment of the area surro unding the World Trade Center in New York City 
in the aftermath of the terrorist attack on 11 September 2001.  
 
3. Background and authority 
 
Section 1400L of the Internal Revenue Code, enac ted as part of the Job Creation and Worker 
Assistance Act of 2002.   
4. Form 
 
Income tax concession.   
5. To whom and how assistance is provided 
 
The New York Liberty Zone is the area immediately surrounding the World Trade Center in New 
York City. The authorization for New York State and New York City to issue an additional $8 billion 
in tax-exempt private activity bonds is the only New York Liberty Zone tax incentive still in effect.   
6. Amount 
 
The revenue loss for just the tax-exempt private activity bonds was $110 million in 2011 and $110 million in 2012.  G/SCM/N/253/USA 
 
- 47 - 
 
  7. Duration 
The additional authority to issue tax-ex empt bonds expires on 31 December 2013.  
 8. Trade Effects 
 It is not possible to estimate what, if any, trade e ffects may result from the use of this provision.  
 
11.4  Gulf Opportunity Zone 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.  
 
2. Policy objective and/or purpose 
 
To encourage the reconstruction of the area affected by Hurricanes Katrina, Wilma, and Rita.  
 3. Background and authority 
 Sections 1400M through 1400T of the Internal Revenue Code, enacted as part of the Gulf Opportunity Zone Act of 2005.  
4. Form 
 
Income tax concession.   
5. To whom and how assistance is provided 
 
The Gulf Opportunity Zone is the Gulf Coast area affected by Hurricanes Katrina, Wilma, and Rita. 
The tax incentives provided include: (i) 50 percen t expensing, instead of depreciation, of certain 
property placed in service within the Zone; (ii) authorization for issuance of additional tax-exempt private activity bonds to finance reconstruction within the Zone; (iii) an additional advance refunding of tax-exempt bonds for Louisiana, Mississippi, and Alabama; and authority for the 
states of Alabama, Louisiana, Mississippi to issue Gulf tax credit bonds.  
 6. Amount 
 The revenue loss from the bond provisions was $360 million in 2011 and $340 million in 2012.   
7. Duration 
 
These provisions expired on or before 31 December 2011.  
8. Trade Effects 
 
It is not possible to estimate what, if any, trade effects may result from the use of this provision. 
 
11.5  Midwestern Disaster Area 
1. Period covered by the notification 
 
The period covered is fiscal years 2011 and 2012.   2. Policy objective and/or purpose 
 To encourage the reconstruction of the area affected by tornadoes, severe storms and flooding occurring in 2008, in the states of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, 
Missouri, Nebraska, and Wisconsin.  
 G/SCM/N/253/USA 
 
- 48 - 
 
  3. Background and authority 
 
P.L. 110-343 authorized certain provisions relate d to the Gulf Opportunity Zone (sections 1400N 
through 1400S of the Internal Revenue Code) to apply to the Midwestern disaster area.  
 
4. Form 
 
Income tax concession.  
 5. To whom and how assistance is provided 
 
The Midwestern disaster area is the portion of the states of Arkansas, Illinois, Indiana, Iowa, 
Kansas, Michigan, Minnesota, Missouri, Nebraska, an d Wisconsin declared by the President to be a 
major disaster area after 19 May 2008, and before 1 August 2008, as a result of severe storms, 
tornadoes or flooding. The tax incentives provided include: (i) authorization for issuance of 
additional tax-exempt private activity bonds; (ii) authority for the affected states to issue tax credit bonds; (iii) 50 percent expensing of the cost s of removing debris or structures from real 
property; (iv) extended net operating loss carry back provisions; and (v) an employee retention 
credit.   6. Amount 
 The revenue loss was $100 million in 2011 and $140 million in 2012.   
7. Duration 
 
These provisions expire on or before 31 December 2012.  
 
8. Trade Effects 
 It is not possible to estimate what, if any, trade effects may result from the use of this provision. 
  
  G/SCM/N/253/USA  
 
- 49 - ATTACHMENT 1 
SUB-FEDERAL PROGRAMS 
 
State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama Appalachian 
Regional Commission Grant Alabama 
Department of Economic and Community Affairs Grant The Appalachian Regional 
Commission (ARC) provides supplemental funding for economic development projects under its Area Economic and Human Resources Development Program. ARC region consisting of 
37 counties in North Alabama in a line just north of Montgomery. New or expanding businesses including manufacturing and warehousing. $200,000 maximum or 
50 percent of total project cost spent on serving more than one industry. Can bring federal participation up to 80 percent of eligible project cost. Ongoing 
Alabama Capital 
Investment Tax Credit Alabama 
Department of Revenue (ADOR) Tax Credit To encourage new capital 
projects and expansions, the program allows qualifying companies to claim an annual tax credit against Alabama income tax liability generated by or arising out of a qualifying Alabama project. A qualifying project must 
constitute either a headquarters facility or an industrial, warehousing, or re search activity 
defined as any trade or business described in the 1997 North American Industry Classification System (NAICS) as:  - Sectors 31 (other than National Industry 311811), 32, 33 and 42 - Subsectors 511, 927 - Industry Groups 5142 and 5415 
 
- Industries 54138 and 54171 - Industries 514191; 517110; 561422 inbound call center; or headquarter facilities and data processing centers which create at least 50 new jobs; or renewable energy facilities; R&D facilities; project owned by utilities that produce electricity from alternative energy resources; projects owned by utilities that produce electricity 
from hydropower production.  A capital credit is available 
to the income tax liability generated by income from a project approved by the ADOR. The capital credit is available each year, for 20 years. The capital credit is calculated at five percent of the total capital costs of the qualifying project and the credit begins in the year the qualifying project is placed in service. Ongoing  
  G/SCM/N/253/USA  
 
- 50 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama Certified 
Capital Companies (CAPCO) Alabama 
Development Office Loan To promote small business loans, 
the Alabama Legislature authorized the establishment of certified capital companies (CAPCOs) to manage the lending of funds invested by insurance companies who received a dollar-for-dollar credit against state premium taxes. Small technology and/or 
manufacturing businesses $200 million is allocated 
among 12 CAPCO funds; each CAPCO fund may loan up to 15% of its allocation to a single project and multiple CAPCOs may invest in the same single project. Ongoing 
Alabama Community 
Facility Loan and Grant Program REDC Mixed Financing
 To promote development in rural 
communities. Rural communities with a 
population of 20,000 or less. Priority is given to applicants in rural communities with populations of 5,000 or less and areas with the lowest median household income. Interest rates for direct 
loans are based on current market yields for municipal obligations. The maximum term for all loans is 40 years. However, the repayment period is limited to the useful life of the facility or equipment or any statutory limitation on the applicant's borrowing ability. Ongoing 
Alabama Delta Regional 
Authority (DRA)  Alabama 
Department of Economic and Community Affairs (federal grants adminsitered by the state) Grant Led by a federal co-chairman 
appointed by the President and the governors of the eight states, the DRA fosters partnerships throughout the region as it attempts to improve the economy of the delta region. DRA funds can be used to leverage other federal and state programs.
 
 Under federal law, at least 75 percent of DRA funds must be invested in economically distressed counties and parishes. Half of the funds are earmarked for transportation and basic infrastructure improvements. The DRA works to improve life for 
the residents of 252 counties and parishes in parts of eight states.  Areas of emphasis for 
funding are: basic public infrastructure in distressed counties;  transportation infrastructure for the purpose of facilitating economic development;  business development with an emphasis on entrepreneurship; and  job training with an emphasis on using existing public education institutions.  Ongoing  
  G/SCM/N/253/USA  
 
- 51 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama Enterprise 
Zone Tax Credit Alabama 
Department of Revenue Tax Credit The Enterprise Zone Act is a job 
creation program. It is a performance driven program and provides credits for specific accomplishments of the company. Companies locating in the 28 
designated enterprise zones. Enterprise zone residents, especially those unemployed for at least 90 days prior to employment.
 Maximum credit of $2500 per new permanent employee. Credits are to be used in the year earned with any remainder available to be applied against income or business privilege tax liabilities for the succeeding two years. Ongoing 
Alabama Intermediary 
Relending Program Rural Economic and 
Community Development (REDC) Loan A loan program funded by the 
REDC to strengthen the economy of rural communities. Priority scoring is given to 
applications located in areas of high unemployment, areas experiencing trauma, and areas where the population has declined. All territory of a state that is not within the outer boundary of any city having a population of 25,000 or more, according to the latest decennial census. Loans to intermediaries are 
scheduled for repayment over a period of up to 30 years with an interest rate of one percent per annum. The intermediary sets the term of the loans and sets the interest rate that they will charge to ultimate recipients. The maximum loan to an intermediary is $750,000.00. Ongoing  
  G/SCM/N/253/USA  
 
- 52 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama Property Tax 
Abatements for Industrial Projects Alabama 
Department of Revenue Tax 
Abatement/Reduction Both real property and personal 
property are subject to ad valorem property taxation based on an assessment of 20% of fair market value. To encourage the development of new industry in the state as well as to encourage the expansion of existing industry, an abatement of non-educational property taxation is provided for qualifying projects.  A qualifying project must 
constitute either a headquarters facility or an industrial, warehousing, or re search activity 
defined as any trade or business described in the 1997 North American Industry Classification System (NAICS) as:  - Sectors 31, 32, 33 and 42 and subsectors 511, 927 - Industry Groups 5142 and 5415 
 
- Industries 54138 and 54171 - Industries 514191; 517110; 
561422 and create at least 50 new 
jobs; renewable energy facilities; R&D facilities; pr oject owned by 
utilities that produce electricity from alternative energy resources; or  - Projects owned by utilities that produce electricity from hydropower production. Expansion projects may qualify for an abatement under a "major addition" provided the project meets an additional investment threshold requirement of the lesser of 30 percent of the original cost of the industrial development property, or $2 million. Industrial proj ects may be 
exempted from ad valorem property taxes for up to 10 years (except school taxes) with fixed assessment ratio established at 20 percent of appraised market value for businesses. Approval is granted locally. Ongoing  
  G/SCM/N/253/USA  
 
- 53 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama Sales and Use 
Tax Abatements for Industrial Projects Alabama 
Department of Revenue Tax 
Abatement/Reduction To encourage the development of 
new industry in the state as well as to encourage the expansion of existing industry , an abatement 
of non-educational sales and use taxes may be provided for construction materials and equipment incorporated into a qualifying projects.  A qualifying project must 
constitute either a headquarters facility or an industrial, warehousing, or re search activity 
defined as any trade or business described in the 1997 North American Industry Classification System (NAICS) as:  - Sectors 31, 32, 33 and 42 subsectors 511, 927 - Industry Groups 5142 and 5415 
 
- Industries 54138 and 54171 - Industries 514191; 517110; 
561422; renewable energy 
facilities; R&D facilities; project owned by utilities that produce electricity from alternative energy resources;  - Projects owned by utilities that produce electricity from hydropower production.  Expansion projects may qualify for an abatement under a "major addition" provided the project meets an additional investment threshold requirement of the lesser of 30 percent of the original cost of the industrial development property, or $2 million. Industrial proj ects may be 
exempted from non-educational sales and use taxes on project-related expenditures for construction materials, furniture and fixtures, and equipment. Approval is granted locally. Information on specific amounts is not available. Ongoing 
Alabama Regional 
Revolving Loan Funds Alabama 
Association of Regional Councils Loan Revolving loan funds are locally 
controlled. Capital may be used to finance start-up and existing businesses whose projects will create permanent jobs. Financing for small manufactures 
and manufacturing related services located in southeast Alabama. Equity requirement that is 
established locally usually falls between 5 percent and 25 percent. The interest rate is normally below prime and can be fixed or variable. Program requires conventional lender participation. Ongoing  
  G/SCM/N/253/USA  
 
- 54 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama Rural Business 
Enterprise Grants REDC Grant A grant program funded by Rural 
Economic and Community Development (REDC) to strengthen the economy. Small and emerging private 
business (50 or less employees and less than $1,000,000 in projected gross income) in rural areas. Varies Ongoing 
Alabama Rural Business 
Opportunity Grant REDC Grant To promote development in rural 
communities. Any area other than an 
incorporated city or town with greater than 10,000 population and the urbanized area contiguous and adjacent to such city or town. Priority communities--those experiencing trauma due to natural disasters or are undertaking fundamental structural changes, have remained pers istently poor or 
have experienced long-term population decline or job deterioration. $50,000 limit on 
unearmarked funds per applicant per state. Ongoing 
Alabama Tennessee 
Valley 
Authority 
Economic Development Loan Fund Tennessee Valley 
Authority Loan A multimillion dollar revolving 
loan program established to 
stimulate industrial development 
and leverage capital investment in the TVA power service area.  Companies in the TVA service area 
are eligible. Loans are typically below 
market rate, with specific 
rates to be determined on a 
case by case basis after considering the loan evaluation criteria (project's financial viability, management quality, community economic impact, funds leverage and increased power sales). Maximum length of terms is 10 years for new plants, plant expansion and plant retention. 7 years for service industry loans and 6 years for infrastructure loans. Repayment schedules will be determined on a project by project basis. No TVA loan is likely to exceed $2 million. Real estate and equipment can be used for collateral. Ongoing  
  G/SCM/N/253/USA  
 
- 55 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama Water and 
Waste Disposal Funds REDC Loan Indirect financing for public 
entities and nonprofit corporations in unincorporated rural communities with a population of no more than 10,000. Rates for loans may be made at poverty, intermediate or market interest rates and are subject to change quarterly. Term of the loan may be for up to 40 years. Applicants must not be able to obtain the financing from other sources and/or their 
own resources at rates and terms 
they can afford. Funds may be used to construct and develop water and waste disposal systems, including solid waste disposal and storm drainage. Loans and grants are limited to 
applicants serving rural areas and towns with populations not in excess of 10,000. Term of the loan may be for 
up to 40 years. Ongoing 
Alabama Business and 
Industry Guaranteed Loans REDC Loan Objective is to bolster existing 
private credit structure through the guarantee of quality loans that will provide lasting community benefits by increasing employment and improving the economic and environmental climate of rural communities.  Priority given to towns or cities of 
25,000 population or less. Loan program REDC to 
strengthen the economy of rural communities. Indirect financing/loan to commercial or other authorized lenders in any area other than an incorporated city or town with greater than 50,000 
population and urbanized 
area contiguous and adjacent to such city or town. Loan amounts vary. Ongoing 
Alabama Film 
Promotion Act 2001-975, 
2001 3rd Sp. Sess., p. 908, §1 Tax abatement 
of sales and lodging tax. To promote commercial film 
production. Film Industry Varies Ongoing  
  G/SCM/N/253/USA  
 
- 56 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama  ThyssenKrupp 
Steel Plant Project Alabama Port 
Authority Incentive 
Package To win site selection for 
ThyssenKrup's steelmaking plant.
 ThyssenKrupp Steel $314 million cash grant; 
$67 million employee training; $45 million toward plant site purchase; $25 million for construction and maintenance of roads near the plant; $350 million state and local tax breaks; $8.5 million Port Authority purchase of site for marine terminal that will serve ThyssenKrupp's operation. Awarded 
2007 and Ongoing 
Alabama Renewable 
Fuels Program  Alabama Department of Economic and Community Affairs (ADECA) Interest subsidy
 The Renewable Fuels Program 
assists businesses in installing biomass energy systems. ADECA is also interested in landfill gas as a potential source of energy for industrial and other uses. Several landfill waste disposal facilities across Alabama have been identified as prime candidates for landfill gas recovery and utilization. Industrial, commercial and 
institutional facilities; agricultural property owners; and city, county, and state government entities are eligible.  Program participants 
receive up to $75,000 in interest subsidy payments to help defray the interest expense on loans to install approved biomass projects. Technical assistance is also available through the program. Interested parties must obtain loans from commercial lending institutions and submit repayment data to ADECA for interest payment assistance. Interest rates on loans should be no greater 
than 2% above the prime 
rate. With an initial emphasis on wood waste, the program now also focuses on switch grass and municipal solid waste (MSW). A pilot project to assess the feasibility of co-firing switch grass with coal in electricity production has been completed resulting in a switch grass to coal mix ratio of up to 10%. Ongoing  
  G/SCM/N/253/USA  
 
- 57 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama 2011 Alabama 
Tariff Subsidy Bill Alabama 
Department of Revenue Tax credit Increase foreign investment 
within the State of Alabama. Eligible businesses that have a 
minimum investment of $100 million and create at least a 100 local jobs. Amounts vary. Ongoing 
Alabama Film 
Production 
Rebates Entertainment 
Industry Incentive 
Act; Alabama Film Office Tax Rebates To encourage the film industry in 
the State of Alabama Film production companies. 
Production expenditures for a 
project must be equal or exceed at least $500,000 but not exceed $10,000,000. Qualified companies receive 
25% tax rebate of all state 
certified expenditure and a 35% tax rebase of all payroll paid to residents of Alabama.  Ongoing 
Alaska Oil and Gas 
Production Tax Credit Department of 
Natural Resources  Tax credits To promote oil exploration and 
drilling within the State of Alaska.
 Companies engaged in oil exploration and drilling. The program allows for a 
production tax credit of 30% of the cost of an exploratory oil well if either the bottom hole location is three or more miles away from the bottom hole location of a pre-existing well or the bottom hole location of the exploratory 
well is at least 25 miles 
from the boundary of any unit.  Ongoing 
Alaska Commercial 
Fishing Revolving Loan Fund Department of 
Commerce, Community, and Economic Development  Division of Investments (ADI) Loans The Commercial Fishing 
Revolving Loan Fund provides long-term, low interest loans to commercial fishing businesses. The general requirements are that 
the recipient be an Alaskan resident for the prior two years and that any child support payments are not outstanding. The creditworthiness of an applicant is 
reviewed by means of a detailed examination and analysis of the recipient's application which requires that information be provided regarding: assets and liabilities, cash accounts, 
securities, accounts receivable, 
vessels owned, real estate owned, notes payable, current and projected profit ands loss statements, nonfishing income and household and living expenses.
 The interest rate is 2 percent above the prime rate, not to exceed 10.5 percent. Interest rate for Product Quality Improvement or engine efficiency upgrade is 2 percent below the prime rate. Maximum loan term is 15 years. The average loan amount given under the program is $40,400. The 
maximum amount is 
$300,000.  Ongoing  
  G/SCM/N/253/USA  
 
- 58 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alaska TCC Business 
Development Center Alaska Minority 
Business Development Center, Tanana Chiefs Conference Center Financing To improve the potential for 
economic growth in rural areas. Sole proprietorships, partnerships, 
corporations, c ooperatives. In 
addition, any Alaska  Native Claims 
Settlment Act (ANCSA) corporation or Alaska Native Tribe locating a business in a rural area is eligible. The applicant must demonstrate that other financing is not available. Each applicant will normally be required to provide in the form on new equity a minimum of 25 percent of the total cost of the project. Collateral will be 
obtained from the client in order to 
secure the loan. Adequate insurance will also be required. Direct loans ranging from 
$1,000 to $30,000 Loan term is 1 to 15 years, depending on the project. No repayment penalty. Interest rate is 10 percent above the prime rate. A loan commitment fee of 1 percent will be assessed on the principal amount of each loan.  Ongoing 
Alaska Film 
Promotion Program Department of 
Commerce, Community & Economic Development Exemption from 
state sales and income tax To promote commercial film 
production. Film Industry Not available. Ongoing 
Alaska Fisheries 
Enhancement Revolving Loan Fund Department of 
Commerce, Community, and Economic Development and Alaska Division of Investments (ADI) Finance Financing for planning, 
construction, and operation of fish hatchery facilities, including preconstruction activities necessary to obtain a permit, construction activities to build a hatchery facility, and costs to operate the facility. Loans may be made to qualified 
regional hatchery associations and nonprofit corporations who have obtained a private, nonprofit hatchery permit from the Alaska Department of Fish and Game. Maximum is $10,000,000. 
Interest rate is prime rate plus one percent, not to exceed 9.5 percent. Ongoing 
Alaska Community 
Quota Entity Revolving Loan Fund Department of 
Commerce, Community, and Economic Development and Alaska 
Division of 
Investments (ADI) Finance Financing for certified Community 
Quota Entities to purchase Quota Shares and reimbursement of Quota Shares purchased. Community Quota Entities that are 
certified and in good standing with the State and Federal Government and are not eligible for other financing. Maximum is $2,000,000. 
Interest rate is 2 percent above the prime rate, not to exceed 10.5 percent. Ongoing  
  G/SCM/N/253/USA  
 
- 59 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alaska Rural 
Development Initiative Fund
 Department of Commerce, Community, and Economic Development and Alaska Division of Investments (ADI) Financing To provide private sector 
employment by financing the start-up and expansion of businesses that will create significant long-term employment. Businesses that are located in a 
community with a population of 5,000 or less that is not connected by road or rail to Anchorage or Fairbanks, or with a population of 2,000 or less that is connected by road or rail to Anchorage or Fairbanks. Maximum loan amount is 
$100,000 to a person or up to $200,000 to two or more people. Interest is prime rate minus one percent, but not less than 6 percent. Ongoing 
Alaska Bulk Fuel 
Revolving Loan Fund Alaska Energy 
Authority (AEA) Loan Bulk fuel revolving loan fund is to 
assist communities, utilities, or fuel retailers in small rural sites to purchase bulk fuel on a semi-annual, annual or emergency basis. Eligible borrowers / companies 
located in rural Alaska. In FY 2009, the program 
funded 62 loans for $11.5 million. Ongoing 
Alaska Reuse & 
Redevelopment (R&R) Initiative Department of 
Environmental Conservation (DEC), Division of Spill Prevention and Response Financing Assists parties in researching, 
assessing and transferring property associated with contaminated land. Owenr or purchaser of brownfields Grant amount received for 
this reporting period $617,500. Ongoing 
Alaska Native Plant 
Commercialization Program Department of 
Natural Resources and Department of Agriculture Financing Program is dedicated to the 
commercialization of previously unused or under exploited plant species in Alaska.  Program is utilized by native plant 
producers, landscape contractors and construction companies, as well as othe r government 
agencies. Not available. Ongoing 
Alaska Alaska 
Foundation and Breeder 
Seed Program
 Department of 
Natural Resources and Department of 
Agriculture Financing To promote and encourage a 
healthy seed industry in Alaska. Program is used by commercial 
true seed producers in Alaska. Not available. Ongoing 
Alaska Seed Potato 
Program Department of 
Natural Resources and Department of Agriculture Financing To promote disease tested and 
clean seed potatoes to commercial seed potato producers in Alaska. Program is used by the commercial 
seed potato producers in Alaska. Not available. Ongoing 
Alaska Forest 
Stewardship 
Program Department of 
Natural Resources Financing To promote forestry 
development. Provides funding to private 
landowners, including ANCSA 
corporations, for forest planning, 
including biomass inventory. Not available. Ongoing 
Alaska Exploration 
Incentive Credits Department of 
Revenue Tax credits To encourage exploration for 
subsurface resources. Tax credits for exploration wells 
located certain distances from known oil and gas resources and for seismic survey acquisitions outside the unit. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 60 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alaska Small 
Business Economic Development Loan Program Department of 
Commerce, Community, and Economic Development and Alaska Division of Investments (ADI) Loan To encourage investment and 
growth within the State. Loans are provided to start-ups 
and expansion of small businesses located within an eligible area to provide private sector employment. Not available. Ongoing 
Alaska Rural 
Development Fund Department of 
Commerce, Community, and Economic Development and  Division of Investments (ADI) Loan To improve the potential for 
economic growth in rural areas.  Eligible businesses that create 
new jobs or retain jobs in a community with a population of 5,000 or less that is not connected by road or rail to Anchorage or Fairbanks, or with a population of 2,000 or less that is connected by road or rail to Anchorage or Fairbanks. Offers long term, low 
interest rates loans for working capital, equipment, construction and other commercial purposes. Ongoing 
Alaska  Alaska Film 
Industry Tax Credit Department of 
Commerce, Community & 
Economic 
Development, Alaska Film Office Tax credit 
between 30 and 58 percent for 
in-state 
expenditures. Promotion of film production in 
Alaska Film industry. Up to $100-$200 million in 
Tax Credits (over the life of the program) Expires in 
2024 
Alaska Alaska 
Capstone Avionics Revolving Loan Program Department of 
Commerce, Community, and Economic Development, Division of Investments (ADI) Financing To provide long term, low-
interest loans for the purchase and installation of avionics equipment for aircraft that operate substantially in Alaska The general requirements are that 
the aircraft being financed must be owned by the applicant and must be substantially flown in Alaska. Financing for all forms of aircraft. The interest rate is fixed at 
4.0%. The maximum loan term is 10-years. The maximum loan amount is 80% of the total project cost. The borrower is responsible to pay all direct costs incurred in processing the loan application. Ongoing  
  G/SCM/N/253/USA  
 
- 61 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona  Arizona Fast 
Grant Program Arizona Commerce 
Authority Grants To enable Arizona-based 
technology companies to initiate the commercialization process. Technology businesses, including 
those within the aerospace, renewable energy, bioscience, advanced material and advanced manufacturing industries, with fewer than 30 employees and gross revenues of $2 million or less. Grants of between $5,000 
and $7,500 in support of professional consulting services that evaluate the commercialization of the grantee's business and/or innovation.  Ongoing 
Arizona Arizona 
Innovation Challenge Arizona Commerce 
Authority Cash Grants  To stimulate technological 
innovation and enhance investment and job creation in Arizona. Technology businesses (including 
those within the aerospace, renewable energy, bioscience, advanced material and advanced manufacturing industries) with fewer than 30 employees and gross revenues of $2 million or less. Grants of between $100,000 
and $250,000. Ongoing 
Arizona Sale of 
Machinery or Equipment Used in Mining 
and in Drilling 
for or Extracting Oil or Gas from the Earth Arizona 
Department of Revnue Corporate 
income tax deduction To promote industries within the 
State of Arizona. To oil, gas and mining sectors. Amounts vary. Ongoing 
Arizona Machinery, 
Equipment or Transmission Lines Used Directly in Producing or Transmitting Electrical Power Arizona 
Department of Revnue-A.R.S. §§ ARS 42-5159(B)(4). Sales tax 
refunds and exemptions To promote the energy industry 
in the state of Arizona. Eligible industries Amounts vary. Ongoing 
Arizona Arizona 
Biofuel Conversion Program (ABCP) Arizona 
Department of Commerce Grants The purpose of the ABCP is to 
encourage the use of biofuels in Arizona. Project must be in a targeted 
technology sector: science/technology; aerospace/defense; or renewable energy. Subject to funding 
availability, the director shall award grants equal to the lesser of $75,000 or the conversion cost per site. Ongoing  
  G/SCM/N/253/USA  
 
- 62 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona Healthy Forest 
Enterprise Incentives Program  Arizona Commerce 
Authority Tax benefits. To promote forest health in 
Arizona. Certified businesses primarily 
engaged in harvesting, initial processing or transporting of qualifying forest products that create qualifying jobs.  Nonrefundable tax credits of 
up to $3,000 for each qualifying job created. Each credit may be claimed in varying prescribed amounts over a 3-year period. Unused credits may be carried forward for up to 5 years. Ancillary incentives under the program include (i) use tax reductions and exemptions, (ii) property tax reductions, and 
(iii) transaction privilege tax 
exemptions.  Expires 
31/12/2024 
Arizona Foreign Trade 
Zones Arizona 
Department of Commerce Property tax 
reductions and exemptions  To promote business within the 
state of Arizona. Businesses located in a zone or a 
sub-zone. Eligible companies receive 
an 80% reduction in state real and personal property taxes. Ongoing  
  G/SCM/N/253/USA  
 
- 63 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona  Renewable 
Energy Tax Incentive Program Arizona Commerce 
Authority Tax benefits To stimulate growth in the 
renewable energy sector and enhance Arizona's position as a center for the production and use of renewable energy products.  Businesses: (i) primarily (more 
than 50%) engaged in the manufacture of renewable energy products, (ii) expanding or locating either a renewable energy manufacturing or headquarters facility in Arizona, (iii) creating full-time employment positions of which at least 51% are paid at least 125% of the State's annual median wage, (iv) offering to pay at least 80% of the health insurance costs for all new 
employment positions, and 
(v) spending at least $250,000 in qualifying investments during a 12-month period. Refundable tax credits equal 
to 10% of the qualified investment in a project that either (i) entails renewable energy manufacturing operations and creates at least 1.5 new full-time employment positions for each $500,000 increment of capital investment or (ii) constitutes a renewable energy headquarters facility that creates at least one 
new employment position 
for each $200,000 increment of capital investment. Credits are claimed in equal increments over a 5-year period. The program also provides up to a 75% reduction in personal and property taxes for either 10 or 15 years, as applicable. Expires 
31/12/2014.  
  G/SCM/N/253/USA  
 
- 64 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona Defense 
Restructuring Program Arizona 
Department of Commerce  Tax Credit/Tax 
Incentive  To assist defense contractors in 
the state in maintaining and attracting contracts with the Department of Defense (DOD); and to encourage defense contractors to diversify into commercial markets, adopt new manufacturing processes and technologies, an d consolidate 
facilities into the state.  Defense contractors 
(manufacturer, assembler or fabricator).  A credit allowed against 
corporate income taxes for up to 40 percent of the real and personal property taxes paid based on jobs retained and created; corporate and individual income tax credits for increases in net employment above an established baseline. The credit is a dollar amount allowed for each new employee equaling $7,500 
over five years; and 
depreciation or amortization costs of capital investments may be subtracted from Arizona gross income equal to one-half of the time period allowed under the U.S. Internal Revenue Code.
 Ongoing 
Arizona Enterprise 
Zone Program  Arizona Department of Commerce Tax Credit To improve the economies of 
areas in the state with high poverty or unemployment rates by enhancing opportunities for private investment in certain areas called enterprise zones. Benefits apply to businesses 
located in disadvantage areas designated as state enterprise zones creating new full-time jobs that pay at least a designated "county wage" and provide health insurance coverage for which the 
company pays at least 50 percent. 
Thirty-five percent of the jobs for which the tax credits are claimed must be filled by zone residents.  Provides an income tax 
credit for net increases in qualified employment positions. These credits may be up to $3,000 per qualified employment position over three years. In 
addition, qualified 
manufacturing businesses locating or expanding within these zones can apply for a class six property tax classification (5 percent of full-cash value) for a period of 5 years. (Primary portion of property tax is reclassified). Ongoing  
  G/SCM/N/253/USA  
 
- 65 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona Military Reuse 
Zone Program  Arizona Commerce Authority  Tax Credit/ 
Other To mitigate the impact of military 
base closures in Arizona and stimulate growth in the aerospace industry. Manufacturers, assemblers, or 
fabricators of aviation or aerospace products, as well as providers of aviation or aerospace services, located within a "military reuse zone."  Nonrefundable tax credits of 
up to $10,000 per qualifying employee. The credit is claimed in equal increments over a 5-year period. Unused credits may be carried forward for up tp 5 years. Ancillary incentives under the program include (i) property tax reductions and (ii) transaction privilege tax exemptions. Expires 
31/12/2017 
Arizona Motion Picture 
Production State Transaction Privilege Tax Refund Arizona 
Department of Commerce Tax Refund Promotion of film industry . Only purchased tangible goods and 
leased property can be claimed for refund. Feature films, telefeatures, music videos, documentaries, episodic television  series and other 
television production must meet the $1 million expenditure threshold of qualified spending over any consecutive 12-month period for one or more productions or portions thereof shot in Arizona to be eligible. Commercial advertising production must meet the $250,000 expenditure threshold in qualified spending with the same time parameters as 
features. A 50 percent transaction 
privilege (sales) tax refund to qualifying production companies for projects filmed in Arizona. Specific Department of Revenue rules must be followed to both apply and qualify for this rebate against the 5.6 percent state sales tax. Terminated 
during reporting period. 
Arizona Solar Energy 
Tax Incentive Arizona 
Department of Commerce Tax Credit To promote the use of solar 
energy. Businesses purchasing solar energy 
device or system. Up to 10% of the total 
capital project costs. Program 
expires 31/12/2014 
Arizona Solar Liquid 
Fuel Tax Credit Arizona 
Department of Revenue Tax Credit To promote use of solar en ergy. Taxpayers involved in increased 
research and development activities with regard to solar liquid 
fuel.  For taxable years beginning 
from and after 31 December 2010 through 31 December 
2021, a credit is allowed for 
increased research and development activity related to solar liquid fuel.. Program 
expires 31/12/2021  
  G/SCM/N/253/USA  
 
- 66 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona Sale of 
Machinery or Equipment Used in Mining and in Drilling for or Extracting Oil or Gas from the Earth Arizona 
Department of Revenue Corporate 
income tax deduction To promote industries within the 
State of Arizona. Oil, gas and mining sectors. Income tax deduction. 
Amounts vary.  Ongoing 
Arizona Machinery, 
Equipment or Transmission Lines Used Directly in Producing or Transmitting Electrical Power Arizona 
Department of Revenue Sales tax 
refunds and exemptions To promote the electrical energy 
industry in the State of Arizona. Eligible industries are those that 
use machinery, equipment or transmission lines used directly in producing or transm itting electrical 
power Sales tax refunds and 
exemptions. Amounts vary. 
 Ongoing 
Arizona Quality 
Facility Tax 
Credit 
Program  Arizona Commerce 
Authority Tax Credit To promote the location and 
expansion in Arizona of 
manufacturing facilities, including 
manufacturing-related research and development and headquarters facilities. Businesses that (i) make a 
qualifying capital investment to 
establish or expand a facility which 
devotes at least 80% of the square footage and payroll of the facility to qualified manufacturing, manufacturing-related research and development or headquarters and (ii) create qualifying jobs at the facility. In order to constitute qualifying jobs for purposes of the program, (i) at least 51% of the new jobs created at the facility must pay wages equal to or in excess of 125% of the median Arizona annual wage and (ii) all new jobs must incude health insurance coverage for which the employer pays at least 80% of the cost. Refundable tax credits equal 
to the lesser of: (i) 10% of 
the total qualified 
investment made at the facility, (ii) $20,000 per qualifying job created at the facility, or (iii) $30 million. The credits are claimed in equal increments over a 5-year period.  Expires 
31/12/2019  
  G/SCM/N/253/USA  
 
- 67 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona Innovation 
Accelerator Fund Program
 Arizona Commerce Authority Loan 
Participation To stimulate financing to small 
business and manufacturers through participation with lending institutions and private finance partners and thereby foster business expansion, capital investment, and jo b creation in 
Arizona. Eligible businesses include for-
profit entities with fewer than 500 employees that demonstrate the potential for creation and retention of employment opportunities for Arizonans. Businesses in targeted industries (including aerospace and defense, semiconductors, optics, bioscience and renewable energy) have priority application status.  Loan participation of up to 
$2 million on any one loan. Participation is not greater than 49.9% of a total financing package and any total financing package may not exceed $20 million. Program loans may include an annual interest rate reduction equal to .05% for each qualifying job created in Arizona up to a maximum of 2.50% in aggregate rate 
reduction. Program loans 
may provide other loan incentives including deferred interest or principal features not exceeding specified durations.  Ongoing 
Arizona  Small 
Business Capital Investment Incentive Program (also known as the Angel Investment 
Tax Credit 
Program) Arizona Commerce 
Authority Tax Credit To expand early stage 
investments in targeted Arizona small businesses  In order to receive tax credits, a 
qualified investor must invest at least $25,000 in a qualified small business and may not invest more than $250,000 annually in all qualified small businesses. A 
qualified small business for purposes of the program must, among other criteria, possess 
assets (exclusive of intellectual 
property and the qualifying investment) not exceeding $10 million.  Nonrefundable tax credits 
equal to 35% of the investment in a qualified small business either (i) located in a rural area or (ii) constituting a bioscience enterprise. Nonrefundable tax credits equal to 30% of the investment in any other 
qualified smal l business. 
Such credits are claimed in equal increments over a 3-year period. Unused credits in any tax year can be carried forward for up to 3 years.  Through at 
least June 2016  
  G/SCM/N/253/USA  
 
- 68 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona Research and 
Development (R&D) Tax Credit Program  Arizona Commerce 
Authority (ACA)/Arizona Department of Revenue (ADOR) Tax Credit To encourage investments in 
research and development. Refundable tax credits 
administered by the ACA are limited to corporate taxpayers employing fewer than 150 full-time employees. Nonrefundable R&D tax credits administered by ADOR have no similar restriction on qualification. ACA administered 
refundable tax credits of up to 75% of the excess of the general nonrefundable R&D credit over the credit recipient's annual income tax liability. ADOR administered nonrefundable R&D tax credits equal to 24% of the first $2.5 million of qualifying R&D expenses plus 15% of the qualifying R&D expenses in excess of 
$2.5 million. In respect to 
research conducted at a public Arizona university, the ADOR also provides for a tax credit equal to as much as 34% of qualifying R&D expenses. Unused nonrefundable tax credits generally may be carried forward for up to 15 years.   
Arizona Arizona 
Biofuel Conversion Program (ABCP) State Energy Office Grants The purpose of the ABCP is to 
encourage the use of biofuels in Arizona. Companies that are engaged in the 
conversion of existing and installation of new storage and dispensing equipment.  Grants equal to the lesser of 
$75,000 or the conversion cost per site. Unused credits may be carried forward for up to 3 years. Program 
terminates 1/7/2015  
  G/SCM/N/253/USA  
 
- 69 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arkansas  Research & 
Development Arkansas Economic 
Development Commission State Income 
Tax Credit Incentives for university-based 
research, in-house research and research and development in start-up, technology-based enterprises. Businesses that contract with 
Arkansas universities for research and development; existing, mature 
firms conducting in-house research; and new "targeted" businesses engaged in research and development. The amount of the income 
tax credits earned is based upon a percentage of eligible research and development expenditures.  Ongoing 
Arkansas  Targeted 
Business Payroll Credit Arkansas Economic 
Development Commission State Income 
Tax Credit The program offers a state 
income tax credit for job creation based on the payroll of the new employees hired as a result of the project.  "Targeted Businesses" are a 
grouping of growing business sectors, the businesses of which have been operating in the state for less than five years and pay at least one hundred and fifty percent of the lesser of the county or state average wage. Those groupings, not to exceed six, include the following: Advanced materials and manufacturing systems; Agriculture, food and environmental sciences; Biotechnology, bioengineering and life sciences; Information technology; Transportation logistics; and Bi o-based products. Payrolltax credit of 10%. Ongoing 
Arkansas  Motion Picture 
Incentive Act Arkansas Economic 
Development Commission Sales and Use 
Tax Refunds This program provides a sales tax 
refund to motion picture production companies for sales taxes paid during production.  Motion picture production 
companies producing a film, music video, documentary, episodic television show or commercial advertising project. The minimum investment is five hundred thousand dollars within a six month period or one million dollars within a twelve month period. Sales taxes paid in 
connection with the filming or production. Ongoing  
  G/SCM/N/253/USA  
 
- 70 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arkansas  Targeted 
Business Incentives  Arkansas Economic 
Development Commission (Consolidated Incentive Act of 2003, 15-4-2701, et seq) State Income 
Tax Credits and Sales and Use Tax Refunds  To create well paying jobs in 
emerging, start-up high technology sectors.  "Targeted Businesses" are 
businesses that have been operating in Arkansas less than 5 years; have an equity investment of $250,000; pay wages that are at least 150% of the lesser of the county or state average wage; have cumulative annual payrolls between $100,000 and $1 million; and are classified within 1 of the following 6 sectors: Advanced materials and manufacturing systems; 
Agriculture, food and 
environmental sciences; Biotechnology, bioengineering and life sciences; Information technology; Transportation logistics; and Bi o-based products. Eligible companies may 
receive up to 3 incentives under this program: (a) refund of state and local sales and use taxes paid on building materials and machinery and equipment associated with the project; (b) 10% state income tax credit for 5 years based on new payroll, not to exceed $100,000 annually; (c) 33% state income tax credit 
based upon eligible research 
expenditures, not to exceed $50,000 annually. Ongoing 
Arkansas  Digital 
Product and Motion Picture Industry Development Act  Arkansas Economic 
Development Commission (15-4-2001, et seq) Cash rebates 
based upon production and payroll expenditures  To cultivate digital and motion 
picture production in Arkansas. Eligible production companies 
expending at least $50,000 within a six-month period in connection with the production of at least one state-certified production or post-production project. Companies may receive two 
incentives under this program: (a) production rebate equalling 15% of qualified Arkansas production/post-production expenditures and (b) payroll rebate equalling 10% of payroll of Arkansas 
residents engaged in eligible 
productions.  Ongoing 
until funding exhausted 
Arkansas  Wind Energy 
Income Tax Exemption Arkansas 
Department of Finance and Administration Income Tax 
Exemption To stimulate job creation and 
investment in wind energy manufacturing by exempting up to 25 years of income taxes to new wind energy manufacturing companies. Must be a manufacturer of wind 
energy equipment and/or components. Exemptions up to 25 years 
based on formula taking into account job creation and wages.  Ongoing  
  G/SCM/N/253/USA  
 
- 71 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arkansas  Arkansas 
Alternative Fuels Development Program Arkansas 
Agriculture Department, Arkansas Alternative Fuels Development Act, Arkansas Code § 15-13-102, as amended by Act 977 of 2009 Grants To increase the availability of 
alternative fuels by awarding grants to alternative fuels producers, feedstock processors and distributors.  Alternative fuels producers, 
feedstock processors and distributors. Grants are to assist in the construction, modification, alteration, or retrofitting of feedstock processing facilities in Arkansas. Grants not in exceess of 
$3 million or 50% of the project cost, whichever is less to a feedstock processor in any fiscal year. Distribution grants not in exceess of $300,000 or 50% of the project cost, whichever is less to any alternative fuel distributor per year. Ongoing 
until program funds are exhausted. 
Arkansas  Risk and 
Venture Capital Investment Programs Various capital 
programs of the Arkansas Development Finance Authority Venture/Risk 
Capital To strengthen and advance the 
financial infrastructure that supports and accelerates the growth of manufacturing enterprises in Arkansas. Technology-based enterprises that 
are in the early stages of development and are not yet able to attract adequate private sources of traditional financing or venture or investor-backed capital for their growth and development. A portion of this fund will be used to validate early state technology before other investments can be made.  Amounts vary depending 
upon the funds/purpose. For example, $100,000 limit for technology validation funds, $750,000 for enterprise development. Ongoing 
Arkansas Captial Access 
Program Various capital 
programs of the Arkansas Development Finance Authority Loans To strengthen and advance the 
financial infrastructure that supports and accelerates the growth of manufacturing enterprises in Arkansas. The Capital Access Program 
provides working capital loans to a variety of industries including agriculture, manufacturing, wholesale/retail, construction, service, etc. Amounts vary depending 
upon the funds/purpose. E.g., $100,000 limit for technology validation funds, $750,000 for enterprise development. Ongoing  
  G/SCM/N/253/USA  
 
- 72 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arkansas  Federal Delta 
Regional Authority (DRA)  DRA state office 
(Federal grants administered through the Arkansas Economic Development Commission) Grant Led by a federal co-chairman 
appointed by the President and the governors of the eight states. The DRA improves the Delta economy by funding project to improve socio-economic conditions. Under federal law, at least 75 percent of DRA funds must be invested in economically distressed counties and parishes. Half of the funds are earmarked for transportation and basic 
infrastructure improvements. 
The Delta Regional Authority (DRA) 
works to improve life for the residents of 252 counties and parishes in parts of eight states. (42 counties in Arkansas). Areas of emphasis for funding are:  Basic public infrastructure in distressed counties.  Transportation infrastructure for the purpose of facilitating economic development.  Business development with an 
emphasis on entrepreneurship.  
Job training with an emphasis on using existing public education institutions.  2012 Arkansas DRA 
Funding: $1,336,720. Ongoing 
Arkansas  Recycling 
Equipment Tax Credit Arkansas Act 654 
of 1993 as administered by the Arkansas Department of Environmental Quality Income tax 
credit Promote environmental 
stewardship and encourage investment in recycling enterprises. Any taxpayer who purchases 
equipment used exclusively for reduction, reuse or recycling of solid waste material for commercial purposes, whether or not for profit, and the cost of installation of such equipment by outside contractors. Such equipment must be used in the collection, separation, processing, modification, conversion, treatment or 
manufacturing of products 
containing at least 50% recovered materials of which at least 10% is post-consumer waste. The amount of the tax 
credit shall equal 30% of the cost of eligible equipment and installation costs. Ongoing 
Arkansas Small 
Business Loan Program Arkansas Economic 
Development Commission Loans To stimulate economic growth, 
concentrating in economically deprived areas, by appropriating funds to be used as participation loans originated by approved community lenders for small businesses. For businesses employing less than 
50 employees and having less than $1 million gross annual sales. Preference is given to loans in high unemployment areas. Financing amounts between 
$2,500 and $40,000, not to exceed 50% of total loan amount. Until 
program appropriations are exhausted.  
  G/SCM/N/253/USA  
 
- 73 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
California Manufacturing 
Enhancement Areas Department of 
Housing and Community Development Tax Credit To encourage job enhancement 
in underdeveloped regions of the state. Manufacturers creating jobs in in 
Brawley and Calexico. Eligibility to earn $29,234 or 
more in state tax credits for each qualified employee hired. Terminated 
during reporting period. 
California New Hire Tax 
Credit Franchise Tax 
Board Tax Credit To encourage development in 
underdeveloped regions of the 
state. Tax incentive targets small 
businesses that create new jobs in 
geographically targeted zones. $400 million has been 
allocated. Ongoing 
California Recycling 
Market Development Zone Program
 California Integrated Waste Management Board 
 Mixed Financing  The Recycling Market Development Zone (RMDZ) Program was developed by the California Environmental Protection Agency, Integrated Waste Management Board. Businesses locating within the 40 designated zones can take advantage of low interest loan packaging, local permit streamlining, technical assistance and information sharing. In addition, RMDZ loans are 
available for recycling projects. Any business or local government 
agency located in a recycling Zone utilizing post-consumer or secondary waste material in their production process may apply for a recycling loan. Private businesses and not-for-profit organizations may borrow funds for real property, equipment, working capital, or refinancing of onerous debts. Each eligible business or 
local government agency may borrow up to 50 percent of the cost of any project with a maximum of $1 million. Ongoing 
California The STAR 
Partnership Commerce and 
Economic Development Program Tax Incentives To encourage film production 
within the State. Filmmakers No state hotel tax on 
occupancy, no sales or use tax on production or postproduction services on motion pictures or TV films, five percent sales tax exemption on purchase or lease of postproduction equipment. Ongoing  
California Community 
Development Block Grant Program Housing and 
Community Development Department Grant Create or retain jobs for low-
income workers in rural communities. Businesses that locate in counties 
with fewer than 200,000 residents in unincorporated areas and cities with fewer than 50,000 and are not participants in the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program. Grants of up to $500,000. Ongoing   
  G/SCM/N/253/USA  
 
- 74 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
California STAR 
Program; Film California First
 California Film Commission Sale tax 
exemption; free/nominal fee surplus state-owned assets; reimbursements for filming on public property To encourage film production 
within the State. Purchasers or lessors of film 
equipment. Five percent sale tax 
exemption for purchasers/lessors of equipment; unused sate properties for free or nominal fee; reimburse fees involving production on public property up to $300,000. Ongoing 
California  New Markets 
Tax Credit California 
Department of Financial Institutions (CDFI) Tax Credit To provide investments in low 
income communities. Companies with qualified equity 
investments in designated Community Development Entities (CDEs). The credit provided to the 
investor totals 39 percent of the cost of the investment and is claimed over a seven year period. Ongoing 
California  Research and 
Development Tax Credit California 
Department of Financial Institutions (CDFI) Tax Credit To encourage companies to 
increase their basic research and development activities in California. To qualify, research must be done 
in California and include basic or applied research of scientific inquiry, original investigation for the advancement of scientific or engineering knowledge or 
improved effectiveness of 
commercial products. Tax credit allows companies 
to receive a 15 percent credit against their bank or corporation tax liability for qualified in-house research expenses, and a 24 percent 
credit against basic research 
payments to outside organizations. Ongoing 
California  Small 
Business Loan Guarantee Program California 
Workforce and Development Agency Loan 
guarantees on revolving lines of credit, small loans and agricultural loans.  To promote job retention and 
creation and encourages small business entrepreneurship, particularly among minorities, women an disabled. Loans are provided to small 
businesses which are in niche markets not typically served by the Small Business Association (SBA). Maximum guarantee is 
90 percent of the loan amount, not to exceed $500,000, with the guarantee not to exceed seven years. Ongoing 
California Biomass Fuel 
Incentive 25678 of the 
California Public Resources Code Grant To promote liquid fuels 
fermented in California from biomass and biomass-derived resources. Producers of liquid fuels fermented 
in California from biomass and biomass derived resources. Grant provides a 40 cent 
per gallon production incentive.   
California Ethanol Tax 
Credit  Bill 8651.8 of the 
California Revenue and Taxation Code  Tax credit To encourage the use of 
alternative fuels. Fuels consisting of at least 
85 percent ethanol or methanol.  Pay an excise tax of one 
half the normal rate for each gallon used.    
  G/SCM/N/253/USA  
 
- 75 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Colorado Enterprise 
Zone Office of Econ. Dev 
& Int'l Trade Tax Credit Tax credits granted for 
investment and employment which takes place within state designated enterprise zones. Companies must invest in equipment used exclusively in the zone; hire new full-time employees; pay for 50% or more of an employee's health insurance; conduct R&D activities in the zone; invest in job training; invest in the rehabilitation of a building that is 
over 20 years old and vacant; or 
make a contribution to approved zone development projects in zones.  Any business locating or expanding 
within a designat ed enterprise 
zone is potentially eligible. Specific programs, however, are targeted at agricultural processing, manufacturing, and R&D. An investment credit of 
3 percent for investments in equipment used exclusively in the enterprise zone. 25 percent income tax credit (not to exceed $50,000) to rehabilitate vacant buildings. 10 percent credit for employer job training expenses. $500 tax credit for each new full-time employee and an additional $500 credit for each full-
time agricultur al processing 
or manufacturing employee and an additional $200 for each employee that the employer pays for their health insurance. A 3 percent tax credit is granted for increases in R&D expenditures. There is also a tax credit of 25 percent (not to exceed $100,000) for private contributions to local zone administrators for enterprise zone development projects. Localities also have the option of refunding local property tax and/or sales and use tax on equipment and supplies. Ongoing  
  G/SCM/N/253/USA  
 
- 76 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Colorado Biotech Sales 
and Use Tax Refund Department of 
Revenue Tax Refund To promote business within the 
state. "Qualified taxpayer" means a C 
corporation, as defined in section 39-22-103 (2.5), a partnership, as defined in section 39-22-103 (5.6), a limited liability company that is not a C corporation, an S corporation, as defined in section 39-22-103 (10.5), or a sole proprietorship that purchases, stores, uses, or consumes tangible personal property to be used in Colorado directly and predominately in research and 
development of biotechnology. For the calendar year 
commencing 1 January 1999, and for each calendar year thereafter, each qualified taxpayer shall be allowed to claim a refund of all state sales and use tax paid by the qualified taxpayer, pursuant to parts 1 and 2 of this article, on the sale, storage, use, or consumption of tangible personal property to be 
used in Colorado directly 
and predominately in research and development of biotechnology during that calendar year. To claim the refund a qualified taxpayer shall submit a refund application to the department of revenue on a form provided by the department. Such application shall be submitted no earlier than January 1 and no later than April 1 of the calendar year following the calendar year for which the refund is claimed. The application shall be accompanied by proof of payment of state sales and use taxes paid by the qualified taxpayer in the 
immediately preceding 
calendar year. Ongoing 
Colorado Performance 
Incentive Fund (PIF) Office of Economic 
Development and International Trade Cash incentives 
for new jobs paying above average wages To increase employment in 
Colorado. Qualified new businesses or those 
expanding in Colorado. From $1,500 up to $4,500 
per position depending on average wage rate and business location. Sunsets 
FY 2011  
  G/SCM/N/253/USA  
 
- 77 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Colorado Aircraft 
Manufacturer Tax Credit Colorado Office of 
Economic Development and International Trade Tax Credit To encourage aircraft 
manufacturing in the state. Qualified aircraft manufactur ers. Aircraft manufacturers 
located in a Colorado aviation development zone may qualify for a state income tax credit of $1,200 per new employee. The credit is available for tax years beginning on or after 1 January 2006.  The credit 
expires 1 January 2017. 
Connecticut  Small 
Business Express Program Department of 
Economic and Community Development Loans and 
matching grants The program provides loans and 
grants to Connecticut's small businesses to spur job creation and growth. Small businesses with operations 
in Connecticut, registered to conduct business for not less than twelve months, in good standing with all state agencies, and employing not more than 100 employees, are eligible to apply. Priority funding is given to applications within Connecticut's economic base industries, which include precision manufacturing, business services, green and sustainable technology, bioscience, and information technology sectors. Revolving loan fund: 
$10,000-100,000; Express job creation incentive program loans: $10,000-300,000. Matching grant program: $10,000-100,000.
 Ongoing  
  G/SCM/N/253/USA  
 
- 78 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Apprenticeshi
p Training Tax Credit in Manufacturing, Plastics, Plastics-Related, or Construction Trades - §12-217g  Connecticut 
Department of Labor Tax Credit Labor training. Manufacturing Trades (machinists, 
tool and die makers, machine tool repairers), Plastics and Plastic-Related Trades and Construction Trades. Manufacturing and 
Plastics/Plastics-Related Trades: A firm may apply for a credit of up to $4800 per apprenticeship. The amount of the credit is limited to the lesser of 50 percent of the actual wages paid or the total number of working hours during the year multiplied by $4.00, or $4,800. Construction Trades: A firm 
may apply for a credit of up 
to $4000 per apprenticeship. The amount of the credit is limited to the lesser of 50 percent of the actual wages paid or the total number of working hours during the year multiplied by $2.00, or $4,000. Ongoing 
Connecticut  Connecticut 
Capital Access Fund: Urban Connecticut 
Development Authority Loan Access to bank lending through 
use of portfolio loan insurance. Loss reserves up to 29.5 percent used to induce bank lending in targeted areas. Up to 9.5 percent 
cash reserve deposited for other 
small business loans. Direct loans up to $250,000 for buildings, equipment and working capital for specialized projects. Businesses located in New London 
or Windham counties or one of 25 designated municipalities are eligible for targeted business loans. Special emphasis on minority and 
women-owned businesses. Small 
business Assistance loans available for businesses wi th 100 or fewer 
full-time employees. No prior CDA approval is 
required for new bank loans up to $250,000. Maximum loan $500,000. Maximum 15 year term. Ongoing  
  G/SCM/N/253/USA  
 
- 79 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut  Connecticut 
Growth Fund Connecticut 
Development Authority Loan The purpose of the program is to 
provide financing for small contractors and minority businesses that might have difficulty obtaining commercial financing. Direct state loans and equity investments administered by the Connecticut Development Authority to small businesses for fixed asset financing, working capital, and start-up capital for those businesses vital to the economic base of the state. 
Special purpose financing loans 
available for certain businesses unable to obtain conventional financing, including small contractors, minority businesses, water facilities, enterprise zone businesses or other impacted businesses. Working capital requirements are determined by examining a prospective borrower's short-term obligations such as wages, taxes and accounts payable. Loans are not made to "loss-making" enterprises.  Any for-profit small business 
whose gross sales including those of affiliates did not exceed $25 million in the most recent fiscal year. Loans are made in amounts 
from $50,000 to $4 million within which real property loans cannot exceed 90 percent of their cost or 20 years in term; machinery and equipment cannot exceed 80 percent of cost nor 10 years in term; and working capital cannot exceed those amounts determined to be necessary by the authority for a 
maximum term of 
seven years. The rate of interest is .50 percent over the latest 30-year U.S. Treasury rate outstanding as of the first day of each calendar quarter. Limit $4 million to any one borrower or Small Business Investment Company (SBIC). Up to $1 million to state or local development corporations. Ongoing  
  G/SCM/N/253/USA  
 
- 80 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Connecticut 
Innovations Connecticut 
Innovations, Inc. Equity The goal of these efforts is the 
creation and sustainable growth of a community of high technology companies vital to Connecticut's future. To be considered as a Connecticut 
Innovations portfolio client, a company must have a proprietary technology, since this is typically the collateral for providing funds. Product development 
financing is available for a minimum of 40 percent of the project funds between $50,000 and $1,000,000 in funds. Companies may apply for up to $500,000. Investments are structured using a variety of vehicles, including debt, equity, quasi-equity and royalties. Generally, the fund expects a compounded annual rate 
of return of 25-40 percent. 
The structure of the investment terms depends upon the risk assessment made by Connecticut Innovations' staff, and the needs of the business. Ongoing 
Connecticut Enterprise 
Corridor Zones State of 
Connecticut Department of Economic and Community Development Tax benefits Enterprise Corridor Zones are 
located along Route 8 in the state's Naugatuck Valley and Interstate 395 in the eastern region of the state. The benefits available in an enterprise corridor zone are the same as in an enterprise zone, subject to the 
similar qualifying terms and 
conditions. The communities located in the 
corridor zones are: Ansonia, Beacon Falls, Derby, Griswold, Killingly, Lisbon, Naugatuck, Plainfield, Putnam, Seymour, Sprague, Sterling ,Thompson, Torrington and Winchester. Municipalities in the enterprise 
corridor zones are not classified as 
targeted investment communities, and are therefore not eligible to extend urban job benefits. In the case of an Enterprise 
Corridor Zone, for the purposes of obtaining the enhanced 50 percent level of corporate credits, the hiring level for new full time positions remains at 30 percent of those 
positions being filled by 
residents of the community in which the project takes place, who are Job Training Partnership Act eligible. Ongoing 
Connecticut Enterprise 
Zone or Entertainment District Tax Credit State of 
Connecticut Department of Economic And Community Development Tax Credit Tax credit for relocating or 
expanding a facility within a designated enterprise zone or entertainment district. Manufacturers, R&D, warehousing 
and certain services and entertainment rela ted business as 
defined by regulations located in enterprise zones or entertainment 
districts. Allows a business 
25 percent or 50 percent of their allocable State Corporate business tax as a credit. Corporations may claim this credit for 10 years beginning with the first year following certification. Ongoing  
  G/SCM/N/253/USA  
 
- 81 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Enterprise 
Zone Program  State of Connecticut Department of Economic and Community Development Tax benefits Connecticut's Enterprise Zone 
Program represents a state and local partnership for the promotion of good business development, residential development, and the creation and retention of jobs. It targets a variety of state and local incentives for specific areas of 17 Connecticut municipalities. Manufacturers and firms in certain 
qualifying service sectors in the targeted investment communities. Program geared toward manufacturing and certain service sector businesses as well as research and development related to manufacturing and distribution of manufactured products. Eligible facilities include newly constructed facilities, older facilities idle for at least one year prior to being acquired through lease or 
purchase, and facilities that are 
substantially renovated or expanded. Manufacturing facilities 
located within the zones are eligible for the following assistance: 1) Five-year, 80 percent abatement of local taxes on real estate improvements and personal property acquisitions; 2) Ten-year, 25 percent credit on corporate business taxes (50 percent if at least 5 percent of all new employees are from the 
enterprise zone or from the 
municipality's disadvantaged population); 3) Low-cost loans and free technical assistance; 4) Job-training and placement as sistance; 
5) Exemptions from both state real estate conveyance taxes and sales taxes on machinery replacement parts. Both commercial businesses and residential facilities (where tenants satisfy maximum income level criteria) are eligible for a seven-year graduated tax deferral on increased assessments for improvements to property, exemptions on state real estate conveyance tax, and 
local incentives.  Ongoing  
  G/SCM/N/253/USA  
 
- 82 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Manufacturing 
Assistance Act  State of Connecticut Department of Economic and Community Development Loan The most comprehensive of the 
Department's financing programs, this act allows for the provision of financing for a variety of projects. An economic base business or 
business that has a North American Industrial Classification code of 311111 through 339999 or 493110, 493120, 493130, 493190, 511210, 512110, 512120, 512191, 522210, 522293, 522294, 522298, 522310, 522320, 522390, 523110, 523120, 523130, 523140, 523210, 523910, 524113, 524114, 524126, 524127, 524128, 524130, 524292, 541711, 541712, 551111, 551112, 551114, 561422, 611310, 611410, 
611420, 611430, 611513, 611519, 
611710 and 624410 or any business that is part of an economic clus ter, or any 
establishment or auxiliary or operating unit thereof, as defined in the North American Industrial Classification System Manual, which has demonstrated to the satisfaction of the commissioner that it has the qualifications, including financial qualifications, necessary to carry out a business development project. Funds 50 percent of total 
project costs; up to 75 percent for joint ventures between two or more municipalities, up to 90 percent in targeted investment communities, and up to 100 percent for defense diversification projects. The term of the state's economic development loans is typically for a period of 
ten years as recipients of 
said financial assistance are required by statute to maintain their operations in the state of a ten year period. However, the state has the authority to set any term it deems appropriate. Interest rate charged under the program are slightly below market rates. Maximum amount is capped at $10 million.  Ongoing 
Connecticut Manufacturing 
Credits to 
Facilities Located in Distressed Municipalities and Enterprise Zones Department of 
Revenue Services Tax Credit Tax credits up to 50 percent are 
available through the Department 
of Economic and Community Development (DCED) for corporations (including manufacturing facilities) that are located in design ated distressed 
municipalities and enterprise zones within Connecticut. Corporations (including 
manufacturing facilities) that are 
located in design ated distressed 
municipalities and enterprise zones within Connecticut. Not available. Ongoing 
Connecticut Manufacturing 
Facility in a High Unemployment
 
Area Tax Credit State of 
Connecticut Department of Economic and Community Development Tax Credit A credit may be applied against 
the portion of the corporation business tax allocable to a manufacturing facility located in a distressed municipality. Businesses operating in a 
designated area of high unemployment. The credit period lasts for 
ten years beginning with the first year following certification. Ongoing  
  G/SCM/N/253/USA  
 
- 83 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Tax Credits 
for Manufacturers Located in Connecticut's Targeted Investment Communities State of 
Connecticut Department of Economic and Community Development Tax Credit A ten- year tax credit for 
businesses relocating to or expanding in one of Connecticut's Targeted Investment Communities. Targeted Investment 
Communities- Eligible activities include investments in manufacturing facilities or in research and development activities related to manufacturing.
 25 percent corporate tax credit for 10 years. Ongoing 
Connecticut Tax Increment 
Financing Connecticut 
Development Authority (CDA) Bond Tax-exempt and taxable bonds 
for special economic development projects using incremental state tax revenues as partial security for the bonds. Large-scale economic development 
projects approved by the CDA prior to 1/7/96 and determined to be self-sustaining through the generation of incremental taxes collected under the sales, admission, cabaret and dues taxes.
 Negotiated sale or competitive bid with bond purchasers developed in conjunction with the State Treasurer. Terms generally 10 and 30 years. Ongoing 
Connecticut Urban Jobs 
Program Department of 
Economic and Community Development Mixed Tax The Urban Jobs Program provides 
incentives to manufacturing businesses to encourage the location and expansion of industrial facilities in targeted 
investment communities within 
the state. The incentives are primarily tax incentives. There are presently 17 targeted 
investment communities.  Businesses located within 
the targeted areas are eligible for the following assistance: 1) An 80 percent local property 
tax abatement for five years 
for both real and personal property; 2) A corporate business tax reduction of 25 percent for ten years; 3) Working capital loans for small business; and 4) A 0.5 percent reduction in charges for state industrial mortgage guarantees. Facility owners are entitled to the property tax incentives; all other incentives are reserved for facility occupants. Ongoing  
  G/SCM/N/253/USA  
 
- 84 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut MetroHartford 
Growth Fund Department of 
Economic and Community Development Loan To enhance employment 
opportunities by easing the burden of expanding, building or relocating businesses within MetroHartford. 1) Businesses which plan to create 
new jobs within the next three years in the MetroHartford area. 2) Businesses in the following "growth clusters": manufacturing, financial services, health care, information technology, distribution, tourism/entertainment, and environmental technologies. Maximum loan amount is 
$350,000 per project. Most loans amount to $20,000 per new, full-time, permanent job to be created over a three year period. Ongoing  
Connecticut Information 
Technology Project Grants
 Connecticut Development Authority Grant To encourage developers and 
companies to utilize brownfields or industrial sites within urban communities. Developers and companies that 
engage in information technology projects and must be located within an enterprise zone, urban communities, or distressed areas. Not available. Ongoing  
Connecticut Qualified 
Manufacturing Plant Department of 
Economic and Community Development Tax credit and 
Tax abatement 
 To encourage business development within the State. Any targeted investment 
community with approval from the Commissioner of the Department of Economic and Community Development, designated a vacant 
or underutilized manufacturing 
plant, with an area of at least 500,000 square feet. 1) 5 year, 80 percent 
abatement of local property taxes. 2) 10 year, 25 percent or 50 percent credit on that portion of the 
Connecticut Corporation 
Business tax. Ongoing  
Connecticut Railroad 
Depot Zone Department of 
Economic and Community Development Tax credit and 
Tax abatement 
 Provide assistance to under utilized railroad depots. Any targeted investment 
community with approval from the Commissioner of the Department of Economic and Community Development, designated as an under utilized railroad depot, located outside the boundaries of the existing Enterprise Zone. 1) 5 year, 80 percent 
abatement of local property taxes. 2) 10 year, 25 percent or 50 percent credit on that portion of the Connecticut Corporation Business tax. Ongoing  
Connecticut CT Inner City 
Business Loan Guarantee Program Department of 
Economic and Community Development Loan To encourage small business 
growth in designated industry clusters locate in the following communities: Waterbury, Hartford, New Britain, Bridgeport and New Haven. Small Businesses Loan amounts from $50,000 
to $250,000, discounted fixed interest rates and one percent application fee. Ongoing   
  G/SCM/N/253/USA  
 
- 85 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut 
 Digital 
Animation Tax Credit - §12-217ll  Connecticut 
Commission on Culture and Tourism Tax credit To encourage film production 
within the State. Film Industry For income years beginning 
on or after 1 January 2007, any state-certified animation production company incurring production expenses or costs in excess of $50,000 shall be eligible for a tax credit equal to 30% of such production expenses or costs.  Ongoing 
Connecticut Film 
Production Infrastructure Tax Credit - §12-217kk  Connecticut 
Commission on Culture and Tourism Tax credit To encourage film production 
within the State. Film Industry For state-certified 
infrastructure projects costing greater than $15,000 and less than $150,000, each taxpayer may be allowed a tax credit equal to 10% of the investment of the taxpayer. For state-certified projects costing $150,000 or more, but less than $1 million, each taxpayer may be allowed a tax credit equal to 15% of the investment of the taxpayer. For state-certified projects costing $1 million or more, each 
taxpayer may be allowed a 
tax credit equal to 20% of the investment of the taxpayer. Credits are assignable (salable). Ongoing  
  G/SCM/N/253/USA  
 
- 86 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut  Film 
Production Tax Credit - §12-217jj  Connecticut 
Commission on Culture and Tourism Tax credit To encourage film production 
within the state. Film Industry For state-certified 
infrastructure projects costing greater than $15,000 and less than $150,000, each taxpayer may be allowed a tax credit equal to 10% of the investment of the taxpayer. For state-certified projects costing $150,000 or more, but less than $1 million, each taxpayer may be allowed a tax credit equal to 
15% of the investment of 
the taxpayer. For state-certified projects costing $1 million or more, each taxpayer may be allowed a tax credit equal to 20% of the investment of the taxpayer. Credits are assignable (salable). Ongoing 
Connecticut Connecticut 
Brownfields & Information Technology Projects Tax Incremental 
Financing Connecticut 
Brownfields Redevelopment Authority  Tax incentives 
and grants Encourage brownfield 
redevelopment and job creation. Investors which invest in 
brownfield redevelopment in Bridgeport. Not available. Ongoing 
Connecticut Tax Incentive 
Development Program Department of 
Economic and Community Development Tax incentives Increase commercial investment 
in Bridgeport. Qualifying projects  must a) have a 
minimum of $3,000,000 in estimated costs of construction or rehabilitation; b) if located in an Enterprise Zone, have a minimum of $1,000,000 in estimated costs of construction, rehabilitation and/or machinery and equipment. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 87 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Urban and 
Industrial Site Reinvestment Tax Credit - §32-9t  State of 
Connecticut Department of Economic and Community Development Tax Credit To encourage investment in 
Connecticut's Urban Centers and the redevelopment of contaminated industrial sites.  Eligible applicants are defined as 
an investment that will add significant new economic activity, increase employment in a new facility and generate significant additional tax revenues to the municipality and the state. If the investment is made by an investment fund, the fund must have an asset value of at least $60 million. If the investment is made by a taxpayer, the investment must be a minimum of 
$5 million. Projects may receive a 
dollar for dollar corporate tax credit of up to 100 percent of their investment up to a maximum of $100,000,000. Credit is disbursed over a ten year period. Credits are assignable (salable). Ongoing 
Connecticut Direct Loans Connecticut 
Development Authority Loan To supplement the capital needs 
of economic base businesses that will maintain or create employment in Connecticut. Eligible uses of funds include; term working capital, the purchase of machinery and equipment, the purchase, construction, expansion, or upgrading of faci lities, mortgages 
for owner-occupied real property, brownfields remediation and redevelopment. Economic base businesses. $250,000 to $5 million with 
a term tailored to each transaction - up to 20 years 
 Ongoing 
Connecticut Industrial 
Revenue Bonds For Manufacturers
 Connecticut Development Authority Loan To provide lower-cost, tax-
exempt financing for manufacturers to encourage the location, expansion or retention of manufacturers within Connecticut. Manufacturers.  Up to $10 million for a term 
of up to 40 years or 120% of the economic life of the asset financed. Ongoing 
Connecticut Connecticut 
Brownfield 
Revolving 
Loan Fund State of 
Connecticut 
Department of 
Economic and Community Development Loan To facilitate the remediation of 
contaminated properties with in 
Connecticut. State-administered EPA funds for 
the remediation of environmental 
contamination located in any 
Connecticut municipality. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 88 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Special 
Contaminated Property Remediation and Insurance Fund (SCPRIF) State of 
Connecticut Department of Economic and Community Development Loan To provide assistance to 
municipalities, developers or owners for Phase II and III investigations, Remedial Action Plans (RAP), demolition of structures and remedial action activities. The current owner of the site, the 
prospective owner or developer of the site, or the municipality in which the site is located The program provides a 
bridge loan to allow the applicant to conduct investigations, demolition and site remediation. Interest is paid during the term of the loan and the principal is repaid at the end of the term of the loan or when the site is later sold or leased or when the environmental remediation is complete. Ongoing 
Connecticut Urban Sites 
Remedial Action Program (USRAP) State of 
Connecticut Department of Economic and Community Development Loan For projects that are significant 
to Connecticut's economy and quality of life. Site must be located in a distressed municipality.  Owners or developers of 
contaminated property willing and able to conduct the investigations and remediate the site. This program provides seed 
capital to facilitate the transfer, reuse and redevelopment of the property. Ongoing 
Connecticut Line-Of-Credit 
To Term 
Loans Connecticut 
Development 
Authority Loan  One year line-of-credit converting 
to a fully amortizing term loan 
designed to assist Connecticut businesses expand within Connecticut. Economic base businesses. $250,000 to $1 million with 
a term not to exceed 
7 years. Ongoing 
Connecticut Participating 
Loans Connecticut 
Development Authority Loan  Subordinated direct loan 
participators with private-sector lenders enabling them to meet their borrowers' financing requirements Economic base businesses. $250,000 to $5 million with 
a term tailored to each transaction--up to 20 years 
 Ongoing 
Connecticut Guaranteed 
Loans Connecticut 
Development Authority Loan Guarantee
 To help private-sector lenders 
meet their clie nt's financing 
requirements. Economic base businesses. Guarantees can fully cover 
losses up to 40% of the principal balance. Ongoing 
Connecticut Manufacturing 
Facility Tax Credit - §12-217e  State of 
Connecticut Department of Economic And Community Development Tax credit To encourage manufacturers to 
locate in an enterprise zone or other area having enterprise zone level benefits. Manufacturers with a with tax 
liability against the tax imposed under Chapter 208 of the Connecticut General statutes (Corporate Business tax). A tax credit is available 
equal to 25% of the tax allocable to a manufacturing facility located within a Targeted Investment Community or an Enterprise Zone (or other area having Enterprise Zone level benefits). Ongoing  
  G/SCM/N/253/USA  
 
- 89 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut 50% 
Manufacturing Facility Tax Credit for Facilities Located in an Enterprise Zone (or Other Area Having Enterprise Zone Level Benefits) - 
§12-217e  State of 
Connecticut Department of Economic And Community Development Tax credit To encourage manufacturers and 
certain other businesses to locate in an enterprise zone or other area having enterprise zone level benefits. Manufacturers with a with tax 
liability against the tax imposed under Chapter 208 of the Connecticut General statutes (Corporate Business tax) and businesses engaged in biotechnology, pharmaceutical or photonics research , development, 
or production, with not more than 300 employees, located in a municipality with a major research university with programs in biotechnology, pharmaceuticals, or 
photonics, and an Enterprise Zone.
 A tax credit equal to 50% 
allocable to a manufacturing facility located within a designated Enterprise Zone (or other area designated as having Enterprise Zone level benefits) is available to a manufacturing facility that meets certain employment criteria. Other areas include: Enterprise Zones, Targeted Investment Communities, 
Entertainment Districts, 
Qualified Manufacturing Plants, Railroad Depot Zones Contiguous Municipality Zones, Enterprise Corridor Zones, Defense Plant Zones and Manufacturing Plant Zones. Ongoing 
Connecticut Enterprise 
Zone Tax Credit for Qualifying Corporations §12-217v  State of 
Connecticut Department of Economic And Community Development Tax credit To encourage businesses to 
located within one of Connecticut's Enterprise Zones or other area having enterprise zone level benefits. Qualifying corporations established 
in an area designated for enterprise zone level benefits and that meets certain employment levels and have tax liability against the tax imposed under Chapter 208 of the Connecticut 
General statutes (Corporate 
Business tax). Corporations may claim this 
credit for 10 years beginning with the first year following certification. 100% of the corporations business tax liability in years 1 through 3 and 50% of the 
corporations business tax 
liability for years 4 through 10.  Ongoing  
  G/SCM/N/253/USA  
 
- 90 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Machinery and 
Equipment Expenditure Tax Credit - §12-217o  State of 
Connecticut Department of Economic And Community Development Tax credit 
To encourage businesses to make 
machinery and equipment investments within the State. A tax credit is available for 
expenditures in machinery and equipment by corporations that have no more than  800 full-time, 
permanent employees in Connecticut. The tax credit is based on a percentage of the amount spent on machinery and equipment acquired for and installed in a facility in Connecticut that exceeds the amount spent for such machinery and equipment in the preceding income year. A tax credit equal to 5% of 
the incremental increase in expenditures for machinery and equipment is available if the corporation employed between 251 and 800 full-time, permanent employees whose wages, salaries, or other compensation is paid in Connecticut or a 10% credit equal to 10% of the incremental increase in expenditures for machinery 
and equipment is available 
if the corporation employed not more than 250 full-time, permanent employees whose wages, salaries, or other compensation is paid in Connecticut. Ongoing  
  G/SCM/N/253/USA  
 
- 91 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Research and 
Development (Nonincremental) Expenditures Tax Credit - §12-217n  Department of 
Revenue Services Tax credit To encourage businesses to 
invest in research and development within the state. Businesses with tax liability against 
the tax imposed under Chapter 208 of the Connecticut General statutes (Corporate Business tax). A qualified small business is 
entitled to a tentative tax credit equal to 6% of its R&D expenditures. Businesses making an R&D investment of $50 million or less are entitled to a 1% tax credit; businesses making an R&D investment of more than $50 million but not more than $100 million are entitled to a credit of $500,000 + 2% over 
$50 million; businesses 
making an R&D investment of more than $100 million but not more than $200 million are entitled to a credit of $1,500,000 + 4% over $100 million; and businesses making an R&D investment of more than $200 million are entitled to a credit of $5,500,000 + 6% over $200 million. Companies headquartered in an Enterprise Zone, with revenues over $3 billion and employing more than 2,500 employees, may elect to multiply their R&D expenses by 3.5% instead of using the credit percentage listed above.  Ongoing  
  G/SCM/N/253/USA  
 
- 92 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Research and 
Development Tax Credit for Grants to Institutions of Higher Education - §12-217l  Department of 
Revenue Services Tax credit To encourage businesses to 
invest in research and development within the State. Businesses with tax liability against 
the tax imposed under Chapter 208 of the Connecticut General statutes (Corporate Business tax). A tax credit is available for 
the incremental increase in amounts spent by a corporation for any grant or combination of grants to any institution of higher education in Connecticut made for the purposes of research and development related to advancements in technology. Ongoing 
Connecticut Small 
Business Guarantee Fee Tax Credit 
 Department of Revenue Services Tax credit To encourage the development 
and growth of small businesses within Connecticut. Small business th at qualify as a 
small business under 13 CFR Part 121, which has gross receipts of $5 million or less for the income year in which the credit is first allowed and with a tax liability against the tax imposed under Chapter 208 of the Connecticut General statutes (Corporate Business tax). The amount of the credit is 
equal to the amount paid during the income year by a small business to the federal Small Business Administration as a guaranty fee to obtain guaranteed financing. Ongoing 
Connecticut Bradley 
Development Zone Connecticut 
Department of Economic and Community Development Tax Credit  Enterprise Zone level benefits in 
designated areas in Windsor, Windsor Locks, East Granby and Suffield Qualifying corporations established 
in an area designated for enterprise zone level benefits and that meet certain employment levels and have tax liability from the tax imposed under Chapter 208 of the Connecticut General statutes (Corporate Business tax). Corporations may claim this 
credit for 10 years beginning with the first year following certification. The credit is limited to 100% of the corporation's business tax liability in years 1 through 3 and 50% of the corporations business tax liability for years 4 through 10.  Ongoing  
  G/SCM/N/253/USA  
 
- 93 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Delaware 
Strategic Fund  Delaware Economic  
Development Authority Loan, Grants, 
and Equity Incentives The Delaware Strategic Fund 
represents the primary funding source used by The Delaware Economic Development Authority to provide customized financial assistance for job retention, creation or other economic development projects within the state. Assistance usually includes recapture provisions. Specific uses of the fund include: a) Economic Development Loans or Grants b) Green Industries 
Loans c) Governmental Units 
Development Assistance d)SBIR Bridge Grants and e) Brownfield Grants If a project is deemed to qualify 
under legislative, regulatory, and policy guidelines, a process begins 
which includes completion of a comprehensive application, staff and legal review of the application, review of the application and other supporting material at a public meeting of the Council on Development Finance, final staff review, approval by the Chairperson of The Delaware Economic Development Authority, 
followed by a contract that 
memorializes terms and conditions. Varies on an individual 
project basis Ongoing  
  G/SCM/N/253/USA  
 
- 94 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Research & 
Development Tax Credit Delaware Economic 
 
Development 
Authority Tax Credit Encourage research and 
development.  Qualified businesses that incur 
research and development expenses (as defined in Section 41(c) of the Internal Revenue Code)  1) 10% of the excess of the 
taxpayer's total Delaware qualified research and development expenses for the taxable year over the taxpayer's Delaware base amount, or (2) 50% of Delaware's apportioned share of taxpayer's federal research and development tax credit using the alternative incremental credit method (under 
Section 41(c)4 of the 
Internal Revenue Code). Credit is limited to 50% of the Delaware income tax liability. Any unused credit may be carried forward and applied to no more than 15 succeeding taxable years following the first taxable year for which the taxpayer was entitled to claim the credit. The total amount of credits approved with respect to all applicants cannot exceed $5 million in any fiscal year. If applications exceed $5 million, each qualified applicant will receive a credit equal to ($5 million x eligible credit for approved applicant / eligible credit for 
all approved applicants). Ongoing  
  G/SCM/N/253/USA  
 
- 95 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Corporate 
Income Tax Credits Department of 
Finance Tax Credits To encourage new and expanded 
facilities within targeted industries in Delaware. Firms within targeted industries, 
including: manufacturers; wholesalers; laboratories used for scientific, agricultural, or industrial research, developm ent or testing; 
computer processors; engineering firms, consumer credit reporting services; wholesale of computer software; telecommunications and aviation services. Firms within targeted 
industries qualify for corporate income tax credits of $400 for each new employee and $400 for each new $100,000 investment. Firms within targeted industries who also locate in a targeted area qualify for $650 for each new employee and $650 for each new $100,000 investment. Firms must invest a 
minimum of $200,000 and 
create a minimum of five new positions. Total credits in any taxable year cannot exceed 50 percent of the pre-tax liability. Unused credits can be carried forward during the ten-year Program. Selected commercial and retail businesses which locate in one of the 30 targeted census tracts and meet the minimum investment/employment criteria, qualify for credits of $400/new employee and $400/$100,000 investment.
 Ongoing 
Delaware Gross Receipt 
Tax Reductions for targeted industries locating within a targeted area. Department of 
Finance Tax reductions To encourage the location of 
targeted industries in targeted areas.  Targeted industries locating in a 
targeted area. This is an enhancement to 
corporate income tax credits. Provides for a fifteen year reduction of gross receipts; 100 percent the first five years, 90 percent in the sixth year decreasing by 10 percent each year to 5 percent in the final (fifteenth) year.  Ongoing  
  G/SCM/N/253/USA  
 
- 96 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Gross Receipt 
Tax Reductions for targeted industries. Department of 
Finance Tax Reductions To encourage targeted 
industries.This is an enhancement to Corporate Income Tax Credits. Gross receipt reductions further increase the incentive by also providing a ten year reduction of Gross Receipts; 90 percent beginning in the first year, 80 percent the second year until 5 percent in the last (tenth) year. 
 Targeted industries eligible for Corporate Income Tax credits. This is an enhancement to 
corporate income tax credits. Provides for a ten year reduction of gross receipts; 90 percent beginning in the first year, 80 percent the second year until 5 percent in the last (tenth) year.  Ongoing 
Delaware Headquarters 
Management Corporation (HMC) Department of 
Finance Tax Reductions Designed to attract headquarter 
operations. Companies locating headquarters 
in Delaware.  The benefit equals a 
20 percent reduction in taxes owed for each new Delaware employee. HMCs must pay a minimum $5,000 tax. Ongoing 
Delaware Neighborhood 
Assistance Act  Department of Finance Tax Credits To encourage businesses paying 
Delaware corporate taxes to invest in impoverished  
neighborhoods. Participating Delaware businesses. The credit is equal to 
50 percent of the amount invested by a business in a 
neighborhood assistance 
program for tax years beginning on or after 1 January 2000, up to a maximum of $100,000. The total tax credits available for the State's fiscal year are $500,000.  Ongoing  
  G/SCM/N/253/USA  
 
- 97 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Recycled 
Materials Collection and Distribution Tax Credit Department of 
Finance Tax Credits To encourage recycling. A taxpayer engaged in the 
business of collecting and distributing recycled materials is entitled to job and investment credits.  Targeted companies that 
meet the recycler definition receive a tax credit up to $650 per employee and per $100,000 of investment. Firms within targeted area qualify for $900 for each new employee and $650 for each new $100,000 investment. During the ten-year life of credits, credits may not exceed 50 percent of the 
company's pre-credit tax 
liability in any one year. Ongoing 
Delaware Non-targeted 
industry locating in a targeted area.
 Department of Finance Tax Credits & 
Gross Receipt Tax Reductions To encourage certain commercial 
and retail activities to locate in targeted areas. Designated commercial & retail 
businesses. A Corporate Income Tax 
credit of $400 for each $100,000 of investment and $400 for each qualified employee. Ongoing 
Delaware Gross Receipt 
reductions for non-targeted industry locating in a targeted area Department of 
Finance Tax Reductions To encourage certain commercial 
and retail activities to locate in targeted areas. Designated commercial & retail 
businesses. Ten year program with a 
90 percent reduction the first year, 80 percent the second until 5 percent in the final (tenth) year. Ongoing  
  G/SCM/N/253/USA  
 
- 98 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Corporate 
Income Tax Credits (Targeted Industry & Targeted Areas ) Department of 
Finance Tax Credit Delaware has identified targeted 
industries and targeted areas for economic development purposes and provides tax credits for qualifying new and expanded facilities for up to ten years. This program has a requirement of job creation associated with it.  Targeted areas are defined as: a) 
real property that is owned by any level of government or any of their agencies; b) real property owned by a non-profit organization which is organized and operated solely for the purpose of fostering economic development; c) real property which has been approved as a Delaware Foreign Trade Zone; and d) 30 low income Census Tracts throughout the state. Firms within targeted 
industries qualify for corporate income tax credits of $400 for each new employee and $400 for each new $100,000 investment. Firms within targeted industries who also locate in a targeted area qualify for $650 for each new employee and $650 for each new $100,000 investment. Firms must invest a 
minimum of $200,000 and 
create a minimum of five new positions. Total credits in any taxable year cannot exceed 50 percent of the pre-tax liability. Unused credits can be carried forward during the ten-year program. Selected commercial and retail businesses which locate in one of the 30 targeted census tracts and meet the minimum investment/employment criteria, qualify for credits of $400/new employee and $400/$100,000 investment.
 Ongoing  
  G/SCM/N/253/USA  
 
- 99 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Public Utility 
Tax Rebates for Industrial Users Department of 
Finance Utility Tax 
Reduction  (Rebate) To assist licensed manufacturers. 
Firms meeting the criteria for targeted industry tax credits are eligible for a rebate of the public utilities tax imposed on new or increased consumption of gas and electricity for five years. The public utilities tax rate is 4.25 percent. The utility tax on the consumption of electricity by licensed manufacturers and food or agribusiness processors is reduced from 4.25 percent to 
2 percent. Additionally, electric 
consumed in the manufacture of automobiles is exempt from the utility tax. Licensed manufacturers meeting 
the criteria for targeted industry tax  credits. The rebate equals 
fifty percent (50 percent) of the Public Utilities Tax imposed on new or increased consumption of gas and electricity for five years. Ongoing 
Delaware Film 
Promotion Program Delaware Film 
Commission State sales tax 
exemption To promote film production 
within the state. Film Industry State sales tax exemeption. Ongoing 
District of 
Colombia Film DC 
Economic Incentive Grant Fund Office of Motion 
Picture and TV Grant To promote co mmercial film and 
television production. Film/Television Industry Reimbursement for 
expenses related to production of nationally distributed film and television products with a minimum spending of $500,000 in Washington, DC over a period of five days or more. A grant is not exceed the lesser of 10 percent of the qualified expenses or 100 percent of the taxes paid to DC on the qualified expenses. Ongoing  
  G/SCM/N/253/USA  
 
- 100 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
District of Columbia The Enterprise 
Zone (EZ) program Office of the 
Deputy Mayor for Planning and Economic Development Tax credits A variety of tax incentives to 
encourage business activity in certain District neighborhoods.  DC businesses.  The EZ program offers 
these benefits: Employee Tax Credits up to $3,000 for each DC resident employee (full or part-time); Work Opportunity Credits up to $2,400 for each employee from targeted demographic groups; Welfare to Work Credits up to $3,500 and $5,000 for the first and second years of employment, respectively, 
for workers receiving long-
term family assistance; EZ Bonds Tax Exempt Bond Financing up to $15 million in below-market interest rate loans (as much as 200 basis points below the market rate); Exclusion of Capital Gains from DC Zone Assets eliminates capital gain in gross income from qualified property sale or exchange (properties must be held more than 5 years).
 Ongoing  
  G/SCM/N/253/USA  
 
- 101 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
District of Columbia Qualified High 
Technology Companies (QHTC's) DC's New E-
economy Transformation Act (NET 2000). Administered by DC Office of Tax and Revenue Tax incentives A collection of incentives 
reducing the cost of doing business for high-tech companies. Businesses that employ two or 
more individuals, have an office or headquarters in a designated High Technology Development Zone and derive a majority of revenues from qualifying high-technology activities. Map is available at dcbiz.dc.gov $5.8 million (2010).  
Reduction in the corporation income tax from 9.975% to 6% and in many cases elimination of the corporate income tax for five years; Ten-year abatement on qualified personal property taxes; Five-year freeze on assessed value of real property (i.e., no increase in real property tax); Relocation reimbursements 
of up to $5,000 for each 
employee relocated to the District and $7,500 if the employee also relocates his or her principle residence into the District; Wage reimbursements of up to $5,000 for each person hired; Exemption from District sales tax for purchases of certain technology equipment and exemption from tax on sale of certain intangible property and services. Ongoing 
Florida Entertainment 
Industry Financial Incentive Office of the Film 
and Entertainment Cash 
reimbursement To promote film production 
within the state. Film Industry 15 percent on total Florida 
budget of a filmed entertainment program which spends at least $850,000 with a maximum reimbursement of $2 million. Ongoing 
Florida Florida 
Entertainment Sales Tax Exemption Office of the Film 
and Entertainment Tax exemption  To promote film production 
within the state. Film Industry Tax exemption from sales 
and use tax on purchases or lease of certain items used exclusively as an integral part of the production activities in Florida. Ongoing  
  G/SCM/N/253/USA  
 
- 102 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida New Research 
& Development Tax Credit Florida Department 
of Revenue Tax Credit To encourage reseach and 
development in Florida. To participate in this program, the 
corporation must claim and be allowed a research credit against federal income tax for qualified research expenses under s. 41, IRC, and also meet the definition of a target industry business as defined in s. 288.106, F.S. These industries include clean technology, life sciences, information technology, aviation/aerospace, homeland security/defense, and 
financial/professional services. The Florida research and 
development tax credit may not exceed 50 percent of the Florida corporate income tax liability after all other credits have been applied in the order provided in s. 220.02(8), F.S. The combined total amount of tax credits which may be granted to all business enterprises during any calendar year is $9 
million. Began 
20 March 2013; ongoing. 
Florida Targeted Jobs 
Incentive Fund (TJIF) Program of Miami-Dade County Miami-Dade County Cash incentives Provides financial incentives for 
qualifying industries that are relocating or expanding within Miami-Dade County. Select industries, including 
advanced manufacturing, aviation/aerospace, clean energy, financial/professional services, homeland security/defense, information technology, life sciences, creative industries, global logistics. To be eligible, new or expanding companies relocating to Miami-Dade County must create at least 10 new jobs and make a capital investment of at least $3 million. Cash incentive awards up to 
$3,000 per new job created and $9,000 in an Enterprise Zone. Incentives will be paid over a six year time period. The incentive award is based on the amount of capital investment made with bonuses for green construction and businesses locating in a designated priority area in the county. Expires 
30 September 2020 
Florida Brownfield 
Redevelopment Bonus Refund  Florida Department 
of Environmental Protection Tax Refund Encourage brownfield 
redevelopment and job creation. Offers incentives to businesses that 
locate in brownfield sites which are underutilized industrial or commercial sites due to actual or perceived environmental contamination. Applicants receive tax 
refunds of up to $2,500 for each job created. Ongoing 
Florida Rural 
Economic Development 
Catalyst 
Project Office of Tourism, 
Trade and Economic 
Development Various types of 
funding Development of Florida's rural 
areas. Projects within the three 
designated rural areas which have been affected by extraordinary 
economic events or natural 
disasters. Varies on an individual 
project basis. Ongoing 
Florida Ad hoc 
agreement Jacksonville 
Economic Development Commission Tax Incentives To upgrade the Gerdau 
Ameristeel Baldwin steel plant. Gerdau Ameristeel Three million dollars in tax 
incentives.  Ongoing  
  G/SCM/N/253/USA  
 
- 103 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Innovation 
Park Technology Commercialization Grant Program Leon County 
Research and Development Authority Grant Encourage technology related 
products in various fields that have the potential to create jobs and stimulate the local economy. Researchers and entrepreneurs in 
Leon County. Grants up to $15,000.  Ongoing  
Florida  Capital 
Investment Tax Credit Office of Tourism, 
Trade and Economic Development Tax Credit The Capital Investment Tax 
Credit is an annual credit against the corporate income tax for up to 20 years. In order to qualify for consideration 
under the program, an applicant must be in a designated high impact sector (currently biomedical technology, financial services, silicon technology, and transportation equipment manufacturing) SICs 372, 376 and 3711; or information technology—SICs 357, 366, 367, 481, 482 and 737). Other industries are expected to be designated in the future. The amount of the annual 
credit is up to five percent of the eligible capital costs generated by a qualifying project and no more than a specified percentage of the annual corporate income tax liability generated by the project, whichever is lower. Those percentages are:  One hundred percent, for a project with a cumulative capital investment of at least $100 million; Seventy-five pe rcent, for a 
project with a cumulative capital investment of at least $50 million but less than $100 million; and Fifty percent, for a project with a cumulative capital investment of at least 
$25 million but less than 
$50 million. Ongoing  
  G/SCM/N/253/USA  
 
- 104 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Enterprise 
Zone Jobs Tax Credit (Corporate Income Tax) Office of Tourism, 
Trade and Economic Development. Florida Department of Economic Opportunity administers the program. Tax Credit Business located in a state-
designated Enterprise Zone, who pay corporate income tax and create a new full-time job, are eligible to receive a corporate income tax credit for wages paid to new employees who have been employed by the business for at least three months and are residents of a Florida Enterprise Zone. Businesses located in state-
designated enterprise zones. Firms must earn more than $5,000 to take advantage of the credit. The credit amounts to 
20 percent of wages paid to new employees who are residents of a Florida enterprise zone. If 20 percent or more of the permanent, full-time employees are residents of a Florida enterprise zone, the credit is 30 percent. The credit is available for up to two years per new employee. In "Rural 
Enterprise Zones" 
businesses will receive a credit of 30 percent paid to new eligible employees in a full-time job who are residents of a "Rural County". If 20 percent or more of the permanent, full-time employees are residents of a zone, the credit is 45 percent. Ongoing  
  G/SCM/N/253/USA  
 
- 105 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Enterprise 
Zone Jobs Tax Credit (Sales and Use Tax) Florida Department 
of Revenue audits the program. Florida Department of Economic Opportunity administers the program. Tax Credit Business located in a state-
designated Enterprise Zone, who collect or pay Florida sales and use tax and create a new full-time job, are eligible to receive a monthly credit against their tax due on wages paid to new employees who have been employed by the business for at least three months in a full-time job and are residents of a Florida Enterprise Zone. Businesses located in state-
designated enterprise zones. The credit amounts to 
20 percent of wages paid to new employees who are residents of a Florida enterprise zone. If 20 percent or more of the permanent, full-time employees are residents of a Florida enterprise zone, the credit is 30 percent. The credit is available for up to two years per new employee. In "Rural 
Enterprise Zones" 
businesses will receive a credit of 30 percent paid to new eligible employees in a full-time job who are residents of a "Rural County". If 20 percent or more of the permanent, full-time employees are resident of a zone, the credit is 45 percent. Expires 
31/12/2015. 
Florida  Enterprise 
Zone Property Tax Credit Florida Department 
of Revenue Tax Credit New or expanded businesses 
located in a state-designated enterprise zone are eligible for a corporate income tax credit equal 
to 96 percent of ad valorem 
taxes paid on the new or improved property. Businesses located in state-
designated enterprise zones. Firms must earn more than $5,000 to take advantage of the credit. The corporate income tax 
credit is available for a period up to five years, up to a maximum of $25,000 
annually, and may be 
carried forward for five years. If 20 percent of the permanent employees of the business are residents of the zone, the maximum amount of the credit is increased to $50,000 annually. New or expanded businesses must create at least five new jobs. Expires 
31/12/2015.  
  G/SCM/N/253/USA  
 
- 106 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  High Impact 
Business Performance Incentive (HIPI) Office of Tourism, 
Trade and Economic Development Grant HIPI is a negotiated performance 
grant provided to pre-approved applicants in certain high-impact sectors. In order to qualify for consideration 
under the program, an applicant must be in a designated high impact sector (currently biomedical technology, financial services, silicon technology, and certain transportation equipment manufacturing). Applicants must also create at least 100 new full-time jobs in Florida in a three-year period and make a cumulative investment of at least $100 million in the same 
time-frame. For research and 
development facilities, the requirements are lower. Seventy-five full-time jobs need to be created and there should be a cumulative capital investment of at least $75 million over a three-year period. Section 288.108 (3)(b), 
Florida Statutes, provides guidelines on the amount of grant to be given to an eligible high impact business. Ongoing  
  G/SCM/N/253/USA  
 
- 107 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Qualified 
Defense Contractor Tax Refund Program Office of Tourism, 
Trade and Economic Development (OTTED) Tax Refund The Qualified Defense Contractor 
Tax Refund Program provides a tax refund of up to $5,000 per job created or saved in Florida through the conversion of defense jobs to civilian production, the acquisition of a new defense contract, or the consolidation of a defense contract which results in at least a 25 percent increase in Florida employment, or a minimum of 80 jobs. In order to qualify for consideration 
under the program an applicant must: pay an average annual age that is at least 115 percent of the state or local average wages; have in the last year derived at least 60 percent of its Florida gross receipts from Department of Defense contracts and not less that 80 percent over the preceding five years; create at least a 25 percent increase in Florida employment or 80 new jobs if a 
consolidation project; show that 
the jobs make a significant economic contribution to the area economy; demonstrate that the tax refund is necessary for the business to compete for the new contract or make the consolidation; and provide a resolution from the city or county commission recommending the applicant for th e incentive. Once certified by the 
OTTED, the applicant may receive funds up to the project cap on the taxes it pays including corporate income, sales and excise, ad valorem, and documentary stamp taxes, subject to the following: 1) up to 25 percent of the total refund may be taken per year as long as the business maintains project 
employment and wage 
levels; 2) up to $2.5 million may be refunded to a single defense contractor in any year; 3) up to $7.5 million may be refunded to a single defense contractor in all years under the program. The local community provides a match equaling 20 percent of the tax refund. If located in a Rural Economic Development Initiative (REDI) county, the business may elect to be exempt from the local match and accept a refund equal to 80 percent of the refund for which they would otherwise qualify. Ongoing  
  G/SCM/N/253/USA  
 
- 108 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Quick 
Response Training Program Workforce Florida, 
Inc. Grant Quick Response's customer-
driven training programs provide rapid, effective training which is specifically tailored and designed to meet the needs of Florida businesses. Special consideration will be given 
to applicants located in a distressed urban or rural area or Enterprise Zone. Funding priority given to business creating high skill/high wage jobs, in qualified targeted industries· jobs located in a distressed Urban Inner City Area or Rural Area, jobs located in an Enterprise Zone or Brownfield Area, whose grant proposals have the greatest potential for economic impact, that contribute in-kind and 
cash matches. Once approved, a grant 
agreement is signed and the applicant is eligible for reimbursement of direct 
training costs (i.e. instructors' salaries, curriculum development and manuals). Payments are made monthly on a reimbursement and performance basis as per terms of the grant agreement. The maximum 
grant term is 24 months. Ongoing 
Florida  Qualified 
Target Industry Tax Refund Program (QTI)
 Office of Tourism, Trade and Economic Development Tax Refund The QTI Tax Refund Program is a 
tool available to Florida communities to encourage quality job growth in targeted high-wage businesses. Manufacturing facilities, finance & 
insurance services, wholesale trade, iInformation industries, professional, scientific & technical services, corporate headquarters and management services, administrative & support services (must be non market based). Pre-approved applicants 
who create jobs in Florida receive tax refunds of $3,000 per new job created; $6,000 in an Enterprise Zone or Rural County. For businesses paying 150 percent of the average annual wage, add $1,000 per job; for businesses paying 200 percent of the average annual salary, add $2,000 per job. New or expanding businesses in 
selected targeted industries 
or corporate headquarters are eligible. Tax refunds are only paid after verification of job creation/maintenance and required wage payments. Local communities, except rural counties, must pay 20 percent of the refund. Ongoing  
  G/SCM/N/253/USA  
 
- 109 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Rural Job Tax 
Credit Program Office of Tourism, 
Trade and Economic Development Tax Credit Encourage job creation. Certain businesses located in 
Florida's 33 rural counties. The list of eligible industries includes: Manufacturers, Printing and Publishing Firms, and Mining, Agriculture, Hotels, Customer Service Centers. New businesses must create 
at least 10 new jobs. Existing businesses must increase its employment base by 20 percent, if the business has fewer than 50 employees. Existing businesses with 50 or more employees must create at least 10 new jobs. A total of $5 million of tax credits are available per calendar year. The tax credit can range 
from $1,000 to $1,500 per 
qualified employee. A business may receive up to $500,000 in tax credits during any one calendar year for its efforts in creating jobs. Ongoing 
Florida  Sales and Use 
Tax Exemption on Machinery and Equipment  Florida Department 
of Revenue Tax Exemption The Sales and Use Tax 
Exemption on Machinery and Equipment is an incentive made available to new and expanding businesses who use such equipment at a fixed location to manufacture, process, compound, or produce tangible 
personal property for sale, or for 
exclusive use in spaceport activities.  Manufacturing machinery and 
equipment bought or used for manufacturing, compounding, or producing items of tangible personal property.  New manufacturing 
operations are fully exempt. Expanding businesses pay sales or use tax of $50,000 for each calendar year of the expansion project before the exemption or refund is available.  Ongoing  
  G/SCM/N/253/USA  
 
- 110 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Sales Tax 
Exemption for Electrical Energy Used in an Enterprise Zone Florida Department 
of Revenue Tax Exemption Encourage development in 
enterprise zones. Businesses located in state-
designated Enterp rise Zones with 
local ordinance exempting 50 percent of the municipal utility tax. Businesses may receive 
50 percent exemption from the municipal utility tax, if the municipality has enacted an ordinance for the exemption of the utility taxes in an enterprise zone. In addition, businesses are exempted from 50 percent of the state sales tax on utilities. If 20 percent of the firm's employees are zone residents, the business is 
totally exempt from the tax.
 Expires 
31/12/2015 
Florida  Sales Tax 
Refund for Building Materials Used in an Enterprise Zone Florida Department 
of Revenue Tax Refund Businesses or homeowners 
located in an enterprise zone may receive a sales tax refund up to $5,000 ($10,000 if 20 percent of employees are enterprise zone residents) for sales taxes paid on building materials used to rehabilitate real property located in the zone. Businesses located in Enterprise 
Zones. The maximum refund per 
application will be no more than $5,000 or 97 percent of the tax paid. If 20 percent or more of the permanent, full-time employees of the business are residents of a Florida enterprise zone, the refund will be no more than the lesser of $10,000 or 97 percent of the tax paid. Expires 
31/12/2015 
Florida  Sales Tax 
Refund for Business Machinery and Equipment Used in an Enterprise Zone Office of Tourism, 
Trade and Economic Development Tax Refund Businesses located in an 
enterprise zone may receive a sales tax refund on sales taxes paid to purchase new and used business property (e.g., tangible personal property such as office equipment, warehouse equipment, and some industrial machinery and equipment) which is used exclusively in an enterprise zone for at least three years. Businesses located in state-
designated Ente rprise Zones The total amount of the 
sales tax refund must be at least $500, but no more than the lesser of $5,000 or 97 percent of the tax paid per parcel of property. If 20 percent or more of the permanent, full-time employees of the business are residents of a Florida enterprise zone the refund will be no more than the lesser of $10,000 or 97 percent of the tax paid per parcel. Expires 
31/12/2015  
  G/SCM/N/253/USA  
 
- 111 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Semiconductor,  
Defense, or Space 
Technology 
Sales and Use 
Tax Exemption 
(SDST) Office of Tourism, 
Trade and Economic Development Tax Exemption This is an exemption of sales and 
use taxes that would otherwise be paid by the semiconductor, defense or space technology business on machinery and equipment used in production and research and development. Semiconductor, defense, or space 
technology-based facilities. Semiconductor technology 
industrial machinery and equipment used in semiconductor technology facilities to produce semiconductor technology products for sale or for use by these facilities are exempt from 100% of the tax imposed. Machinery and equipment used predominately in semiconductor wafer 
research and development 
activities in a semiconductor technology research and development facility are also fully exempt from the tax imposed. Defense or space technology industrial machinery and equipment used in defense or space technology facilities to manufacture, process, compound, or produce defense technology products or space technology products for sale or for use by these facilities are exempt from 25% of the tax imposed. Machinery and equipment used predominately in defense or space research and 
development activities in a 
defense or space technology research and development facility are also exempt from 25%of the tax imposed. Ongoing  
  G/SCM/N/253/USA  
 
- 112 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Rural 
Community Development Revolving Loan Office of Tourism, 
Trade and Economic Development Loans To promote rural development 
projects in rural areas which will stimulate economic growth. Businesses in rural areas. Low interest rates loans. Ongoing  
Florida  Urban Job Tax 
Credit Office of Tourism, 
Trade and Economic Development Tax credit Encourages job creation in 
Florida's 13 designated distressed urban core areas. Businesses in urban core areas.  Credit ranges from $500 to 
$2,000 per qualified job. A total of $5 million in tax credits is available each calendar year.  Ongoing  
Florida Quick Action 
Closing Fund Office of Tourism, 
Trade, and Economic Development Grant Responds to unique requirements 
of job creation projects to overcome a distinct quantifiable gap after other available resources have been exhausted. Businesses within Florida's 
targeted industry sectors paying high wages and contributing capital investment. Varies on an individual 
project basis. Ongoing. 
Florida Innovation 
Incentive Program Office of Tourism, 
Trade, and Economic Development Grant To provide resources for high-
value research and development 
projects, major innovation business projects, or alternative and renewable energy projects creating significant jobs and making large capital investments.
 Must be a research and development project, a qualifying job creation project, or an alternative and renewable energy project. Varies on an individual 
project basis. The state requires a minimum break even return on  investment 
within a 20 ye ar period. Ongoing. 
Georgia Appalachian 
Region Business Development Revolving Loan Fund Georgia 
Department of Community Affairs Loans To attract businesses to the 
Appalachian region. Private, for profit businesses in the 
Appalachian region. Low-cost loans equal 
$200,000 per qualifying business, or 50 percent of total project cost. Ongoing  
  G/SCM/N/253/USA  
 
- 113 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia Enterprise 
Zone Program  Georgia Department of Community Affairs Tax Exemption  The State Enterprise Zone 
program intends to improve geographic areas within cities and counties that are suffering from disinvestment, underdevelopment, and economic decline, encouraging private businesses to reinvest and rehabilitate such areas.  Companies located in designated 
Enterprise Zones (areas of poverty, unemployment, and general distress). Zone areas cannot be less than: indust rial-25 acres; 
commercial-8 acres; housing-5 acres.  Industrial: Ad valorem tax 
reductions on property taxes on Freeport-eligible inventory for 25 years, with a 100 percent property tax reduction in the first five years and 80, 60, 40, and 20 percent reductions in subsequent five year periods; a 100 percent exemption exists for inventory for 25 years. Housing and Commercial: 
Zone created for ten years 
with exemptions for real property being 100 percent for 5 years; 80 percent 6 and 7 years; 60 percent for 8 years; 40 percent for 9 years; 20 percent for 10 years. Ongoing 
Georgia Foreign Trade 
Zones (FTZs) Foreign Trade 
Zones Board, Georgia Foreign-Trade Zone Mixed Tax FTZs provide tax advantages for 
companies importing foreign goods, which may be brought into zones without formal entry payment of duties, excise taxes, or payment of property taxes. Inside the zones, goods may be 
processed, consolidated, 
assembled, repack ed, exhibited, 
manipulated, re-labeled, used in manufacture, stored until needed, or shipped back into the United States, at which time duties would be paid. Manufacturers and importers in 
FTZs. Customs fees that are due 
on averted or deferred duties for products assembled or distributed in, or from the United States. FTZs also allow for duty exemptions on re-exports, 
and weekly entry savings.  Ongoing  
  G/SCM/N/253/USA  
 
- 114 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia Headquarters 
Tax Credit Georgia 
Department of Industry, Trade and Tourism Tax Credit Companies establishing their 
headquarters or relocating their headquarters to Georgia may be entitled to a tax credit if the criteria are met (See Rates, Terms, Limits). The following criteria must be met 
to be eligible: (i) New jobs created at a new headquarters must be full-time (as defined by the law and regulation) and must pay above the average wage for Tier 1 counties, at least 105 percent of the average wage for Tier 2 counties, at least 110 percent of the average wage of Tier 3 counties, and at least 115 percent 
of the average wage for Tier 4 counties; (ii) Within one year, a 
company must invest $1 million 
and create 100 jobs at a new headquarters facility; (iii) the company must elect not to take the job or investment tax credits.   The credit is equal to 
$2,500 annually per new full-time job or $5,000 if the average wage of the new full-time jobs is 200 percent or more of the average wage of the county in which the new jobs are located. The credits apply for five years beginning with the year in which jobs are placed in service. The credit may be taken against 
Georgia income tax liability 
and a company's withholding taxes. Credits may be carried forward for 10 years. Ongoing  
  G/SCM/N/253/USA  
 
- 115 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia Investment 
Tax Credit Georgia 
Department of Revenue  Tax Credit Part of Georgia's Business 
Expansion and Support Act of 1994 which allows manufacturers and telecommunications facilities in operation for 3 years a tax credit on new investment. All manufacturing and 
telecommunications companies that have operated a facility or support facility in the state for at least 3 years and make a minimum $50,000 additional qualified investment per project/location are eligible to receive the tax credit. Counties are ranked by 
unemployment rate, per capita income, and poverty level (same tiers as the Job Tax Credit program). Companies expanding in Tier 1 counties are eligible to receive a 5 percent credit that increases to 8 percent for recycling, pollution control, and defense conversion activities. Companies expanding in 
Tier 2 counties are eligible 
to receive a 3 percent tax credit that increases to 5 percent for recycling, pollution control, and defense conversion activities. Companies expanding in Tier 3 or Tier 4 counties are eligible to receive a 1 percent credit that increases to 3 percent for recycling, pollution control, and defense conversion activities. Ongoing  
  G/SCM/N/253/USA  
 
- 116 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia Job Creation 
Tax Credit Georgia 
Department of Community Affairs  Tax Credit Part of Georgia's Business 
Expansion and Support Act of 1994 which allows statewide tax credits for businesses locating or expanding in the state.  Industries eligible include 
manufacturing, warehousing and distribution, proc essing, tourism, 
and research and development industries. Counties are ranked and placed into tier levels according to their rate of unemployment, per capita income, and poverty level. Job tax credits and job creation requirements are determined by the tier level of the county. Tier 1 counties represent 
the state's least developed counties. Companies creating 5 or more new jobs in a Tier 1 county may receive a $3,500 tax credit. Companies creating 10 or more jobs in a Tier 2 county may receive a $2,500 tax credit. Companies creating 15 or more new jobs in a Tier 3 county may receive a $1,250 tax credit. 
Companies creating 25 or 
more new jobs in a Tier 4 county (most developed) may receive a $750 tax credit. Credit values can be taken for up to five years and carried forward for ten years. Credits can be taken against 100% of tax liability in Tier 1 counties and applied to payroll withholding once all tax liability is exhausted (up to $3,500/job). Credits can be taken against 100% of tax liability in Tier 2 counties and against 50% of tax liability in Tier 3 and 4 counties. Credits similar to the credit available in Tier 1 counties are potentially available to companies in 
certain "less developed" 
census tracts in the metropolitan areas of the state.  Ongoing  
  G/SCM/N/253/USA  
 
- 117 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia Ports Activity 
Job Tax & Investment Tax Credit Georgia 
Department of Revenue Tax Credit To provide a tax incentive for 
usage of Georgia's ports by new/expanding bu sinesses in 
Georgia. Businesses must first be eligible to 
receive either the Jobs Tax Credit or the Investment Tax Credit. To receive the Port Activity tax credit, businesses must increase their port traffic tonnage through Georgia ports by more than 10 percent during the second preceding 12 month period. Base year port traffic must be at least 75 net tons, five containers, or 10 TEU's. If not, the percentage increase in port traffic will be calculated using 
75 net tons, five containers, or 
10 TEU's as the base. The tax credit amounts are 
as follows for all tiers: An additional job tax credit of $1,250 per job; investment tax credit of 5%; or optional investment tax credit of 10%. Companies that create 400 or more new jobs, invest $20 million or more in new and expanded facilities, and increase their port traffic by more than 
20% above their base year 
port traffic may take both job tax credits and investment tax credits. Ongoing 
Georgia Georgia 
Entertainment Industry Incentives  Georgia 
Department of Economic Development Entertainment Office / Georgia Department of Revenue Tax credit and 
tax exemptions To promote commercial film, 
video and music productions in the state. Motion picture projects such as 
feature films, television series, commercials, music videos, game development and animation projects. Tax credit of 20 percent 
based on a minimum investment of $500,000 on qualified productions in Georgia. An additional 10 percent Georgia Entertainment Promotion (GEP) uplift can be earned by including an imbedded animated Georgia logo on approved projects. Sales 
and use tax exemption for 
film, video, broadcast, and music production, up to 8 percent savings though immediate point of purchase sales tax exemption on most below the line purchases. Ongoing 
Georgia Appalachian 
Regional Commission Area Development Funds Georgia 
Department of Community Affairs Grants To support economic 
development projects in northern Georgia. Projects which are beneficial to the 
37-county area of Appalachian Georgia.  Infrastructure grants of 
$300,000 and operational grants of $100,000 or less. Ongoing  
  G/SCM/N/253/USA  
 
- 118 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia  Sales Tax 
Exemption Georgia  Tax Exemption Tax exemption provided for: 
manufacturing machinery and equipment that is integral and necessary to the manufacturing process; repair parts for manufacturing machinery & replacement parts; fuel (electricity, gas, etc.) used directly/indirectly in a manufacturing plant; raw materials that will become a component part of the item being manufactured for resale; 
industrial materials, coated upon 
or impregnated into the product at any stage of its processing, manufacture or conversion; machinery & equipment used for the primary purpose of reducing or eliminating air and water pollution; the sale of water delivered through pipes and mains; certain material handling equipment.  Companies purchasing products 
eligible for exemption. Varies depending on cost of 
eligible equipment. (State sales tax rate is 4%.) Ongoing  
  G/SCM/N/253/USA  
 
- 119 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia Strategic 
Industries Loan Fund  OneGeorgia 
Authority Loan To provide loan assistance for the 
purchase of fixed assets to eligible applicants that are considering a relocation or expansion site for an emerging or development-stage company in a strategic industry targeted by Georgia. It is intended to be used only when needed to fill a financing gap that is unmet by the private sector.  Eligible applicants and recipients of 
funds awarded under this program shall include, but not be limited to, general-purpose local governments (municipalities and counties), local government authorities and joint or multi-county development authorities. End-users are strategic industry companies, including but not limited to, aerospace, agribusiness, energy and environmental, healthcare, eldercare, life sciences, logistics 
and transportation, that are 
considering a relocation or expansion in Georgia. Loans are not limited in 
amount. A recommended loan amount should be included in a letter of support from a state agency or organization whose statutory powers and duties include community and economic development or the enhancement of Georgia's strategic industry sectors. Final approval of loan amounts is at the 
discretion of the Authority. 
Loan amounts generally should not exceed 20% of the asset needs of the company's Georgia location. Terms for the loans will be determined during the underwriting process based upon the nature of the assets financed, the needs of the sub-recipient business and the risk associated with the project. Ongoing 
Georgia Life Sciences 
Facilities Fund  Georgia Department of 
Community Affairs 
/ Georgia Department of Economic Development Loan To serve as an incentive program 
to provide low-cost loan 
assistance for the purchase of 
fixed assets to assist with the expansion, retention or relocation of life-science companies targeted by Georgia. The Facilities Fund is intended to be used as an incentive when needed to retain or recruit life-science companies in and to Georgia, or to fill a financing gap that is unmet by the private sector  Eligible applicants for the program 
are local government development 
authorities, joint or multi-county 
development authorities, and local governments, although program regulations allow funds to be loaned directly to eligible life sciences businesses. There is no maximum loan 
amount, although generally 
the loan amount will not be 
more than 25% of the fixed-asset needs of the company's Georgia location. Each project and company will be subject to a financial analysis, business-model review and scientific validation. Ongoing  
  G/SCM/N/253/USA  
 
- 120 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia Mega Project 
Tax Credit Georgia 
Department of Economic Development. Georgia's Business Expansion and Support Act (BEST) Tax credit State income tax and payroll 
withholding credits for large projects which meet job creation and investment requirements.  Companies that employ at least 
1,800 net new employees and either invest a minimum of $450 million or have an annual payroll of $150 million or more. Credits are first applied to state 
corporate income tax with excess credits eligible for use against payroll withholding. Credits may be carried forward for 10 years.  Eligible to receive a $5,250 
per job per year credit the first 5 years of each new job's existence. Ongoing  
Georgia Entrepreneur 
and Small Business Development Loan Guarantee Program OneGeorgia 
Authority Loans and loan 
guarantees A public-private partnership that 
allows any accredited financial institution in Georgia access to shared-risk loan funds to provide entrepreneurs and small business owners with loans with competitive interest rates. Entrepreneurs, start-ups, and 
small businesses that are located in one of Georgia's eligible designated Entrepreneur and Small Business counties. Loans range from $35,000 
to $250,000 with competitive interest rates.  Ongoing 
Hawaii Motion Picture 
Digital Media and Film 
Production 
Income Tax Credit Department of 
Business, Economic Development and 
Tourism 
§235-17, HRS  Tax Credit Encourage motion picture and 
film production in Hawaii. Each taxpayer subject to Hawaii's 
net income tax, who incurs qualified production costs in Hawaii 
while producing a motion picture or 
television film may claim a motion picture and film production income tax credit for the taxable year. The amount of the credit is 
15% of the qualified production costs incurred in 
any county in the state with 
a population of over 700,000 (Oahu) and 20% in any county in the state with a population of less than 700,000 (Big Island, Kauai, Lanai, Maui and Molokai). $8 million cap per production. This tax credit is also refundable. Ongoing  
  G/SCM/N/253/USA  
 
- 121 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Hawaii Enterprise 
Zone (EZ) Partnership Program  Department of 
Business, Economic Development and Tourism Tax incentives A joint state-county effort 
intended to stimulate—via tax and other incentives—certain types of business activity, job preservation, and job creation in areas where they are most appropriate or most needed. Up to six zones can be designated per county. Program enabling tax breaks for selected companies in designated areas. To qualifyat least half of a firm's 
annual ncome in an EZ must be from one or more of the following activities: agricultural production or processing; manufacturing; wholesaling; aviation or maritime repair; telecommunications; information technology design and production; medical research, clinical trails, and telemedicine;  for-profit training programs in international business management or environmental 
remediation; biotech research, 
development, production, or sales; repair or maintenance of assisted technology equipment; certain types of call centers; Wind energy producers. Businesses in an EZ prior to zone designation must increase their average annual number of full-time employees by at least 10%. Maintain that level for yrs 2 and 3 and then increase the average annual number of full-time employees by at least 15% annually in years 4 to 7. Qualified new businesses established in a zone after zone designation must increase their average number of full-time employees by at least 10% by the first year and maintain that level through years 2 through 7. The following state tax 
benefits for up to seven consecutive years:  --100% exemption from the General Excise Tax (GET) every year. (The GET exemption applies only to gross revenues from EZ-eligible business categories within an EZ.) Licensed contractors are also exempt from GET on construction done within an 
EZ for an EZ-qualified 
business.  --An 80% reduction of state income tax the first year. (This reduction goes down 10% each year for 6 more years.)  --An additional income tax reduction equal to 80% of annual Unemployment Insurance premiums the first year. (This reduction goes down 10% each year for 6 more years.)  Ongoing  
  G/SCM/N/253/USA  
 
- 122 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Hawaii Royalties Tax 
Exemption Department of 
Taxation §235-7.3, HRS Tax Exemption Effective 1 January 2000, 
amounts received by an individual or a qualified high technology business as royalties and other income derived from patents and copyrights owned by the individual or qualified high technology business, and developed and arising out of a qualified high technology business, will be exempt from income tax. High technology industry Royalties and other income 
derived from patents and copyrights owned by the individual or qualified high technology business, and developed and arising out of a qualified high technology business, will be exempted from income tax. Ongoing 
Hawaii Stock Options 
Tax Exemption Department of 
Taxation §235-9.5, HRS Tax Exemption All income received from stock 
options from a qualified high technology business by an employee that would otherwise be taxed as ordinary income or as capital gains is exempt from income tax. "Qualified high technology business" refers to a business performing qualified research. "Qualified research" means (1) the same as in section 41 (d) of the Internal Revenue Code or (2) developing, 
designing, modifying, programming, and licensing computer software, 
(3) biotechnology, (4) performing 
arts products, (5) sensor and optic technologies, (6) ocean sciences, (7) astronomy (8) non-fossil fuel energy related technology. High technology industry  All income received from 
stock options from a qualified high technology business is exempted from income tax. Ongoing  
  G/SCM/N/253/USA  
 
- 123 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Hawaii Ethanol 
Production Incentive  §235-110.3, HRS  Tax credit To encourage ethanol production.
 Facilities that are in production 
before 1 January 2017 Incentive equal to 30% of 
nameplate capacity or facilities producing between 500,000 and 15 million gallons per year. The facility must produce at least 75% of its nameplate capacity in order to be eligible to receive the tax credit in that year. The tax credit may be taken for up to eight years. The credit shall only be available to the first 
40 million gallons of ethanol 
produced per year. Ongoing 
Idaho Property Tax 
Exemption Idaho Tax 
Commission Tax Exemption Encourage investment. Any Business Businesses that invest in 
new manufacturing facilities may receive partial or full property tax exemptions from local county commissioners. To qualify, businesses must invest a minimum of $3 million and 80% of investment must be made at one location. (Land is not included). Ongoing 
Idaho Large 
Business Property Tax Cap Idaho Tax 
Commission Tax Exemption Retain and attract corporate 
headquarters. Any Business Businesses that invest a 
minimum of $1 billion in capital improvements will receive a property tax exemption on all property in excess of $400 million in value per year. Ongoing  
  G/SCM/N/253/USA  
 
- 124 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Idaho Large 
Employer Property Tax Cap Idaho Tax 
Commission Tax Exemption Attract and retain high tech 
manufacturing jobs. Any Business Businesses that employ at 
least 1,500 people within an Idaho county may receive a property tax exemption on property values in excess of $800 million. To qualify, the business must make a yearly capital investment of at least $25 million within that county. Ongoing 
Idaho Broadband 
Telecom Tax Credit Idaho Tax 
Commission Tax Credit Increase telecom investment into 
Idaho communities. Any Business Businesses that purchase 
qualified broadband equipment and infrastructure for the benefit of end users in Idaho may earn a 3% income tax credit up to $750,000. This credit is transferable and may be carried forward up to 14 years. Ongoing  
  G/SCM/N/253/USA  
 
- 125 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Idaho Idaho 
Workforce 
Training 
Reimbursement  Department of Labor Grant The Workforce Development 
Training Fund (WDTF) was created to provide worker training for specific economic opportunities and industrial expansion initiatives; provide training to upgrade the skills of currently employed workers at risk of being permanently laid off; and help communities attract and retain appropriate businesses. Training may be provided by state technical 
colleges, colleges, other public or 
private training organizations, by the employer, and through partnerships among the above entities. A statewide network of training providers is coordinated by the Division of Professional-Technical Education. This network can deliver customized job training for new and expanding industries anywhere in the state and can provide uniform training simultaneously at multiple locations. Basic industries sell products and 
services outside of  Idaho, thereby 
bringing new revenue into the state and creating new jobs. Non-basic industries sell products and 
services in the local area recirculation existing revenues and are eligible only if a compelling economic benefit to the state can be shown. Idaho basic industries will be given priority over other industries.  $3,000 per employee. Ongoing 
Idaho Rural 
Community 
Block Grant Department of 
Commerce Grant To finance and facilitate business 
development, expansion, or 
relocation and job creation. Rural Counties and Cities Except 
Entitlement Cities Up to $500,000 for 
communities in rural Idaho 
may receive grants to facilitate business development, expansion or relocation.  Ongoing 
Idaho Rural 
Rehabilitation Loan Program Idaho State 
Department of Agriculture Loans To offer financing and assistance 
for rural development. Individuals and organizations in 
Idaho whose agricultural projects provide rural development. Loan amounts vary. Ongoing  
  G/SCM/N/253/USA  
 
- 126 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Idaho Production 
Sales Tax Exemption Idaho Tax 
Commission Tax Exemption Encourage manufacturing. Businesses purchasing equipment 
and raw materials used in manufacturing, processing, mining, or logging operations; for clean rooms used in semiconductor; for any equipment used in R&D activities; and commodities for use as fuel for the production of energy may earn a sales tax exemption.  100% production sales tax 
exemtpion. Ongoing 
Idaho Sales and Tax 
Rebate Idaho Tax 
Commission Tax rebate To encourage motion picture 
production. Film Industry Rebate of 6 percent sales 
tax on tangible personal property when $200,000 is spent on qualifying expenses; lodging tax of 2 percent and sales tax of 6 percent on lodging is fully waived for all visiting production companies after 30 days. Ongoing 
Illinois Rail Freight 
Program Illinois Department 
of Transportation Loans and 
grants The primary role of the program 
is to facilitate investments in rail 
service by serving as a link between interested parties and government funds to projects that achieve statewide economic development.  Provide capital assistance to 
communities, railroads and 
shippers to preserve and improve rail freight service in Illinois. The focus is on projects with the greatest potentia l for improving 
access to markets and maintaining transportation cost savings, and where state participation will leverage private investments to foster permanent solutions to rail service problems. A benefit/cost ratio is used to evaluate potential rail freight projects. IDOT will generally provide 
low interest loans to finance 
rail improvements and, in some cases, provide grants.
 Ongoing 
Illinois Used Tire 
Recovery 
Program Illinois Department 
of Commerce and 
Economic 
Opportunity (IDOT) Loans and 
grants Provides grants and loans to 
projects that produce marketable 
materials from used tires and 
projects that use tire-derived materials in product manufacture or energy production. Manufacturing/processing and 
research/development projects. Grants and loans are 
available for 
manufacturing/processing 
projects up to $500,000, grants for procurement or demonstration projects and research/development up to $200,000, and grants for marketing up to $75,000. Ongoing  
  G/SCM/N/253/USA  
 
- 127 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Sales Tax 
Incentives Department of 
Commerce and Economic Opportunity Tax Exemption Sales tax exemptions are 
provided for farm machinery, farm chemicals, pollution controls, manufacturing machinery, replacement parts for manufacturing machinery, computers used to control manufacturing machinery, and enterprise zone purchases. Purchasers of manufacturing machinery receive a credit equal to 50 percent of what the sales tax would have been if 
manufacturing machinery was 
taxed, making it possible for manufacturers to use these credits to offset any other sales tax liability they incur. The sales tax exemptions are 
limited to Illinois' 93 enterprise zones. Credit equal to 50 percent 
of the applicable sales tax. Ongoing 
Illinois Tax Increment 
Finance (TIF) Districts Illinois Department 
of Commerce and Economic Opportunity Loan Tax increment financing allows a 
community to use the increases in various local taxes that result from a redevelopment project to pay for costs involved in the project. Deteriorated areas with declining 
tax bases are targeted. Both commercial and industrial sectors are eligible. Loan amounts vary. TIF 
districts have a lifetime of 23 years. Ongoing  
  G/SCM/N/253/USA  
 
- 128 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Illinois Film 
Production Tax Credit Illinois Department 
of Commerce and Economic Opportunity Income Tax 
Credit  To attract local vendors, union 
leaders and filmmakers to the Illinois film industry in order to promote growth and job opportunities and to stimulate diversity in production hiring.  Film industry For an accredited production 
commencing on or after 1 May 2006, the amount equal to: i) 20% of the Illinois production spending for the taxable year; plus (ii) 15% of the Illinois labor expenditures generated by the employment of residents of geographic areas of high poverty or high unemployment For an accredited production 
commencing on or after 
1 January 2009, the amount equal to: (i) 30% of the Illinois production spending for the taxable year; plus (ii) 15% of the Illinois labor expenditures generated by the employment of residents of geographic areas of high poverty or high unemployment. Ongoing 
Illinois IFA Rural 
Development Loan Program Illinois Finance 
Authority and Farmers Home Administrations 
Intermediary Re-
lending program Loan To assist industrial businesses 
located in rural communities. Industrial businesses located in 
rural communities with population of less than 25,000. Must demonstrate the creation or 
retention of jobs and that 
conventional financing is not available. The authority may lend up 
to 75 percent of the project costs up to $150,000 at a set fixed rate of 6 percent. Ongoing 
Illinois Rural Micro-
Business Participation Loan Program Illinois Department 
of Commerce and Economic Opportunity Loan To encourage investment in rural 
areas of the state. A rural business that employs five 
or fewer full time employees, and is based on the production, processing, marketing of agricultural products, forest products, cottage and craft products. Provides loans of up to 
50 percent of the project. Ongoing  
  G/SCM/N/253/USA  
 
- 129 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Illinois Biofuels  
Research, Development & Demonstration
 
Program  Department of 
Commerce and Economic Opportunity. 415 ILCS 120/25, Public Act 93-15 Grants Grants for the research and 
development and demonstration projects related to the production of ethanol and biodiesel fuels in Illinois. Encompassing programs include the Biofuels Business Planning Grants, ethanol research and demonstration projects, and grants for the construction of new biofuels production facilities in Illinois. Eligible applicants are "units of 
state and local government, associations, public and private schools, colleges and universities, research organizations, not-for-profit organizations, private companies and individuals." For facilities construction grants, the recipient must be building a new biofuels production facility with a capacity of at least 30 million gallons per year, or be expanding/modifying an existing 
facility by at least 30 million 
gallons per year. The maximum grant award 
for the construction of a new biofuels production facility is $5.5 million. The total grant award cannot exceed 10 percent of the total construction costs of the facility, or $0.10 per gallon of the new production. The Biofuels Business Planning Grants program provides planning grants of up to $25,000. For 
demonstration projects, the 
maximum grant award that may be requested for each eligible project category is $225,000. The grant term shall be determined on a project by project basis, not to exceed a two year time period. Ongoing  
  G/SCM/N/253/USA  
 
- 130 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Coal 
Competitivenes s
Program Department of 
Commerce and Economic Opportunity Grants To improve the efficiency of the 
Illinois coal industry, enhance the competitive position of Illinois coal and open new markets for Illinois coal and coal byproducts. Also to improve miner safety and the coal extraction, preparation and transportation systems within Illinois.  Any entity which is 1) engaged in 
coal production, preparation, transportation or utilization in Illinois, or 2) legally affiliated with such an entity may apply. Projects may require a host site, private and public cost-sharing partners, etc., prior to proposal consideration. Projects must have significant economic benefits for Illinois.  Approximately $15 million 
from the Coal Technology Development Assistance Fund is appropriated annually for the program. Grants are typically between $50,000 and $1,500,000, and typically provide up to 20 percent of the total project cost. Grants to upgrade, rebuild or repair existing mining equipment will be limited to 10 percent 
of the total project. Grants 
are restricted to the state fiscal period. In Fiscal Year 2010, DCEO awarded $5.1 million in state funds for 7 coal production and utilization projects, leveraging more than $92.1 million of private investment in infrastructure improvements and expansions. Since 1996, the program has produced more than $1.9 billion in private infrastructure investments across Illinois. Ongoing  
  G/SCM/N/253/USA  
 
- 131 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Coal Research 
Program Department of 
Commerce and Economic Opportunity. Under the technical oversight of the Illinois Clean Coal Institute. Grants To promote co al research within 
the state.  Any entity may apply. Preference is 
given to Illinois applicants. Likely recipients are universities and research institutions engaged in coal research acti vities related to 
carbon management, advanced coal mining technologies, power generation, plant efficiencies, etc.  Has provided grants totaling 
more than $68.9 million in state, federal and private industry funds to more than 15 universitie s and other 
research institutions engaged in coal research activities focusing on, carbon management, advanced coal mining technologies, power generation and plant efficiencies, coal 
gasification, flue gas 
cleaning, carbon management and coal chemistry. Subgrants are typically between $60,000 and $250,000 and are issued by Southern Illinois University-Carbondale. Grant periods are limited to 24 months. Approximately $3.0 million from the Coal Technology Development Assistance Fund is made available to for research projects. In FY2010, DCEO awarded $3.7 million in state funds to conduct 24 research projects. Ongoing  
  G/SCM/N/253/USA  
 
- 132 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Coal 
Development Program Department of 
Commerce and Economic Opportunity. Technical oversight by the Illinois Clean Coal Institute. Grants To advance promising clean coal 
technologies beyond the research stage towards commercialization. Development processes include technology maturation, technology transfer and related studies.  Any entity may apply; preference 
is given to Illinois applicants. Projects must be past the R&D stage and must have a significant amount of cost-sharing. Typically the development proposal is submitted by an organization with special commercial technical expertise in the area proposed. The program provides a 
50/50 match with private industry dollars to support market-driven needs of the industry. Grants are typically $250,000 to $600,000. Grant periods are limited to 24 months. The fund receives 1/64th of the revenues collected by the Public Utility Tax. To date, more than $13.0 million has been awarded to 70 
projects. In FY2010, DCEO 
awarded $105,036 in state funds to conduct 2 development projects. Ongoing 
Illinois Coal 
Demonstration  
Program Department of 
Commerce and Economic Opportunity Grants To help fund selected large-scale 
demonstration of advanced coal systems for utility and industrial use, bring a new generation of clean coal techniques to the commercial marketplace, and also provides near-term benefits to the state and local communities through increased employment, personal income and tax revenues. Any entity may apply. Funds are 
intended for capital projects located in Illinois that have significant economic benefits for the state. Projects typically require a host site, power purchase agreements, private and public cost-sharing partne rs, etc., prior to 
proposal consideration. A project-specific appropriation must be made and projects are subject to 
final approval by the governor. Grants are typically between 
$1 million and $30 million. Grant periods and appropriations may cross fiscal years. DCEO is authorized to issue $185 million in Illinois General Obligation Bond funds to finance selected projects. Since its inception in 1981, Illinois has 
provided over 
$174.3 million from the Coal and Energy Development Bond Fund for 33 projects. Ongoing  
  G/SCM/N/253/USA  
 
- 133 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Coal Revival 
Program Department of 
Commerce and Economic Opportunity. Illinois Resource Development and Energy Security Act (Public Act 92-0012)  Grants To assist with development of 
new, coal-fired electric generation capacity or coal gasification facilities, or IGCC units that generate chemical feedstocks or transportation fuels derived from coal in Illinois. Businesses proposing to construct 
a new electric generating facility or expand an existing electric generating facility, including transmission lines and associated equipment to provide baseload electric power or to construct a coal gasification facility. The project must: 1) have an aggregate nameplate generating capacity of 400 megawatts or more for all units at one site, will use coal or gases derived from coal as 
its primary fuel source at the 
proposed facility, and will support the creation of at least 150 new Illinois coal-mining jobs, or 2) use coal gasification or IGCC to generate chemical feedstocks, transportation fuels or electricity. The DCEO is authorized to 
expend $500 million Coal and Energy Development Bond Funds to promote the development of new, coal-fired electric generation capacity in Illinois. Financial assistance through the program will be provided in the form of a grant based on State Retail Occupation Taxes that will be paid on Illinois coal purchases for 
new facilities. Qualifying 
facilities may be eligible for grants roughly equal to the present value of future sales taxes paid on Illinois-mined coal over a 25-year period, up to a maximum amount of $100 million. Ongoing.  
Illinois Biogas and 
Biomass to Energy Grant Program Department of 
Commerce and Economic Opportunity Renewable Energy Resources Program Grants To encourage the use of biogas 
and biomass for on-site energy generation in Illinois.  Projects designed to use biogas or 
biomass as a source of fuel to produce electricity with combined heat and power (CHP) through gasification, co-firing or anaerobic digestion technologies are being targeted. Applicants are eligible for 
incentives up to 50% of the total project cost. The maximum award for biogas or biomass to energy feasibility studies is $2,500. 
The maximum grant amount 
for biogas to energy 
systems is $225,000 and the maximum grant for biomass to energy systems is $500,000.  Ongoing  
  G/SCM/N/253/USA  
 
- 134 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Enterprise 
Zone Participation Loan Program (EZ/PLP) Department of 
Commerce and Economic Opportunity Loans To encourage economic 
development and neighborhood revitalization in Illinois Enterprise Zones via below-market subordinated financing to companies located in or expanding in an Illinois Enterprise Zone. Program funding can be used for business activities, such as purchase and installation of machinery and equipment, working capital, purchase of land, construction or 
renovation of buildings. Funds 
cannot be used for debt refinancing or contingency funding. Any for-profit small business 
operating in Illinois which has, including its affiliates, fewer than 500 full-time employees, and is located within an Illinois designated enterprise zone.  The EZ/PLP is a variation of 
the conventional PLP Program, in that DCEO subordinates the loans through participating lending institutions, but the EZ/PLP may be able to provide small businesses located in an enterprise zone a more attractive loan rate than a conventional PLP. The participation works the same as a conventional 
PLP, but offers an incentive 
rate of 200 basis points below index rate on DCEO's portion of financing for variable rate loans, with fixed and adjustable rate loans being comparable with U.S. Treasury notes plus 0-1%.  Ongoing  
  G/SCM/N/253/USA  
 
- 135 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Enterprise 
Zone Program  Department of Commerce and Economic Opportunity, Illinois Enterprise Zone Act Tax Incentives To stimulate economic growth 
and neighborhood revitalization in economically depressed areas of the state via tax incentives special state and local tax incentives, regulatory relief, and improved governmental services.
 Businesses located (or those that choose to locate) in an Enterprise Zone An exemption on the 
retailers' occupation tax paid on building materials, an investment tax credit of 0.5 percent of qualified property, and an enterprise zone jobs tax credit for each job created in the zone for which a certified dislocated worker or economically disadvantaged individual is hired. Additional exemptions for companies that make 
the minimum statutory 
investment that either creates or retains the necessary number of jobs: an expanded state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility and an exemption on the state utility tax for electricity, natural gas and the Illinois Commerce Commission's administrative charge and telecommunication excise tax.  Ongoing  
  G/SCM/N/253/USA  
 
- 136 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Economic 
Development For a Growing Economy Tax Credit Program (EDGE)  Department of 
Commerce and Economic Opportunity Tax credit To encourage companies to 
locate or expand operations in Illinois when there is active consideration of a competing location in another state.  Companies that attest to the fact 
of competition among a competing state, and agree to make an investment of at least $5 million in capital improvements in the state and create a minimum of 25 new full time jobs in Illinois. For a company with 100 or fewer employees, the company must agree to make a capital investment of $1million and create at least 5 new full time jobs in Illinois. The project must be an expansion of an 
existing operation or a new 
location. Company relocations within Illinois are eligible for if there is a valid reason why their current location is inadequate. Each project must commit to make a capital investment in the state of at least $5 million and must create a minimum of 25 new jobs (excluding recalls, transfers, etc.); or companies with less than 100 employees must make a capital investment of at least $1 million and must create a minimum of 5 new jobs, or the project must meet the investment and job creation, and/or retention requirements as set forth by DCEO. The amount of the Tax 
Credit is calculated on a case-by-case basis. The tax credits could be as high as the amount of tax receipts collected from the Illinois income taxes paid by newly hired and/or retained employees of the firm as pertaining to the project. The non-refundable credits can be used against corporate income taxes to 
be paid over a period not to 
exceed 10 years. While each annual tax credit amount cannot be larger than the company's state income tax liability (the income tax credits would not be refundable), the credit can be carried forward for up to five years. Ongoing  
  G/SCM/N/253/USA  
 
- 137 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois River Edge 
Redevelopment  
Zone Department of 
Commerce and Economic Opportunity, The River Edge Redevelopment Zone (RERZ) Act  Tax incentives, 
such as sales tax exemption and property tax abatement To encourage development in the 
zone. Businesses located in an RERZ. Investment Tax Credits: A 
0.5% tax credit for qualified depreciable property in the zone. An additional 0.5% credit of the basis of qualified property in a RERZ, if property is placed in service on or after 1 July 2006, and the business's employment within Illinois has increased by 1% or more over the preceding year.  
Jobs Tax Credit: A 
$500 state income tax credit for each RERZ job created for which a dislocated worker is hired. To qualify, 5 such workers must be hired and all 5 must be employed for at least 180 consecutive days for 30 hours/wk in the taxable year. Environmental Remediation Tax Credit: A credit against state income taxes for some non-reimbursed eligible costs for remediation work. The credit is 0.25 for each dollar spent for non-reimbursed remediation expenses.   Also, Dividend Income 
Deduction, Interest Income 
Deduction, Building Materials Sales Tax Exemption, and Property Tax Abatement. Ongoing  
  G/SCM/N/253/USA  
 
- 138 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Ethanol Tax 
Exemption  Dept of Revenue 
 35 Illinois Compiled Statutes 120/2-10 and 105/3-10 Tax exemption To encourage the use of ethanol 
fuel. Purchasers, distributors and 
producers of ethanol.  100% exemption from sales 
and use taxes on ethanol-blended fuels. These taxes apply to 100% of the proceeds from sales made after 31 December 2013. 1 July 2003 
- 31 December 2013 
Illinois Illinois 
Renewable Fuels Development Program Department of 
Commerce and Economic Opportunity  HB46 - 20 ILCS 689 Grant Renewable Fuels Development 
Program that offers grants for constructing, modifying, altering or retrofitting a renewable fuels plant with a minimum production capacity of 30 million gallons. Plants with a production capacity of 
30 million gallons. Grants of up to $15 million 
annually.   
Illinois Renewable 
Energy Resources Biogas and Biomass to Energy Grant Program Illinois Department 
of Commerce and Economic Opportunity Grant To foster investment in and the 
development and use of renewable energy resources.  The primary intent of this program 
is support development of projects focused on increasing the utilization of renewable energy and support renewable energy technologies. Howe ver, depending 
on applicants, one or multiple 
smaller projects may be selected 
for support. Projects costs associated 
with biogas and biomass equipment, studies. The maximum award for biogas or biomass to energy feasibility study is $2,500. The maximum grant for 
biogas to energy systems is 
$225,000. The maximum for amount for biomass to energy systems is $500,000. Ongoing 
Illinois Renewable 
Energy Resources Development of Wind Energy Project
 Illinois Department of Commerce and Economic Opportunity Grant To foster investment in and the 
development and use of renewable energy resources.  The primary intent of this program 
is support development of utility scale wind projects of at least .5MW of nameplate capacity. However, dependin g on applicants, 
one or multiple smaller projects may be selected  for support. The maximum amount of 
the grant is $25,000 per project. Ongoing 
Illinois Renewable 
Fuels Development Program (RFDP) The RFDP was 
established in June of 2003 by Public Act 93-15 Grant To promote and encourage the 
production and use of renewable fuels such as biodiesel, biodiesel blends and majority blended ethanol fuel. Grants provided for the 
construction of new biofuels production facilities with a capacity of at least 30 million gallons per year. The maximum grant award 
under this program is $5.5 million per facility.  Ongoing  
  G/SCM/N/253/USA  
 
- 139 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Illinois Large 
Business Development Program Illinois Department 
of Commerce and Economic Opportunity Grant To provide funds to businesses 
undertaking a major expansion or relocation project that will result in substantial private investment and the creation or retention of a large number of Illinois jobs. Large businesses with 500 or more 
employees. Funds can be used for bondable business activities, including financing the purchase of land or buildings, building construction or renovation, and certain types of machinery and equipment. Grant amounts are 
determined by the amount of investment and job creation or retention involved. Ongoing 
Indiana Ad hoc 
incentive package Spencer County Tax Abatement Th e purpose of this program was 
to aid in the construction of a new $285 million structural mill in Whitley County.  Steel Dynamics Up to $59 million in tax 
abatements. 10 years 
Indiana Hotel Lodging 
Tax Exemption Board of Managers Tax exemption To encourage film production 
within the State. Film Industry 6 percent lodging tax 
exemption for production companies staying longer than 30 days.  Ongoing 
Indiana Certified 
Technology Park Designation Department of 
Redevelopment (Indiana Code 36-7-32) Tax benefits The establishment of high 
technology activities and public facilities within a technology park serves a public purpose and benefits general welfare by encouraging investment, job creation and retention, and economic growth and diversity.  The Indiana Department of 
Commerce may designate an area as a certified technology park if certain criteria are met, including a firm commitment from at least one business engaged in a high technology activity creating a significant number of jobs. "High technology activity" includes advanced vehicles technology, which is any technology that involves electric vehicles, hybrid electric vehicles, or alternative fuel vehicles, or components used in the construction of these vehicles. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 140 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Indiana Enterprise 
Zone Program  Indiana Economic Development Corporation (IEDC) Various tax 
exemptions and other benefits The Enterprise Zone Program is a 
program designed to encourage companies to expand or locate operations in Indiana. EZs are located in the economically 
distressed and blighted areas, which are often traditional downtown areas or old industrial and manufacturing areas that have gone through a protracted period of decline. Investment Tax Credit, Job 
Creation Tax Credit, Zoning exemptions, Business Income Tax deductions, Employee Training Credit, Accelerated zoning decisions, Industrial Recovery Site Credit, Employee Income Tax Credit, Business plan preparation assistance, Tax-free statutes (Renaissance Zones), 
Health Insurance Tax 
Credit, Low-interest loans, Reduced consumer Sales Tax, Employee child care incentives, Discounted use of surplus state property, Sales Tax exemption on utilities, Public school improvements, Lender Income Tax credit for loans to EZ businesses, Public school contribution income tax credit, Property Tax abatements, Child care, Property Tax exemption for machinery and equipment, Sales Tax exemption for purchase of machinery and equipment Ongoing  
  G/SCM/N/253/USA  
 
- 141 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Indiana  Loan 
Guaranty Programs Indiana Economic 
Development Corporation (IEDC) Loan guarantee Job creation  and retention. Loan guar antees are available to 
finance land acquisition; building acquisition or improvements; structures; machinery; equipment; facilities; and some working capital. Eligible firms are high-tech/high-growth companies, agribusiness and some manufacturing companies.  If security is real property, 
guaranty up to 90 percent of loan balance or 90 percent of appraised fair market value, whichever is less. If security is personal property, guaranty up to 75 percent of loan balance or 75 percent of fair market value, whichever is less. Limited working-capital guarantees available for high-tech companies. 
Amounts vary. For rural 
development and value-added agricultur al projects, 
the maximum guaranty is $300,000. The guaranty may be larger for high-growth/high-tech companies and manufacturing projects.
 Ongoing 
Indiana  Community 
Revitalization Enhancement Districts (CRED) Tax Credit Indiana Economic 
Development Corporation (IEDC) Tax Credit To encourage revitalization 
investments in designated CRED areas. Only available to businesses 
located in CRED districts. There are currently 10 CRED districts in Indiana. Up to 25 percent of the 
qualified investment. Ongoing  
Indiana  Tax 
Incremental Financing (TIF) District Funds City of South Bend TIF funds Within defined redevelopment 
areas there may be funds made available for projects that forward stated redevelopment 
objectives and significantly leverage public funds to private dollars. Program is used for projects in 
Redevelopment and Economic Development Areas. Varies Ongoing 
Indiana  Industrial 
Recovery Tax 
Credit Indiana Economic 
Development 
Corporation (IEDC) Tax Credit Providing incentives for 
companies to invest in facilities 
requiring significant rehabilitation or remodeling expense. Program is used for projects 
located in an industrial recovery 
site consisting of a building in service at least 15 years, with at least 50,000 interior square feet of space that has been at least 75% vacant for one year or more. Varies Ongoing  
  G/SCM/N/253/USA  
 
- 142 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Indiana  Urban 
Entreprise Zone (UEA)/ Community Revitalization Enhancement District (CRED) Urban Entreprise 
Association/City of South Bend Tax Credit UEA -  
South Bend's Urban Enterprise Zone is a 3.79 square-mile area targeted for physical revitalization, job creation, and improvements in social and economic conditions. The Zone was designated locally and approved by the State of Indiana, and initially designated for 10 years with a 5 year renewal period ending 31 December 2018. The Urban 
Enterprise Association of South 
Bend Inc. (UEA) oversees the Zone and its programs that address the twofold mission of the UEA:  Increase the number of jobs in the Zone by retention and expansion of existing businesses, and attraction and development 
of new businesses; and Improve the quality of life of zone residents, improve zone residents' employability, and fill zone jobs with zone residents.  CRED -   Providing tax credit for businesses for the redevelopment or rehabilitation of property located within local zones. Industrial businesses Va rious tax and financial 
incentives are available to businesses located in the Zone to impact the cash flow position of a business and improve their access to capital. The incentives are:
 
-State income tax credit for individuals purchasing an ownership interest in a Zone business. -Loan Interest Credit  State income tax credit on 
lender interest earned. 
-Employment Expense Credit State income tax credit based on wages paid to qualified employees. -Employee Tax Deduction I
 
Qualified empl oyees' wages 
exempt from state income tax. Ongoing  
  G/SCM/N/253/USA  
 
- 143 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Iowa Enterprise 
Zones Department of 
Economic Development Mixed Tax 
Credit Twenty eight counties and 
18 cities may establish enterprise zones for manufacturers and other businesses expanding or establishing new operations.  Businesses located in economically 
distressed areas of Iowa. To receive the benefits, businesses must invest at least $500,000, hire at least 10 persons at target wage and benefit levels, and not be retail establishments. The enterprise zones 
provide the following benefits for qualifying businesses: 1) Property tax exemptions for up to 10 years; 2) Investment Tax Credit for up to 10 percent on corporate income taxes; 3) Refunds of sales or use taxes paid to contractors during construction; 4) A 3% or 10% 
supplemental research 
activities credit on qualified research activities; 5) Additional withholding tax credit of 1.5% (total 3 percent for the business' job training program). Ongoing 
Iowa Targeted 
Industry Demonstration
 
Fund Department of 
Economic Development (Iowa Administrative Code Chapter 105) Grants and 
Loans To encourage commercialization 
of innovation thereby fostering competitive, profitable companies that create high paying jobs and wealth in Iowa. Companies in three targeted 
industry clusters: Bioscience, Advanced Manufacturing and Information Technology. Applicants must be able to demonstrate that the product is ready for commercialization and market entry. Applicants must also show 
their ability to develop and 
commercialize products and manage successful ventures. Companies seeking awards go through a rigorous due diligence process and are judged in terms of marketability, return on investment, and economic development impact. Awards are available up to 
$150,000 per project. Most often the award is in the form of a forgivable loan. Ongoing; 
currently funded for eight years beginning FY2008  
  G/SCM/N/253/USA  
 
- 144 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Iowa  Supply Chain 
Development Program Iowa Department 
of Economic Development (Iowa Code section 15.411(10)) Grants To encourage manufacturing 
supply chain development initiatives in targeted industries. Targeted industries of biosciences, 
information technology, and advanced manufacturing will be provided technical assistance for supply chain development through improved linkages to Iowa suppliers, targeted industries production capa bilities and 
capacities, performance improvement programs, and technology commercialization services. Awards not to exceed 
$100,000 per project. Program 
terminated on 1 July 2012 
Iowa Alternative 
Fuel Loan Program Iowa Energy Center Loan To encourage alternative energy 
projects.  Fuel production facilities located in 
Iowa. The program offers zero-
percent interest loans for up to half the cost of biomass or alternative fuels related fuel production projects, up to a maximum of $250,000 per facility. The remainder of the loans are made by participating lenders at a negotiated interest rate.  Ongoing 
Iowa Alternative 
Fuels Tax Iowa Code 452A Tax credit To encourage the use of ethanol 
fuel. Those who blend conventional 
motor fuel with ethanol may file for a refund for the difference between 
sales taxes paid on the motor fuel purchased to produce ethanol-blended gasoline and the tax due on the ethanol-bl ended gasoline.  E85 is taxed at a reduced 
rate of $0.17 per gallon, while conventional gasoline is taxed at $0.203 per gallon. Compressed natural gas used as a motor fuel is taxed at $0.16 per 100 cubic feet. Extended 
through 30 June 2014  
  G/SCM/N/253/USA  
 
- 145 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Iowa Ethanol 
Infrastructure Cost-Share Program Department of 
Agriculture Grant Ethanol Infrastructure Cost-Share 
Program is a state cost-share program developed to provide financial incentives for the installation or conversion of E85 refueling infrastructure and infrastructure required to establish terminal facilities that store biodiesel for distribution to service stations. The program provides for the addition of at least 30 new or converted E85 retail outlets and four new or 
converted terminal facilities. Ethanol distrbutors The program will provide for 
a maximum of $325,000 annually  For the 
fiscal period beginning 1 July 2005,
 
and ending 30 June 2011.  
Kansas  Enterprise 
Zone Department of 
Commerce Tax Credit/ 
Exemptions The Enterprise Zone Act provides 
state income tax credits and state and local sales tax exemptions on a state-wide basis. This program is not based on locating in a specific geographic location, except in certain cases. The types and amounts of credits and exemptions are dependent upon 1) type of business (manufacturing, distribution, certain service and other designated business operations); 
2) the number of net new jobs 
and capital investment. Non-metropolitan counties can offer increased job credits by meeting certain program requirements. The sales tax exemption is available to retail businesses in cities under 2,500 population or counties under 10,000 population. Buisnesses in relevant zones. The incentives are: 
(1) Sales tax exemption on the purchase of machinery, equipment, or services associated with any construction, expansion, or renovation project that creates net new jobs. (2) Job creation tax credit ($1,500 basic, $2,500 enhanced) against State income tax liability for each net new job created. (3) Investment tax credit 
($1,000) against State 
income tax liability for each $100,000 or major portion thereof. This is a one-time credit with unlimited carry-forward provisions. The maximum credit in any given year is 100 percent of the tax liability in qualified business facility investment.
 Ongoing  
  G/SCM/N/253/USA  
 
- 146 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Kansas  Kansas 
Economic Growth Act Kansas Bioscience 
Authority Grants/ 
Convertible Debt Created by the Kansas Economic 
Growth Act of 2004, the Kansas Bioscience Authority (KBA) is investing in the bioscience industry to stimulate job growth, attract private venture capital, and increase research and business investments in the state. The KBA focuses resources in 
bioscience sectors in which Kansas has national leadership and expertise, including animal health, bioenergy, biomaterials, plant biology, and drug discovery and delivery. KBA invests in bioscience growth throughout the business cycle — from research and development to commercialization to expansion and attraction. KBA Investment Programs:
 
R&D Voucher Program: 
Provides funding to bioscience companies for proof-of-concept research and development activities at Kansas research institutions and companies.
 
Expansion and Attraction Program: Provides funding for the expansion and attraction of bioscience companies with strong 
growth potential. Ongoing 
Kansas  Bond Finance 
Program for Wind & Solar Incentive Kansas Department 
of Commerce Tax incentive Program allows bond financing 
for eligible manufacturers locating in Kansas to encourage growth in renewable energy equipment production in Kansas. Program is offered to wind and 
solar energy equipment manufacturers with projects meeting minimum job, wage, and capital investment thresholds.  Up to $5 million in bonds 
can be issued to eligible wind and solar manufacturers. The normal income tax withheld from the employee wages is used to pay back the principal and interest on the bonds.  Program 
sunsets 1 July 2013.
 
Kentucky High-tech 
construction & investment pool  Kentucky Cabinet 
for Economic Development, Office of Commercialization and Innovation Loans and 
grants The high-tech construction pool 
shall be used for projects with special emphasis on the creation of high-tech jobs and knowledge-based companies. The high-tech investment pool shall be used to build and promote networks to technology-driven industries and research-intensive industries with the goal of creating clusters of innovation-driven industries in Kentucky.  Technology-driven, research-
intensive, and knowledge-based companies, clusters, or networks. Amounts vary. The 
commissioner shall recommend funding of companies to KEDFA for approval. Ongoing  
  G/SCM/N/253/USA  
 
- 147 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Kentucky Kentucky Film 
Tax Rebate 
Program Kentucky Tourism, 
Arts and Heritage Cabinet Tax rebate To encourage commercial film 
and television production in the state. Film/Television Industry 6 percent sales and use tax 
rebate eligible for motion picture and television 
production companies on expenditures made in connection with the production or refundable income tax credit equal to 20% of the approved expenditures. Ongoing 
Kentucky Commonwealth  
Seed Capital 
LLC Kentucky Economic 
Development Parthership, Commonwealth Seed Capital Management Committee Equity 
investment or convertible debt
 To facilitate the commercialization of innovative ideas and technologies developed in Kentucky.  CSC, a non-state private entity 
funded with state dollars will invest state capital in Kentucky technology companies. The Commonwealth Seed 
Capital LLC (CSC) provides early-stage seed funds to technology companies in Kentucky. Ongoing 
Kentucky Major Recycling  
Project Tax 
Credit Kentucky Finance 
and Administration Cabinet, Kentucky 
Department of 
Revenue Tax credit Encourage recycling. A Major Recycling Project is one 
where the taxpayer: 1) Invests more than $10,000,000 in 
recycling or composting 
equipment; 2) Has 750 or more full-time employees and pays more than 300 percent of the federal minimum wage; and 3) Has plant and equipment with a total cost of over $500,000,000.  In each taxable year, the 
amount of credits claimed for all major recycling 
projects is limited to 
1) 50 percent of the excess of the total of each tax liability over the baseline tax liability of the taxpayer; or 2) $2,500,000, whichever is less.  Ongoing 
Kentucky Recycling 
Equipment 
Credit Kentucky Revenue 
Cabinet Income tax 
credit Support the purchase of recycling 
equipment. Income tax credits are allowed for 
up to 50 percent of the installed costs of equipment used exclusively to recycle or compost postconsumer waste (excluding secondary and demolition wastes) and for machinery used exclusively to manufacture products composed 
substantially of postconsumer 
waste materials. For the year the equipment 
is purchased, the credit is limited to 10 percent of total credit allowed and 25 percent of the taxpayer's state income tax liability. The unused portion of the total allowable recycling 
credits can be carried 
forward to succeeding tax years, with the credit claimed during any tax year limited to 25 percent of the taxpayer's state income tax liability. Ongoing  
  G/SCM/N/253/USA  
 
- 148 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Kentucky SBIR-STTR 
Matching Funds Program Kentucky Cabinet 
for Economic Development, Office of Commercialization and Innovation Grants Assist high-tech small businesses
 This program matches federal 
Small Business Innovation Research (SBIR) and Small Business Technology Transfer Research (STTR) grants to high-tech small businesses.  Kentucky-based SBIR and 
STTR grant recipients can apply for matching funds of up to $100,000 to support Phase 1 exploration of the technical merit or feasibility of an idea or technology. Phase 2 federal awards, which support full-scale research and development, would be matched by the commonwealth up to $500,000 in each year of 
the award. Phase 0 and 
Phase 00 funds are available to assist with preparing proposals for Phase 1 and Phase 2 grants, respectively.  Ongoing 
Kentucky  Kentucky Jobs 
Retention Act (KJRA)  Kentucky Economic 
Development Finance Authority KRS 154.27-010 et seq. Tax incentives Encourage existing automotive 
manufacturers to modernize their facilities and retain existing jobs. 
 Existing automotive manufacturers in Kentucky Up to 50 percent of new 
investment can be recovered through a reduction in payroll taxes over time if the company makes an investment of at least $100 million. In addition, the investment recovery could be increased 
up to 75 percent if 
investments are made at multiple sites. Ongoing 
Kentucky  The Kentucky 
Reinvestment Act (KRA)  Kentucky Cabinet 
for Economic Development KRS 154.34-010 (Revised 2009) Tax Credit To encourage reinvestment in 
Kentucky facilities. Any business engaged in 
manufacturing at a facility located and operating within the Commonwealth on a permanent basis for a reasonable period of time preceding the request for approval. The minimum investment for eligibility is $2.5 million. KRA recipients are eligible 
to receive up to a 100 percent credit against the Kentucky income tax liability generated by the project. Ongoing  
  G/SCM/N/253/USA  
 
- 149 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Kentucky Incentives for 
Energy Independence (2007) Kentucky Economic 
Development Finance Authority KRS 154.27-010 et seq. Reimbursement 
of sales and use taxes, income tax credit or wage assessment incentives To encourage projects that are 
likely to increase energy independence For gasification, alternative energy 
or renewable energy facilites including natural gas. Requires a capital investment of at least $25 million for an alternative fuel facility using biomass, or an investment of at least $100 million for an alternative fuel facility using coal, as its primary feedstock. A capital investment of at least $1 million is required for a renewable power facility that meets minimum electric output 
standards based upon the power 
source.  Negotiated incentives not to 
exceed 50% of the capital expenditures. Reimbursement of sales and use taxes paid on tangible personal property; a tax credit of the income tax and limited liability entity tax owed by the company; and, wage assessment incentives up to 4% of gross wages of each employee whose job was created as part of the 
project.  Ongoing 
Kentucky Kentucky New 
Energy Ventures Fund (KNEV)  Kentucky Cabinet 
for Economic Development KRS 154.20-400 et seq. Seed stage 
capital - grants and investments To support the development and 
commercialization of alternative fuel and renewable energy products, processe s, and services 
in Kentucky. Qualified Kentucky-based 
companies that use the funds for business development activities. Grants of $30,000 and 
investments ranging from $250,000 to $750,000. Ongoing  
  G/SCM/N/253/USA  
 
- 150 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana  The Gulf 
Opportunity Zone Act of 2005  Louisiana 
Department of Economic Development Tax incentives 
and bond provisions  Establishes tax incentives and 
bond provisions to rebuild the local and regional economies devastated by hurricanes Katrina and Rita. The provisions of the GO Zone Act 
apply to a 37 parish area in Louisiana defined as the "Core Disaster Area" and referred to as the "GO Zone." The parishes included in Southeastern Louisiana are Plaquemines, St. Bernard, Orleans, Jefferson, St. Charles, St. Tammany, St. James, St. John the Baptist, Tangipahoa and Washington. Tax Exempt Bond Financing
 
Access capital at rates 
1.5%-2% below conventional bond financing for the acquisition, construction and renovation of qualifying real property. Bonus Depreciation: 50% First Year Qualifying property used in the active conduct of a trade or business and placed in service before 
31 December 2008 may be 
eligible for a 50% write off of its basis in the first year of operation. Enhanced Net Operating Loss (NOL) Carryback: Five years Eligible NOL (including the 50% bonus depreciation for qualified real and personal property) can now be carried back five years to offset income from prior years' operations – whether these operations were in the GO Zone or not. 
 
Tax Credits for Employers: Employers locating within the GO Zone and hiring workers whose principle abode on 28 August 2005 was in the GO Zone may 
receive a federal tax credit 
equal to 40% of the first $6,000 in wages paid to qualifying employees hired prior to 28 August 2007.  Available 
through 2010 or until funds are depleted  
  G/SCM/N/253/USA  
 
- 151 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana Biomedical 
Research and Development Park (NORMC) Incentives Department of 
Economic Development Mixed Tax Qualified me dical concerns may 
be granted exemptions for state corporation income and franchise taxes. The total amount of state tax rebates and/or exemptions granted for any fiscal year shall not exceed thirty (30) percent of the corporate income, franchise and state sales/use tax liability of the medical concern during the fiscal year preceding the fiscal year for which the exemptions are granted, unless another 
amount is established by 
contract. Qualified medical concerns may also be granted tax credits against state corporate income and franchise tax liabilities. Such credits, which may be carried forward up to five years, shall not exceed the cost of purchase by the concern of machinery and scientific equipment used on premises of a medical concern located in the park district, which is the area known as the New Orleans Regional Medical Center (NORMC). New Orleans Regional Medical 
Center Annual tax exemptions, 
rebates and/or credits are subject to the following limitations: The total amount of state tax exemptions and/or rebates granted for any fiscal year shall not exceed thirty percent of the corporate income, franchise, and state sales/use tax liability of the medical concern during the fiscal 
year preceding the fiscal 
year for which the exemptions and/or rebates are granted, unless another amount is established by contract. The total amount of rebates of local sales/use taxes granted for any fiscal year shall not exceed one hundred percent of the local sales/use taxes liability due to that authority from the medical concern during the fiscal year preceding the fiscal year for which the rebates are granted, unless another amount is established by contract. Ongoing 
Louisiana Biotechnology 
Tax Credit Louisiana 
Department of Economic Development Tax benefits Provides for a sales and use tax 
exclusion on capital expenditures for new research equipment purchased by biotechnology start-up companies. Biotechnology Companies Not available. Ongoing 
Louisiana Customized 
Computer Software Development Tax Credit Louisiana 
Department of Economic Development Tax benefits Phases in a state sales and use 
tax exclusion for certain custom computer software over a four-year period.  Technology Companies The current 4 percent sales 
tax rate will decrease 1 percent per year until it reaches 0 percent on 1-7-2005. Ongoing  
  G/SCM/N/253/USA  
 
- 152 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana Economic 
Development Award Program Department of 
Economic Development Grant Grant awards to public or quasi-
public state entities and local governments to finance publicly-owned infrastructure for industrial or business development projects. Preference will be given to projects 
located in areas of the state with high unemployment levels and to projects intended to expand, improve or provide basic infrastructure supporting mixed use by the company and the surrounding community. No assistance may be provided for Louisiana companies relocating their operations to another labor market area (as defined by the U.S. Census Bureau) within 
Louisiana, except when company 
gives sufficient evidence that it is otherwise likely to relocate out of Louisiana. The minimum award 
request size shall be $25,000. Projects must create or retain at least 10 permanent jobs in Louisiana. The portion of the total project cost financed by the award may not exceed 90 percent for projects located in parishes with per capital income below the median for all parishes; 75 percent for 
projects in parishes with 
unemployment rates above the statewide average; or 50 percent for all other projects. Ongoing 
Louisiana Enterprise 
Zone Program  Department of Economic Development Tax Credit The Enterprise Zone (EZ) 
Program is a JOBS incentive program that provides Louisiana Income and Franchise tax credits to a business hiring a minimum number of net new employees. The Enterprise Zone program also provides rebates on applicable state and local sales/use taxes (except where 
local sales taxes are encumbered 
toward payment of bond indebtedness or are school taxes), on purchases of building construction materials, machinery, and equipment by businesses that build or renovate facilities in Louisiana Enterprise Zones. EZs are areas with high 
unemployment, low income or a high percentage of residents receiving some form of public assistance. There are 1,670 enterprise zones statewide, in both urban and rural parishes. Job credits are $5,000 for SIC Code Numbers 3721, 3724, 3728, 3761, 3764, and 3769. The program provides one-
time tax credit of $2,500 for each net new permanent job created for businesses that locate or expand in designated enterprise zones. Credits may be applied against a company's Louisiana state income or corporation franchise tax 
liability. Sales tax benefits 
(rebates) are only in effect for the duration of the initial construction period (2 year maximum). The Enterprise Zone program offers double the usual $2,500 tax credits to automotive and airplane manufacturers.  Ongoing  
  G/SCM/N/253/USA  
 
- 153 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana Restoration 
Tax Abatement Department of 
Economic Development Tax 
Abatement/Reduction The Restoration Tax Abatement 
Program was created for municipalities and local governments to offer as an incentive to encourage the expansion, restoration, improvement and development of existing commercial structures and owner-occupied  residences in 
Downtown Development Districts, Economic Development Districts, or Historic Districts. Buildings must be located in a 
Downtown Development District, an Historic District, an Economic Development District or be listed on the National Register for Historic Places. Property taxes may be 
abated on the amount of improvements to existing structures, for a five year period and may be renewed for an additional five years. Ongoing 
Louisiana University 
Research and Development Parks Income and Franchise Tax Exemptions and Credits Department of 
Economic Development Mixed Tax Firms located in university 
research and development parks may be granted exemptions for state corporation income and franchise taxes. Firms located in university research and development parks may be granted tax credits against state corporate income and franchise tax liabilities. Such credits, which may be carried forward up to five years, shall not exceed the cost of purchase by the concern of machinery and scientific equipment used on the firm's premises. University research and 
development parks. The total amount of state 
tax rebates and/or exemptions granted for any fiscal year shall not exceed thirty (30) percent of the corporate income, franchise and state sales/use tax liability of the firm during the fiscal year preceding the fiscal year for which the exemptions are granted, unless another amount is established by contract.  Ongoing  
  G/SCM/N/253/USA  
 
- 154 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana University 
Research and Development Parks Sales and Use Tax Rebates Department of 
Economic Development Tax Refund Qualified firms located in 
University Research and Developments Parks may be granted rebates for state and/or local sales/use taxes on machinery and equipment to be used by the applicant, on materials and building supplies to be used in the repair, reconstruction, modification, or construction of facilities and on materials and supplies necessary for or used in the production of 
the applicant's product. 
Additionally, sales/use tax rebates may be granted on any other goods and services used or consumed by the applicant. University research and 
development parks. Annual tax exemptions, 
rebates and/or credits are subject to the following limitations: The total amount of state tax exemptions and/or rebates granted for any fiscal year shall not exceed thirty percent of the corporate income, franchise, and state sales/use tax liability of the medical concern during the fiscal 
year preceding the fiscal 
year for which the exemptions and/or rebates are granted, unless another amount is established by contract. The total amount of rebates of local sales/use taxes granted for any fiscal year shall not exceed one hundred percent of the local sales/use taxes liability due to that authority from the medical concern during the fiscal year preceding the fiscal year for which the rebates are granted, unless another amount is established by contract. Ongoing  
  G/SCM/N/253/USA  
 
- 155 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana Workforce 
Development and Training Program Department of 
Economic Development Grant Provides funding for customized 
workforce training programs in order to improve the competitiveness and productivity of Louisiana 's workforce and business community and to assist Louisiana businesses in promoting employme nt stability. 
Funding for eligible training activities includes: (1) New Employee Training: This subprogram provides training assistance for companies seeking 
prospective employees who 
possess sufficient skills to perform the jobs to be created by the companies; (2) Workplace-Based Retraining. Louisiana companies expanding 
within the state by an additional location in a new area, existing Louisiana businesses that have been operating less than three years and companies located outside of Louisiana locating a facility within the state. The expansion of an existing Louisiana company, by the addition of a new technology or product line, can be considered. Preference will be given to applicants in industries 
identified by the state as target 
industries, and to applicants located in areas of the state with high unemployment levels. The New Employee Training 
award may cover up to 100 percent of the eligible training costs, not to exceed $500,000. The Workplace-based Retraining award may cover up to 50 percent of the eligible training costs, not to exceed $500,000.  Ongoing 
Louisiana Biomedical 
and University Research and Development Park Programs Louisiana 
Department of Revenue Income tax 
credit Provides for credits against the 
Louisiana individual income tax to persons who establish research activities in either a Biomedical or University Research and Development Park. The Biomedical Research and 
Development Park program provides exemptions and credits for state corporate income and franchise taxes for up to five years to medical concerns who locate on this New Orleans site.  The exemptions or credits 
can equal the cost of machinery and scientific equipment used on the premises. Ongoing 
Louisiana Digital Media 
Tax Incentive Program Louisiana 
Department of Economic Development Tax Credit Support digital media production 
in Louisiana. Video game developers For projects certified prior 
to 2010, income tax credits shall be earned at the rate of 20 percent of Louisiana investment for the first 2 years; Income tax credits shall be earned at the rate of 15 percent of the Louisiana investment for the following 2 years of the project; Income tax credits shall be earned at the rate of 10 percent for a final 2 years of the project. Ongoing  
  G/SCM/N/253/USA  
 
- 156 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana Rail Rolling 
Stock Tax Exemption Louisiana 
Department of Revenue Sales and use 
tax exemptions 
 Attract railroad repair facilities to Louisiana. Facilities in Louisiana that employ 
at least 400 people in the state.  State and local sales and 
use tax exemption for rail rolling stock sold or leased in Louisiana. Ongoing 
Louisiana Technology 
Commercializa
tion Tax Credits Louisiana 
Department of 
Economic Development Tax Credit Support inve stment in technology 
and the commercialization of 
products. Companies partnering with 
Louisiana universities on new 
products and new technologies. Annual 15 percent tax credit 
of total costs associated 
with the product development for up to eight years. The Technology Commercialization Tax Credit provides a 40% refundable tax credit for companies that invest in the commercialization of Louisiana technology and a 6% payroll rebate for the creation of new, direct jobs.
 Ongoing 
Louisiana Sound 
Recording Investor Tax 
Credit Louisiana 
Department of Economic 
Development Tax Credit The Sound Recording Investor 
Tax Credit provides a 25% tax credit for sound recording 
projects made in the State of 
Louisiana. Sound recording investor tax credits are issued as rebates. Individuals engaged in recording, 
tracking and overdubbing of music and vocal performances, film 
scores, spoken wo rd performance, 
and live musical performances.  Provides a 25% tax credit 
on sound recording expenses. Program is 
subject to a cap of 
$3 million in tax credits per calendar year. Ongoing  
  G/SCM/N/253/USA  
 
- 157 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana Alternative 
Fuel Vehicle Incentives  Louisiana 
Department of Natural Resources Tax Credit Revised Statute RS 47:6035 
offers a state income tax credit for 50% of the incremental cost of purchasing a factory-equipped AFV, 50% of the cost for converting a vehicle to alternative fuels, and 50% of the cost for alternative fuel refueling equipment. For the purchase of an original equipment manufacturer (OEM) AFV, if the taxpayer is unable to determine the incremental cost of the 
vehicle relating to the use of 
alternative fuel, a credit of the lesser of 10% of the cost of the vehicle or $3000 may be claimed.
 Consumers purchasing alternative fuel vehicles, alternative fuel refueling equipmen t, or performing 
AFV conversions. 50% of the incremental cost 
of purchasing a factory-equipped AFV, 50% of the cost for converting a vehicle to alternative fuels, 50% of the cost for alternative fuel refueling equipment, or the lesser of 10% of the cost of the vehicle or $3000 may be claimed. Ongoing 
Louisiana Purchases of 
Qualified New Recycling Manufacturing or Processing Equipment Louisiana 
Department of Natural Resources Tax Credit A taxpayer who purchases 
qualified new recycling manufacturing or process equipment and/or qualified service contracts shall be entitled to a credit against any income and corporation franchise taxes imposed by the state in an amount equal to twenty percent of the cost of the new recycling 
manufacturing or process 
equipment and/or qualified service contract. Purchasers of new recyclying 
manufacturing or processing equipment. Credit against any income 
and corporation franchise taxes imposed by the state in an amount equal to twenty percent of the cost of the new recycling manufacturing or process equipment and/or qualified service contract. Ongoing  
  G/SCM/N/253/USA  
 
- 158 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana Ad Valorem 
Natural Gas Tax Credit Louisiana 
Department of Revenue Tax Credit R.S. 47:6006 allows a refundable 
credit against corporate income or corporate franchise tax for 100 percent of the ad valorem taxes paid to political subdivisions in Louisiana on natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. Natural gas storage services or 
natural gas storage facilities. 100 percent of the ad 
valorem taxes paid to political subdivisions in Louisiana on natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. Ongoing 
Louisiana Gasoline & 
Special Fuel Taxes for Commercial Fisherman Louisiana 
Department of Revenue Tax Credit RS 47:297 allows a credit in an 
amount equal to the state gasoline and motor fuels taxes and special fuels taxes paid to operate or propel a commercial fishing boat. Commercial fishing boats. An amount equal to the 
state gasoline and motor fuels taxes and special fuels taxes paid to operate or propel a commercial fishing boat. Ongoing 
Louisiana Business 
Retention and Modernization 
Tax Credit 
Program Louisiana 
Department of Economic 
Development Tax Credit The Business Retention and 
Modernization Tax Credit program was created to induce 
businesses to remain in Louisiana 
and to modernize existing operations. Manufacturers who increase the 
efficiency or capacity of its facility by at least 10% and show that 
without the investment in 
modernization the facility would be a high risk for closure in the foreseeable future or employers with multi-state op erations and an 
established competitive capital project with an approved investment of at least $5 million. Eligible employers may earn 
certified tax credits at a rate of 1 percent over a five year 
period, for a total of 
5 percent of the amount of the certified expenditures, subject to the program's cap of $10 million in tax credits per program year. Ongoing 
Louisiana Urban 
Revitalization Tax Credit Louisiana 
Department of Economic Development Tax Credit The Urban Revitalization Tax 
Incentive Program was established to  stimulate 
economic development and create new jobs in urban and rural communities by providing tax incentives to 
small businesses that locate their 
principal office and work sites in a Historically Underutilized Business (HUB) Zone. Small businesses must obtain HUB 
Zone approval from the local governing authority and must employ staff that reside in or adjacent to the HUB Zone, receive some form of public assistance prior to employment, or 
are unemployable by lacking in 
basic skills. The program provides a 
$5,000 credit per net new job and will qualify the business to participate in the federal Workforce Investment Act Program through the Louisiana 
Workforce 
Commission. Ongoing  
  G/SCM/N/253/USA  
 
- 159 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana Industrial Tax 
Exemption Louisiana 
Department of Economic Development Tax Credit The Louisiana Industrial Ad 
Valorem Tax Exemption Program (ITEP) offers an attractive tax incentive for manufacturers within the state. The program abates, up to ten years, local property taxes (Ad Valorem) on a manufacturer's new investment and annual capitalized additions related to the manufacturing site.
 Businesses must be classified as a manufacturer or related to the manufacturing project in order to receive the benefits of the ITEP program. ITEP is only available for activities related to manufacturers. The program can be used by manufacturers new to Louisiana and is also available to existing manufacturers in Louisiana with new investments and miscellaneous capital additions to existing facilities. Abatement of local property 
taxes (Ad Valorem) on a manufacturer's new investment and annual capitalized additions related to the manufacturing site for up to 10 years. Ongoing 
Louisiana Small 
Business Loan and Guaranty Program Louisiana 
Department of Economic Development Loan The Small Business Loan and 
Guaranty Program facilitates capital accessibility for small businesses by providing loan 
guarantees to banks and other small business lenders in association with the federal State Small Business Credit Initiative (SSBCI). The program's purpose is to provide financial assistance, which will help with the development, expansion and retention of Louisiana's small businesses. The program is administered by Louisiana 
Economic Development through 
Louisiana Economic Development Corporation (LEDC). Must be a Louisiana small business 
(as defined by the Small Business Administration) an d domiciled in 
Louisiana. Owners or principal stockholders shall be Louisiana residents. For loans of $100,000 or less, there must be one new permanent job or one retained job.
 
For loans over $100,000, there must be two new permanent jobs created. Guarantees may range up 
to 75% of the loan amount, not to exceed $1.5 million. Guarantee fee may be waived (determined by risk). Ongoing 
Louisiana Motion Picture 
Investor Tax Credit Louisiana Motion 
Picture Tax Incentive Act Tax Credit 
To make projects more financially 
viable to be filmed in Louisiana. The Act provides a tax credit 
incentive for qualified Louisiana-based productions organized under an LLC and using local banks and residents.  This program creates a 
transferable tax credit equal to 30% of the investment greater than $300,000 for all Louisiana based production expenses. Ongoing  
  G/SCM/N/253/USA  
 
- 160 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Louisiana New Markets 
Tax Credit Louisiana Economic 
Development Tax Credit The New Markets Tax Credit 
program encourages investment in urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs.
 
 Private-sector investors receive credit against federal income taxes. The program allows individual and corporate taxpayers to receive a credit against federal income taxes for 
making qualified equity 
investments in Community Development Entities, or CDEs. Credits can be obtained every year the investment is held, for up to seven years of the credit period. Private-sector investors who make 
qualified equity investments in Community Develo pment Entities, 
or CDEs. Equity investments in low- 
to moderate-income areas may qualify for a 39% federal tax credit available through a special federal allocation for the Louisiana Gulf Opportunity Zone.  Qualifying projects may leverage the federal program through an additional 25% state tax credit (64% total credit). 
 
May be used as equity for debt financing. Ongoing 
Maine Biofuels 
Production Incentive  Maine Revised 
Statutes Title 36 Section 5219-X Tax credit To increase the production of 
biofuels Producers of biofuels for use in 
motor vehicles. There is a state income tax 
credit of $0.05 per gallon for the commercial production of biofuels for use in motor vehicles or otherwise used as a substitute for liquid fuels.  Ongoing 
Maine Tax Increment 
Financing (TIF) District Department of 
Economic and Community Development Property tax 
rebate A Tax Increment Financing (TIF) 
District is an area within a municipality that is designated as 
a development district to allow the municipality to financially support a business development program using the revenue stream of new property taxes. The maximum term for a TIF 
district is 30 years, except in instances where the municipality issues bonds to finance a project, in which case the maximum term is 20 years. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 161 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maine High 
Technology Investment Tax Credit Department of 
Economic and Community Development Tax credit Tax credit for businesses 
engaged in high-tech activities. Business primarily engaged in 
high-tech activities; high-tech activities include the design, creation, and production of computer software, computer equipment, supporting communications components and other accessories that are directly associated with computer software equipment; it also includes the provision of Internet or advanced telecommunications services. The credit amount is equal 
to the adjusted basis of eligible equipment placed in service in Maine less any lease payments received during the taxable year; the credit cannot reduce the tax liability to less than the preceding tax year's liability after the allowance of any credits, and it cannot reduce the tax liability in the current year below zero; 
unused portions of the 
credit may be carried forward five years; the credit cannot exceed $100,000 in any one year; income must be increased by any credit base amount claimed as a business expense. This credit cannot be used in tandem with the Business Equipment Tax Reimbursement. Ongoing 
Maine Sales Tax 
Exemptions - Biotechnology
 Department of Economic and Community 
Development Tax Incentives To encourage the development of 
biotechnology Businesses engaged in a 
biotechnology application. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 162 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maine Maine 
Technology Institute Maine Technology 
Institute Grants Maine Technology Institute (MTI) 
will provide research & development money to companies and non-profit research organizations in the State of Maine to support the commercialization of new technology-related products and services that will create and support sustainable, high-quality jobs for Maine people.  Awards are made on a competitive 
basis and support efforts in any of the state's seven targeted technology areas: Advanced Technologies for Forestry and Agriculture, Aquaculture and Marine Technology, Biotechnology, Composite Materials Technology, Environmental Technology, Information Technology, and Precision Manufacturing Technology. All MTI programs require a 
1:1 cash match, and are awarded based on scientific or technical merit, commercial feasibility, and potential for economic impact to the State. MTI offers three awards programs. These awards are considered on an on-going basis:  1) Development Awards are competitive awards of up to 
$500,000 per project and 
are awarded twice a year;  2) Seed Grants, awarded four times per year, are competitive grants of up to $10,000 per project to support very early activities for product development, commercialization, or business planning and development;  3) Cluster Enhancement Awards are competitive grants for up to $100,000 for collaborative projects that will stimulate and support the formation and growth of technology businesses and their infrastructure.  Ongoing  
  G/SCM/N/253/USA  
 
- 163 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maine  Pine Tree 
Development Zones (PTDZ) Department of 
Economic and Community Development Tax Free Zone Maine offers qualified businesses 
in manufacturing, financial services, and targ eted technology 
sectors significant tax advantages for locating in one of Maine's newly designated Pine Tree Zones. Detailed information is available online at http://www.mainebiz.org/why_maine/pine_tree_zones.asp. Certified businesses which locate in 
a PTDZ. Certified businesses which 
locate in a PTDZ may be eligible for the following benefits for up to 10 years: 1) 100 percent Corporate Income Tax Credit for 5 years and 50 percent credit for the second 5 years, 2) 80 percent reimbursement of its employees' state personal income tax withholdings, 3) 100 percent sales tax 
exemption on purchases of 
qualified building materials and personal property, 4) access to other state and local incentive programs.  31 
December 2018  
  G/SCM/N/253/USA  
 
- 164 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland Businesses 
that Create New Jobs Tax Credit State Department 
of Assessments and Taxation Tax Credit Businesses located in Maryland 
that create new positions and establish or expand business facilities in the state may be entitled to a tax credit. The program is only available in certain counties. The business must create at least 
25 new positions as part of a new or expanded business facility in Maryland (5,000 square feet or more). Businesses located in smaller counties (population of 30,000 or less) must create at least ten new positions. 
The credits are calculated as 
a percentage of the property tax liability on the new or expanded portion of the facility. Those percentages are as follows: •1st and 2nd tax years: 52 percent • 3rd and 4th tax years: 39 percent • 5th and 6th tax years: 26 percent • Remaining tax years: 
0 percent 
Credit against the personal or corporate income tax, or the insurance premiums tax: • 1st and 2nd tax years: 28 percent • 3rd and 4th tax years: 21 percent • 5th and 6th tax years: 14 percent • Remaining tax years: 0 percent Ongoing  
  G/SCM/N/253/USA  
 
- 165 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland Biofuels 
Production Credits Renewable Fuels 
Promotion Act of 2005 Tax credit Ethanol and biodiesel producers 
may apply to the Renewable Fuels Incentive Board for ethanol and biodiesel production credits. To be eligible for the credits, the producer must first apply to the Board in order to receive certification as a producer. Ethanol and biodiesel producer s Ethanol production credits 
are as follows: a) $0.20 per gallon of ethanol produced from small grains, and b) $0.05 per gallon of ethanol produced from other agricultural products. The Board may not certify ethanol production credits for more than a total of 15 million gallons per calendar year, of which at least 10 million gallons must 
be produced from small 
grains. Biodiesel production credits are as follows: a) $0.20 per gallon of biodiesel produced from soybean oil (the soybean oil must be produced in a facility or through expanded capacity of a facility that began operating after 31 December 2004), and b) $0.05 per gallon for biodiesel produced from other feedstocks (including soybean oil produced in a facility that began operating 
on or before 31 December 2004). Ongoing 
Maryland Biotechnology 
Investment Tax Credit Department of 
Business and Economic Development  Tax Credit This tax credit program offers 
incentives for inve stment in seed 
and early stage, privately held biotech companies.  Maryland's Biotechnology 
Investment Tax Credit program provides income tax credits equal to 50% of an eligible investment for investors in a Qualified Maryland Biotechnology Company. The credit is offered on a first come first serve basis. The value of the credit is 
equal to 50% of an eligible investment made in a qualified Maryland biotechnology company during the taxable year up to $250,000.  Ongoing  
  G/SCM/N/253/USA  
 
- 166 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland Clean Energy 
Incentive Tax Credit Maryland Energy 
Administration Tax Credit Businesses that use certain 
renewable energy sources or waste materials to produce electricity that is sold to an unrelated person may be entitled to an income tax credit. The business must produce 
electricity during the tax year using primarily "qualified energy resources" (see Internal Revenue Code §45) which includes any solid, non-hazardous, cellulosic waste material that is segregated from other waste materials and is derived from: • Forest-related resources, including mill residues (except sawdust and wood shavings), forest thinning, slash, or brush, but 
excluding old-growth timber; 
• Waste pallets, crates, and dunnage, landscape or right-of-way trimmings; • Agricultural sources (orchard tree crops, vineyard, grain, legumes, sugar, and other crop by-products or residues). The credit is 0.85 cents for 
each kilowatt-hour of electricity produced at a Maryland facility using qualified energy resources during the 5-year period after the facility is originally placed in service. Ongoing 
Maryland Sales Tax 
Exemption to Film/Video Producers Maryland Film 
Office Tax exemption To encourage production of films 
in the state. Qualified feature, television, cable, 
commercial, documentary, music video, etc. projects. Exemption from 5 percent 
state sales tax on property and services used in connection with filming activity. Ongoing 
Maryland Wage Rebate 
Program Maryland Film 
Office Wage Rebate To encourage production of films 
in the state. Film/Television Industry Rebates of 50 percent of up 
to $25,000 in earnings per employee on any production spending more than $500,000 in the State of Maryland. Wages for employees earning more than $1 million will not be eligible. Ongoing  
  G/SCM/N/253/USA  
 
- 167 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland  Maryland 
Small Business Development Financing Authority (MSBDFA) Department of 
Business and Economic Development (DBED) Mixed Financing
 Provides financing for small 
businesses and those owned by 
socially and economically disadvantaged persons. Small Businesses • Contract Financing 
Program - loan guarantees and direct working capital and equipment loans to socially or economically disadvantaged businesses that have been awarded contracts mainly funded by government agencies and/or public utilities.  • Equity Participation Investment Program - direct loans, equity investments 
and loan guarantees to 
socially or economically disadvantaged-owned businesses in franchising, in technology-based industries, and for the acquisition of profitable businesses.  • Long-Term Guaranty Program - provides loan guarantees and interest rate subsidies.  • Surety Bonding Program - assists small contractors in obtaining bonding for primarily funded government or public utility contracts that require bid, performance, and payment bonds.  Ongoing  
  G/SCM/N/253/USA  
 
- 168 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland  Challenge 
Investment Program Department of 
Business and Economic Development (DBED) Equity This program provides financing 
for seed-stage companies to cover a portion of the initial costs associated with bringing new products to market. Requirements include: 
• The business must have no more than 25 employees and annual sales of less than $1 million.  • A minimum 1:1 co-investor match is required.  • Applicants are limited to high tech companies whose principal place of business is located in Maryland.  • The company must remain in Maryland for at least three years.  Initial investments are 
made up to $50,000, with incremental investments to a maximum of $150,000. These incremental investments are awarded 
based upon the client's performance and the client's ability to achieve milestones set by the Investment Financing Group staff at the time of the initial closing. Investment decisions are 
based on the project's 
potential return on investment, market potential, experience and credibility of the management team, and impact on the Maryland economy. Investment decisions are also based on the strength of the technology (e.g., patents, highly proprietary developments preferred). Companies receiving a Challenge investment must pay a 2 percent royalty on revenues in excess of $500,000 for a period of ten years. The firm must also pay a one percent royalty on equity raised in excess of $500,000. The 
royalty payments are 
capped at three times the Challenge investment received.  Ongoing  
  G/SCM/N/253/USA  
 
- 169 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland  Enterprise 
Investment Fund Maryland 
Department of Business and Economic Development (DBED) Equity This program makes direct equity 
investments in emerging technology companies with patented or proprietary products or manufacturing processes and a marketing strategy in place. The Enterprise Investment Fund works with emerging companies to move them into their next stage of development as a viable business. Requirements include: 
• Applicants must be in a technology industry. Areas of technology include biotechnology, telecommunications, information technology, life sciences and advanced materials. • The applicant must agree to maintain its principal place of business in Maryland for five years.
 
• A minimum 3:1 match by a sophisticated invest or is required. 
A sophisticated investor may be a 
venture capital firm, a corporate 
strategic investor, or other individuals seen as knowledgeable about the industry segment. The amount of investment 
ranges from $150,000 to $500,000. Enterprise investments are generally in the form of equity, but it may be another type, e.g. debt issues, as initiated by the lead investor. To be considered for either program, a company must submit a full business plan and meet the criteria listed. 
 Ongoing 
Maryland  Enterprise 
Zone Tax Credits Maryland 
Department of Business and Economic Development (DBED) Tax Credit Enterprise zones in the state 
offer an attractive location alternative for industrial and commercial businesses. Areas within enterprise zones that meet more stringent standards of eligibility may be declared focus areas. Businesses located in a Maryland 
Enterprise Zone may be eligible for income tax credits and real property tax credits in return for job creation and investments made in the zone. Twenty-eight enterprise zones and two focus areas are located in the state.  Real property tax credits; 
Income tax credits; Enhanced Job Creation Tax Credits; Priority access to Maryland's financing programs. Enhanced Focus Area Benefits include Real property tax credits; Personal property tax credits; Income tax credits. In addition to 
30 state-design ated zones, 
Maryland has three Federal Empowerment Zone areas that have enterprise zone status. These zones represent different mixes of industrial and commercial activity that will meet the circumstances and preferences of new or expanding businesses. Ongoing. 
Enterprise zone designation is for 10 years; Focus area designation is for 5 years.  
  G/SCM/N/253/USA  
 
- 170 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland  Job Creation 
Tax Credit Department of 
Business and Economic Development (DBED) Tax Credit Maryland's Job Creation Tax 
Credit (JCTC) program provides income tax credits to businesses that create new jobs to encourage them to expand or relocate in Maryland. The business must create at least 60 new qualified positions; the number of position s is reduced to 
30 positions if they are "high wage" and reduced to 25 positions if the business locates in a JCTC priority funding area. The new or expanded facility must 
be engaged in an eligible activity defined as primarily engaged in: manufacturing, transportation or communications, agriculture, forestry, fishing or mining, a public utility, warehousing, research, development, or testing, biotechnology, computer programming, information technology or other computer related services, central financial, real estate or insurance services, 
the operation of central 
administrative offices or a company headquarters, business services firms (only located in a "JCTC Priority Funding Area"). A business may also be engaged in the operation of entertainment, recreation, cultural or tourism related activities in a multi-use facility located within a revitalization area if the facility generates a minimum of 1,000 new full-time equivalent filled positions in a 2-year period.  In most cases, the credit is 
2.5 percent of annual wages for all newly created, full-time jobs, subject to a limit of $1,000 per new job. In a state enterprise zone, a federal empowerment zone, or a Maryland Department of Housing and Community Development designated neighborhood, the credit is increased to five percent of annual wages for all newly 
created full-time jobs, 
subject to a limit of $1,500 per new job. The credit earned by a qualified business entity may not exceed $1 million per credit year. The Job 
Creation Tax Credit remains in effect until 1 January 2014, subject to extension by the General Assembly. 
Maryland  Maryland 
Economic 
Adjustment Fund (MEAF) Department of 
Business and 
Economic Development (DBED) Loan MEAF was established as a non-
lapsing revolving fund to make 
loans to new or existing companies in communities suffering dislocation due to defense adjustments to enable the companies to modernize their manufacturing operations, develop commercial applications for technology, or enter into and compete in new economic markets • Applicants must demonstrate 
credit worthiness, the ability to 
repay the obligation, and the inability to obtain financing on affordable terms through normal lending channels.  • State designated eligible locations include Baltimore City and Baltimore, Howard, Anne Arundel, Harford, Queen Anne's, Somerset, Worcester, Dorchester, Allegany and Washington counties. 
 
• A loan may not be used to relocate jobs from one commuting area to another.  The program is 
administered in accordance 
with the guidelines imposed by the Federal Government's Economic Development Act (EDA). The maximum amount of the loan to any one borrower is $500,000.  Ongoing  
  G/SCM/N/253/USA  
 
- 171 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland  Maryland 
Economic Development Authority and Assistance Fund (MEDAAF) Department of 
Business and Economic Development (DBED) Mixed Financing
 Provide assistance to the 
business community and political jurisdictions. To qualify for assistance from 
MEDAAF, applicants are restricted to businesses located within a priority funding area and an eligible industry sector.  There are five financing 
capabilities offered. The specific program determines the level and type of financial assistance provided. Significant Strategic Economic Development Opportunities: A project that provides eligible industries with a significant economic development opportunity on a statewide or regional 
level. Local Economic 
Development Opportunity: A business that provides a valuable economic development opportunity to the jurisdiction in which the business is located and is a priority for the governing body of that jurisdiction. Direct Assistance to Local Jurisdictions or MEDCO: DBED may provide financial assistance to a local jurisdiction for local economic development needs. Regional or Local Revolving Loan Fund: Grants to local jurisdictions to help capitalize local revolving loan funds. Special Purposes Loan: This loan targets specific funding 
initiatives that are deemed 
critical to the state's economic health and development. (e.g, Day Care)  Ongoing  
  G/SCM/N/253/USA  
 
- 172 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland  One Maryland 
Economic Development Tax Credits Department of 
Business and Economic Development (DBED) Tax Credit To encourage economic 
development projects in distressed counties of the state. The business project must be 
located in a "qualified distressed county:" Baltimore City or Allegany, Caroline, Dorchester, Garrett, Somerset or Worcester County. The business entity must be primarily engaged at the facility in one or more eligible industries: manufacturing, agri culture, testing, 
computer programming, mining, fishing, research, computer-related services, transportation, forestry, development, information 
technology, central insurance 
services, biotechnology, communications, company headquarters, central financial services, business services, public utility, central administrative offices, central real  estate services, 
warehousing, filmmaking and resort/recreational business. The business must incur eligible costs and create at least 25 new qualified positions. Counties meeting the definition of a "qualified distressed county" are subject to change and should be verified by DBED. Businesses can qualify for 
up to $5.5 million in tax credits under the One Maryland Tax Credit Program. A qualified business entity may claim both a start-up tax credit and a project tax credit. Tax credits may be claimed against state income, insurance premium, or financial institution franchise tax. 
Project tax credits of up to 
$5,000,000 are based on qualifying costs and expenses incurred by the business entity in connection with the acquisition, construction, rehabilitation, installation, and equipping of an eligible economic development project. The business entity must incur at least $500,000 in eligible project costs and must create at least 25 new qualified positions.  Start-up tax credits of up to $500,000 are based on a business' cost to furnish and equip a new location for ordinary business functions and to move to a qualified 
distressed county from 
outside Maryland. (50 qualified new positions are required to qualify for the full $500,000 credit.)  Ongoing  
  G/SCM/N/253/USA  
 
- 173 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Maryland Neighborhood 
Business Development Program Department of 
Housing and Community Development (DHCD) Loans The Neighborhood Business 
Development Program provides flexible gap financing through loans to small businesses. Small businesses starting or 
expanding in locally-designated revitalization areas throughout the state. Loans ranging form $25,000 
to $500,000 are provided to small businesses at below-market interest rates. Loans and grants are also made to non-profit organizations whose activities contribute to a broader revitalization effort. Ongoing 
Maryland Maryland 
Cellulosic Ethanol R&D Tax Credit Department of 
Business and Economic Development (DBED) Tax Credit To promote research and 
development in cellulosic ethanol technology. Businesses that incur qualified 
cellulosic ethanol technology research and development expenses in Maryland may be entitled to a state income tax credit. The amount of the income 
tax credit is 10% of the "qualified research and development expenses" paid or incurred by an individual or business during the previous tax year for investment in cellulosic ethanol technology with a limit of $250,000. The tax 
credit is available for
 
the tax years ending prior to 1 January 2017. 
Massachusett sEconomic 
Development 
Incentive Program (EDIP) Massachusetts 
Office of Business 
Development Tax Credit Economic Development Incentive 
Program (EDIP) is a tax incentive 
program designed to foster full-time job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state and local tax incentives in exchange for full-time job creation, retention, and private investment commitments. Businesses in designated economic 
target areas. Incentive tax credits can 
range up to 10% and in 
certain cases up to 40%. There is also a 10% abandoned bilding tax deduction available in certain cases. Ongoing 
Massachusett sInvestment 
Tax Credit Massachusetts 
Office of Business Development Tax Credit The Massachusetts Investment 
Tax Credit (ITC) offers a three-percent credit for qualifying businesses against their Massachusetts corporate excise 
tax. The credit is to be used for 
the purchase and lease of qualified tangible property used in the course of doing business Manufacturing corporations, certain 
research and development corporations, and corporations engaged primarily in agriculture or commercial fishing shall be allowed 
a credit for tangible personal 
property that is leased pursuant to an operating lease. Registered Manufacturers 
also receive personal property tax exemptions, sales & use tax exemption, Research & Development 
Tax Credit and Single Sales 
Factor apportionment. Ongoing  
  G/SCM/N/253/USA  
 
- 174 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Massachusett sSeafood Loan Program Mass Development Loan The Seafood Loan Program was 
created to enhance the competitiveness of Massachusetts seafood processing industry. The program provides direct loans for fixed asset financing needs including the purchase of land, buildings, equipment and for the construction or renovation of facilities. Funds cannot be used for revolving working capital or for the purchase of vessels.  Seafood processing industry . The maximum amount is 
$200,000, with a 10-year term for real estate loans and a 7-year term for equipment loans. Loans may be amortized for a maximum of 20 years and have a fixed or floating interest rate at prime plus a premium. Ongoing 
Massachusett sSeafood 
Revolving Loan Fund Massachusetts 
Development Finance Agency (MassDevelopment)
 Loan/ Non-traditional financing The Seafood Revolving Loan Fund 
provides financing in cooperation with private lenders, to fishing vessels and shore side facilities. To be eligible, a business must demonstrate that it has been adversely affected by the federal fishing regulations enacted to rebuild the deplet ed stocks of 
cod, haddock and flounder. The fund is capitalized through the a grant from the Economic Development Administration with matching funds provided by MassDevelopment.  Seafood industry. The loan fund uses two 
types of financing. The first is a micro loan with a max of $50,000 to assist businesses that are unable to secure traditional bank financing. The second loan provides gap financing of up to $100,000. Loans have a fixed rate of 8 percent for the initial lending period. Under the terms of the grant, business must be located in Barnstable, Bristol, Nantucket, Norfolk, Plymouth or Suffolk 
counties. Start-up ventures 
are not eligible. Ongoing  
  G/SCM/N/253/USA  
 
- 175 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Massachusett sEmerging Technology Fund MassDevelopment Loan The Emerging Technology Fund 
provides loan guarantees to leverage private debt financing for specialized research and development or manufacturing facilities. Two types of projects are eligible for financing: 1) The fund can be used to leverage private financing for the construction of state of the art manufacturing, research and development facilities. 2) The fund can be used 
to provide matching grants to 
universities and private institutions for advanced research and development of new and emerging technologies in the Commonwealth. Technology companies. The maximum guarantee 
amount is $1,500,000 or 50 percent participation of the aggregate debt, whichever is less. The maximum loan amount for facilities is $2,500,000 or 33 1/3 percent participation of the aggregate debt, whichever is less. The maximum loan amount for equipment is $500,000 or 33 1/3 percent participation 
of the aggregate debt, 
whichever is less. Ongoing 
Massachusett sJobs Creation 
Incentive Payment  Housing and 
Economic Development Grant Qualifying biotechnology and 
medical device manufacturing companies are eligible to receive incentive payments for new job creation. The jobs incentive payment for 
newly created manufacturing jobs is available to corporations engaged primarily in the research, 
development, production or provision of biotechnology, or manufacturers engaged in the production of products for a medical device manufacturing 
business primarily engaged in 
manufacturing medical or surgical instruments, surgical appliances or supplies, or electro-medical, electrotherapeutic or irradiation apparatus. A qualifying biotechnology 
or medical device manufacturing company that creates 10 or more eligible jobs in the Commonwealth during a single calendar year shall be entitled to an incentive payment equal to 
50 percent of the eligible 
job's salary multiplied by the applicable Massachusetts income tax rate of the newly hired persons. The jobs incentive payment will be paid in three equal installments in each of the following three years. Terminated 
during reporting period.  
  G/SCM/N/253/USA  
 
- 176 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Massachusett sMassachusetts Motion Picture Tax Incentive Massachusetts 
Department of Revenue Tax credit/tax 
exemption To encourage film production 
within the State. Film industry. 20 percent tax credit based 
on total payroll in state; 25 percent tax credit based on production expenses in state, as long as half shot in state or half expenses spend in state. Tax credits carry forward 5 years or can be sold. If state production spending is over $250,000 sales tax exempt. Total tax credits per production capped at 
$ 7million. Ongoing 
Massachusett sMassachusetts 
Clean Energy Center - Commonwealth Hydropower
 Green Jobs Act of 2008 Grants To increase the output of the 
Commonwealth's hydropower assets by providing grants for ecologically appropriate projects that can be impl emented quickly 
and efficiently. Generally limited to projects that 
can demonstrate a high likelihood of qualifying for the Massachusetts Renewable Energy Portfolio Standard. Grants are capped at the 
lesser of $600,000 or 50% of actual costs, or $1 per incremental kilowatt hour per year. Grants for feasibility studies are capped at the lesser of $40,000 or 80% of actual costs. Ongoing 
Massachusett sMassachusetts 
Clean Energy Center - Commonwealth Commercial Wind Green Jobs Act of 
2008 Grants and 
Loans For development of responsibly 
sited commercial electric generating facilities that employ wind energy technologies. Provides funding for site assessments, wind resource assessments, feasibility studies and development activities including interconnection. Landowners and new wind project 
developers for land-based projects that are greater than 2MW and cannot be net metered. The wind project must have three turbines or more. Applicants can include private and public entities such as 
federal, state and local governments. Up to $55,000 in grants per 
project for feasibility studies. Up to $250,000 in unsecured loans bearing interest at the Prime Rate plus 2 percent for development activities. A cost share is required. Ongoing  
  G/SCM/N/253/USA  
 
- 177 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Massachusett sMassachusetts Clean Energy Center - Commonwealth Wind Community Scale Initiative Green Jobs Act of 
2008 Grants Grants for the installation of wind 
projects, including the in-depth study of the feasibility and the design and construction of eligible wind projects . Eligible projects are those 
proposed by any residential, commercial, industrial, institutional or public entity in Massachusetts. The nameplate capacity of the proposed energy system must be greater than or equal to 100kW, and the project's utility meter must be grid connected. Projects must show that at least 50 percent of the renewable energy produced will be used behind the meter or assigned through the net metering 
provisions of the Green 
Communities Act based on annual production and usage estimate. Grants vary based on size 
and other characteristics of the wind project. Non-public entities have a 20 percent cost share requirement associated with the grant.  Ongoing 
Massachusett sMassachusetts 
Clean Energy Center - Investments in Job Creation Green Jobs Act of 
2008 Financing Growth capital investments that 
support the expansion of a clean energy company's operations in Massachusetts. Clean energy companies that 
demonstrate significant job creation and economic development in the Commonwealth. Investment structure and 
amount depends on the applicant's growth trajectory and geography. Ongoing 
Massachusett sMassachusetts 
Clean Energy Center - Investments in the Advancement of Technology Green Jobs Act of 
2008 Financing Venture capital equity 
investments in promising early-stage Massachusetts clean energy companies that are developing and commercializing technologies that contribute to the advancement of various clean energy or energy efficient technologies. Early-stage clean energy 
companies that are contributing to the advancement of one or more of a list of clean energy or energy efficient technologies, including solar photovoltaic, solar thermal, wind power, geothermal, biofuels and hydrogen. Seed venture investments 
up to $500,000 in the form of a suitable equity instrument, depending on the applicant's circumstance. Ongoing 
Massachusett sMassachusetts 
Clean Energy Center - Catalyst 
Program  Green Jobs Act of 
2008 Grants To support the demonstration of 
the commercial viability of clean energy technologies. The aim of the funding is not to perfect the 
technology but to develop it to a 
point where its features can be shown so that additional commercialization funding can be obtained.  Eligible applicants must be a 
principal investigator with technology disclosed to a host institution located in 
Massachusetts. Maximum award is $40,000 Ongoing  
  G/SCM/N/253/USA  
 
- 178 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Massachusett sThe 
Commonwealth  
Solar II Rebate Program II Massachusetts 
Clean Energy Center Rebates Commonwealth Solar II provides 
rebates for homeowners and businesses in Massachusetts who install solar photovoltaics (PV). Rebates are granted through a non-competitive application process for the installation of PV projects by professional, licensed contractors. For all systems, rebates are calculated by multiplying the per watt incentive (base incentive plus adders) times the nameplate capacity of 
the system, up to 5 kilowatts 
(kW); non-residential projects are eligible for rebates only if their total capacity is under 10kW.  Various commercial, industrial, 
non-profit and government entities.  Residential: up to 
$8,500 per/yr (with all extra incentives except for the disaster relief incentive); Commercial: $4,250 (per host customer). The per watt incentives are capped at 5KW per project, and are measured by energy production capacity and not actual production. Ongoing 
Michigan Border County 
Incentives Michigan Economic 
Development Corporation Tax Abatement To provide incentives to 
businesses in border counties. Businesses that locate in a county 
that borders another state or Canada. 100% personal property tax 
abatement on new investment. Ongoing 
Michigan Industrial 
Facility Tax Exemption (IFTE) Certificates  Michigan Economic 
Development Corporation Tax incentives Industrial property tax exemption 
certificates are used to spur renovation and expansion of aging manufacturing plants and new plant construction. High-tech companies Exemptions are approved by 
local units of government and issued by the state, reducing property tax on buildings, machinery and equipment by roughly 50 percent for new facilities and 100 percent for renovation projects. They are available for up to 12 years.  Ongoing  
  G/SCM/N/253/USA  
 
- 179 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan Industrial 
Property Tax Abatement (P.A. 198 of 1974)  Michigan Economic 
Development Corporation Property tax 
abatement Property tax incentives are 
available to eligible businesses to renovate or expand aging manufacturing plants or to build new plants. Eligible businesses This program can reduce 
property taxes (real and personal) for up to 12 years. For an obsolete plant or machinery that is being replaced or restored this results in a 100 percent exemption from the property tax on the value of the improvement. The Industrial Facilities Tax (IFT) on a new plant and/or machinery and equipment is 
computed at half the local 
property tax millage rate, plus the 6-mill statewide education tax. This amounts to a reduction in property taxes of approximately 50 percent.  Ongoing  
  G/SCM/N/253/USA  
 
- 180 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan MEGA 
High-Tech Tax Credits Michigan Economic 
Development Corporation Tax Credit To promote the development of 
high-tech businesses in both traditional and emerging industries by providing a tax credit against the Michigan Business Tax (MBT) and assist in the diversification of Michigan's economy. The following business activities 
that qualify under the statutory high-technology definition are as follows: Advanced computing used in the design and development of computer hardware and software, data communications, information technologies and film and digital media production; Advanced materials; Biotechnology; Electronic device technology; Engineering or laboratory testing 
related to the 
development of a product; Technology that assists in the assessment or prevention of threats or damage to the environment; Medical device technology; Product research and development; Advanced vehicles, which is technology involved in the research and development of electric, hybrid or alternative energy vehicles; Tool and die manufacturing; Digital media; Music production;  Film and video Under the MBT Act, the 
statute allows a qualified high technology business to collect 200% of the sum of the payroll and health care benefits for the first three years of the credit, multiplied by the personal income tax rate. Ongoing 
Michigan Michigan 
Emerging Technologies Fund (METF) Michigan Economic 
Development Corporation Grant Expand funding opportunities for 
Michigan technology based companies in the federal innovation research and development arena. Must be a Michigan Company. 
Company may not have more than two SBIR/STTR Phase II federal grants within the previous five years. Company may receive no more than two ETF awards per 12 month period. Technology Sectors: Life Sciences, Homeland Security and Defense, Advance automotive manufacturing and materials, Alternative Energy. The ETF will match 25% of 
phase I BIR/STTR awards up to $25,000. The ETF will match 25% of phase II SBIR/STTR awards up to $125,000. Ongoing  
  G/SCM/N/253/USA  
 
- 181 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan MEGA Rural 
Job Creation Tax Credits Michigan Economic 
Development Corporation Tax Credit To respond to interstate 
competition for company expansions and relocations. Provides a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Rural MEGA tax credits are 
available to companies in counties with populations less than 90,000. The job creation requirement for a Rural MEGA are five new jobs by the first year of the credit and 25 new jobs by the fifth year of the credit, as determined by MEGA, along with the maintenance of the base employment level. Each credit may be awarded 
for up to 20 years and up to 100 percent of an amount equal to the salaries and wages and employer-paid health care benefits multiplied by the personal income tax rate. Ongoing 
Michigan Michigan 
Incentive Pass  Michigan Film Office Tax rebate  To encourage film production 
within the state. Film Industry Graduated scale for rebate 
based on spending in state. $200,000-$1million (12 percent); $1million-$5million (16 percent); $5million-$10million (20 percent); > $10million (20 percent on first $10 million spent). Ongoing 
Michigan  Michigan 
Manufacturing Diversification Strategy Michigan Economic 
Development Corporation Grant Help 400 manufacturing firms 
navigate through the diversification pr ocess during the 
program's first year. Assist 100 firms in achieving quality systems certification in four new opportunistic markets. Showcase Michigan's manufacturing talent at national events. Create an online matchmaking database to connect Michigan manufacturers to national original equipment manufacturers (OEMs). Most importantly, realize $1 billion in new multi-year contracts upon completion of the program's first year.  Growing Industry Sectors: 
Alternative Energy (Wind Focus); Defense & Homeland Security; Aerospace;  Medical Devices  Up to $10,000 in a 
matching-funds grant to be used for re-training of workers and re-positioning of the company. Ongoing  
  G/SCM/N/253/USA  
 
- 182 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan Michigan 
Smart Zones Michigan Economic 
Development Corporation Various To stimulate the growth of 
technology-based  businesses and 
jobs by aiding in the creation of recognized clusters of new and emerging businesses, including those primarily focused on commercializing ideas, patents, and other opportunities surrounding university or private research institute R&D efforts. The SmartZone program has 
identified 11 locations throughout the State of Michigan with necessary resources to nurture technology business growth ranging from research and development with universities to entrepreneurial training. The Smart Zones are in: Ann Arbor/Ypsilanti (University of Michigan), Battle Creek (Western Michigan University), Detroit (Wayne State University), Grand Rapids (Grand 
Valley State University/Van Andel 
Institute), Houghton/Hancock (Michigan Technological University), Kalamazoo (Western Michigan University), Lansing/E. Lansing (Michigan State University), Mt. Pleasant (Central Michigan University), Muskegon (Grand Valley State University), Oakland County (Oakland University), and Pinnacle Aeropark.
 Business accelerator services include, but are not limited to:  Business development mentoring Networking events Business feasibility studies Business planning Entrepreneurial training Grant writing Incubator and wet lab space
 
Management recruitment 
Market analysis 
Product development Small Business Innovation Research (SBIR) assistance
 
Small Business Technology Transfer (STTR) assistance Technology assessments Technology mining Venture capital preparation and introductions Ongoing  
  G/SCM/N/253/USA  
 
- 183 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan The Michigan 
NextEnergy Authority (MNEA)  Michigan 
Department of Treasury Tax incentives To promote the development of 
alternative energy technologies and to provide tax incentives for business activities and property related to the research, development, and manufacturing of those technologies. Taxpayers engaged in research, 
development, or manufacturing of alternative energy technology and certified as eligible by the MNEA Taxpayers engaged in 
research, development, or manufacturing of alternative energy technology and certified as eligible by the MNEA may claim a nonrefundable credit against their single business tax liability. Personal property that is certified by the MNEA as "Alternative Energy Personal Property" (AEPP) is exempt from the collection 
of personal property taxes. 
An Alternative Energy Zone (AEZ) has been created within Wayne State University's Research and Technology Park in Detroit to promote the research, development, and manufacturing of Alternative Energy Technologies. Businesses engaged in one of those qualifying activities and located within the AEZ will enjoy the full range of Renaissance Zone tax benefits. Alternative energy technology companies located in the AEZ may also be eligible for a refundable payroll credit on their SBT.  The 
personal property tax exemption applies to taxes levied after 31 December 2002, and before 1 January 2013.  
  G/SCM/N/253/USA  
 
- 184 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan Urban Land 
Assembly Program Michigan Economic 
Development Corporation Loan The Urban Land Assembly 
Program provides low interest loans to cities to enable them to purchase land for economic development projects. Funds can be used to purchase industrial property or property in a downtown development authority. Projects located in cities that have 
experienced a local unemployment rate more than 70 percent of the annual average state unemployment rate; a growth in local population that is less than 75 percent of the state's population growth rate; or a change in local state equalized value that is less than 50 percent of the state's five-year average. Determined on a case-by-
case basis. Ongoing 
Michigan Anchor 
District Credit Michigan Economic 
Development Corporation Tax Credit Designed to diversify Michigan's 
economy while creating significant value chain jobs. Qualified taxpayer that was 
designated by MEGA as an anchor company within the last five years and that has influenced one or more qualified suppliers or customers to open, locate, or expand their business and conduct business activity within a 10-mile radius of the anchor company at a site-specific facility. Qualified taxpayer can claim 
a credit against the MBT equal to the sum of up to 5% of the taxable value of each qualified supplier's or customer's taxable property that was located within the 10-mile radius of the qualified taxpayer and that was subject to collection under the General Property Tax Act, for up to five years, as determined by MEGA. Ongoing 
Michigan MEGA Defense 
Contracting Michigan Business Tax Credit Michigan Economic 
Development Corporation Tax Credit Defense Contracting MBT Tax 
Credits are designed to diversify Michigan's economy and to create significant value chain jobs. This credit will assist companies in closing the gap with out-of-state bidders as well as assist firms with their first bid efforts to increase the number of companies involved in government contracting Michigan businesses which have 
successfully won a federal contract from either the Department of Defense, Department of Energy, or Department of Homeland Security. Defense MBT Credits are 
available for up to 7 years and the credit is taken against the MBT for jobs created by the company and federal procurement contract. Ongoing  
  G/SCM/N/253/USA  
 
- 185 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan MEGA 
Retention Credit Michigan Economic 
Development Corporation Tax Credit Assist Michigan companies that 
are considering a business closure. Companies retaining at least 
50 new full-time jobs at 150% of Federal minimum wage and investing at least $50,000 per retained employee to receive the credit as determined by the Michigan Economic Growth Authority.  Depending on the overall 
investment, each credit may be awarded for up to 20 years and up to 100 percent of the wages and employer-paid health care benefits multiplied by the personal income tax rate. The percentage is determined on the amount of the investment per job with a minimum investment per retained job of $50,000.
 Ongoing 
Michigan Michigan Film 
Production Credit Michigan Film 
Office Tax Credit To encourage film production 
within the state. Film Industry The film production credit is 
a refundable, assignable tax credit of up to 42% of the amount of a production company's expenditures (depending upon type) that are incurred in producing a film or other media entertainment project in Michigan. Ongoing  
  G/SCM/N/253/USA  
 
- 186 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan MEGA High-
Tech Job Creation Tax Credits Michigan Economic 
Growth Authority Tax Credit Promote high quality economic 
growth and job creation.  Employers in electronics, 
communications, medical science, film and media production. Each credit may be awarded 
for up to 20 years and 100 percent of the incremental SBT liability and/or personal income tax attributable to the project. Beginning March 2000, the application fee was increased to $5,000 for companies applying for MEGA tax credits. This fee is collected at the time the company submits its final 
application for a credit. In 
addition, a one-time only administrative fee of 1/2 of one percent of the estimated value of the incentive will be collected. This fee is payable at the time the company is certifying its eligibility to receive awards and is limited to no more than $100,000. Ongoing 
Michigan The 21st 
Century Jobs Fund Michigan Economic 
Development Corporation Grants and 
Loans Spark new investment, creating 
high-tech companies and jobs to diversify the economy by 
investing in basic research at 
universities and non-profit research institutions, applied research, university technology transfer, and the commercialization of products, processes, and services. A preference for proposals that can 
contribute to the development of economic diversification or the 
creation of employment 
opportunities in Michigan. The four competitive-edge technologies are:
 
• Life sciences • Alternative energy • Advanced automotive, manufacturing and materials • Homeland security and defense • Also supported are advanced computing or electronic device technology, design , engineering, 
testing, diagnostics, or product research and development related to any of the four competitive-edge technologies. Appropriated $394 million in 
FY2005-06, $80.7 million in FY2007-08, and 
$63.25 million in 
FY2008-09. Annual appropriations of $75 million for FY2009-10 through FY2014-15. Ongoing  
  G/SCM/N/253/USA  
 
- 187 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan Brownsfield 
Tax Incentives  Michigan Economic Development Corporation Tax Credit To promote the redevelopment of 
brownfield sites. Eligible property must be 
designated in a locally approved brownfield plan created under the Brownfield Redevelopment Financing Act. If the property is located in a Qualified Local Governmental Unit, it can qualify as contaminated, blighted or functionally obsolete. If not located in a Qualified Local Governmental Unit, then the property must be contaminated and defined as a "facility." Credits are available for up 
to 12.5% of eligible investments, or up to 20% for certain Urban Development Area Projects as designated by the Michigan Economic Growth Authority Board.  Ongoing 
Michigan Centers of 
Energy Excellence Program Michigan Economic 
Development Corporation Grants To promote the development, 
acceleration and sustainability of energy sectors in Michigan. Grants through this program can 
only be awarded to for profit companies that show that they promote new and developing industry sectors in the energy field in the state, where the state has a competitive advantage and where there are barriers to the commercialization of technology within the new and developing industry sector.  Thirty million dollars in total 
has been authorized from the 21st Century Jobs Trust Fund. Grants are provided to match federal fudining of up to 50% of the total project costs.  Ongoing 
Michigan Michigan 
Emerging Technologies Fund Michigan Economic 
Development Corporation Grants To expand funding opportunities 
for Michigan technology based companies in the federal innovation R&D arena. Company must be a Michigan 
company or have its principal place of business in Michigan prior to the disbursement of funds. Qualifying technology sectors include: life sciences; homeland security and defense; advance automotive, manufacturing and materials; alternative energy. Small Business Innovation 
Research/Small Business Technology Transfer awards up to $125,000. Ongoing 
Michigan Personal 
Property Tax 
Relief in 
Distressed Areas Michigan Economic 
Development 
Corporation Tax Exemption Allows distressed communities, 
county seats and certain border 
county communities to abate 
personal property taxes on new investments made by eligible businesses. Eligible businesses that locate in a 
border county and receive approval 
are eligible. The business must 
locate in a local governmental unit that is served by at least four of the following services: water, sewer, police, fire, trash or recycling. The local community and 
the business negotiate the 
length of abatement for the 
new personal property tax.  Ongoing  
  G/SCM/N/253/USA  
 
- 188 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Michigan Renewable 
Energy Renaissance Zones Michigan Economic 
Development Corporation Tax Exemption To assist in the development of a 
strong renewable energy industry in Michigan. Zones can be located anywhere in 
Michigan and companies must maintain a renewable energy facility. Companies located in a 
renaissance zone do not pay Michigan Business Tax, state education tax, personal and real property taxes and local income tax. 
 Ongoing 
Michigan Alternative 
Fuel Development Property Tax Exemption Michigan Compiled 
Laws 207.552 and 207.803 Tax exemption Certain property tax exemptions 
apply to industrial property which is used for, among other purposes, high-technology activities or the creation or synthesis of biodiesel fuel.  High-technology activities include 
those related to advanced vehicle technologies such as electric, hybrid, or alternative fuel vehicles and their components. In order to qualify for the tax exemptions, an industrial facility exemption certificate for the property must be obtained from the State Tax Commission.  Varies Ongoing 
Minnesota Job 
Opportunity Building Zones (JOBZ) Department of 
Employment & Economic Development Reimbursement 
of state production expenditures Stimulate econom ic development 
activity in rural Minnesota by providing local and state tax exemptions. Qualified businesses include 
businesses expanding in a Zone, business startups in a Zone, business relocations from other 
states, and business relocations 
from Minnesota if the business increases employment by a minimum of 5 jobs or 20 percent, whichever is greater, within the first full year of operations in the Zone. Companies expanding or 
locating within one of the Job Opportunity Building Zones can receive the 
following tax exemptions: 
- Corporate franchise tax  - Income tax for operators or investors, including capital gains tax  - Sales tax on goods and services used in the zone if the goods and services were purchased during the duration of the zone  - Property tax on commercial and industrial improvements but not on land  - Wind energy production tax  - Employment tax credit for high paying jobs The JOBZ 
program is scheduled to expire 31 
December 
2015.  
  G/SCM/N/253/USA  
 
- 189 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Minnesota Production 
Rebate (Snowbate) Minnesota Film and 
TV Board Tax incentives To create new production jobs in 
Minnesota Film/Television Industry A reimbursement of up to 
15 percent of production costs incurred in Minnesota to producers of feature films, national TV series, documentaries, music videos and commercials, shot on film or video, that directly create new production jobs in Minnesota. Snowbate 
funds are available until 30 June 2010 or until the appropriation is spent, whichever comes first. 
 
Minnesota Commercial 
Sales Tax Exemption Minnesota Film and 
TV Board Tax exemption To encourage commercial 
television productions. TV commercial industry TV commercial production 
and post-production expenditures exempt form sales tax. Ongoing 
Minnesota Ethanol 
production facility loan program Department of 
Employment & Economic Development Loan To provide capital for ethanol 
production facilities.  Ethanol producers The program may provide 
for secured or unsecured loans, loan participations and loan guarantees with respect to real or personal 
property comprising all or 
part of an ethanol production facility. Ongoing 
Minnesota Ethanol 
Program Minnesota 
Department of Agriculture Grant The 20-cent per gallon ethanol 
producer payment legislation provides the security required by lenders to invest in small farmer owned ethanol facilities. Ethanol producers A 20 cent per gallon ethanol 
producer incentive provided payment for ethanol produced. Ongoing 
Minnesota The Value-
Added Agricultural Product Loan Program (Stock Loan Program) Department of 
Employment & Economic Development Loan To help fa rmers finance the 
purchase of stock in a cooperative proposing to build or purchase and operate a facility to process agricultural crops. Ethanol producers The loan can be used to 
finance the purchase of stock in various farmer owned cooperatives, including ethanol plants.  Ongoing  
  G/SCM/N/253/USA  
 
- 190 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Mississippi Biofuels 
Production Incentive  Mississippi Code 
69-51-5 Grant Support the production of ethanol 
and biodiesel  Mississippi's Commissioner of 
Agriculture and Commerce is authorized to make direct payments to ethanol and biodiesel producers, located in Mississippi, for ethanol or biodiesel produced for 10 years following the start date of production. The amount of payment for 
each producer's annual production is $0.20 per gallon, up to 30 million gallons per year per producer, for a period of up to 10 years. No payments will be made for production that occurs after 30 June 2015, and the maximum total annual payment to a single producer is $6 million. Ongoing 
Mississippi Major 
Economic Impact Authority Mississippi 
Development Authority Bond This program allows the State, 
through the issuance of general obligation bonds, to assist local communities in meeting the development requirements inherent in large capital projects, thereby generating an investment in the quality of life in such communities. Eligible projects include industrial 
or commercial projects, research and development, warehousing, distribution, transportation, processing, mining  establishments, 
U.S. Government projects, and tourism facilities. Major Impact Authority 
projects can be new projects or expansions of existing facilities which have a minimum initial investment of $300 million by the private sector or the U.S. Government. Amount varies. Ongoing  
  G/SCM/N/253/USA  
 
- 191 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Mississippi Minority 
Surety Bond Guaranty Program Mississippi 
Development Authority Guarantee This program was created to 
enable minority contractors, not meeting the surety industry's standard underwriting criteria, to obtain bid and performance bonds on contracts with state agencies and political subdivisions within Mississippi. Eligible Minority Business owners 
include women and minorities that meet the qualifications below:  * Be in the construction or building trade business;  * Be a certified Minority Business Enterprise through the Minority Business Enterprise Division of the MDA;  * Have been in business at least one year prior to application;  * Have its principal place of business located in Mississippi; 
 * Meet experience and financial 
standards appropriate to the contract;  * Agree to subcontract no more than 75 percent of a qualified contract;  * Show reasonable evidence of inability to secure bonding under normal market conditions Eligible Projects Construction contracts with Federal, State and Local Units of Government.  Maximum bond guaranty is 
75 percent of contract bond amount or $112,500, whichever is less. A contractor may have more than one guaranteed bond as long as total does not exceed $112,500. Ongoing 
Mississippi Mississippi 
State Port Income Tax 
Credit Mississippi 
Development Authority Tax Credit The purpose of this tax credit is 
to promote the increased use of ports and related facilities in the 
state, particularly by those 
taxpayers which would not otherwise use such ports and related facilities without the benefit of the tax credit, and increase the number of port related jobs and other economic development benefits associated with the increased use of such ports and relate d facilities. Taxpayers who utilize the port 
facilities at state, county and municipal ports in Mississippi. Amount of Credit: credit 
may not exceed 50 percent of the tax imposed upon the 
taxpayer for the taxable 
year reduced by the sum of all credits allowable to the taxpayer; any unused portion of the credit may be carried forward for the succeeding five years; the maximum cumulative credit which may be claimed by the taxpayer is limited to $1 million dollars for the period 1 January 1994 through 31 December 1998.
 Ongoing  
  G/SCM/N/253/USA  
 
- 192 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Mississippi Sales and Use 
Tax Exemption Mississippi 
Development Authority Tax Exemption To assist new or expanding 
manufacturers located in less developed counties. New or expanding manufacturers 
located in less developed counties. New or expanding 
manufacturers located in less developed counties pay no sales taxes for: (1) building construction materials, or (2) purchases of machinery or equipment associated with a location or expansion. New or expanding manufacturers located in either moderately developed or developed counties pay a: 
(1) 3.5 percent sales tax for 
purchases of building construction materials and new machinery or equipment not used directly in the manufacturing process, and (2) 0.75 percent sales tax on purchases of all machinery and equipment that is used directly in the manufacturing process. Ongoing  
  G/SCM/N/253/USA  
 
- 193 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Mississippi Reduced Sales 
Tax Rate for Technology Intensive Enterprises Mississippi 
Development Authority (MDA) Tax incentives To support  technology businesses 
in the state. A technology intensive business is 
one which employees at least 10 new, full-time jobs and which has at least 10 percent of its workforce as scie ntists, engineers 
or computer specialists. Eligible enterprises include a manufacturer of plastics; chemicals; automobiles; aircraft; computer or electronics; a research and development facility; a computer design or related facility; or a software publishing facility or other 
technology intensive facility or 
enterprise as determined by the MDA. A reduced rate of 
1.5 percent for sales of machinery and parts for plant use only when the machinery and machine parts will used exclusively and directly within the state for industrial purposes, including, but not limited to, manufacturing or research and developmen t activities. 
It also provides for a rate of 1.5 percent on electricity, 
current, power, steam, coal, 
natural gas, liquefied petroleum gas or other fuel sold to or used by a technology intensive enterprise. Ongoing  
  G/SCM/N/253/USA  
 
- 194 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Mississippi Advantage 
Jobs Incentive Program Mississippi 
Development Authority Tax rebate This program is designed to 
assist qualified companies that promise significant development of the economy of the State of Mississippi through the creation of quality jobs. In order to receive benefits under 
the Advantage Jobs program, a company must be able to demonstrate that the creation of proposed jobs will provide a direct benefit to the State. To qualify, the company must meet the following requirements at the time an application is submitted: Any business except retailers and gaming establishments that create and maintain a minimum of 10 full-time jobs in a Tier Three 
county or 25 full-time jobs in a Tier 
One or Two county; Data or information proces sing enterprises 
that provide an average annual wage of 100 percent of the county or state wage, whichever is less; Manufacturers and distributors paying an annual average wage of 110 percent of the county or state wage, whichever is less; Research and development enterprises paying 150 percent of the state or county wage, whichever is less; or Technology intensive enterprises paying 150 percent of the state wage.  Provides for a cash rebate 
of Mississippi withholding taxes to qualified employers for a period of up to ten years. Ongoing 
Mississippi Aerospace 
Initiative Mississippi 
Development Authority Tax Exemption This program is designed to 
assist qualified companies that promise significant development of the economy of the State of Mississippi through the creation of quality jobs. Companies that manufacture, 
assemble, or provide research, development, or training services in the aerospace industry. Companies must invest at least $30 million and create at least 100 jobs in the state. Provides a 10-year 
exemption from income and franchise tax and a sales tax exemption from the beginning of the project until three months after commercial production begins at the facility. Ongoing  
  G/SCM/N/253/USA  
 
- 195 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Mississippi Clean Energy 
Initiative Mississippi 
Development Authority Tax Exemption This program is designed to 
assist qualified companies that promise significant development of the economy of the State of Mississippi through the creation of quality jobs. Companies that manufacture 
systems or components used in the generation of renewable or alternative energy. Companies must invest at least $50 million and create at least 250 jobs in the state. Provides a 10-year 
exemption from income and franchise tax and a sales tax exemption from the beginning of the project until three months after commercial production begins at the facility. Ongoing 
Mississippi Jobs Tax 
Credit for Businesses that Create Jobs in Economically Distressed Communities Mississippi 
Department of Revenue Tax Credit This program provides a tax 
credit for businesses operating in an "economically distressed community" as ce rtified by the 
MDOR in lieu of the basic Jobs Tax Credit.  Most businesses, including 
manufacturers, processors, distributors, wholesalers, etc. The businesses must create at least 10 new full-time jobs and be located in an area within a city where thirty percent (30%) of the residents are below the national poverty level and where the unemployment rate is 1½ times the national average. The MDOR must certify both the area and the business before the Economically Distressed Community Jobs Tax Credit can be taken. The definition of "economically distressed community" is found in Miss. Code Ann. Section 27-7-22.27. Tax credit equal to 
ten percent (10%) of the payroll of each new full-time job. • The credit can offset fifty percent (50%) of the income tax liability attributable to the income generated by the operations in this state. • The business may choose when to begin taking advantage of the credit, but it must be within five (5) years of the beginning of commercial production. Ongoing  
  G/SCM/N/253/USA  
 
- 196 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Mississippi Income, Sales 
& Use Tax Exemption for Businesses in Growth and Prosperity (GAP) Areas Mississippi 
Development Authority (MDA) Tax Exemption The Growth and Prosperity (GAP) 
Areas Tax Exemption was created to encourage businesses to locate facilities and hire individuals in areas that have thirty percent (30%) or more of the population at or below the federal poverty level according to the most recent official data compiled by the United States Census Bureau or have an unemployment rate that is two hundred percent (200%) of the state's average 
unemployment rate. Most businesses, including 
manufacturers, processors, distributors, wholesalers, etc. The businesses must create at least 10 new full-time jobs and be 
located in an area within a city where thirty percent (30%) of the residents are below the national poverty level and where the unemployment rate is 1½ times the national average. The MDOR must certify both the area and the business before the Economically 
Distressed Community Jobs Tax 
Credit can be taken. The definition of "economically distressed community" is found in Miss. Code Ann. Section 27-7-22.27. Income tax exemption for 
period of 10 years for businesses locating in GAP areas. Ongoing 
Mississippi Motion Picture 
Production Incentive Mississippi 
Development Authority (MDA) Tax rebate To promote motion picture 
production.  Motion picture production 
companies that expend at least $50,000 in base investment or payroll, or both in Mississippi.  Tax rebate is twenty 
five percent (25%) of the base investment made and expended in this state. Payroll for a Mississippi resident is eligible for a thirty percent (30%) rebate and payroll for a non-resident is eligible for a twenty five (25%) rebate.   
Missouri  Missouri 
Qualified Fuel Ethanol Producer Fund
 Missouri Department of Agriculture and Missouri Department of Revenue Grant To promote in-state, 
cooperatively owned biofuels production to increase homegrown production of ethanol and biofuels. Producers must be at least fifty-
one percent owned by agricultural producers actively engaged in agricultural production for commercial purposes in state. Ethanol incentives include a 
payment of 20 cents per gallon for the first 12.5 million and 5 cents per gallon for the next 12.5 million gallons. 5 years  
  G/SCM/N/253/USA  
 
- 197 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Missouri Missouri 
"Build" Program Department of 
Economic Development/Missouri Development Finance Board Tax Credit Missouri Business Use Incentives 
for Large-Scale Development (BUILD) provides a financial incentive for the location or expansion of larger business projects. The program provides Missouri 
state income tax credits to the business in the amount of debt service payments for industrial revenue bonds related to a portion of project costs. Eligible businesses are: (1) Manufacturing, processing, assembly, research and development, agricultural processing or services in interstate commerce which will invest a minimum of $15 million in capital improvements for a project and 
create at least 100 new jobs within 
three years. (2) Office projects (regional, national or international headquarters, telecommunications operations, computer operations, insurance companies or credit card billing and processing centers) are also eligible if the capital improvements exceed $10 million and at least 500 new jobs are created within three years. Retail, health or professional services, intra-state relocations or replacement facilities are not eligible. The bonds are sold to and 
held by the business. The political subdivision benefiting from the project or other local entities must commit significant local incentives. Such incentives may include tax abatement, discounted utility fees or others. Minimum bond issue: $500,000. Ongoing  
  G/SCM/N/253/USA  
 
- 198 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Missouri Real Property 
Tax Increment Allocation Redevelopment (TIF) Department of 
Economic Development Loan Tax increment financing can be 
used in any city or county in the State of Missouri. This program, which provides incentives for investment in areas to be redeveloped, rehabilitated or revitalized, helps small communities finance the construction of necessary public improvements, such as sewers and roads. To encourage such development, real property tax revenues and 50 percent of tax 
revenues are diverted into a 
special allocation fund which can be used to defray redevelopment costs. The tax revenues diverted to the fund are attributed to the increased valuation of improvements made to real property within the designated areas. Upon the implementation of TIF for a particular area, up to 100 percent of the increased amount of real property taxes and 50 percent of other taxes generated by new development in the area (primarily sales tax) are set aside in a Special 
Allocation Fund. These funds may be used by the municipality or a private developer for Redevelopment Project Costs. Businesses in an area, as defined 
by a municipality, that benefits from the improvements. There are no particular limitat ions on district 
boundaries, except that the area must be determined by the city or county to be blighted or a conservation area. Beginning 1 January 1998, 
certain blighted areas of municipalities with approved plans and projects to receive appropriated amounts, from the newly created Missouri supplemental tax increment financing fund, of up to 50 percent of "new state revenues," defined as either 1) state sales taxes, except those which are 
constitutionally dictated, 
School District Trust Fund taxes, sales and use taxes on motor vehicles, trailers, boats and outboard motors, and future sales taxes earmarked by law, or 2) state income tax withholding. An aggregate annual appropriation of new state revenues for super redevelopment areas is limited to $15 million. The duration of redevelopment projects shall not exceed 23 years. The 2005 Legislative Session increased program cap to $32 million. Ongoing 
Missouri Wine and 
Grape Production Tax Credit Program Department of 
Economic Development Tax Credits To attract business into the state.
 Vineyards and wine producers. State income tax credit to 
an individual, partnership or corporation in an amount equal to 25 percent of the purchase price of all new equipment and materials used directly in the growing of grapes or the production of wine in Missouri. Program cap: $8 million. Ongoing  
  G/SCM/N/253/USA  
 
- 199 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Missouri Development 
Tax Credit Department of 
Economic Development Tax Credit To facilitate a business project in 
order to create jobs. Priority projects are businesses 
primarily engaged in manufacturing, serv ice, processing 
and assembly that pay wages above the area average and include benefits. Other types of projects may be considered for approval if tax credits remain near the end of the fiscal year. Project must be located in or qualify as a blighted or conservation area. Credits authorized under 
this program are limited to $4 million per fiscal year. Ongoing 
Missouri Enhanced 
Enterprise Zones Department of 
Economic Development Tax Credit The Enhanced Enterprise Zone 
Program is a discretionary program offering state tax credits and local real property tax abatement to Enhanced Business Enterprises. The purpose is to provide tax credits to new or expanding businesses in a Missouri Enhanced Enterprise Zone. An eligible project must be located 
in a Missouri Enhanced Enterprise Zone. Enhanced Enterprise Zones are specified geographic areas designated by local governments and certified by the Department of Economic Development (DED). Zone designation is based on certain demographic criteria, the potential to create sustainable jobs in a targeted industry and a demonstrated impact on local industry cluster development. Individual business eligibility will be determined by the zone based on creation of sustainable jobs in a targeted industry or demonstrated 
impact on local industry cluster 
development. Gambling establishments, retail trade, and food and drinking places are prohibited from receiving the state tax credits. Service industries can be eligible if a majority of their annual revenues will be derived from services provided out of the state.  State tax credits will be an 
amount authorized by DED based on the number of new jobs/payroll and new capital investment that the project creates. The real property tax abatement is determined by the sponsoring community and may be between 50 percent and 100 percent of the real property improvements for up to 25 years. Tax credits issued under this program are limited to $24 million annually. Ongoing  
  G/SCM/N/253/USA  
 
- 200 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Missouri Film 
Production Department of 
Economic Development Tax Credit Provides tax incentives to 
facilitate film production in Missouri. State tax credits are issued to a 
qualified film production company that has been pre-approved by the Department of Economic Development. Tax credits are issued for up 
to 35 percent of the amount expended in Missouri for production or production-related activities. Annual program cap is $4.5 million Ongoing 
Missouri Missouri 
Downtown Economic Stimulus Act (MoDESA) Department of 
Economic Development, Missouri Development Finance Board  Loan A portion of the new state and 
local taxes created by a project can be diverted to fund eligible public infrastructure and related costs for a period of up to 25 years. The local match must be, at a minimum, 50 percent of the amount of the new local sales tax (and earnings tax in St. Louis and Kansas City) and 100 percent of the amount of the new real property tax created by the project each year; or a comparable amount of local funds from the city/county or a non-profit organization. Municipalities with an annual 
median household income of $62,000 or less. "Central business districts" that are either "blighted" or a "conservation area." At least 50 percent of the buildings must be 35 years old or older. Other restrictions apply.  Projects can be 
"community enhanc ement" or for 
"job creation." Total project costs and/or new job creation minimums are based on the population of the municipality.  A development project will 
not receive funds until it generates increased tax revenue. A development project cannot receive more than half of the increased amount of state sales tax and/or income tax it generates. The program is limited in any year to the amount appropriated by the General Assembly. The law does not allow an annual appropriation to exceed $108 million, but the actual amount available in any year will depend upon the amount actually appropriated by the General Assembly. In the event appropriations from the fund are not adequate to 
cover approved 
disbursements, projects will receive a pro-rata share of increment.  Ongoing  
  G/SCM/N/253/USA  
 
- 201 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Missouri Missouri Rural 
Economic Stimulus Act Missouri 
Department of Economic Development, Department of Agriculture Loan A portion of the new state and 
local taxes created by the production facility project may be diverted to fund construction of eligible public infrastructure and related costs for a period of up to 25 years. The local funding must be, at a minimum, 50 percent of the amount of the new local Economic Activity Tax (sales and utility tax, etc.), and 100 percent of the amount of the new real property tax created by the 
project each year, or a 
comparable amount of local funds from the municipali ty or a private 
non-profit organization.  Any incorporated Missouri city, 
town, village or county established on or prior to 1 January 2001, having a population of 99,999 or less. A contiguous and "blighted" Development Area, not encompassing more than 10 percent of the area of an eligible municipality. Projects must be for the creation of a renewable fuel production facility or other eligible new generation processing facility, with a cost of at least 
$3 million, and projected to create 
at least 30 new jobs.  A project must produce a 
positive tax increment before funds can be received. A project may receive up to half of the increased amount of state sales and/or income tax it generates. The program is limited in any year to the amount appropriated by the General Assembly. Current law provides a maximum $12 million per year. If 
appropriations are not 
adequate to cover disbursements, projects receive a pro-rata share of increment.  Ongoing 
Missouri Rebuilding 
Communities Department of 
Economic Development Tax Credit To stimulate business activity in 
Missouri's "distressed communities" by providing tax credits to eligible businesses that locate, relocate or expand their business within a distressed community.  Must have more than 75 percent of 
its employees at the facility in the distressed commun ity; have fewer 
than 100 employees total at all facilities nationwide; and primarily engage in manufacturing, biomedical tec hnology, medical 
devices, scientific research, animal research, computer software design or development, computer 
programming, telecommunications 
or a profession. Eligible new or relocating 
businesses may choose either a 40 percent equipment tax credit or 40 percent income tax liability tax credit and the employees may receive a 1.5 percent employee tax credit. Eligible businesses already located in a 
distressed community may 
be eligible for a 25 percent equipment tax credit.  Ongoing 
Missouri Film 
Production Tax Credit Sections 135.750, 
RSMo Tax credit Provides tax incentives to 
facilitate film production in the state. Film industry Up to 50 percent state 
income tax credit on company expenditures in state for company's spending over $300,000 in state. Up to $1million available per project. Ongoing  
  G/SCM/N/253/USA  
 
- 202 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Missouri Missouri 
Quality Jobs  Missouri 
Department of Economic Development Tax Credit Provides tax incentives to 
facilitate job creation in the state when the company offers wages equal to or greater than the average county wage in which the facility is located or the state average wage. Company must have a health care benefit and assume 50% or greater of the health care premium cost per individual. An eligible business must create a 
minimum number of new jobs at the project facility based on the type of project: Small/Expanding businesses - Rural areas: 20 or more new jobs within two years; 40 or more new jobs within two years in non-rural areas. Technology businesses - (classified by NAICS) 10 or more new jobs within two years; High Impact Business - 100 or more new jobs within two years of the first hire 
and the first hire within one year of 
project approval. Small/Expanding 
Businesses: benefit of the program is the retention of the state withholding tax related to the new jobs. Technology or High Impact businesses: benefits of the program are a) retention of the state withholding tax related to the new jobs; and b) state tax credits, which are refundable, transferable and/or saleable. Program 
benefits are based on 
a percentage of the payroll of the new jobs. Program benefits are not provided until the minimum new job threshold is met and the company meets the average wage and health insurance requirements. Program cap: $80 million; withholding benefit unlimited. Ongoing 
Montana Ethanol 
Facility Tax Exemption Montana Code 
Annotated 15-6-138 Tax exemption To support ethanol production. Ma nufacturers of ethanol An act exempting from 
taxation all manufacturing machinery, fixtures, equipment, and tools used 
for the production of 
ethanol from grain during the course of the construction on an ethanol manufacturing facility and for 10 years after initial production of ethanol from the facility. Ongoing  
  G/SCM/N/253/USA  
 
- 203 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Montana Film 
Production Refundable Tax Credit Montana Film 
Office/Dept. Revenue Refundable Tax 
Credit Provide tax incentives to attract 
film production in the state. Film industry 14% refundable tax credit 
for Montana crew and talent salaries, 9% refundable tax credit on production related expenditures in Montana, exemption from 7% Accommodation Tax for production companies staying longer than 30-days at the same hotel.  Ongoing 
Montana Local Option 
Property Tax Exemptions Department of 
Revenue Tax Exemption Exemption for Business 
Incubators (Local Option): If approved by the local governing body, a business incubator owned or leased and operated by a local economic development organization is eligible for an exemption from property taxes (MCA 15-24-18). Industrial Parks (Local Option): If approved by the local governing body, an industrial park owned and operated by a local economic development organization or port authority is eligible for an exemption from property taxes (MCA 15-24-19). Suspension, Cancellation of Delinquent Taxes 
(Local Option): If approved by 
the local governing body, delinquent property taxes on commercial property may be suspended to facilitate the purchase and continued operation of a business utilizing the commercial property. (MCA 15-24-17)  Industries statewide Amount varies. Ongoing  
  G/SCM/N/253/USA  
 
- 204 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Montana Property Tax 
Abatements Department of 
Revenue Tax Abatement If approved by local governing 
bodies, an existing value added industry that expands to include value-added equipment is entitled to receive a decrease in the tax rate on value-added machinery and equipment.  Expanding "Value-Added" 
Machinery and Equipment Amount varies Ongoing 
Nebraska Community 
Improvement Financing (CIF) Department of 
Economic Development Loan Community Improvement 
Financing is Nebraska's version of Tax Increment Financing (TIF). This is a method of financing public improvements associated with a private development project in a blighted area by using the projected increase in the property tax revenue which will result from the private development. Revenue bonds can be issued to 
finance all or part of a site's public pre-construction improvements. Public improvements include land purchase, clearance and sale, construction of streets, sidewalks, utilities, parks or other similar public spaces necessary in site preparation.  Not available. Ongoing 
Nebraska Ethanol Tax 
Credit Department of 
Revenue Tax Credits Support of ethanol producer s. Tax credit available to ethanol 
producers. $0.18 per gallon. Ongoing 
Nebraska Industrial 
Development Bonds/Locally Issued Nebraska 
Investment Finance Authority Bond Industrial Development Bonds 
(IDBs) may be issued by counties, incorporated cities, and villages to provide tax-exempt financing for priv ate businesses. 
The local governing body may issues bonds for projects outside as well as within a political jurisdiction. Except as specified with respect to 
blighted areas, eligibility for IDB financing is limited to manufacturing or industrial facilities. Selection criteria used by local governing bodies to screen eligible applicants may vary among localities. The maximum issue period 
is 30 years, however, projects typically average 15 to 20 years in duration. The company using the facility is responsible for all taxes levied by state and local governments.  Ongoing 
Nebraska Lodging Tax 
Exemption Department of 
Economic Development Tax exemption Provides tax incentives to 
facilitate film production in the state. Film Industry No lodging or tax on hotel 
rooms for production companies after 30 days.  Ongoing 
Nebraska Nebraska 
Advantage Microenterprise Tax Credit Act Department of 
Revenue Tax Credits This act provides incentives for 
businesses with five or fewer employees Businesses with five or fewer 
employees located in economically distressed areas of the state. Beneficiaries receive a 
refundable tax credit equal to twenty percent of the increased investment or employment, not to exceed $10,000 per taxpayer or $2 million total per year. Ongoing  
  G/SCM/N/253/USA  
 
- 205 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Nebraska The Nebraska 
Advantage Rural Development Act Department of 
Revenue Tax Credit  This is a program that provides 
tax credits to qualifying businesses in rural areas of the state that meet certain minimum wage requirements.  For businesses expanding in 
counties with populations of 25,000 or less or for livestock modernization projects in all areas of the state. Qualifying businesses are: (1) : storage, warehousing, or distribution of tangible personal property, (2) livestock production, (3) research and development, (4) data processing or financial institutions, (5) manufacturing, or (6) a headquarters operation. The program provides 
refundable tax credits to companies that generate at least 5 new jobs and $250,000 of new investment in counties with populations of 25,000 or less; or two jobs and $125,000 in investment in counties with a population of 15,000 or less. The wage requirement will be indexed annually according to the 
average rural Nebraska 
weekly wage. Ongoing 
Nevada State Income 
Tax Exemption Commission on 
Economic Development (Nevada Film Office) Tax exemption Provides tax incentives to 
facilitate film production in the state. Film Industry No corporate or individual 
income tax.  Ongoing 
Nevada Reduced 
Lodging Tax Commission on 
Economic Development (Nevada Film Office) Tax exemption Provides tax incentives to 
facilitate film production in the state. Film Industry Low hotel room tax. The tax 
exemption does not take place until the 31st day of the stay. Ongoing 
Nevada Revolving 
Loan Fund Commission on 
Economic Development Loan The Nevada Revolving Loan Fund 
(NRLF) was created to assist for profit businesses in need of "gap" 
financing to complete their business projects.  Low-to moderate income 
households in rural Nevada. Up to $100,000 is available 
for Nevada businesses to use to expand or start a business. The NRLF is a fixed, generally below prime rate lending program. Payback terms can be amortized up to 15 years. The rate and term are set according to the business' 
ability to repay from profits.
 Ongoing  
  G/SCM/N/253/USA  
 
- 206 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Nevada Modified 
Business Tax Abatement  Nevada 
Commission on Economic Development Tax Exemption To encourage business, 
consistent with the Commission's State Plan for Industrial Development and Diversification. 
 Two of the follow three criteria must be met: Wage Requirement: The company's average hourly wage at must equal or exceed 100% of the county average hourly wage or statewide average hourly wage, whichever is less. Number of Jobs Required: For counties or cities with a population of more than 100,000 or 60,000 respectively, requires a minimum of 75 full-time permanent jobs by the fourth quarter of operation and 
continue to employ at least the 
minimum. For counties or cities with a population of less than 100,000 or 60,000 respectively, requires a minimum of 15 full-time permanent jobs by the fourth 
quarter of operation and continue to employ at least the minimum. Capital Investment Requirement: For counties or cities with a population of more than 100,000 or 60,000 respectively, a capital investment of $1 million. For counties or cities with a population of less than 100,000 or 60,000 respectively, a capital investment of $250,000 is required.  Qualifying employers may 
apply for an abatement of 50 percent of the modified business tax otherwise due during the first four years of its operations. Ongoing  
  G/SCM/N/253/USA  
 
- 207 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Nevada Property Tax 
Abatement  Nevada 
Commission on Economic Development Tax Exemption To encourage business, 
consistent with the Commission's State Plan for Industrial Development and Diversification. 
 Wage Requirement. The company's average hourly wage at the Nevada facility must equal or exceeds 100% of the county average hourly wage or statewide average hourly wage. Number of Jobs Required. For counties/cities with a population of more than 100,000/60,000 a minimum of 75 full-time permanent jobs in Nevada is required by the fourth quarter of operation and continues to employ 
at least the minimum. For 
counties/cities with a population of less than 100,000/60,000 a minimum of 15 full-time permanent jobs in Nevada in required by the fourth quarter of operation and continues to employ at least th e minimum. 
Capital Investment Requirement. For counties/cities with a population of more than 100,000/60,000, the business will make a capital investment of $50 million if the business is an industrial or manufacturing business or at least $5 million if the business is not an industrial or manufacturing business.  Partial abatement from 
personal property taxes is available to companies who locate or expand their business in Nevada. The abatement can be up to 50% of the taxes due for up to 10 years. Ongoing  
  G/SCM/N/253/USA  
 
- 208 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Nevada Sales and Use 
Tax Abatement  Nevada 
Commission on Economic Development Tax benefits To encourage business, 
consistent with the Commission's State Plan for Industrial Development and Diversification. 
 Wage Requirement. The company's average hourly wage at the Nevada facility must equal or exceeds 100% of the county average hourly wage or statewide average hourly wage, whichever is less. Number of Jobs Required. For counties or cities with a population of more than 100,000 or 60,000 respectively, requires a minimum of 75 full-time permanent jobs in Nevada by the fourth quarter of operation and continue to employ 
at least the minimum. For counties 
or cities with a population of less than 100,000 or 60,000 respectively, requires a minimum of 15 full-time permanent jobs in Nevada by the fourth quarter of operation and continue to employ at least the minimum.  
Capital Investment Requirement. For counties or cities with a population of more than 100,000 or 60,000 respectively, a capital investment of $1 million is required. For counties or cities with a population of less than 100,000 or 60,000 respectively a capital investment of $250,000 is required. Partial sales and use tax 
abatements are available for purchases of capital equipment. The abatement reduces the applicable tax rate to 2%. Ongoing  
  G/SCM/N/253/USA  
 
- 209 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Hampshire Economic 
Revitalization Zone Tax Credit NH Department of 
Resources and Economic Development (DRED) Tax Credit Increase quantity and quality of 
jobs and stimulate capital investment in existing buildings as well as new construction. Available to businesses located in 
designated Economic Revitalization Zones throughout the state. Businesses must engage in activities that add infrastructure and create jobs.  Any town or city can apply and once approved, any company within the approved district can apply for the tax credit. The credit is based on new jobs and new capital investments made in New Hampshire The maximum credit is 
$200,000 per project which can be used over five years, capped at $40,000 per year. The credit is against the State's Business Profits Tax and Business Enterprise Tax. Sunsets 
1 July 2015 
New Hampshire R & D Tax 
Credit NH Revenue 
Administration Tax Credit Stimulate business and job 
growth in new technology areas. Any business that has new 
research and development wages in New Hampshire which qualify and are reported as a credit by the business organization under section 41 of the Internal Revenue Code. The amount of the credit is 
the lesser of 10% of the business organization's qualified manufacturing research and development expenditures or $50,000. In the event that the aggregate amount of credit applied for, in any given fiscal year, exceeds $1,000,000, all credits for that year shall be reduced proportionately.  Ongoing  
  G/SCM/N/253/USA  
 
- 210 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Hampshire Coos County 
Job Creation Tax Credit New Hampshire 
Department of Resources and Economic Development (DRED) Tax Credit Help attract new companies and 
help grow existing companies who are creating new jobs above a base line wage. Any business locating in Coos 
County in northern New Hampshire
 This program is a tax credit to businesses hiring new employees in Coos County and paying wages equal to or above 200 percent of minimum wage ($7.25 per hour). The credit is $1,000 for any new, full-time, year-round jobs applied to the Business Enterprise Tax. Any unused portion of the credit can be applied to the Business Profits Tax. All new 
jobs created after the bill's 
effective dates are eligible for the credit and there is no cap on the amount of jobs created. Unused benefits can be carried forward for five years. Ongoing 
New Jersey Brownsfields 
and Contaminated Site Remediation Program New Jersey 
Economic Development Authority Grant Redevelopment of vacant or 
underutilized sites where there is or has been contamination Developers Reimbursement of up to 
75% for remediation costs. Ongoing 
New Jersey Business 
Retention and Relocation Assistance Grant (BRRAG) New Jersey 
Economic Development Authority Tax Credit Encourage economic 
development and job creation and preserve jobs that currently exist in New Jersey but are in danger of being relocated to premises outside of the State. A business relocating operations 
within New Jersey and retaining jobs, or a business maintaining jobs at a current location and making a qualified capital investment. Companies relocating more than 2,000 full-time employees from one or more locations outside of a designated urban center into a designated urban center may be eligible for an additional tax credit benefit. Grants of corporate 
business tax credits up to $2,250 per year for up to six years, per job retained in the state.  Ongoing  
New Jersey Direct Loans Casino 
Reinvestment Development Authority Loan Casino Reinvestment direct loans 
for fixed assets are available to businesses in targeted municipalities. Urban areas in the state with an 
emphasis on Atlantic City. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 211 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Jersey Edison 
Innovation Clean Energy Manufacturing Fund (CEMF) New Jersey 
Economic Development Authority/Board of Public Utilities Mixed Financing
 To encourage the manufacturing 
of energy efficient and renewable energy products in New Jersey. A qualified manufacturer of Class I 
renewable energy or energy efficiency systems, products or technologies. Funding under two separate 
components: Project Assessment and 
Design Grant: 
Up to $300,000, not to exceed 10% of total CEMF project funds requested, as a grant to assist with the manufacturing site identification, procurement, design, and permits. 20% available up front as seed funds at closing. 
Project Construction and 
Operation Loan: 
Up to $3 million as a 
10-year, 2% interest loan with repayments to start at beginning of 4th year, to support site improvements, equipment purchases, and facility construction/completion. One-third of loan, not to exceed $1 million, may convert to a performance grant if business and tech milestones specific to each company are met during first 3 years. No more than 1/2 of the funds may be advanced prior to commercial production. Ongoing 
New Jersey Edison 
Innovation Green Growth Fund (EIGGF) New Jersey 
Economic Development Authority Mixed Growth capital to advance newly 
discovered energy efficient, renewable energy or supply chain products that will  assist Class I 
renewable energy or energy efficient technologies in becoming competitive with traditional sources of electric generation. Technology companies with Class I 
renewable energy or energy efficiency products or systems that have achieved "proof of concept" and successful independent beta results, have begun generating commercial revenues, and will receive 1:1 match funding by time of loan closing. Loans up to $2 million with 
a performance grant component  Ongoing 
(Launched in 2011)  
  G/SCM/N/253/USA  
 
- 212 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Jersey Edison 
Innovation Angel Growth Fund; Edison Innovation VC Growth Fund; Edison Innovation Growth Stars Fund New Jersey 
Economic Development Authority Loan To foster growth in the 
technology sector Emerging technology companies 
that have attracted capital through angel and venture capital investors 
 Angel Growth Fund: Angel 
supported technology companies with minimum trailing 12 month commercial revenues of $500,000 may be eligible for up to $250,000 in subordinated convertible debt financing.  VC Growth Fund: Venture 
capita (VC) supported technology companies with minimum trailing 12 month 
commercial revenues of 
$500,000 may be eligible for up to $500,000 in subordinated convertible debt financing.  Growth Stars Fund: Angel 
and/or VC supported technology companies with minimum trailing 12 month commercial revenues of $2,000,000 may be eligible for up to $500,000 in subordinated convertible debt financing.  Ongoing 
(Launched in 2011) 
New Jersey Energy Sales 
Tax 
Exemption on Electricty and Natural Gas Consumption Program in Urban Enterprise Zones (UEZ)  New Jersey 
Economic 
Development Authority Tax Exemption Encourage manufacturing and job 
creation. A UEZ-certified manufacturer 
employing at least 250 full-time 
workers, at least 50% of whom are involved in the manufacturing process. An exemption from the 
sales and use tax for 
electricity and natural gas utilities, both the commodity and its transmission, consumed at the UEZ-certified location. Ongoing  
  G/SCM/N/253/USA  
 
- 213 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Jersey Energy Sales 
Tax Exemption Program (Salem County) New Jersey 
Economic Development Authority Tax Exemption The program provides an energy 
sales tax exemption for the retail sales of electricity and natural gas and their transport to manufacturing businesses in Salem County. The energy and utility services must be consumed exclusively at the facility. A manufacturing facility in Salem 
County. The business must employ at least 50 people, at least 50% of 
whom are directly involved in the manufacturing process. A sales tax exemption for 
the retail sale, transmission, or distribution of electricity and natural gas. Ongoing 
New Jersey Film Tax 
Credit New Jersey 
Economic Development Authority Tax credit To encourage commercial film 
production. Film Industry 20 percent tax credit for 
qualified production expenses with certain criteria: 1) at least 60 percent of total expenses, exclusive of post-production costs, will be incurred for services performed and goods consumed in state and 2) principal photography of a project commences within 150 days after the approval of the application for the credit. Sunsets in 
FY2015. 
New Jersey  Statewide 
Loan Pool Program New Jersey 
Economic Development Authority (EDA)  Mixed Financing
 Provide access to capital to small 
and mid-sized companies.The EDA's involvement in a bank loan reduces the bank's credit risk and lowers the cost of borrowing for the customer. A New Jersey-based business that 
creates jobs, is located in a targeted municipality, or represents an industry which the EDA has targeted for assistance. Approved participating banks can request a participation and/or guarantee through the EDA.  EDA can participate in or 
guarantee up to 50% of a bank loan. Maximum EDA exposure as follows: Fixed Assets  
Loan: $1.25 million  Guarantee: $1.5 million  Total Exposure: $2.75 million Working Capital  
Loan: $750,000  Working Capital Guarantee: $1.5 million Total Exposure: $2.25 million Ongoing  
  G/SCM/N/253/USA  
 
- 214 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Jersey Technology 
Business Tax Credit Certificate Transfer Program New Jersey 
Economic Development Authority Tax Incentives The Technology Business Tax 
Certificate Transfer Program enables technology and biotechnology companies that have promise but are not currently realizing a profit to turn net operating losses and R&D tax credits into capital by selling these losses and tax credits to unrelated profitable corporations.
 An unprofitable New Jersey-based technology or biotechnology company with fewer than 225 U.S. employees (including parent company and all subsidiaries). Up to $60 million allocated 
each year. Net operating losses and R&D tax credits may be sold for at least 80% of their value, up to a maximum lifetime benefit of $15 million per business. Ongoing - 
Program available 30 June of each year 
New Jersey Urban 
Enterprise Zone Program
 Community Affairs Mixed Tax New Jersey has 32 Urban 
Enterprise Zones which provide significant incentives and benefits to businesses that locate within the zones.  Businesses that locate within the 
zones.  50 percent reduction of NJ 
sales tax on "in person" purchases; sales tax exemptions for materials and for tangible personal property. Other zone benefits: one-time corporation tax credit of $1,500 for full-time hires of residents in city where Zone is located or $500 for hiring residents within the Zone, within another Zone or within a qualifying municipality; subsidized unemployment insurance costs for certain employees who earn less than $4,500, 
an incentive tax credit of 
8 percent of investment in the Zone by an approved "in lieu" agreement for certain eligible firms; and priority for financial assistance from New Jersey Local Development Financing Fund and Job Training Program. Ongoing  
  G/SCM/N/253/USA  
 
- 215 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Jersey Urban Transit 
Hub Tax Credit Program New Jersey 
Economic Development Authority Tax Credit Designed to spur private capital 
investment, business development and employment by providing tax credits for businesses planning a large expansion or relocating to a designated transit hub located within one of nine New Jersey urban municipalities.  A developer, owner, or tenant 
making a qualified capital investment within a designated Urban Transit Hub. Urban Transit Hubs are located within ½ mile of New Jersey Transit, PATH, PATCO, or light rail stat ions in Camden 
(expanded to one mile), East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Paterson, and Trenton. 
 
Eligibility is expanded to locations within these municipalities that 
have active freight adjacent or 
connected to the proposed building, and utilized by the occupant.  Tax credits equal up to 
100% of the qualified capital investments made within an eight year period. Taxpayers may apply 10% of the total credit amount per year over a ten year period against their corporate business tax, insurance premiums tax or gross income tax liability. Tax credits may be sold under the tax credit 
certificate transfer program 
of not less than 75% of the transferred credit amount. Developers or owners must make a minimum $50 million capital investment. In addition, at least 250 employees must work full-time at that facility. Projects retaining 250 full-time jobs are eligible for tax credits of up to 80% of the qualified capital investment, while projects creating 200 or more jobs are qualified for up to 100% of the qualified capital investment. Ongoing  
Awards are made for a period of up to 10 years.  
  G/SCM/N/253/USA  
 
- 216 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Jersey Fund for 
Community Economic Development New Jersey 
Economic Development Authority Mixed The Fund for Community 
Economic Development Program provides financial assistance to community-based organizations and for-profit developers to encourage urban revitalization. A community economic 
development organization or a for-profit developer of real estate development projects in urban and Smart Growth locations. Loans to lenders - Up to 
$750,000 in loans for 
urban-based community organizations with successful Loans to Lenders history with EDA who in turn offer term loans and lines of credit to micro-enterprises and small businesses not qualified for 
traditional bank financing. Up to $500,000 in loans for newly applying urban-based 
community organizations 
who in turn offer term loans and lines of credit to micro-enterprises and small businesses not qualified for 
traditional financing. Predevelopment funding: Up 
to $50,000 in funds for feasibility studies and other predevelopment costs that will determine the viability of a real estate project. Real estate funding: Up to 
$1.25 million in loans to fill financing gaps in the development of community facilities and other real estate-based economic development projects, including associated environmental remediation costs. Ongoing  
  G/SCM/N/253/USA  
 
- 217 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Jersey Grow New 
Jersey Assistance Program New Jersey 
Economic Development Authority Tax Credit The Grow NJ program helps 
companies preserve and create jobs, expand operations, and reinvest in the State of New Jersey. In order to qualify for 
consideration, a company must: make capital investments of at least $20 million at a qualified business facility at which it will employ at least 100 full-time employees in retained full-time jobs, or create at least 100 new full-time jobs; and, locate the project in a Qualified Incentive Area which is curre ntly defined as:
 
Planning Area 1 (Metropolitan), 
Planning Area 2 (Suburban), and 
any urban, regional, or town 
designated center locations under the State Development and Redevelopment Plan; Former military bases closed under the federal Base Closure and Realignment Act; Vacant commercial office, laboratory, or industrial properties having over 400,000 square feet for at least one year or impacted by Urban Transit Hub Tax Credit Program approval; or Areas targeted for development in the New Jersey Meadowlands, Highlands, and Pinelands, as specified in the acts establishing these areas. Up to $8,000 per each new 
or retained full time job per year up to 10 years. Qualified eligible businesses may receive tax credits of $5,000 per year for a period of ten years for each new or retained full-time job. In addition, a bonus award of up to $3,000 per job per year for a period of ten years may be awarded if the qualified eligible 
business meets additional 
criteria, such as: if the business is in a desirable industry; if the business locates or relocates to a location within a qualified incentive area adjacent to or within one-half a mile or short-distance-shuttle service of a public transit facility; if the business creates jobs using full-time employees in eligible positions whose annual salaries, are greater than the average full-time salary in NJ; and is locating to a project site that is or has been negatively impacted by the approval of a qualified business facility under the Urban Transit Hub 
Tax Credit Program. 
Applicants will be eligible for a $1,000 bonus for each criterion met up to the maximum of $3,000 per job. Launched 
January 2012. Awards made for up to 10 years.  
  G/SCM/N/253/USA  
 
- 218 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Mexico Film 
Production Rebate Program New Mexico Film 
Office/EDD Tax refund To attract business and 
investment to state. Film Industry Tax rebate on production 
expenditures (including New Mexico labor) that are subject to taxation by the State of New Mexico. Capped per project.  Ongoing 
New Mexico Alternative 
Energy Product Manufacturers Tax Credit NM Economic 
Development Department & Taxation and Revenue Department  Tax Credit Support manufacturers of electric 
or hybrid vehicles, fuel cell systems, renewable energy systems, IGCC systems, and carbon sequestration equipment. Alternative energy companies Manufacturers of electric or 
hybrid vehicles, fuel cell systems, renewable energy systems, IGCC systems, and carbon sequestration equipment may receive for a tax credit of up to 5% of their capital expenses. Ongoing 
New Mexico Empowerment 
Zone Tax Credit NM Economic 
Development Department & Taxation and Revenue Department  Wage Tax 
Credit Businesses within designated 
zones can claim a wage credit for qualified wages of 20% of the first $15,000 in qualified wages per employee.  Businesses within designated 
zones with eligible employees (existing or new hires that live and/or work in the empowerment zone).  Credit of 20% of the first 
$15,000 in qualified wages per eligible employee. Ongoing 
New Mexico Enterprise 
Zones NM Economic 
Development Department Mixed Tax Municipalit ies, counties and 
Indian reservations can designate an eligible area as an enterprise zone. The area must exhibit general distress such as: high levels of unemployment, deterioration of residential and commercial structures, poverty and other distress criteria. Before a jurisdiction can designate an area, a comprehensive strategic plan must be developed with grassroots involvement. The program is non-competitive. Businesses in distressed areas. Maximum $50,000 tax 
credit for rehabilitation of qualified business facilities; Tax increment financing for local enterprise zone projects; Local property tax abatement for 10 years on selected property; Special Community Development Block Grant (CDBG) funds for infrastructure grants and low-interest economic development loans; Technical assistance to assist local governments in 
coordinating targeted 
development efforts; and 65 percent in-plant training reimbursement for qualified businesses. Ongoing  
  G/SCM/N/253/USA  
 
- 219 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Mexico Film Crew 
Advancement Program New Mexico Film 
Office/EDD Labor & 
Training Reimbursement Funds Encourage film production in the 
state.  Film Industry Fifty percent (50%) wage 
reimbursement for on the job training for New Mexico residents in advanced below the line crew positions.  Ongoing 
New Mexico Film 
Investment Loan Program New Mexico Film 
Office/EDD Loan To attract business and 
investment to state. Film Industry Fixed interest rate loan 
($500K - $15M) for qualifying feature films or television projects. Payback terms not to exceed two years. Guarantor required. Ongoing 
New Mexico Filmmaker's 
Gross Receipts Tax Incentive Tax Information 
Office Tax Exemption Qualified production companies 
filming in New Mexico may purchase certain services and materials and not pay the State's gross receipts tax on such services and materials. Film Industry A qualified production 
company may execute nontaxable transaction certificates with its suppliers for tangible personal property or services. The suppliers may then deduct their receipts from the gross 
receipts tax. Ongoing 
New Mexico Job Training 
Incentive Program NM Economic 
Development Department Grant The Job Training Incentive 
Program (JTIP) reimburses a company's employee training costs and wages for up to a 6 month period. Training may be provided by a state educational institution or tailored to meet specific business needs. Trainees must be residents of New Mexico and guaranteed full-time employment after training. The program is a administered through the State's Economic Development Department.  Widely available, benefits vary by 
location. Maximum Program Benefits: 
30-400 percent of a trainee's wages are reimbursed to the company, based on area during hours of training. Trainee hours will not exceed 1,040 hours per trainee based on the business work week and are based on job zone and other qualifying factors. The program requires application and approval by the JTIP board.  Ongoing  
  G/SCM/N/253/USA  
 
- 220 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Mexico New Mexico 
Property Tax Abatement County or City 
Government and NM Economic Development Department Tax Exemption Promote economic development. Statewide - Land, buildings and 
equipment associated with an eligible project to promote economic development. Maximum Program Benefits: 
Land, buildings and equipment associated with an eligible project are exempt from ad valorem tax, generally to promote economic development. Term: Up to 30 years. Rate: Varies by community. Ongoing 
New Mexico State Sales 
Tax exemption New Mexico Film 
Office Tax exemption To attract business and 
investment to state.  Film Industry. State sales tax exemption. Ongoing 
New Mexico Preferential 
Tax Rate for Small Wineries and Breweries New Mexico 
Taxation and Revenue Department Tax Abatement 
 Support small wineries and 
breweries. Small wineries and breweries Maximum Program Benefits: 
Wine produced by a small winery carries a tax of 10 cents per liter on the first 80,000 liters; 20 cents on production over that level. The basic tax rate for wine is 45 cents per liter. 
Beer produced by a 
microbrewery is taxed at 25 cents per gallon. The basic tax rate for beer is 41 cents per gallon. Ongoing 
New Mexico Renewable 
Energy Production Tax Credit NM Economic 
Development Department & Taxation and Revenue Department  Tax Credit Support renewable energy 
production. Renewable energy companies Each renewable energy 
generator of one megawatt or more may earn an income tax credit (personal or corporate) of 2.7 cents (on average) per kilowatt-hour for the first 400,000 megawatt-hours of electricity produced for ten consecutive years, 
beginning with the first year 
of production. This credit is fully refundable. Ongoing  
  G/SCM/N/253/USA  
 
- 221 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Mexico Rural Jobs Tax 
Credit NM Economic 
Development Department & Taxation and Revenue Department  Tax Credit Encourage job creation in rural 
communities. Businesses in rural communities in 
the state. Rural areas are defined as those communities not within an Metropolitan Statistical Area ("MSA") or the 10 mile radius of an MSA.  Maximum credit is 
$1,000/per job. Tax credit of 12.5% to 25% of the first $16,000 in wages paid for a qualifying job. Credit extends for 4 yrs if in Tier 1 county, 2yrs for Tier 2 county. Unused credits can be carried forward for up to 3 years.  Ongoing 
New Mexico Tax Increment 
Financing New Mexico 
Taxation and Revenue Department Financing Raise funds for economic 
development purposes through property tax increment financing, whereby the additional tax proceeds from increases in property values are diverted toward financing projects in an enterprise zone.  Companies in a designated 
enterprise zone. Amount of additional tax 
proceeds flowing from the increase in property valuation, diverted to finance the project. Ongoing 
New Mexico Technology 
Jobs Tax 
Credit NM Economic 
Development 
Department & 
Taxation and Revenue Department  Tax Credit To encourage research in the 
state. Businesses conducting qualified 
research activities. This is a two-part credit, 
each part equal to 4% of 
the qualified expenditures 
on qualified research at a qualified facility. The credit amount doubles for expenditures in facilities located in rural New Mexico. The credit is taken against the firm's gross receipts, compensating and withholding taxes until the credit is exhausted.  Ongoing  
  G/SCM/N/253/USA  
 
- 222 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New Mexico  Refundable 
Film Production Tax Credit  New Mexico Film 
Office/EDD Refundable Tax 
Credit  To encourage film production 
within the State. Film & television industry, for all 
direct production  expenditures 
subject to New Mexico taxes. Refundable 25% tax credit 
on all direct production expenditures (including New Mexico resident crew) subject to New Mexico taxes, and an additional 5% credit for qualifying television series or on resident wages for productions that utilizes a sizeable soundstage for 10 or 15 days of principal photography. Ongoing  
New York Biofuels 
Production Credit  Senate Bill 6460 
Tax Law section 28 Tax credit This credit will provide 
manufacturers of qualified biofuel products with a refundable tax credit or 15 cents for each gallon of biofuel produced at a biofuel plant, after the production of the first 40,000 gallons per year are presented to market. The credit is capped at $2.5 million per taxpayer per taxable year for up to four consecutive taxable years per biofuel plant. Manufacturers of qualified biofuel 
products (primarily ethanol and bio-diesel)  Biofuels production credit 
allows for $.15/gallon after first 40,000 gallons produced, capped at $2.5 million per tax payer per year per plant for no more than four years.  Ongoing  
  G/SCM/N/253/USA  
 
- 223 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New York Empowerment 
Zone Program  New York Empowerment Zone Corporation (NYEZC) Mixed Financing
 Established by the Revenue 
Reconciliation Act (1993), this is a Federal initiative to stimulate economic growth in severely distressed areas through tax incentives and incentive financing. The New York State Empowerment Zone (EZ) consists of East, Central and West Harlem, portions of Washington Heights, and the South Bronx. New York State and New York City each have committed 
$100 million over the next 
10 years to match the Federal commitment for a total of $300 million. Financing is available for the purchase of qualified zone property and land used for related purposes in the zones. Qualified businesses are generally 
any business except those consisting primarily of the development or holding of intangibles for sale or license, golf courses, country clubs, massage parlors, hot tub or suntan facilities, racetrack/gambling facilities, liquor stores, or farm s with assets 
greater than $500,000 at close of tax year. Bond financing at lower 
than market interest rates; Total outstanding EZ facility bonds allocated to any person cannot exceed $3 million per zone or $20 million for all zones nationwide; At least 95 percent of the net proceeds of the bond issue must be used to finance qualified zone property. Ongoing 
New York Energy 
Products Center New York State 
Energy R&D Authority Loans To promote more efficient and 
clean supplies of energy.  Businesses involved with a 
technology, product, or service that generates new supplies of energy more efficiently and cleanly. Up to $500,000 of project 
cost may be funded, with 50 percent co-funding. Project funding is budgeted in advance by program topic and specific in each "Program Opportunity 
Notice". The program 
money is allocated among the chosen projects. New York State lenders provide loans with an interest rate of 4.5 percent. The average cost of a project being funded is up to $200,000.  Ongoing  
  G/SCM/N/253/USA  
 
- 224 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New York Enterprise 
Communities (EC)  Empire State 
Development Corporation Mixed Financing
 To stimulate economic growth in 
certain designated communities. To stimulate economic growth in 
distressed areas, each community receives $2,947,368 over two years in Federal Social Security Block Grants. New York State committed to match the Federal awards, for a total of $5,894,736 per Enterprise Community. Qualified businesses must be located within an Enterprise Community. Sixty-five Federal Enterprise Communities were designated by the U.S. 
Department of Housing and Urban 
Development (HUD) at the end of 1994, through the Revenue Reconciliation Act (1993). Four ECs are located in New York State: Buffalo, Rochester, Albany-Schenectady-Troy, Kingston-Newburgh.  Financing is also available 
for the purchase of qualified enterprise zone property through qualified Enterprise Zone Facility Bonds: Triple tax-exempt enterprise zone facility bond financing at lower than market interest rates; At least 95 percent of the net proceeds of the bond issue must be used to finance qualified EC property; Total outstanding 
Enterprise Zone Facility 
Bonds allocated to any business cannot exceed $3 million per EC or $20 million for all ECs. Ongoing  
  G/SCM/N/253/USA  
 
- 225 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New York Excelsior Jobs 
Program Empire State 
Development Corporation (ESDC) Tax Credits Created in 2010 to replace the 
Empire Zones Program, designed to provide job creation and investment incentives to firms in such targeted industries as biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing. Firms in these industries that create and maintain new jobs or make significant financial investment 
will be eligible to apply for up to 
four new tax credits. The Program will encourage businesses to expand in and relocate to New York while maintaining strict accountability standards to guarantee that businesses deliver on job and investment commitments. Firms in the biotechnology, 
pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing industries.   ESDC may award up to 
$50 million in refundable tax credits annually to qualifying taxpayers, who may claim the credit awarded for up to 10 years. The program has a lifetime cap of $2.25 billion and provides four types of tax credits:  Excelsior Jobs Tax Credit: 6.85% of the gross wages paid for each net new job 
created in NYS;  
Excelsior Investment Tax Credit: 2% of qualified investments;  Excelsior Research and Development tax credit: 50% of the federal R&D credit, capped at 3% of NYS research expenditures attributable to activities conducted in NYS; and  Excelsior Real Property Tax Credit: available to firms locating in certain distressed areas and firms in targeted industries that meet higher employment and investment thresholds (Regionally Significant Projects).  Ongoing  
  G/SCM/N/253/USA  
 
- 226 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New York General 
Development Financing Job Development 
Authority Loan Assistance fo r projects that 
create or retain jobs or increase business activity undertaken by manufacturing, non-retail service firms, headquarters facilities of firms engaged in re tail industries, 
retail firms located in distressed areas, and businesses which develop recreational, cultural, or historical facilities for tourist attraction.  Eligible projects create or retain 
jobs or increase business activity undertaken by manufacturing, non-retail service firms, headquarters facilities of firms engaged in retail industries, retail firms located in distressed areas, and businesses which develop recreational, cultur al, or historical 
facilities for tourist attraction. Loans of $75,000 to 
$2,000,000 for up to 40 percent of total project cost at interest rates no lower than 3 percent and terms up to 20 years for real property and up to 7 years for machinery and equipment. Interest rates on loans will be set at the time of Directors' approval of project application; rates will reflect market 
conditions, applicant's 
ability to repay, and requirements necessary to make the project feasible, but will not generally be lower than 3 percent. Loan guarantees of $75,000 to $2,000,000 or up to 60 percent of the total credit facility, whichever is less. Interest subsidy grants of $75,000 to $500,000 for up to 5 years; grants may not reduce the effective interest rate below 3 percent. Capital Grants may also be available for hard costs and related soft costs, as well as for working capital. Working capital loans for amounts to be determined on a case-by-
case basis for capital-
related expenses such as accounts receivable and inventory. Loans and loan guarantees for terms up to four years. Ongoing  
  G/SCM/N/253/USA  
 
- 227 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New York Metropolitan 
Economic Revitalization Fund (MERF) Empire State 
Development Corporation Loan Financing for projects that retain 
or create significant numbers of private sector jobs in economically distressed areas. Applicants may be both for-profit and not-for-profit businesses or village, town, city, or county governments that invest in economically distressed areas of New York State that fall within the service area of the Port Authority of New York and New Jersey. These areas include New 
York City and parts of Nassau, 
Westchester, and Rockland counties. Eligible businesses should retain or 
create significant numbers of private sector jobs in economically distressed areas. Applicants may be both for-profit and not-for-profit businesses or village, town, city, or county governments that invest in economically distressed areas of New York State that  fall within the 
service area of the Port Authority of New York and New Jersey. Loans of up to a maximum 
of $5,000,000, or 10 percent of total project cost, whichever is less, for acquisition or improvement of land and/or buildings, construction and renovation, and for machinery and equipment purchases. A minimum of 10 percent borrower equity required. Interest rates will be determined by market 
conditions, applicant's 
ability to repay, and project requirements, and set at the time of ESD Directors' approval. Terms for project loans will not exceed 20 years for real estate and 7 years (or useful life of collateral) for machinery and equipment. Ongoing  
  G/SCM/N/253/USA  
 
- 228 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New York Motion Picture 
and Television Development Assistance Office for Motion 
Picture and Television Development Tax Incentives The Office for Motion Picture and 
Television Development promotes 
and encourages the location and expansion of motion picture, television, commercial, video and related pre- and post-production and distribution businesses in New York State. In addition, the Office works with the theatre and New Media industries. This is accomplished through a variety of business assistance and marketing programs, and review 
of regulatory and tax policy. The 
program promotes and encourages the location and expansion of motion pictures, television, commercial, video and related projects. Film Industry New York State Film 
Production Credit: 30% to 35% fully-refundable tax credit on qualified expenses while filming in New York State. The program cost in 2010 was $123 million, while $420 million has been allocated for each of years 2010 through 2014.  Commercial Production Tax Credits: Refundable tax credits available for 
qualified commercials with 
added incentives for companies increasing volume of work in New York.  Sales Tax Exemptions: Film production activities/expenses that are exempt from New York State and local sales and use taxes. Investment Tax Credit: Up to 5% tax credit on investments in construction and upgrades to qualified film production facilities. PLUS Employment Incentive Tax Credits for 2 additional years. Ongoing 
Credit available for
 
tax years ending on/before 31/12/2014  
  G/SCM/N/253/USA  
 
- 229 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New York Qualified 
Emerging Technology Company (QETC) Tax Credits New York State Tax Credit Tax Credits for Qualified 
Emerging Technology Companies (QETCs): 1. QETC Employment Credit (refundable); and 2. QETC Capital Tax Credit. A qualified emerging technology 
company is, pursuant to section 3102-e of the Public Authorities Law (PAL), a company located in New York State that has total annual product sale s of $10 million 
or less, and meets either of the following criteria: (1) its primary products or services are classified as emerging technologies under section 3102-e(1)(b) of the PAL; or (2) it has research and development activities in New York 
State and its ratio of research and 
development funds to net sales equals or exceeds the average ratio for all surveyed companies. Amounts vary. Ongoing. 
New York  Linked 
Deposit Program (LDP)  Empire State 
Development Corporation Loans This program helps existing New 
York State firms obtain reduced-rate financing so they can undertake projects to improve their competitiveness, market access and product development; modernize their equipment and/or expand their facilities for productivity growth or to introduce new technologies; to facilitate ownership transition; 
and to promote job 
creation/retention.   It is offered as a public-private partnership that provides businesses with affordable capital based on bank loans at reduced interest rates.  2% interest rate reduction for: 
Manufacturers with 500 or fewer full-time (FT) employees in New York State.  3% interest rate reduction for: Empire Zone certified business with 100 or fewer FT employees. State businesses in highly distressed census tracts with 100 or fewer FT employees. Businesses in Fed Empowerment 
Zone, or Enterprise or Renewal 
Community with 100 or fewer FT employees. Certified Minority- or Women-Owned Business Enterprises (MWBEs) that need financing to fulfill a state or federal procurement contract. Defense industry manufacturers with at least 25 percent of gross revenue derived from defense contracts/subcontracts investing to reduce dependence on the defense.  The program provides a two 
to three percentage points savings on the prevailing interest rate to make borrowing less expensive with a maximum loan amount of $500,000 for four years. Ongoing  
  G/SCM/N/253/USA  
 
- 230 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
New York New York City 
(NYC) Biotechnology Tax Credits NYC Finance  
Introductory Number 926-A Tax Credits Foster the growth of 
biotechnology as a major industry in NYC. Provides early stage biotech 
companies with a refundable credit, for R&D and employee training expenses. Company must engage in biotech and: (a.) be an emerging tech company or a company whose ratio of R&D to sales equals or exceeds the average ratio for all companies surveyed by the National Science Foundation;  (b.) have no more than 100 FT 
employees, with at least 
75 percent employed in NYC; (c.) have a ratio of R&D to sales that equals or exceeds 6% for the calendar year; (d.) have annual product sales of $10 million or less; (e.) have gross revenues, including "affiliates" and "related members," not exceeding $20 million for the calendar year. Up to $250,000 per year for 
up to 3 years. Tax credits for expenses that include:  (a.) Purchase of Property: 18% of the cost of R&D property purchased and placed in service in the calendar year;  (b.) Research: 9% of qualified research expenses paid or incurred in the calendar year; 
(c.) Employee Training: up 
to100% of high-tech training expense during the calendar year. Limit $4,000 per employee per calendar year. Expenses qualify only for FT employees during time of the training and who remain employed for at least 180 days after. Extended 
through 31 December 2015 
North Carolina Article 3F 
Technology Development Tax Credit Department of 
Revenue, General Statutes § 105-129.55 Tax Credit To encourage business 
development within the State. • Small business (annual receipts 
less than $1 million): If the taxpayer is a small business as of the last day of the taxable year, 
the business is allowed a credit of 
3.25 percent. • Low-tier research: For expenses for research performed in a Tier 1 county, a business is permitted a credit of 3.25 percent. • Eco-Industrial Park: For expenses with respect to research performed in an Eco-Industrial Park certified under N.C. §143B-437.08, the business is allowed a credit of 35 percent. Technology development 
tax credits may be used to offset up to 50 percent of state income or franchise 
tax after all other credits 
against that tax are applied. Taxpayers may elect to claim the credit against either the income or the franchise tax. Any unused portion of the credits may be carried forward for 15 years. Sunset 
1 January 2014  
  G/SCM/N/253/USA  
 
- 231 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Carolina Article 3J 
Business Property Tax Credit Department of 
Revenue General Statutes §105-129.88 Tax credit To encourage business 
development within the State. 1. Eligible business: aircraft 
maintenance and repair; air courier services hub; company headquarters that creates at least 75 new jobs; customer service call centers; electronic shopping and mail order houses; information technology and services; manufacturing; motorsports facility; motorspo rts racing team; 
R&D; warehousing; and wholesale trade. 2. Average FT wage must meet or 
exceed the local wage standard. 
3. Qualifying health insurance for all FTs, pay at least 50% of premiums. 4. No significant environmental violations with the Environment & Natural Resources Dept in last 5 years. 5. No "willful" or "failure to abate" OSHA violations in the last 3 years. 
 
6. No overdue taxes.  Eligible taxpayers may claim 
a credit based on a percentage of the cost of capitalized tangible personal property that is placed in service during the taxable year, in excess of an applicable threshold. This credit is taken in equal installments over four years, beginning the year after the property is first placed in service. The 
credit percentage and 
threshold are based on the tier designation of the county where the property is placed in service.  Sunset 
1 January 2014  
  G/SCM/N/253/USA  
 
- 232 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Carolina Article 3J Jobs 
Creation Tax Credit Department of 
Revenue General Statutes §105-129.87 Tax credit To encourage business 
development within the State.  1. Eligible business: aircraft 
maintenance and repair; air courier services hub; company headquarters that creates at least 75 new jobs; customer service call centers; electronic shopping and mail order houses; information technology and services; manufacturing; motorsports facility; motorspo rts racing team; 
R&D; warehousing; and wholesale trade. 2. Average FT wage must meet or 
exceed the local wage standard. 
3. Qualifying health insurance for all FTs, pay at least 50% of premiums. 4. No significant environmental violations with the Environment & Natural Resources Dept in last 5 years. 5. No "willful" or "failure to abate" OSHA violations in the last 3 years. 
 
6. No overdue taxes.  Eligible taxpayers that meet 
a minimum threshold of new full-time jobs created during the taxable year may claim a credit for each new job created. The credit is taken in equal installments over four years following the year the jobs are created. The job threshold and the credit amount per job are determined by the tier designation of the 
county in which the jobs are 
created.  Sunset 
1 January 2014 
North Carolina Film 
Incentives Tax Credit  Department of 
Commerce General Statutes §105 130.47 Tax Credit To encourage business 
development within the state. Film Industry A 25% tax credit not to 
exceed $20M on productions spending over $250,000 in qualified expenses within 
the state. Sunsets 
2014  
  G/SCM/N/253/USA  
 
- 233 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Carolina Interactive 
Digital Media Tax Credit Department of 
Revenue, General Statutes § 105-129.56 Tax Credit To encourage business 
development within the state. North Carolina taxpayer that 
develops interactive digital media (IDM) within the state. IDM products are defined by those used for electronic me dia distribution, 
including file download over the Internet; contains a computer-controlled virtual universe with which an individual who uses the program may interact in order to achieve a goal; and/or contains a significant amount of at least three of the following five types of data: 
animated images, fixed images, 
sound, text, and 3D geometry. This includes game platforms, game engines, and games that have both entertainment and serious applications. Credits for taxpayer's 
expenses that exceed $50,000 that are paid during the taxable year in development phases, and may not exceed $7.5 million. The percentages applicable to expenses are as follows:
 
-- 15 percent of compensation and wages for full-time employees and other allowable expenses; 
-- 20 percent of research 
expenses paid to North Carolina universities or participating community colleges. Sunset 
1 January 2014 
North Carolina Job 
Maintenance and Capital Development Fund Department of 
Commerce General Statutes §143B-437.012 Grant The program is intended to 
stimulate economic activity and provide benefits to the citizens of North Carolina by encouraging retention of significant numbers of high-paying, high-quality jobs and large-scale capital investment, enlarging the overall tax base and increasing revenues 
to the state and its political 
subdivisions. Basic eligibility requirements: 
Located in a Tier 1 county. Major manufacturing employer, either (1) has at least 2,000 employees and invests at least $200 million, or (2) have at least 320 full-time employees and invests at least $65 million. Local government entities must 
provide incentives equivalent to a 
tax credit of 50% of the incremental additional ad valorem taxes payable by a grantee on the required investment, over a period of between 5 and 10 years. Must have no overdue tax debts, OSHA, or DENR violations. A total of five (5) grants 
may be made under the program. Annual payments to grantees is subject to future appropriations. Grants may be made for a term of up to 10 years. Annual grant payments will be capped at 
an amount that may not 
exceed $4 million. The sum of all grants awarded under the program may not exceed $60 million.  Ongoing  
  G/SCM/N/253/USA  
 
- 234 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Carolina Ports Tax 
Credit Department of 
Revenue, General Statutes §105-130.41 Tax Credit To encourage business 
development within the state. Any customer, business or 
individual, of the N.C. Ports at Morehead City and Wilmington who is subject to payment of North Carolina income taxes. Tax credit is earned on cargo wharfage and handling fees, in or out, charged by the N.C. Ports Authority. Credit applies directly to 
income taxes due to the state up to 50 percent of the total tax liability for each tax year. Any unused credit may be carried forward for five years. The maximum cumulative credit that may be taken may not exceed $2 million. Credit is the amount by which current-year fees exceed the average of the 
past three years. There are 
some limitations to this credit. For example, bulk cargo through the Port of Wilmington is excluded. Terminates 
1 January 2014 
North Carolina Economic 
Incentive Sales & Use Tax Refunds Department of 
Revenue, General Statutes N.C.§105-164.14A Sales and Use 
Tax Refunds Encourage business development 
within the state. Eligible industries: Passenger air 
carrier, major recycling facility, business in low-tier area, motorsports team or sanctioning body, professional motorsports team, analytical services business, railroad intermodal facility.  The owner of an eligible 
facility is allowed an annual refund of sales and use taxes on purchases of building materi als, fixtures 
and equipment if the facility costs at least $50 million in Tier 1 counties and $100 million in Tier 2 and 3 counties.  Sales tax 
and use tax refunds terminates 1 January 2014. Railroad intermodal facility refund 
terminates 
1 January 2038.  
  G/SCM/N/253/USA  
 
- 235 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Carolina Certain 
Industrial Facilities Sales & Use Tax Refunds Department of 
Revenue, General Statutes N.C.§105-164.14B Sales and Use 
Tax Refunds Encourage business development 
within the state. Eligible industries: air courier 
services; bioprocessing; financial services, securities operations and related systems development; motor vehicle manufacturing; paper from pulp manufacturing; pharmaceutical and medicine manufacturing and distribution of pharmaceuticals and medicines; semiconductor manufacturing; solar electricity generating materials manufacturing; and turbine manufacturing. The owner of an eligible 
facility is allowed an annual refund of sales and use taxes on purchases of building materi als, fixtures 
and equipment if the facility costs at least $50 million in Tier 1 counties and $100 million in Tier 2 and 3 counties.  Terminates 
1 January 2014 
North Carolina Article 3B 
Renewable Energy & Waste Reduction Tax Credits N.C.§105-275(45) Tax Credits Encourage sustainable 
development through renewable energy and waste reduction projects. Eligible projects: renewable energy 
installation; biodiesel & alternative fuel production; alternative fuel fueling infrastructure; recycling facility. Renewable energy tax 
credits of 25-35 percent of project cost per installation.
 Projects installed through 1 January 2016. N.C.§105-129.16A. 
North Carolina Job 
Development Investment Grants (JDIG)
 Department of Commerce, General Statutes N.C.§105-164.14A Grants Encourage bu siness development 
within the State. The JDIG provides a limited 
number of cash grants directly to new and expanding businesses that will provide economic benefits to the state, are competitive with other locations and need the grant to carry out the project in North Carolina. Grants are based on the job creation and investment commitment by companies in their applications prior to a location decision. A 5-member Economic Investment Committee (EIC) evaluates projects, makes award decisions, and de termines funding 
levels, grant periods and other terms of the grants.  Grants based on 
a percentage of withholding taxes paid by new employees, disbursed annually for up to 12 years. Per employee amount capped at $6,500/year; program aggregate capped at $15 million/year. In Tier 2 and Tier 3 counties, 15 and 25 percent, respectively, of total JDIG grant is transferred to NC's utility account to fund infrastructure in economically distressed counties. Expires 
1 January 2016  
  G/SCM/N/253/USA  
 
- 236 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Carolina Article 3J Real 
Property Tax Credit Department of 
Revenue General Statutes §105-129.89 Tax Credit To encourage business 
development within the state.  Eligible taxpayers that invest at 
least $10 million in real property within a three-year period and create at least 200 new jobs within two years at an establishment located in a Tier 1 County.  Eligible taxpayers are 
allowed a credit equal to the 30% of the eligible real property investment. This credit is taken in equal installments over seven years, beginning the year after the property is used in an eligible business. To qualify for this credit, the taxpayer must obtain a written determination from the NC Department of 
Commerce.  Expires 
1 January 2014 
North Carolina  Credit for 
Biodiesel Producers Department of 
Revenue General Statutes 105-129.16F Tax Credit Encourage biodiesel production.  Biodiesel industry. The credit may not exceed 
$500,000.  Expires 
1 January 2014  
  G/SCM/N/253/USA  
 
- 237 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Dakota Agricultural 
Commodity Processing Facility Investment Tax Credit Tax Department / 
Commerce Department's Division of Economic Development and Finance Tax Credit North Dakota offers business a 
favorable tax climate that promotes growth and opportunity through traditional tax incentives and innovative new opportunities. An individual, estate, trust, 
partnership, corpor ation, or limited 
liability company is allowed an income tax credit for investing in an agricultural commodity processing facility in North Dakota that is certified by the Commerce Department's Division of Economic Development and Finance. In the case of a pass-through entity, such as a partnership or S corporation, the credit is passed through to the entity's owners based on their 
respective owners hip interests. The credit is equal to 
30 percent of the investment, up to a maximum credit of $50,000 per year. A taxpayer is allowed no more than $250,000 in credits for all tax years. An unused credit may be carried forward up to ten years. Ongoing  
  G/SCM/N/253/USA  
 
- 238 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Dakota  Biodiesel or 
Green Diesel Tax Credits Tax Department Tax Credit To encourage biodiesel or green 
diesel production. Biodiesel or green diesel 
producers, suppliers and sellers. Income tax credit equal to 
10% per year for 5 years of costs to establish, adapt, or retrofit a facility to produce or blend at least 2% biodiesel or green diesel fuel. Any credit in excess of the current year's liability may be carried forward 5 taxable years. Limited to a cumulative credit of $250,000 for all taxable years. 
Beginning 31/12/2004, a 
licensed fuel supplier who blends at least 5% biodiesel or green diesel fuel is allowed an income tax credit of 5 cents per gallon of fuel. Excess credit may be carried forward 5 taxable years. Beginning 31/12/2004, a seller of biodiesel or green diesel fuel having at least a 2% blend is allowed an income tax credit equal to 10% per year for 5 years of the seller's direct costs to adapt or add equipment to their facility to enable them to sell the biodiesel or green diesel blend.  Ongoing  
  G/SCM/N/253/USA  
 
- 239 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Dakota Biofuels PACE Bank of North 
Dakota Interest Rate 
Subsidy To encourage biofuels 
production. Production Criteria Ethanol and biodiesel producers. 
-- Production facility must be located in North Dakota -- Facility must produce agriculturally derived denatured ethanol, or biodegradable, combustible liquid fuel derived from vegetable oil or animal fat -- Fuel must be suitable for blending with a petroleum product for use in internal combustion engines -- Ownership must consist of: Ag 
producers who hold at least 10% 
interest in the faci lity and residents 
of North Dakota who own at least 50% Biofuels PACE (Biofuels 
Partnership in  Assisting 
Community Expansion) was established to buy down the interest rate on loans to biodiesel and ethanol production facilities, and livestock operations. Interest buy down of 5.0% below the note rate.  Ongoing 
North 
Dakota Ethanol  
Incentive Program Department of 
Commerce Grants To encourage ethanol production.
 Ethanol producers. The incentive is based on a 
calculation that factors in the difference between the baseline prices for ethanol and corn and the quarterly average North Dakota prices for ethanol and corn. Producers may apply for these incentives on a quarterly basis by providing proof of the number of 
gallons of ethanol produced. 
The total cumulative incentive available to all eligible producers in any year is capped at $1.6 million. Also, no producer may receive in excess of $10 million in incentive payments over the life of their production facility. Ongoing  
  G/SCM/N/253/USA  
 
- 240 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
North Dakota Regional Rural 
Development Revolving Loan Fund North Dakota 
Development Fund Mixed Financing
 Program provides flexible "gap 
financing" to make projects bankable through subordinated debt, equity and partnerships. This fund is allocated equally 
among the state's eight economic regions for projects located more than five miles outside the limits of a city with a population less than 8,000. Maximum investment 
$300,000. Debt and equity investments are priced based upon the appropriate risk/return.  Ongoing 
North 
Dakota Sales & Use 
Tax Exemptions for Agricultural Processing Plant Construction Materials Tax Department Tax Exemption No rth Dakota offers business a 
favorable tax climate that promotes growth and opportunity through traditional tax incentives and innovative new opportunities. Construction materials used to 
construct an agricultural processing facility are exempt from sales and use taxes. The processor must apply to the State Tax Commissioner for a refund of the tax paid by a contractor. As defined by the sales tax exemption, a qualif ying agricultural 
commodity processing facility means a processing facility for the processing or production of marketable products from agricultural commodities. The sales tax exemption, if 
applicable, will provide a five percent sales tax exemption based on the cost of construction materials for a qualifying agricultural commodity processing facility. Ongoing 
Ohio Advanced 
Energy Fund Development 
Services Agency Loan To utilize energy efficient 
measures and technologies, reduce energy usage, reduce fossil fuel emissions and create/retain jobs. Widely avaiable. Pr ojects must be 
located in Ohio and in the service territories of one of the four participating electric distribution companies: American Electric Power, Duke Energy, Dayton Power and Light and First Energy. Eligible entities may apply through the Energy Loan Fund.  Amounts based on entity 
type: Manufacturers & Small Businesses: loan up to 80% of total project costs; Public Entities: loan up to 90% of total project costs. Typical loan amounts range from $50,000 - $5 million.  Ongoing 
Ohio Community 
Reinvestment Areas Development 
Services Agency Real Property 
Tax benefits To provide companies locating in 
a designated Community Reinvestment Area a tax abatement. Companies that are making new 
real property investment in a designated Community Reinvestment Area. The company must formalize an  agreement with 
the local community prior to going 
forward with the qualifying project.
 Tax exemption of up to 
100% of the value of real property improvements for up to 15 years. Local legislative authority establishes terms and rates.
 Ongoing 
Ohio Enterprise 
Zones Development 
Services Agency Real Property 
Tax Exemption  Local and state tax incentives for 
businesses that expand or locate in designated areas of Ohio. Businesses must finalize an 
Enterprise Zone Agreement prior to project initiation, agree to retain or create employment and establish, expand, renovate, or occupy a facility in an Enterprise Zone. Up to 100 percent 
exemption for up to 15 years. In some instances, local school board approval may be required. Expired 
15/10/2013  
  G/SCM/N/253/USA  
 
- 241 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Ohio Film 
Production Tax Credit Development 
Services Agency Tax Credit For the purpose of encouraging 
and developing a strong film industry in the state. The credit is available to qualifying 
motion picture companies, as defined by statute. Eligible expenditures for a project must exceed $300,000 for the project to be eligible for a credit.  This program provides a 
refundable tax credit of up to 25% of eligible expenses to a maximum of $5 million per project. A total of $20 million in tax credits are available annually. Ongoing 
Ohio Governor's 
Office of Appalachia Grants Development 
Services Agency Grant The Governor's Office of 
Appalachia (GOA), involved with both short- and long-term planning, facilitates development and serves as an advocate for the Appalachian Region (29 Ohio counties) by developing policy and promoting specific projects and proposals that originate from the region's residents. Various industries GOA receives approximately 
$4 million annually from the Appalachian Regional Commission (ARC) to administer the state ARC program and fund special project development. Ongoing 
Ohio Innovation 
Ohio Loan Fund (IOF)  Development 
Services Agency Loan  Provides financial resources for 
product commercialization for technology companies. Established Ohio businesses with a 
proven operating history undertaking an investment project 
in targeted industry sectors. The IOF can finance up to 
75 percent of a project's qualifying costs through 
loans in the range of 
$500,000 to $3 million. Ongoing.  
Ohio No Sales Tax Development 
Services Agency Tax exemption To encourage the development of 
commercial film industry within the state. Film Industry No sales tax on hotel stay in 
excess of 30 days. Ongoing 
Ohio Ohio 
Incumbent Workforce 
Training 
Voucher Program (IWTVP) Development 
Services Agency Grants Create opportunities for Ohio's 
workers and companies to stay competitive and current in their 
fields. The IWTVP is a program 
that companies can use to ensure their workers are on the cutting edge of their industry. Companies that fall into one of the 
 
State's targeted industry sectors or 
key business functions: 
Advanced Energy and 
Environmental Technologies; Aerospace and Aviation; Agriculture and Food Processing; Bioscience and Bioproducts; Corporate and Professional Services; Distribution and Logistics; Instruments, Controls, and Electronics; Motor Vehicles and Parts Manufacturing The IWTVP will reimburse a 
portion of the grantee's cost of approved training for full-
time employees. The 
program provided a total of $20 million in 2013. Ongoing 
through 2015  
  G/SCM/N/253/USA  
 
- 242 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Ohio Rural 
Industrial Park Loan Department of 
Development Loan Provides direct loans and loan 
guarantees to rural, distressed local communities and other eligible applicants committed to creating well-planned industrial parks. Nonprofit organizations that 
promote economic development in rural areas; Local governmental units are eligible to apply for the financing of o ff-site public 
infrastructure impr ovements (i.e., 
water, sewer, roads); and private developers. Maximum loan available is 
$1 million and cannot exceed 75 percent of total eligible costs. Terminated 
as of 30 June 2011. 
Ohio Data Center 
Sales & Use Tax Exemption Development 
Services Agency Sales Tax 
Exemption To encourage the construction of 
state of the art data center facilities in Ohio. Companies that create data 
centers that involve an investment of at least $100 million and have annual employee compensation of at least $5 million. The percentage of the 
exemption is determined by the Ohio Tax Credit Authority. The exemption applies to both the state imposed sales tax and the amounts added by counties and regional transit authorities. Ongoing  
  G/SCM/N/253/USA  
 
- 243 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Aerospace 
Engineer Employer Tax Credits Tax Commission; 
Aeronautics Commission; HB 3239 Tax Credit To enhance the state's ability to 
attract and retain a top-notch workforce pool for the Oklahoma aerospace industry. House Bill 3239 provides that 
"qualified employees" and "qualified employers" may claim these tax credits. A "qualified employer" is any legally recognized business entity such as a general or limited partnership, or a corporation, or a public entity whose principal business activity involves the aerospace sector. The employer tax credit 
comes in two forms: Employer Tax Credit for Compensation Paid: Provides an annual income tax credit of up to 5 years for qualified employers of 10% of the compensation paid to a qualified employee with a degree from an OK university or college and 5% if the employee has a degree from outside 
Oklahoma. Credit cannot 
exceed $12,500 for each qualified employee annually.
 
Employer Tax Credit for Tuition Reimbursement: Provides an annual income tax credit of up to 4 years for qualified employers for tuition reimbursed to qualified employees. This credit shall be 50% of the tuition reimbursed to a qualified employee but cannot exceed 50% of the average annual tuition in a qualified program at a public university in Oklahoma. This credit may only be claimed if the qualified employee received his undergraduate or graduate degree within 
1 year of beginning 
employment with the qualified employer. Expires 
31/12/2014.  
  G/SCM/N/253/USA  
 
- 244 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Alternative 
Energy Sources Tax Credits Tax Commission; 
68 O.S. 2357.32A and B Tax Credit To encourage alternative, zero-
emission electricity generation from renewable resources including wind, solar, geothermal and water. Producers of electricity utilizing 
alternative, zero-emission fuel and small wind turbine manufacturers. Producers may receive a tax 
credit of 50 one-hundredths of one cent per kilowatt-hour of electricity generated by facilities placed in operation between 1 January 2007 and before 1 January 2016. The tax credits will be for a period of 10 years and may be transferrable. For facilities placed in operation before January 1 2007, producers 
may receive a tax credit of 
25 one-hundredths of one cent per kilowatt-hour of electrity generated between 1 January 2007 and before 1 January 2012.  Small wind turbine manufacturers may earn a credit of $25 per square foot of rotor swept area starting in 2003. The credits are freely transferable and may be carried forward 10 years. Ongoing. 
Credits earned between 1 July 2010 and 30 June 2011 may be claimed beginning with tax year 2011 returns.  
  G/SCM/N/253/USA  
 
- 245 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Construction 
Materials Oklahoma Tax 
Commission; 68 O.S. 1359[7] and 68 O.S. 1357[17] Sales tax 
exemption (68 O.S. 1359[7]) or a sales tax refund (68 O.S. 1357[17]) 
To encourage development within 
the state. Eligible manufacturers include: 
(1) Facilities with construction costs exceeding $5 million that create 100 new manufacturing jobs and are maintained for a minimum of 36 months. Construction costs include building and construction costs, and engineering and architectural fees, but not legal fees. (2) Facilities with construction costs exceeding $10 million, and with combined total costs of material, 
construction, and machinery 
exceeding $50 million, which add 75 new employees who are retained for 36 months. (3) Facilities with construction costs exceeding $300,000,000 which maintain an employment level of at least 1,750 full time equivalent employees. 4) Qualified new or expanded aircraft maintenance and overhaul facilities that create 250 or more jobs, with construction totaling at least $5 million.  Amount of refund varies 
based on eligible costs. Ongoing 
since 1981.  
  G/SCM/N/253/USA  
 
- 246 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Enterprise 
Zones Department of 
Commerce Mixed Financing  The state has designated 
Enterprise Zones which can be either depressed counties or inner cities. These zones provide three major in ducements for 
business. Double the Investment/New jobs tax credit is allowed and low interest loans may be made available through the enterprise dist rict loan fund. 
The enterprise district management authorities created in each enterprise district are 
empowered to establish venture 
capital loan programs and to solicit proposals from enterprises seeking to establish or expand facilities in the zo nes. By statute, 
funds for these programs come from the issuance of general obligation bonds by the district involved.  Any type of manufacturing 
company locating in low income, high out-migration, or high unemployment areas. Loans can be for up to 
100 percent of the estimated cost of the building and equipment. Ongoing  
  G/SCM/N/253/USA  
 
- 247 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Ethanol Tax 
Credits 68 O.S. 2357.66 Tax Credit To allow for the use and blending 
of ethanol in fuels. Credit for ethanol against the tax imposed by Section 2355 and 2370 of Title 68, and Sections 624 and 628 of Title 36. After 1 January 2013, the tax credit may only be applied against taxes imposed by Section 2355. Any ethanol facility producing 
ethanol pre-denaturing at the rate of at least 25% of original design capacity, on or before 31/12/2008, and where production is kept at an average of at least 25% capacity for at least 6 months during eligibility. "Ethanol facility" means a plant or facility primarily engaged in the production of ethanol or ethyl alcohol derived from grain components, coproducts, or byproducts. Credit of $0.20/gal of 
ethanol produced allowed for 60 months beginning with the first month of eligibility, ending not later than 31/12/2010. Additional $0.20/gal for ethanol produced above original capacity which results in expansion of facility, allowed for 60 months until no later than 31/12/2010. Capped at 25 million gal per 
year, total 125 million gal 
for all 60 months. Beginning 1/1/2011, credit of $0.075/gal for new production, not to exceed 36 consecutive months. Capped at 10 million gal per year. Tax years 
2004 through 2010, and 2011 through 2013. Due to moratorium, no credit may be claimed for production 
from 1 July 
2010 through 30 June 2012. After 1 January 2013, the tax credit may only be
 
applied against taxes imposed by Section 2355.  
  G/SCM/N/253/USA  
 
- 248 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Five-Year Ad 
Valorem (General Property) Tax Exemptions for Manufacturing and R&D Oklahoma Tax 
Commission; Title 68 O.S.2902 Tax Exemption To encourage manufacturers, 
research and development and certain technology companies to locate or expand facilities in Oklahoma. Certain new/expanding 
manufacturers, R&D companies, computer services and data processing companies with significant out-of state sales, aircraft repair companies, oil refineries, and certain wind power generators, for up to five years.  Threshold requirements: investment of at least $250,000 and addition of $250,000 in annual payroll in counties with a population of 75,000 or less. If the 
company is located in a larger 
county, an annualized payroll of at least $1,000,000 is required.  Wind power generators in NAICS 221119 are exempt from the payroll requirement, if there is an increase of $2 million or more in capital improvements while maintaining or increasing payroll. Eligible property may include land, buildings, im provements, 
machinery, fixtures and equipment used directly and exclusively in the primary activity or process of the facility site. The incentive is equal to the 
ad valorem tax (the general property tax) otherwise payable on real property, which is collected by county governments. The average effective tax rate for locally assessed property is about 1% of the value of the property.  Ongoing  
  G/SCM/N/253/USA  
 
- 249 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Investment 
New Jobs Income Tax Credit Oklahoma Tax 
Commission Tax Credit The Investment New Jobs 
Income Tax Credit allows manufacturers or qualified aircraft maintenance facilities the greater credit of one percent per year of the investment in qualified depreciable property the year the property is placed in service, or a credit of $500 per year per additional new jobs engaged only in manufacturing or processing. To qualify, the depreciable property must have a 
floor cost of at least $50,000. 
New jobs credit shall be for each full time equivalent manufacturing employee earning at least $7,000 during each year the credit is claimed. In Enterprise Zones the credit is doubled. Firms that take advantage of the Investment/Jobs Income Tax Credit Package are ineligible for the Quality Jobs 10-Year Cash Back Incentive. Manufacturing, aircraft 
maintenance facilities and various computer service industries. The credit allowable in any 
year is limited to the employer's tax liability; any credit not used may be carried forward indefinitely. Ongoing  
  G/SCM/N/253/USA  
 
- 250 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Local 
Incentive Districts Department of 
Commerce; Local Governments; 62 O.S. 860 Tax exemption To encourage new investment in 
local communities. Companies in locally designated 
Incentive Districts. The exemption is allowed on new investment only and is not available to predominantly retail establishments.  The incentive is equal to the 
ad valorem tax (the general property tax) otherwise payable on real property, which is collected by county governments. Exemptions are for five years unless the business is located in an Enterprise Zone - then, the exemption may be for up to six years. It may be extended for the sixth year only by agreement of all 
local taxing entities. 
Companies enrolled in the five-year manufacturers exemption under 68 O.S. § 2902 are not eligible for the local incentive, nor are companies relocating from within the state. Ongoing 
Oklahoma Oklahoma 
Film Enhancement Rebate Oklahoma Film and 
Music Commission Rebate To encourage the development of 
commercial film industry within the state. Film Industry The Oklahoma Film 
Enhancement Rebate offers up to 37% on Oklahoma expenditures to qualifying companies filming in the state capped at $5 million per year Additional 
2 percent when $20,000 
spent on music recorded in Oklahoma.  Expires in 
June 2014.  
  G/SCM/N/253/USA  
 
- 251 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oklahoma Sales Tax 
Exemption Oklahoma Film and 
Music Office Tax exemption To encourage the development of 
commercial film industry within the state. Film Industry Point of Purchase (POP) Tax 
Exemption to qualified productions on sales taxes paid for property or services to be used in productions. The state's current sales tax is 4.5%. Local taxes, which vary from city to city and county to county, average between 3% and 4%. The POP Tax Exemption cannot be used in conjunction with the 37% rebate. Ongoing 
Oklahoma Sales Tax 
Refunds for Computer-related Products Oklahoma Tax 
Commission Tax Refund Oklahoma offers a sales tax 
refund on computers, data processing equipment, related peripherals, telegraph or telecommunications services or equipment. Qualifying companies include: 
a. New or expanded aircraft maintenance and manufacturing facilities that create 250 or more jobs, with construction investment of $5 million and purchases of at least $2 million worth of computers and other listed items. b. Research and development or computer services companies (SIC 7372-7375, 8731-8734). (SIC 7374 must attain minimum of $100,000 purchases), when at least 50 percent of the annual gross revenue of the business is 
generated by sales of product or 
service to an out-of-state buyer or consumer (includes the federal government); 75 percent of annual gross income results from computer services/data processing or research and development activities; and the business employs at least 10 new workers at an average salary of $35,000 for at least three years. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 252 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oregon Business 
Development Fund Business Oregon Loan Revolving loan fund to help 
businesses finance the acquisition of property, building, equipment, and working capital. Preference is given to businesses with fewer than 50 employees located in rural areas or "distressed" areas. Any non-retail business Maximum of 40 percent 
Oregon Business Development Fund participation. Maximum loan size is $750,000. The term of the loan cannot exceed the useful life of the collateral or 20 years, whichever is less. The interest rate is one point above the current yield of U.S. Treasury securities of a comparable term.  Ongoing 
Oregon Business 
Energy Facilities (BETC) Oregon 
Department of Energy (ORS 315.354) Income Tax 
Credit To encourage business 
investments in energy conservation, recycling, renewable energy resources, or less-polluting transportation fuels. Trade, business, or rental property 
owners who pay taxes for a business site in Oregon are eligible for the credit. The business, its partners, or its shareholders may use the credit. The applicant must own or be the contract buyer of the project. The business must use the equipment for the project or lease it for use at another site in Oregon The tax credit is 35 percent 
of the eligible project costs, to be taken over five years: 10 percent in the first and second years and 5 percent each year thereafter. Eligible project costs of $20,000 or less are entitled to the tax credit in one year, but the credit is not refundable and cannot exceed tax liability. Certain facilities using or producing renewable energy resources are allowed credit 
of 50 percent of eligible 
project costs, to be claimed at 10 percent each year for five years. Total cost of the program in 2009 was $71.9 million. Sunset: 
1 January 2017  
  G/SCM/N/253/USA  
 
- 253 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oregon Business 
Retention Services Business Oregon  Business 
assistance The Oregon Business Retention 
Service (OBRS) is a statewide service contract for private consultants to assist Oregon businesses that either are having financial problems or are going through difficult transitions with growth, market shifts, or an ownership change. In addition, OBRS has provided partial funding for feasibility studies of potential employee buyouts, and partial funding for studies that 
examine the feasibility of 
reopening closed industrial facilities.  Any non-retail business.  Participating businesses 
receive up to $4,000, or approximately 40 hours, of management counsel. The applicant for a feasibility study of a closed industrial facility must provide 25 percent of the cost of the study in a cash match. The department's contribution, which is in grant form, cannot exceed $30,000. Ongoing 
Oregon Greenlight 
Labor Rebate The Governor's 
Office of Film & Television Development Cash rebate To encourage business 
development within the state. Eligible productions for film or 
television Offers qualifying 
productions additional cash payments derived from 6.2 percent of wages paid to production personnel. Ongoing 
Oregon Long-term 
rural enterprise zone facility credit Business 
Oregon/Governor's Office & Department of Revenue Corporate 
Excise/Income Tax Credit Spur major industrial 
investments in rural areas of the state with highest rates of unemployment.  Any corporation that owns a facility 
exempt from property taxes under sister enterprise zone program. Credit equal to 62.5 percent 
of facility's gross payroll over period of 5 to 15 years. Credit may only be used to offset taxes in excess of minimum tax payment, up to $1 million in any one year, and apportioned to the facility. Sunset: 
30 June 2025 
Oregon Long-term 
rural enterprise zone facility exemption Local/tribal 
governments, Department of Revenue & Business Oregon Property tax 
abatement Further help spur major industrial 
investments in rural areas of the state with highest rates of unemployment.  Any facility meeting special criteria 
in rural zone and inside county with chronic unemployment or lower income, any type of business. The incentive is 7 to 
15 consecutive years of full relief from assessment of all local property taxes on new facility property. Local 
approval/agreement is 
mandatory. Sunset: 
30 June 2025 
Oregon Oregon 
Investment Advantage Business Oregon & 
Department of Revenue Income tax 
reduction To encourage new business 
development in relatively worse-off counties in the state, of which there are currently 22 of 36 that are eligible. Inside an eligible county, any type 
of business that is also in a small city or any industrial operations elsewhere in county. For 10 years facility may be 
certified and the income attributable to it exempt from state taxable income. Ongoing  
  G/SCM/N/253/USA  
 
- 254 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Oregon Oregon 
Production Investment Fund The Governor's 
Office of Film & Television Development Cash rebate To encourage film industry 
activity in the state. Eligible productions for film or 
television. Rebates 10 percent of 
Oregon based production expenses (including labor). Ongoing 
Oregon Qualified 
Research 
Activities Credit Department of 
Revenue (ORS 
317.152 to 317.154) Corporate 
Excise/Income 
Tax Credit To encourage qualified research 
and basic research conducted in 
Oregon. Any corporation undertaking 
qualified research or paying for 
basic research in Oregon. Tax credit is 5 percent of 
eligible annual expenses in 
excess of base amount consistent with U.S. IRC §41, up to $2 million per year. Sunset: 
1 January 
2018 
Oregon Standard 
enterprise zone exemption Local/tribal 
governments, Department of Revenue & Business Oregon Property tax 
abatement Create new jobs by encouraging 
business investment in economically lagging areas of the state.  Any non-retail business in any of 
59 or more enterprise zone designations found throughout the state Increased hiring entitles a 
business to 100-percent abatement on qualified, new plant & equipment. Exemptions last from three to five years, depending on local approval/criteria. Sunset: 
30 June 2025 
Oregon Strategic 
Investment Program Local/tribal 
governments, Department of Revenue & Business Oregon Property tax 
abatement To incentivize major, highly 
capital-intensive investments in Oregon  Any non-retail business.  Exemption from property 
tax on new investment in excess of taxable portion. Portion equals real market value of $25 million in rural areas, $100 million in rural areas. Business must pay community service fee equal to 25 percent of annual tax savings up to $500,000 in rural areas, $2 million in urban areas. Local additional requirements commonly apply.  Ongoing 
Oregon Water transit 
vessel manufacturing
 Department of Revenue (ORS 315.315) Income Tax 
Credit  To encourage new hiring in the 
Oregon ferry-building industry Water vessel manufacturer s Lesser of $5,000 or 
15 percent of wages for new hires in making eligible/licensable vessels with capacity for 50 or more passengers. Expired: 
1 January 2012  
  G/SCM/N/253/USA  
 
- 255 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Pennsylvania  Alternative Fuels Incentive Grants Act 178 Grants Create new markets for biofuels 
in Pennsylvania. Qualified renewable fuel producers.
 Reimbursement of up to 
$0.05/gal of renewable fuels produced in a calendar year up to 12,500,000 gals total.
 Ongoing 
Pennsylvania  Ben Franklin 
Technology 
Development Authority (BFTDA) Technology Company Investment Program  Department of 
Community and 
Economic Development Loan Designed to address the 
financing needs of technology-
oriented businesses by providing a fund to finance investment and increase available venture capital to technology companies. Businesses that fall within 
identified SIC or NAICS codes and 
venture capital funds.  Amounts vary.  Ongoing 
Pennsylvania  Ben Franklin 
Technology Development Authority (BFTDA)-Venture Investment 
Program Department of 
Community and Economic Development Loan Investment in venture capital 
partnerships investing in early-stage PA technology companies. Businesses involved in technology 
or life sciences. Amounts vary. Ongoing 
Pennsylvania  Ben Franklin 
Technology Partners Department of 
Community and Economic Development Loan/Grant To promote technology 
development and research and development Start-up or existing companies 
which are technology oriented or involved in research and development. Range from $5,000 to 
$250,000 (varies between centers and projects). Ongoing 
Pennsylvania  Building PA-
Real estate development 
fund Community 
Financing Authority Loan To select an in vestment firm that 
will utilize funds as mezzanine capital to close on projects that 
that have been historically 
underserved in small to mid-sized communities. Focused on industrial, commercial 
and multi-use projects, the program supports the acquisition, 
development, redevelopment, and 
revitalization of communities. In addition, in order to focus capital investments in tradition ally underserved areas, 50% of the funds have been earmarked for those real estate projects located in areas other than cities of the first and second class. $300 million account - 
Building PA will provide $150 million, which will be 
matched by the private 
investors looking to facilitate projects within the state. Ongoing  
  G/SCM/N/253/USA  
 
- 256 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Pennsylvania  Business Opportunities Fund (BOF) Department of 
Community and Economic Development Loan Installment loans, lines of credit 
and technical assistance for minority busine ss enterprises, 
women-owned business enterprises and small businesses.
 Any small business may apply, but the program will give priority to small businesses requiring capital and technical assistance in order to compete for governmental and private sector contracts. This program is open to businesses located in the following counties: Adams, Allegheny, Armstrong, Beaver, Berks, Butler, Chester, Clarion, Crawford, Cumberland, Dauphin, Erie, Fayette, Franklin, Greene, Indiana, Lancaster, 
Lawrence, Lebanon, Lehigh, 
Mercer, Montgomery, Northampton, Perry, Washington, Westmoreland and York. Amounts vary. Ongoing 
Pennsylvania  Community 
Economic Development Loan Program Department of 
Community and Economic Development Loan Low-interest lo ans for projects in 
distressed communities. Land and building acquisition; building, construction and renovation; machinery and equipment acquisition and installation; working capital. For-profit small businesses 
(100 employees or less) that are located in a DCED designated distressed community, Keystone Opportunity Zones. Loans up to $100,000 or 
50% of total eligible project cost, whichever is less. 2% interest rate; Flexible terms. Ongoing 
Pennsylvania  Film Tax 
Credit Program Department of 
Community and Economic Development Tax Credit Act 55 of 2007, the Film Tax 
Credit Law authorized the issuance of $75 million in tax credits in an effort to expand the activity of film, television and other production companies in Pennsylvania. Projects eligible for tax credits 
under the program include: the production of a feature film, a television film, a television talk or game show series, a television commercial, a television pilot or each episode of a television series intended as programming for a national audience. The amount of the tax 
credit available for an eligible project is equal to 25 percent of Qualified Pennsylvania production expenses for the project. Ongoing  
  G/SCM/N/253/USA  
 
- 257 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Pennsylvania  Keystone Innovation Zone (KIZ) Department of 
Community and Economic Development Grant Provide grant funds to 
community/university partnerships to generate job growth through tech transfer and entrepreneurship. Focused around campuses and property around college and universities. Grant funds will be used for Zone coordination, strategic planning, personnel costs, hiring of consultants and administration of the Zone.  Companies located in tax zones, in 
operation less than 8 years and fall under the industry sector focus are eligible to apply for state tax credits. Partnerships may include: institution of higher education, economic development organizations, private sector businesses, business support organizations, commercial lending institutions, venture capital, and foundations. Recommended partners include: local government 
organizations and workforce 
development organizations. Zone must be geographically identified with links to institutions of higher education. Maximum for the first year 
of $250,000. Declining funding in following years, operations required without state funds after three years. Projects and companies in the KIZ are given priority reviews under various DCED Programs. Discontinued
in 2011 
Pennsylvania  Keystone Opportunity Zone (KOZ) Department of 
Community and Economic Development Tax 
Abatement/Reduction Provides state and local tax 
abatement to businesses, 
property owners and residents locating in one of the 12 designated zones as of 1 January 1999. Businesses, property owners or 
residents located in one of the 12 designated zones. Abatement of sales, 
corporate, and other taxes. 
 Ongoing 
Pennsylvania  Neighborhood 
Assistance, Enterprise Zone Tax Credit (NAP-EZP) Department of 
Community and Economic Development Tax Credit An incentive program that 
provides tax credits to private companies investing in rehabilitating, expanding, or improving buildings or land located within designated enterprise zones. Any private company with an 
investment located in an enterprise zone. Tax credits equal 25% of 
amount invested; up to $500,000 total tax credits per project; up to 35% tax credit for a priority project. Ongoing 
Pennsylvania  Pennsylvania 
Industrial Development Authority 
(PIDA) Department of 
Community and Economic Development Loan Low-interest loan financing 
through Industrial Development Corporations for land and building acquisition, construction 
and renovation, resulting in the 
creation or retention of jobs. Manufacturing; Industrial; 
Research and Development; Agricultural processors; Firms establishing a national or regional 
headquarters; Computer/clerical 
operation centers Loans up to $2 million 
(within Enterprise Zones, Act 47 Industrial Communities, Brownfield 
Sites, and Keystone 
Opportunity Zones, $2.25 million); No more than 30% to 70% of total eligible project costs, based on firm size and unemployment rate. Ongoing  
  G/SCM/N/253/USA  
 
- 258 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Pennsylvania  Second Stage Loan Program Department of 
Community and Economic Development Loan 
guarantees Loan Guarantees for working 
capital for 2-7 year old manufacturing, biotech, and technology-oriented companies. 2-7 year old manufacturing, 
biotech, and technology-oriented companies For first two years, 50% of 
outstanding principal up to $1 million; after first two years, 25% of outstanding principal amount. Ongoing 
Pennsylvania  The 
Pennsylvania Regional Center – New American Development Fund Department of 
Community and Economic Development Loans Low-cost loans to enterprises 
with job-creating projects located within the Commonwealth's federally-designated EB5 regional center. The federal EB5 investor program grants eligible foreign investors the opportunity to obtain an EB5 visa if they commit to invest funds in job-producing development projects in the United States. Funds may be used to finance new construction, the acquisition of plant, property and equipment, building rehabilitation, tenant improvements, and working capital. Creditworthy developers, 
businesses and other enterprises with projects to be located within the boundaries of Pennsylvania's federally-designated EB5 regional center. Projects must generally be located in either a rural area or an area of high unemployment or economic distress. Loans no less than 
$1,000,000; no upper limit. In general $500,000 may be borrowed for every 10 new direct or indirect jobs that the borrower can demonstrate the project will create Ongoing 
Puerto Rico Economic 
Incentives for the Development of Puerto Rico Act (Act No. 73 of 2008) Puerto Rico 
Industrial Development Company Various  Foster investment in key sector 
of economy. Businesses engaged in the 
following in Puerto Rico: Scientific research and development; Recycling; Hydroponics; Software development. • Reduced 4% income tax 
rate on Industrial income • 12% tax withholding on royalties • 0-1% income tax on Pioneer industries • Tax credits for qualified businesses such as: Manufacturing, R&D, Recycling, others • Special grants through the Special Economic Development fund Ongoing  
  G/SCM/N/253/USA  
 
- 259 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Rhode Island Enterprise 
Zones Rhode Island 
Economic Development Corporation Tax Credit A certified business facility within 
an area designated by the Enterprise Zone Council may qualify for several incentives to expand facilities  and employment 
in these areas. The State of Rhode Island has 
designated eleven Enterprise Zones. These zones include parts of Bristol, Central Falls, Cranston, Cumberland, East Providence, Lincoln, Pawtucket, Portsmouth, Providence, Tiverton, Warren, Woonsocket, and West Warwick. Federal enterprise zones or enterprise communities qualify for all benefits afforded state enterprise zones as of 1 July 1998.
 Incentives to employ enterprise zone residents: A tax credit is allowed for qualified enterprise zone businesses for employing persons domiciled in an enterprise zone. Firms qualifying for enterprise zone tax credits by increasing total company employment by 5 percent within an . enterprise zone may take a credit equal to 
75 percent of the total 
wages paid to enterprise job employees living in an enterprise zone with a maximum credit up to $5,000 per enterprise zone resident new hire. A credit of 50 percent of the total wages for on-enterprise zone employees is available up to $2,500 per new hire. Ongoing 
Rhode 
Island Rhode Island 
Employer's Apprenticeship Tax Credit Rhode Island 
Economic Development Corporation Tax Credit To promote growth in the metal 
and plastic industries. The credit applies to the following 
trades in the metal and plastic industries: machinist, toolmaker, modelmaker, gage maker, 
patternmaker, plastic process 
technician, tool & machine setter, diesinker, moldmaker, tool & die maker, machine tool repair. The annual credit allowed is 
50 percent of the actual wages paid to the qualifying apprentice or $4,800, 
whichever is less. Ongoing  
  G/SCM/N/253/USA  
 
- 260 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Rhode Island Film and 
Television Tax Credit The Rhode Island 
Film & Television Office Tax Credit Promote the production of 
feature length films in Rhode Island distributed to a national audience. Film Industry 25 percent motion picture 
company transferable tax credit for all Rhode Island spending. It also includes salaries for people working on the ground in state. Capped up to $5 million that can be carried forward no more than three years, but can be waived with approval. No more than $15 million in credits can be obligated in one calendar 
year. 
Ongoing 
Rhode 
Island Innovation 
Tax Credit Rhode Island 
Economic Development Corporation Tax Credit To encourage investment in 
high-growth, high-wage innovation industries To be eligible to apply for the 
credit, a company must have annual gross revenues of less than $1 million in the prior two calendar years and must be categorized as one of the following innovation industries: Biotechnology and Life Sciences; 
Communication and Information Technology; Financial Services; Marine and Defense Manufacturing; Professional, Technical and Educational Services; Industri al and Consumer 
Product Manufacturing and Design.
 The Rhode Island 
Innovation Tax Credit offers up to a 50% credit on qualified capital investments, with a maximum credit of $100,000. Ongoing; 
Expires 31 December
 
2016 
Rhode Island Job Creation 
Guaranty Program Rhode Island 
Economic Development Corporation Loan Guarantee
 To encourage the creation of 
high-paying, full-time jobs Loan guarantees by private lenders 
or guarantees of certain bond obligations are allowed for the benefit of businesses in primarily technology and innovation-driven industies. Permanently created jobs must be full-t ime, at least 30 
hours per week with industry comparable benefits, and have earnings of more than 250 percent of the state minimum wage. May not exceed $10 million 
per project. 
Ongoing  
  G/SCM/N/253/USA  
 
- 261 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
South Carolina Employee 
Wage and Supplier Rebate South Carolina 
Department of Parks, Recreation & Tourism - Film Commission Cash rebate Promote the production of 
feature length films in South Carolina. Film Industry Rebate equal to 15% of 
employee wages or up to a 15% of supplier expenditures if they spend at least $1,000,000 in the state. Ongoing 
South 
Carolina Renewable 
Fuels Processing Facilities Tax Credits SC State Energy 
Office Tax Credit Credit for commercial processing 
facility for re newable fuels. Commercial facilities, placed in 
service after 2006, that process certain renewable fuels, including ethanol and biodiesel. Credit against income tax 
equal to 25% of the cost of constructing and equipping the facility, to be taken in 7 equal annual installments. Credit is 
repealed for facilities placed in service after 2019. 
South Carolina Renewable 
Fuels Distribution Facilities Tax Credits SC State Energy 
Office Tax Credit Credit for commercial distribution 
facility for re newable fuels. Commercial facilities, placed in 
service after 2006, that distribute 
or dispense certain renewable fuels, including ethanol and biodiesel. Credit against income tax 
equal to 25% of the cost of purchasing, constructing and installing property that is used directly and exclusively for distributing, dispensing or storing renewable fuel, to be taken 
in 3 equal annual 
installments. Credit is 
repealed for facilities placed in service after 2019. 
South Carolina Motion Picture 
Production Facility Credit South Carolina 
Department of Parks, Recreation & Tourism - Film Commission Tax Credit Promote the production of 
feature length films in South Carolina. Film Industry Income tax credit equal to 
20% of the investment in a company that constructs, converts or equips a motion picture production or post-production facility. For a production facility, the company must spend at least $2 million, excluding land costs, and for a post-production facility, the company must spend at least $1 million, excluding 
land costs. Limited to 
$5 million for all years and cannot exceed 50% of tax liability. Ongoing  
  G/SCM/N/253/USA  
 
- 262 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
South Carolina Motion Picture 
Project Credit 
 South Carolina Department of Parks, Recreation & Tourism - Film Commission Tax Credit Promote the production of 
feature length films in South Carolina. Film Industry  Income tax credit equal to 
20% of the cash investment in a company that develops or produces a qualified SC motion picture project. At least $250,00 in costs must be incurred in SC and at least 20% of filming days of principal photography, but not less than 10 days of filming, must be done in SC. Limited to $100,000 for all years and cannot exceed 
50% of tax liability. Ongoing 
South 
Carolina Port Volume 
Credit SC Coordinating 
Council for Economic Development Tax Credit To promote the use of the port 
facilities. A company which is engaged in 
manufacturing, warehousing or distribution, which uses port facilities in SC and which increases its port cargo volume at these facilities by a minimum of 5% in a calendar year or  A distribution facility that commits to spending at least $40 million and creating at least 100 new jobs The amount and type of the 
credit is determined by the SC Coordinating Council for Economic Development.  Ongoing 
South 
Dakota Lodging Tax 
Exemption South Dakota Film 
Office Tax exemption To promote film production 
within the state. Film Industry For both state and city tax, 
the room is exempt from tax if rented for 28 consecutive days. Ongoing 
Tennessee 25% Film 
Incentive  Tennessee 
Department of Economic and Community Development ("ECD") & Tennessee Film, 
Entertainment and 
Music Commission Cash Refund To promot e film and television 
production within the state. Production company which has 
incurred at least $200,000 in qualified Tenne ssee expenses 
producing a theatrical film or television show in Tennessee. A 25% refund calculated 
upon Qualified Tennessee Expenses that are necessary for the production of a theatrical film or television show in Tennessee. Ongoing  
  G/SCM/N/253/USA  
 
- 263 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Tennessee Carbon 
Charge Tax Credit Tennessee 
Department of Revenue  Tax Credit To promote "green energy" job 
creation and capital investment within the state. Certified green energy supply chain 
manufacturers and any campus affiliates. Any manufacturer that has made during the investment period a required capital investment in excess of $250 million in constructing, expanding, or remo deling a facility 
that is certified by the Commissioner of Revenue, Commissioner of ECD and Commissioner of TDEC, in their sole discretion, to be a facility 
engaged in manufacturing a 
product that is necessary for the production of green energy. A certified green energy 
supply chain manufacturer shall be allowed a carbon charge credit, against the sum total of franchise and excise tax liability, equal to any carbon tax levied by the Tennessee Valley Authority on a certified supply chain manufacturer's energy bill. The credit must be used to offset a certified green energy supply chain 
manufacturer's Tennessee 
franchise and excise tax liability. Any credit that can not be used during a fiscal year may be refunded to the taxpayer in the form of a cash overpayment. Ongoing  
  G/SCM/N/253/USA  
 
- 264 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Tennessee Emerging 
Industry and HQ Sales Tax Credit Tennessee 
Department of Revenue  Tax Credit To promote high-skill and high-
wage jobs in high-technology areas, emerging occupations, clean energy technology and headquarters facilities. An emerging industry is one that 
promotes high-skill, high-wage jobs in high-technology areas, emerging occupations, or clean energy technology , including, but 
not limited to clean energy technology research and development and installation, as determined by the Commissioner of Revenue and the Commissioner of Department of Economic and Community Development (ECD). Qualified Headquarters Facility 
means a headquarters facility 
where the taxpayer is making a minimum investment of $50 million in a building or buildings, newly constructed, expanded or remodeled during the investment period not to exceed six years or $10 million and the creation of 100 new full-time jobs paying at least 150% of Tennessee's average occupational wage during the investment period.  Tennessee law makes a 
sales and use tax credit available to taxpayers that establish a qualified facility to support an emerging industry in Tennessee. The credit is equal to the amount of sales and use tax paid to Tennessee, less the 0.5% that is earmarked for education, on the sale or use of qualified tangible personal property. A 
Qualified Headquarters 
facility locating in this state shall be eligible for a credit of all state sales and use tax paid on qualified tangible personal property except tax at the rate of 0.5% on qualified tangible personal property.  Ongoing 
Tennessee Enhanced 
Rural Jobs Tax Credit Tennessee 
Department of Revenue  Tax Credit To promote job creation and 
capital investment within the rural areas of the state. Eligible business enterprises 
including, but not limited to: manufacturing operations, call 
centers, warehouse and 
distribution facilities, headquarter operations, data centers. Credit is $4,500 per new full 
time job for Tier 2 & 3 economically distressed 
counties. The credit is 
applied against the total of both franchise and excise tax liability. The offset amount is 100 percent. Credit is taken annually for 3 years for a Tier 2 community and taken for 5 years for a Tier 3 community. There is no carry forward provision. Ongoing  
  G/SCM/N/253/USA  
 
- 265 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Tennessee Green Energy 
Tax Credit Tennessee 
Department of Revenue  Tax Credit To promote "green energy" job 
creation and capital investment within the state. Certified green energy supply chain 
manufacturers. Any manufacturer that has made during the investment period a required capital investment in excess of $250 million in constructing, expanding, or remo deling a facility 
that is certified by the Commissioner of Revenue, Commissioner of ECD and Commissioner of TDEC, in their sole discretion, to be a facility engaged in manufacturing a 
product that is necessary for the 
production of green energy. The Green Energy Tax 
Credit is equal to the amount by which the charge for electricity sold to the certified green energy supply chain manufacturer exceeds the charge that would have been made for such total delivered electricity if the maximum certified rate had been applied during the applicable tax year. The 
Maximum Certified Rate 
means a rate expressed as a price per kilowatt hour established by private letter 
ruling by the Commissioner of Revenue, subject to approval by the Commissioner of ECD and the Commissioner of Finance & Administration. Ongoing  
  G/SCM/N/253/USA  
 
- 266 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Tennessee Headquarters 
Relocation Credit Tennessee 
Department of Revenue  Tax credit - 
potential cash refund if no franchise and excise tax liability To promote the relocation of 
headquarter operations to Tennessee. Qualified headquarters operations 
relocating employees to Tennessee
 The State of Tennessee allows a credit against a taxpayer's franchise and excise tax liability equal to any qualified headquarters facility relocation expenses incurred by the taxpayer during the investment period for establishing a qualified headquarters facility provided the taxpayer creates at least 100 net new full-time jobs paying 150% 
of the average occupational 
wage. The company must file
 
and receive approval of a Qualified Headquarters Business Plan by the Commissioner of Revenue before taking this credit. Relocation Expense Credits that exceed the company's combined franchise and excise liability will be refunded to the company as an overpayment. Qualified Headquarters Facility means a headquarters facility where
 
the taxpayer is making a minimum investment of $50 million in a building or buildings, newly constructed,
 
expanded or remodeled during the investment period not to exceed six (6) years 
or $10 million and the 
creation of 100 new full-time jobs paying at least 150% of Tennessee's average occupational wage during the
 
investment period.  Ongoing  
  G/SCM/N/253/USA  
 
- 267 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Tennessee Integrated 
Supplier Credit Tennessee 
Department of Revenue  Tax Credit To encourage manufacturers to 
invest in and locate their facilities in Tennessee and to facilitate the co-location of integrated suppliers on or near a manufacturer's facility. An integrated supplier is a supplier 
located within the footprint of a project site, as determined by the Commissioner of Economic and Community Development and the Commissioner of Revenue, which provides goods and services on the project site solely for the qualified manufacturer. This new tax credit will 
provide integrated suppliers that locate within a qualified manufacturer's footprint with a one time super job tax credit equal to $5,000 per net new fulltime occupational wage job to offset one-third of the integrated supplier's total franchise and excise tax liability with a fifteen (15) year 
carry-forward plus an 
additional $5,000 per job annual credit each year for six (6) years to offset 100% of the integrated supplier's total franchise and excise tax liability with no carry forward. Ongoing 
Tennessee Jobs Tax 
Credit Tennessee 
Department of Revenue  Tax Credit To promote job creation and 
capital investment within the state. Eligible business enterprises 
including, but not limited to: manufacturing operations, call centers, warehouse and distribution facilities, headquarter operations, data centers Credit is $4,500 per new full 
time job for companies locating in a Non-Enhancement County or Tier 1 Enhancement County; $4,500 per new full time job for Tier 2 and 
Tier 3 Enhancement 
Counties in addition to the Enhanced Rural Job Tax Credit previously described. The credit may offset up to 50% of the total franchise and excise tax liability. Credit may be carried forward for up to 15 years. Ongoing  
  G/SCM/N/253/USA  
 
- 268 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Tennessee Super Job Tax 
Credit Tennessee 
Department of Revenue  Tax Credit To promote job creation and 
capital investment within the state. Eligible business enterprises, 
including but not limited to: manufacturing operations, call centers, warehouse and distribution facilities, headquarter operations, data centers A job tax super credit of 
$5,000 per job for taxpayers investing $10 million in a qualified headquarters facility and creating 100 new full time headquarters positions paying 150% of the state's average occupational wage as well as taxpayers investing in excess of $100 million in a qualified business enterprise creating 
100 or more net new full-
time jobs paying at least 100% of the average occupational wage in the state. This super credit may be used to offset up to 100% of a taxpayer's Tennessee Franchise and Excise Tax liability annually for 3 to 20 years depending on the level of investment and job creation. The super credit is clai med beginning 
with the first tax year after the investment and job creation thresholds have been met. The super credit is taken annually and does not have a carry forward provision. Ongoing  
  G/SCM/N/253/USA  
 
- 269 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Tennessee Industrial 
Machinery Tax Credit Tennessee 
Department of Revenue Tax Credit To promote job creation and 
capital investment within the state. Eligible business enterprises, 
including but not limited to: manufacturing operations, call centers, warehouse and distribution facilities, headquarter operations, data centers Credit of 1%-10% that may 
be used to offset up to 50% of the company's franchise and excise tax liability, for the purchase, installation and repair of qualified industrial machinery for manufacturing operations, call centers, warehouse and distribution facilities, headquarter operations, data centers. Any unused Industrial Machinery Tax 
Credit may be carried 
forward for up to 15 years.   
Texas Ethanol and 
Biodiesel Tax Exemption TX Tax Code Sec 
162.001, 162.204 Tax Exemption Exemption from fuel tax on diesel 
fuel blended with ethanol or biodiesel, as provided under TX tax code section 162.204(9). Diesel suppliers and distributors. Exemption is only for the 
portion of ethanol or biodiesel that is blended into the diesel fuel otherwise subject to fuel tax of $0.20/gal. Ongoing 
since 2004. 
Texas Defense 
Economic Readjustment Zone Program
 Office of the Governor Tax Incentives The Defense Economic 
Readjustment Zone Program (DERZ) was establ ished as a tool 
for business recruitment and job creation in adversely impacted defense dependent communities. It is designed to provide assistance to Texas communities, businesses and former defense 
workers. Designated readjustment projects 
are eligible to apply for state sales and use tax refund on qualified expenditures. A community must nominate and receive designation as a Defense Economic Readjustment Zone and provide specific local incentives in the zone. The projects are eligible for 
a sales and use tax refund paid on qualifying items and the number of jobs created/retained at the site. The project would be eligible for a refund based upon $2,500 per new job created with a maximum of $1,250,000. The number of jobs eligible for a refund cannot to exceed 500 or a number equal to 110 percent of the projected jobs, whichever is less. Ongoing  
  G/SCM/N/253/USA  
 
- 270 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Texas Economic 
Development Refund Comptroller of 
Public Accounts Tax refund Refund of state franchise and 
sales/use taxes paid to the State of Texas by companies owning certain abated property.  A company who meets the 
following three conditions may apply for a refund: (1) Paid property taxes to a school district on property that is located in a reinvestment zo ne established 
under Chapter 312. (2) Is exempt in whole or in part from property tax imposed by a city or county under a tax abatement agreement established under Chapter 312. (3) Is not in a tax abatement agreement with a school district.  The refund is equal to the 
amount of property taxes that would have been paid had the company entered into a school district abatement agreement with terms identical to the city or county abatement agreement, not to exceed the net state sales and use taxes and state franchise taxes paid or collected and remitted during that 
calendar year. The refund 
amount may also be limited by a statewide appropriation per year for this refund program. Ongoing 
Texas Enterprise 
Zone Program  Office of the Governor Tax Refund The Enterprise Zone program 
provides communities with an economic development tool in partnerships with the state that can offer state and local incentives. The program priority is to new or expanding businesses bringing new jobs and capital investment into the community. An area is 
designated an enterprise zone if 
the Census Block Group has at least 20 percent of the population in poverty according to the most recent decennial U.S. Census. A business making at least 
$40,000 capital investment into a community may be nominated by the local governmental jurisdiction to the state for enterprise project status. In return for hiring a percentage of new employees that are economically disadvantaged, or enterprise zone residents, the businesses become 
eligible for a refund of state sales 
and use taxes paid on certain items used at the qualified business site. Enterprise projects are 
eligible for a refund of state sales or use taxes paid on items used at the qualified business site. The amount reimbursed is based on the capital investment connected to the project and the number of jobs created/retained at the site. 
The project would be 
eligible for a refund of state sales and use taxes paid of up to $7,500 per new job created up to a maximum of $3.75 million. The number of jobs eligible for a refund cannot exceed 500.  Ongoing  
  G/SCM/N/253/USA  
 
- 271 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Texas Freeport 
Exemption Texas Communities Tax Incentive A community may choose to offer 
the Freeport Exemption for various types of goods that are detained in Texas for a short period of time. Freeport property qualifies for an exemption from ad valorem taxation only if it has been detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabricating. New or existing business. 100 percent of the taxes 
that would be due are exempted. Ongoing 
Texas Economic 
Development Act – Chapter 313 (HB 1200) Local Independent 
School Districts Tax Limitation 
on Appraised Values 
The Economic Development Act is 
designed to encourage large-scale capital investments, especially in school districts that have a less than average ad valorem tax base. Additionally, the incentive looks to aid smaller metropolitan and more rural communities in attracting larger capital investments and new, high-paying jobs. Manufacturing, R&D, or renewable 
energy businesses subject to franchise taxation expanding or relocating in a community. The bill works by capping 
the appraised value of capital investments that qualify based on a sliding scale tied to the total property wealth of the school district where the investment is made. The scale ranges from a cap of $100 million for school districts with tax bases exceeding $10 billion to a cap of $1 million for school districts with tax bases under $100 thousand. Ongoing 
Texas Lodging and 
Fuel Tax Exemption Texas film 
Commission Tax exemption To promote commercial film 
production. Film Industry On hotel rooms occupied for 
more than 30 consecutive days, Texas's 6 percent state occupancy tax is waived; fuel tax that was paid for fuel used in off-road (as in generators or boats) may be refunded. Ongoing  
  G/SCM/N/253/USA  
 
- 272 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Texas Moving Image 
Industry Incentive Program Texas Film 
Commission Grant In 2007, the 81st Texas 
Legislature enacted House Bill 1634 establishing the Moving Image Industry Incentive Program. Under the legislation, grants to promote industry growth in Texas can be made to applicant production companies. The incentive is available in the form of a production grant equal to 5% of in-state spending, including wages paid to Texas residents. Grants are available 
upon project completion to 
features, television programs, television commercials and video games. Both live action and animated projects are eligible. Specific incentive enhancements related to under-used areas are provided. Film, TV and video production 
companies. Available for review at the Texas Film Commission's website are the specific eligibility qualifications for projects including investment thresholds, employment requirements and content.  The maximum grant 
amounts available after 1 September 2007 are: $2 million for features; $2.5 million for television programs (for episodic series, $2.5 million per season); $200,000 for a commercial, series of commercials or music videos; and $250,000 for video games.  Ongoing 
Texas Product 
Development Fund & Small Business Incubator Fund Office of the 
Governor Loan The Product Development and 
Small Business Incubator Funds have a total of $45 million in bonding authority. The program will support, through financing, the development of small businesses or eligible products 
with a statutory preference to be 
given in the advanced technology areas of semiconductor, nanotechnology, biotechnology and biomedicine. Small businesses or eligible 
products with a statutory preference to be given in the areas of semiconductor, nanotechnology, biotechnology and biomedicine. The Product Development 
and Small Business Incubator Funds have a total of $45 million in bonding authority.  Ongoing  
  G/SCM/N/253/USA  
 
- 273 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Texas Property Tax 
Abatement Texas Comptroller 
of Public Accounts Tax Abatement 
/ Reduction Encourage investment in 
designated areas. Companies located in reinvestment 
zones statewide. Designation of a 
reinvestment zone may be for five-year, renewable periods. Tax abatement agreements have a maximum term of 10 years and provide for the exemption of real property and tangible personal property located on the real property. Only the increased value of the property may be exempted.  Ongoing 
Texas Sales and 
Local Tax Exemption Texas Film 
Commission Tax exemption To promote commercial film 
production. Film Industry Filmmakers are exempt 
from 100 percent of state and local sales taxes on most items and services bought or rented for direct use in production. Ongoing  
  G/SCM/N/253/USA  
 
- 274 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Texas State Sales & 
Use Tax Exemptions - Manufacturing Machinery and Equipment Texas Comptroller 
of Public Accounts Tax Incentives Encourage new businesses and 
expansion of existing businesses. Texas businesses are exempt from paying state sales and use taxes on manufacturing machinery and equipment. Leased or purchased machinery, equipment, replacement parts and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating or 
repairing of tangible personal 
property for ultimate sale, are exempt from state and local sales and use tax. Businesses are exempt from paying state sales and use tax on the purchase of machinery exclusively used in processing, packing or marketing agricultural products by the original producer at the location operated by the original producer. New or expanding business. 100 percent of the taxes 
that would be due are exempted. Ongoing 
Texas Tax Increment 
Financing Office of Attorney 
General Loan The Tax Increment Financing Act 
gives authority to municipalities to designate reinvestment zones 
for the purpose of providing for 
tax increment financing of project costs for public works or public improvements in the zone. This also includes other costs such as on-going administrative and operating costs. A community that has a 
geographic area known as a reinvestment zone. Businesses 
benefiting from the incentives must 
be located within the zone. A municipality may designate an area as a reinvestment zone.  A municipality creating a 
reinvestment zone may issue tax increment bonds 
or notes, the proceeds of 
which may be used to pay project costs. Tax increment bonds and notes are payable, as to both principal and interest, solely from a tax increment fund established for a reinvestment zone. Ongoing  
  G/SCM/N/253/USA  
 
- 275 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Texas Texas 
Leverage Fund  Office of the 
Governor Loan This allows cities to leverage 
their economic development sales tax and to pursue additional projects. A city that has passed the 
Economic Development Sales Tax. The Texas Leverage Fund is an added source of financing to communities that have passed the Economic Development Sales Tax. Funds are loaned directly to a local Industrial Development Corporation (IDC) to finance eligible projects. Sales tax revenues pledged by the IDC need only be sufficient to cover projected annual debt service as 
specified in the program 
guidelines.  A community may borrow 
4 - 5 times the amount of the city's tax revenues during the term of the loan, up to a maximum of $5 million. Ongoing 
Texas The Emerging 
Technology Fund Office of the 
Governor Grant The Texas Emerging Technology 
Fund provides early-stage businesses with financing to assist in the commercialization of their product. It also assists universities with financing to acquire top research talent to their institutions. To businesses who want financial 
assistance with the commercialization of their technology and to universities who need financing for their research efforts. Recipients of the grants and 
amounts awarded are decided on a case-by-case basis by state government leadership: the Governor, Lt. Governor and Speaker of the House. Ongoing  
Texas Wind and 
Solar Energy Tax Exemptions and Deductions State Energy 
Conservation Office Tax exemptions 
and deductions Wind and Solar Energy Tax 
Exemptions and Deductions Tax Code Section 171.056 extends a franchise tax exemption to manufacturers, sellers, or installers of solar energy devices. The state also permits a corporate deduction from the state's franchise tax for renewable energy sources. Business owners may deduct the cost of the system from the company's taxable capital or deduct 10% from the company's income. Wind energy qualifies under the term, solar energy, for the exemption and deduction under Sections 171.056 and 171.107. Manufacturers, seller s, or installers 
of solar energy devices. Franchise tax amounts 
exempted or deducted. Ongoing  
  G/SCM/N/253/USA  
 
- 276 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Texas Product/Busin
ess Fund The Office of the 
Governor, Texas Economic Development Bank  Loan The Texas Product/Business Fund 
provides financing to existing technology-focused companies that create products or do business within the state. Funding preferences will be given 
to emerging technologies including semiconductors, nanotechnology, 
biotechnology and biomedicine, renewable energy, agriculture and aerospace. Loans up to 80% of the 
value of the pledged asset. 
Ongoing 
Utah EDTIF Tax 
Credit (UCA 63M-1-2401) Governor's Office of 
Economic Development (GOED)  Tax Credit A post-performance refundable 
income tax credit for business relocation and expansion. Medium to large businesses. Must 
be an existing bu siness preferably 
in a targeted industry and be creating at least 50 new jobs over the life of the project. The company must demonstrate stability and profitability. Maximum rebate of up to 30 percent of new state taxes over the life of the project on a post-performance basis; no more than 50 percent rebate in one year; new jobs created must pay at least 125 percent above the county average wages within the urban area and for rural areas 100 percent of county average wages must be paid. Local incentive participation is required. Must demonstrate competition with other locations. The tax credit can be up to 
30% of new state revenues over the life of the project. Typical project length is 5-10 years. The percentage and duration is set by the GOED Board. 
Ongoing 
Utah Industrial 
Assistance Fund Governor's Office of 
Economic Development Grant  A post-performance grant for the 
creation of high-paying jobs in the state. Medium to large businesses. Must 
be an existing bu siness preferably 
in a targeted industry and be creating at least 50 new jobs. Salaries must be at least 125% of the county average wage. The company must demonstrate stability and profitability. There must be a secure commitment from the local entity to provide a local incentive. The range of this incentive 
is determined by the GOED Board. 
Ongoing, 
subject to 
legislative 
appropriation 
  G/SCM/N/253/USA  
 
- 277 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Utah REDI Tax 
Credit (UCA 63M-1-2803) Governor's Office of 
Economic Development (GOED)  Tax Credit A post-performance refundable 
income tax credit for business and industry expansion. Must be in the solar, wind 
geothermal, biomass, hydroelectric, petroleum coke, shale oil, nuclear fuel, tar sands, or oil-impregnated diatomaceous earth industry. Incentive is for the direct manufacturing of said industry, related products, or utility scale generation in said industry. Project must create new jobs. The company must demonstrate stability and profitability. New jobs created 
must pay at least 125 percent 
above the county average wages within the urban area and for rural areas 100 percent of county wages must be paid.  The tax credit can be up to 
100% of new state revenues over the life of the project on a post-performance basis. Typical project length is 5-10 years. The percentage and duration is set by the GOED Board. Ongoing 
Utah Motion Picture 
Incentive Fund (UCA 63M-1-1801) Governor's Office of 
Economic Development/Utah Film Commission Cash Grant/Tax 
Credit To encourage film and digital 
media production within state. Film Industry/Digital Media 
Industry Film productions can receive 
up to a 20% refundable income tax credit (or up to $500,000 post performance cash grant) based on spending in Utah. A film production that highlights the State of Utah, and/or other criteria to be determined, may be eligible 
to receive up to 5% in 
addition to the 20%. Digital Media productions can receive up to a 20% refundable income tax credit on new state revenue generated by the project.  
Ongoing. 
Subject to legislative ta
x
credit and 
cash rebate 
appropriation 
  G/SCM/N/253/USA  
 
- 278 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Utah Recycling 
Market Development Zone (UCA 63M-1-1101) Governor's Office of 
Economic Development Tax Credit To promote waste diversion and 
the manufacturing of products with recycled materials. Eligible individuals and businesses 
operating in Recycling Market Development Zones. 5 percent state tax credit on 
machinery and equipment; 20 percent state credit on the first $10,000 of expenditures (up to $2,000) on eligible operating costs; technical assistance from economic development specialists; and other local incentives. Ongoing 
Utah Rural Fast 
Track Program (UCA 63M-1-904) Governor's Office of 
Economic Development Grant  A post-performance grant 
available to small companies in rural Utah. The company must be located in 
an eligible county, have been in business for at le ast 2 years and 
have at least 2 full-time employees. Funds are disbursed as 
follows: $1,000 for each new incremental job paying 110 percent of the county's average annual wage; $1,250 for each new job paying 115 percent of the county's average annual wage; $1,500 for each new incremental job paying 125 percent of the county's average annual wage. 
Ongoing, 
subject to 
legislative 
appropriation
Utah Sales and Use 
Tax Exemption Governor's Office of 
Economic Development/Utah Film Commission Tax exemption To attract business and 
investment to state. Film Industry Allows film, television and 
video production to take sales tax exemption at the point of sale on machinery and equipment. This exemption does not apply for still photography. Ongoing 
Utah Transient 
Room Tax Rebate Governor's Office of 
Economic Development/Utah Film Commission Tax rebate Rebate to encourage film 
production within state. Film Industry Accommodation charges for 
stays of 30 consecutive days or longer are not subject to sales and use tax and all sales-related taxes. Ongoing 
Utah Utah 
Enterprise Zone Program (UCA 63M-1-401) Governor's Office of 
Economic Development Tax Credit The Utah Enterprise Zone 
Program was established in 1988. An enterprise zone comprises an area identified by local elected and economic development officials and designated by the state. Application for designation must be 
made by a city with 10,000 or less population located in a county with 50,000 or less population or an Indian Tribe for tribal lands. Applications will be reviewed and approved on the basis of economic development need. Income tax credits may be 
claimed by eligible businesses locating or expanding employment and investments in enterprise zones. Ongoing  
  G/SCM/N/253/USA  
 
- 279 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Utah Sales and Use 
Tax Exemption (59-12-104(44)) Tax Commission Tax exemption To attract businesses and 
investment to the state. Semiconductor Industry  Sales or leases of 
semiconductor fabricating, processing, research, or development materials are exempt from sales and use tax. Ongoing 
Utah Sales and Use 
Tax Exemption (59-12-104(55)) Tax Commission Tax exemption To attract businesses and 
investment to the state. Renewable Energy Production 
Facility Leases or purchases of 
machinery or equipment that has an economic life of five or more years that will be used to create or expand the operations of a renewable energy production facility are exempt from sales and use tax. Ends 
30 June 2019. 
Utah Sales and Use 
Tax Exemption (59-12-
104(56)) Tax Commission Tax exemption To attract businesses and 
investment to the state. Waste Energy Production Facility Leases or purchases of 
machinery or equipment that has an economic life of five or more years that will 
be used to create or expand 
the operations of a waste energy production facility are exempt from sales and use tax. Ends 
30 June 2019. 
Utah Sales and Use 
Tax Exemption (59-12-104(57)) Tax Commission Tax exemption To attract businesses and 
investment to the state. Facility that Produces Energy from 
Biomass Fuel Leases or purchases of 
machinery or equipment that has an economic life of five or more years that will be used to create or expand the operations of a facility that produces energy from biomass fuel are exempt from sales and use tax. Ends 
30 June 2019. 
Utah Sales and Use 
Tax Exemption (59-12-104(62)) Tax Commission Tax exemption To encourage research and 
development of coal-to-liquids, oil shale, or tar sands technology within the state. Oil Industry Purchases of tangible 
personal property that are used in the research and development of coal-to-liquids, oil shale, or tar sands technology are exempt from sales and use tax. Ongoing  
  G/SCM/N/253/USA  
 
- 280 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Utah Sales and Use 
Tax Exemption (59-12-104(70)) Tax Commission Tax exemption To attract businesses and 
investment to the state. Aircraft Maintenance, Repair, and 
Overhaul Providers Sales to or by an aircraft 
maintenance, repair and overhaul provider for the use in the maintenance, repair, overhaul or refurbishment in Utah of a fixed-wing, turbine-powered aircraft that is registered or licensed in a state or country outside Utah are exempt from sales and use tax. Ongoing 
Vermont Income Tax 
Limitation Vermont Film 
Commission Tax limitation To encourage business and 
investment within state. Film Industry Income tax for performers 
is limited to the amount the performer would pay in their home state. Ongoing 
Vermont Industrial 
Development Bonds: Agricultural 
Facility and 
Debt Stabilization Loans Vermont Economic 
Development Authority Loans The Vermont Economic 
Development Authority (VEDA) promotes econom ic prosperity 
and increases employment for 
Vermont businesses by providing 
low-cost capital for eligible facilities. Eligible facilities. Not available. Ongoing 
Vermont Industrial 
Development Bonds: Rural Economic Activity Loans Vermont Economic 
Development Authority Loans The Vermont Economic 
Development Authority (VEDA) promotes econom ic prosperity 
and increases employment for Vermont businesses by providing low-cost capital for eligible facilities. Eligible facilities. Not available. Ongoing 
Vermont Lodging Tax 
Exemption Vermont Film 
Commission Tax exemption To promote film industry within 
the state. Film Industry No lodging tax on hotel 
rooms for production companies after 31 days. Ongoing 
Vermont Sales and Use 
Tax Exemption Vermont Film 
Commission Tax exemption To encourage business and 
investment within state. Film Industry Sales and use tax 
exemption on goods and services purchased and used in the making of a film. Ongoing  
  G/SCM/N/253/USA  
 
- 281 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Vermont Vermont 
Employment Growth Incentive 32 VSA Section 
5930b  Cash payment Performance-based incentive 
program to encourage job creation Eligible companies Vary depending on level of 
new qualifying job and payroll creation. 
Ongoing 
Vermont Vermont Film 
Production 
Grant Program Vermont Film 
Commission Grant To attract commercial film 
production to state. Film Industry Producers spending more 
than $1 million can be 
reimbursed for 10 percent of local spending, capped at $1 million annually. Ongoing 
Virginia Enterprise 
Zone Program  Virginia Department of Housing and Community Development Cash Grant Virginia's thirty Enterprise Zones 
designed to stimulate business development in distressed urban and rural areas. Virginia's Enterprise Zone program offers several special state incentives for qualified businesses locating or expanding in a Zone. Thirty Enterprise Zones are 
authorized statewide.  (1) Real Property 
Investment Grant; (2) Job Creation Grant; (3) Job Grants. Amounts vary. Ongoing; but  
limited by 
statewide 
appropration s
Virginia Governor's 
Motion Picture Opportunity Fund Virginia Tourism 
Corporation Grant This fund is to be used, in the 
sole discretion of the Governor, to support the film and video industries in Virginia by providing the means for attracting production companies and producers who make their projects in the Commonwealth using Virginia employees, goods and services. The types of projects eligible for 
consideration will be feature films, children's programs, documentaries, television series or other television programs designed to fit a thirty-minute or longer format slot. Projects not eligible are industrial, corporate or commercial projects, education programs not intended for rebroadcast, adult films, music videos and news shows or reports. Amounts vary. 
Ongoing  
  G/SCM/N/253/USA  
 
- 282 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Virginia Governor's 
Opportunity Fund Virginia Economic 
Development Partnership Grant The Governor's Opportunity Fund 
supports industrial development projects that create new jobs and investment in accordance with criteria established by state legislation. Grant requests are made by the locality and awarded at the discretion of the Governor.
 Funds can be used for site acquisition and development; transportation access; training; construction or build-out of publicly-owned buil dings; or grants 
or loans to Industrial Development Authorities. Eligible projects must meet the following conditions: (1) A minimum private investment of $5 million and creation of at least 50 jobs. (2) In localities with above-average poverty, the minimum private investment 
requirement is $2.5 million and the 
minimum job creation requirement is 25 jobs. (3) In localities with above-average unemployment and above-average poverty, a minimum private investment requirement is $1.5 million and the minimum job creation requirement is 15 jobs. (4) Projects are expected to pay at least the local prevailing average wage or eighty-five percent of the prevailing average wage in above-average unemployment and/or above-average poverty localities.  Amounts vary. Ongoing  
  G/SCM/N/253/USA  
 
- 283 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Virginia Loan/Grant 
Program Virginia Coalfield 
Economic Development Authority Mixed The Virginia Coalfield Economic 
Development Authority (VCEDA) is designed to enhance the economic base of the seven counties and one city in southwestern Virginia (Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise counties and the City of Norton).  The loans may be used for real 
estate purchases, construction or expansion of buildings, and the purchase of machinery and equipment. To be eligible for the VCEDA loans, private businesses must be basic employers who will bring new income to the area. Priority will be given to loans requiring $10,000 or less per permanent job created, and the average minimum hourly wage should equal or exceed 1.5 times 
the current federal minimum wage 
rate at the end of one year of employment. Any project providing at least 25 jobs within 12 months of start-up will be given priority. The Authority provides low 
interest loans or grants to qualified new or expanding industries through its financing program. Program funding is derived from the local coal and gas road improvement tax and the natural gas severance tax. Ongoing 
Virginia Local 
Technology, Tourism and Defense Zones Localities Mixed Virginia cities, counties and 
towns have the ability to establish by ordinance, one or more zones to attract growth in targeted industries. Qualified businesses locati ng or expanding 
operations in a zone may receive local permit and user fee waivers, local tax incentives, special zoning treatment, or exemption 
from ordinances. Various industries in the 
technology, tourism and defense industries Once a local zone has been 
established, incentives may be provided for up to ten years. Each locality designs and administers its own program. Ongoing  
  G/SCM/N/253/USA  
 
- 284 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Virginia New Markets 
Tax Credit Virginia Small 
Business Financing Authority (VSBFA) Tax Credit The New Market Tax Credit 
(NMTC) program authorizes $26 billion in private investment capital to economically distressed areas through a Community Development Entity (CDE) - a privately owned, for-profit financial corporation. The goal is to improve access to capital in distressed areas. Investors invest in a professionally managed CDE, and the CDE invests the capital it raises in projects  in economically 
distressed areas. Investors 
receive a portion of CDE profits and the incentive of a credit against federal tax liability equal to 39% of their investment.  A CDE makes investments (equity 
investments and business loans) in qualifying businesses in qualifying census tracts. CDE loans can be approximately 100-150 basis points below comparable bank financing. NMTC funding is flexible, but it is not a grant. A candidate for NMTC 
funding is generally seeking $2 million. Ongoing 
Virginia Sales/Use and 
Property Tax Exemptions Department of 
Taxation; Localities Tax Exemption Encourage high-tech invest ment. Sales and use tax exemption for 
purchasers of production-related machinery and equipment, semiconductor clean rooms or equipment and other tangible personal property used primarily in the integrated process of designing, developing, manufacturing or testing a semiconductor product. Certain 
computer equipment used in a 
data center that meets minimum capital investment, job creation, and wage level criteria may also be exempt from sales and use tax. Localities may elect to impose reduced property tax rates on semiconductor manufacturing machinery and tools, equipment for biotechnology R&D and production, aircraft, and certain equipment used in a data center. Amount of state ales tax 
exempted at the total rate combining state and local taxes. Ongoing  
  G/SCM/N/253/USA  
 
- 285 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Virginia Green Jobs 
Tax Credit Virginia 
Department of Taxation Tax Credit For taxable years before 
1 January 2015, a taxpayer will be allowed a $500 credit against the Virginia personal or corporate income tax for each new green job created within the Commonwealth by the taxpayer. A "green job" means employment 
in industries relating to the field of renewable, alternative energies, including the manufacture and operation of products used to generate electricity and other forms of energy from alternative sources that include hydrogen and fuel cell technology, landfill gas, geothermal heatin g systems, solar 
heating systems, hydropower systems, wind systems, and biomass and biofuel systems. For 
purposes of the tax credit, the 
Bureau of Labor Statistics Green Jobs Definition is used and is defined as either: Jobs in businesses that produce goods or 
provide services that benefit the environment or conserve natural resources and/or jobs in which workers' duties involve making their establishment's production processes more environmentally friendly or use fewer natural resources. The $500 credit is available 
for all qualifying jobs paying at least $50,000. The credit will be first allowed for the taxable year in which the job has been filled for at least one year and for each of the four succeeding taxable years, provided that the job is conti nuously filled 
during the respective taxable year. Each taxpayer may claim the credit for up 
to 350 green jobs. Sunsets 
31 December
 
2014 
Virginia Virginia 
Economic 
Development 
Incentive Grant (VEDIG) Virginia Economic 
Development 
Partnership Grant Assist and encourage companies 
to invest and create new 
employment opportunities by 
locating significant headquarters, administrative or service sector operations in Virginia. Company in area with population 
of 300,000 or more that creates 
400 new full-time jobs with 
average salaries at least 50% greater than prevailing wages or 300 jobs at 100% greater than prevailing average wages, and capital investment of at least $5 million or $6,500 per job, whichever is greater. Elsewhere, company need only create 200 new full-time jobs. Amount as determined by 
the Secretary of Commerce 
and Trade based on 
financial analysis from VA Economic Development Partnership, paid in five equal annual disbursements starting in third year of completion of capital investment and job creation requirements. 
Ongoing  
  G/SCM/N/253/USA  
 
- 286 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Virginia Clean Energy 
Manufacturing Incentive Grant Virginia Economic 
Development Partnership Grant The Clean Energy Manufacturing 
Incentive Grant (CEMIG) is designed to encourage the manufacturing of equipment, systems or products used to produce clean energy, or for products used for energy conservation, storage or grid efficiency purposes. A clean energy manufacturer is 
eligible to receive a clean energy manufacturing grant under the following conditions unless waived by the Governor for a project in a distressed locality: (1) Makes a capital investment of at least $50 million in real estate and tangible personal property; (2) Creates at least 200 new full-time jobs paying at least the prevailing average wage of the locality. A wind energy supplier is eligible to 
receive a clean energy 
manufacturing grant under the following conditions: (1) Makes a capital investment of at least $10 million in real estate and tangible personal property; (2) Creates at least 30 new full-time jobs paying at least the prevailing average wage of the locality; (3) Must support a new or existing clean energy manufacturer in the wind energy industry located in Virginia. The amount of each CEMIG 
is determined by the Secretary of Commerce and Trade, based in part on the Virginia Economic Development Partnership's return on investment 
analysis and recommendation, and is subject to the approval of the Governor. CEMIG grants may be paid out over a period of up to six years 
and payment of the grant is 
likely to begin after capital investment and job creation or retention is achieved.  Ongoing  
  G/SCM/N/253/USA  
 
- 287 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Virginia Economic 
Development Loan Fund (EDLF) Virginia Small 
Business Financing Authority Loan The Virginia Economic 
Development Loan Fund facilitates capital investment in Virginia's eligible communities by providing eligible borrowers direct loans which fill the "gap" financing need not met by equity or conventional financing. Community eligibility is determined 
based on guidelines set by the federal Economic Development Administration and are generally those with an unemployment rate one percent higher than the national average for the most recent 24-month period, or that have a per capita income no greater than 80 percent of the national level. Eligible borrowers include local Industrial or Economic Development Authorities and 
businesses engage d in technology, 
biotechnology, tour ism, engine and 
vehicle manufactures for the professional motor sports industry, basic industries, manufacturing, and those businesses or entities that provide for a locality's economic and "quality of life" development.  Finance can be provided for 
up to a maximum of 40 percent of a business project or $1 million, whichever is less. Generally, loans have a 10-year maturity. Ongoing 
Washington Distressed 
Area Business and Occupational Tax Credit  Department of 
Revenue Tax Credit Under the Revised Code of 
Washington (RCW) 82.62.030 and RCW and 82.62.045 certain areas in the state are eligible for a credit against the B&O tax liability at the rate of $2,000 or 
$4,000 per new job created by 
manufacturing, research and development or computer software firms. This tax break applies to 
1) Counties: Adams, Asotin, Benton, Chelan, Clallam, Columbia, Cowlitz, Ferry, Franklin, Grant, Grays Harbor, Kittitas, Klickitat, Lewis, Mason, Okanogan, Pacific, 
Pend Oreille, Skagit, Skamania, 
Steven, Whitman and Yakima; 2) Metropolitan Statistical Area: Whatcom; and 3) Community Empowerment Zones: Bremerton, Tacoma, White Center, Yakima, Marysville, Snohomish, Sultan, Acme, Deming, Everson, Maple Falls, Sumas, Clearwater, Queets and Quilcene. Credit against the B&O tax 
liability at the rate of $2,000 or $4,000 per new job created.  Ongoing  
  G/SCM/N/253/USA  
 
- 288 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Washington Distressed 
Area Sales and Use Tax Deferral/ Exemption Program Department of 
Revenue Tax Exemption Program falls under RCW 
82.60.040 and 82.60.049 and is available for new or remodeled building and/or equipment used in manufacturing or research and development activities in rural countries or economically distressed areas.  This tax break applies to 
1) Counties: Adams, Asotin, Benton, Chelan, Clallam, Columbia, Cowlitz, Ferry, Franklin, Grant, Grays Harbor, Kittitas, Klickitat, Lewis, Mason, Okanogan, Pacific, Pend Oreille, Skagit, Skamania, Steven, Whitman and Yakima; 2) Metropolitan Statistical Area: Whatcom; and 3) Community Empowerment Zones: Bremerton, Tacoma, White Center, Yakima, Marysville, Snohomish, Sultan, 
Acme, Deming, Everson, Maple 
Falls, Sumas, Clearwater, Queets and Quilcene. Not available. Ongoing 
Washington Fishing Boat 
Fuel Department of 
Revenue Tax Exemption RCW 82.08.0298 and 
82.12.0298. Diesel fuel used by vessels engaged in commercial deep sea fishing or in the operation of commercial charter fishing boats is exempt from retail sales & use tax, if such vessels regularly operate outside of state territorial waters and if the gross income from such fishing activities is more than $5,000 per year. Vessels engaged in commercial 
deep sea fishing or in the operation of commercial charter fishing boats. Not available. Ongoing  
  G/SCM/N/253/USA  
 
- 289 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Washington High 
Technology Business and Occupation Tax Credit Program Department of 
Revenue Tax Credit The High Technology Business 
and Occupation Tax Credit Program (RCW 82.04.4452) allows high technology businesses performing research and development in Washington a business and occupation tax credit. The eligible high technology 
businesses include: advanced computing, advanced materials, biotechnology, electronic device technology and environmental technology. An annual credit of up to 
$2 million is allowed for each business that performs the required activities and meets the minimum expense requirements. The credit cannot exceed the amount of the business and occupation tax due for that calendar year. The rate for the credit is .515 percent for nonprofit corporations and associations and 
2.5 percent for profit 
businesses. Ongoing 
Washington High 
Technology Sales and Use Tax Deferral/
 
Exemption Program Department of 
Revenue Tax Exemption The High Technology Sales and 
Use Tax Deferral/Exemption Program was enacted in 1994 to stimulate growth in certain high technology industries. A sales and use tax 
deferral/exemption is allowed for research and development pilot scale manufacturing in the areas of advanced computing, advanced materials, biotechnology, electronic device technology and environmental technology. If the project is used for 
qualifying purposes for eight years, deferred taxes will be forgiven. If the project is used for non-qualifying purposes during the eight year period, taxes plus interest are due on a pro-rated basis. Even if the deferral is disallowed, no sales and use tax will be due on exempt manufacturing and 
equipment (i.e. 
Manufacturing Tax Incentive Program). Ongoing 
Washington Prototype of 
Aircraft Parts Department of 
Revenue Tax Exemption 
(retail sales & use tax exemption) Purchases of materials used to 
develop prototypes of aircraft parts are exempt from sales/use tax, if the firm that develops the prototype has taxable sales of less than $20 million annually. Further, the statute limits the maximum amount of sales tax exemption to $100,000 per firm. 
 Small manufactures of aircraft parts. The statute limits the 
maximum amount of sales tax exemption to $100,000 per firm.  Ongoing  
  G/SCM/N/253/USA  
 
- 290 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Washington Ships and 
Vessels Under Construction Department of 
Revenue Tax Exemption 
(property tax) To support state's shipyards. Vessels under construction that are 
1,000 tons or more burden upon completion. Not available. Ongoing 
Washington Small Timber 
Harvester Department of 
Revenue Tax Exemption 
(B&O) To reduce tax burden on small 
tree harvests. Small timber harvesters. Not available. Ongoing 
Washington  $50 Minimum 
Timber Tax Department of 
Revenue Timber Excise 
Tax Exemption To support smaller harvesters 
and to reduce administrative costs for harvesters and the Department of Revenue. Small timber harvesters Any timber harvester 
incurring less than $50 in timber tax liability per quarter is excused from paying the timber excise tax. Ongoing 
Washington  Washington 
State 
Competitivenes s
Program  Department of 
Revenue Rebate Supports the film industry by 
providing rebates to qualified 
companies.  Film Industry Rebate of up to 20 percent 
of in state film related 
expenditures with a 
$1 million cap per production. Administered by a not-for-profit group, Washington Film Works. Ongoing 
Washington  Sales Tax 
Exemptions Department of 
Revenue Retail sales and 
use tax exemption Provides a retail sales/use 
exemption for the rental of production services to motion picture or video production businesses. Such equipment includes video, electronic, lighting or motion picture equipment.  Film Industry Sales and use taxes off 
rental equipment and purchase of services; All taxes off vehicles used in production; Hotel/motel tax exemption with 30 consecutive day stay. Ongoing 
Washington Rural County 
Business and Occupation (B&O) Tax Credit for New Employees Department of 
Revenue Tax Credit The Rural County B&O Tax Credit 
for New Employees program provides a credit against the B&O tax for each new employment position filed and maintained by qualified businesses located in a rural county or Community Empowerment Zone (CEZ).  Businesses located in eligible rural 
county or Community Empowerment Zone.  Tax credits of either $2,000 
or $4,000 for each new qualified employment position. Ongoing 
Washington Biofuels 
Production 
Incentive (Energy Freedom Fund) HB2939 (2006) Loans and 
Grants Provides low-interest loans and 
grants for R&D of new and 
renewable energy sources, including infrastructure, facilities, technologies and research and development that will advance Washington's move towards energy independence. Public R&D institutions in 
partnership with private producers.
 Since the inception of the program, a total of 
$18 million in grants and low-interest loans have been provided to local public-private partnerships. Expires 
30 June 
2016.  
  G/SCM/N/253/USA  
 
- 291 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Washington Biofuels 
Property and Leasehold Tax Exemption  Department of 
Revenue Tax Exemption Property and leasehold tax 
exemption on investments in buildings, equipment and labor for the purpose of manufacturing biodiesel, biodie sel feedstock or 
alcohol fuel. Biofuel manufacturers. Exemption from the 
property tax for six assessment years following the date on which the facility or addition to the existing facility becomes operational. Ongoing 
Washington B&O Tax 
Credit for Biodiesel Sellers and Distributers Department of 
Revenue Tax Credit Provides a B&O tax credit for 
retailer sellers and distributers of biodiesel fuels. Retail sellers and distributers of 
biodiesel fuels. Provison of a tax credit. Ongoing 
Washington Retail and 
Sales Use Tax Exemption for Biodiesel sales
 Department of Reveune Tax Exemption Provides a retail sales and use 
tax exemption for machinery and equipment which is used directly to facilitate the retail sale of biodiesel blend or E85 motor fuel.
 Retail sale of biodiesel blends. Provision of tax exemption. Ongoing 
West Virginia  Direct Use 
Exemptions West Virginia 
Department of Tax and Revenue Tax exemptions
 To support manufacturing by 
providing tax exemptions to qualified companies. Manufacturers Purchases of equipment, 
supplies, materials and services intended for direct use or consumption in the activity of manufacturing are exempt from sales tax.  Ongoing 
West 
Virginia Lodging 
Exemptions West Virginia 
Department of Tax and Revenue Tax exemptions
 Providing tax exemptions to 
qualified long-term consumers of lodging services Consumers of lodging services Exemption from the state 
Consumers Sales and Service Tax and exemption from the local Hotel/Motel Tax on lodging stays in 
excess of 30 consecutive 
days per person at the same facility. Ongoing 
West 
Virginia Fee Free 
Location  West Virginia 
Department of Tax and Revenue Location 
discounts To encourage film production 
within the state. Film Industry Amounts vary. Ongoing 
West 
Virginia Miscellaneous 
Enhancements  West Virginia Department of Tax 
and Revenue Discounted 
services To encourage film production 
within the state. Film Industry Depending on the scope of 
an Entertainment Production 
project, the WVFO may assist with negotiations of "soft" incentives (e.g. discounted location fees, office space rental, lodging, vehicle rentals etc.). Ongoing  
  G/SCM/N/253/USA  
 
- 292 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
West Virginia Corporate 
Headquarters Credit West Virginia 
Development Office Tax credit A credit is available to a company 
that relocates its corporate headquarters to West Virginia. Manufacturing, information 
processing, warehousing, goods distribution and destination-oriented tourism. If at least 15 new jobs are 
created, the allowable credit is 10 percent of adjusted qualified investment. If the corporate headquarters relocation results in 50 or more new jobs, the allowable credit is 50 percent (or such other allowable new jobs percentage) of adjusted qualified investment. Ongoing 
West 
Virginia Economic 
Infrastructure Bond Fund West Virginia 
Development Office Bond The West Virginia Economic 
Infrastructure Bond Fund, a financial assistance program, provides funding for projects likely to foster and enhance economic growth and development. Emphasis will be placed on Business and/or Industrial Parks. Statewide with an emphasis on 
business / industrial parks. Interest Rates for a for-
profit sponsor is a minimum of the prime rate minus 3 percent (to be fixed at closing). Interest rates for public or not-for-profit sponsor will not exceed prime minus 3 percent. The length of the loan will be negotiated on each project and will not exceed the useful life of the assets being financed or 20 years, whichever is less. The West Virginia Infrastructure and 
Jobs Development Council 
may defer the repayment of principal and interest up to 5 years. The maximum loan amount for a private or public sector project is $3 million. The maximum participation rate for each project is 70 percent for private sector projects and 90 percent for public sector projects. Ongoing  
  G/SCM/N/253/USA  
 
- 293 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
West Virginia Five for Ten 
Program West Virginia 
Development Office Tax Credit A tax credit for companies that 
make qualified investment of at least $50 million to an existing base of $100 million or more. Manufacturing Establishes the value of 
asset improvements at salvage value for property tax evaluations for 10 years. Ongoing 
West 
Virginia Industrial 
Revenue Bonds West Virginia 
Economic Development Authority Bond $61,293,750 of the state's 
industrial bond allocation is reserved for small manufacturing projects. This provides for customized financing through federal tax exempt industrial revenue bonds. Available January through November 1 of each year, and then any unallocated tax exempt status is available to any eligible project from any category. Qualified businesses Amounts vary. Ongoing 
West 
Virginia Film Industry 
Investment Act West Virginia 
Department of Commerce but 
approval by the 
Film Credit Development Committee Tax Credit The West Virginia Film 
Investment Act is a competitive tool used to recruit film industry 
business into the state. Film Industry. Eligible products 
include feature length films, TV films and series, commercials, 
music videos, and commercial still 
photography. The Act provides up to 
31 percent tax credits for in-state expenditures. 
Funded at $10 million 
annually. Ongoing 
West 
Virginia High-Tech 
Manufacturing Credit West Virginia 
Development Office Tax Credit A tax credit for businesses that 
manufacture certain computers and peripheral equipment, electronic components or semiconductors. Manufacturers of certain computer 
equipment, electronic components or semiconducers that create at least 20 new jobs.  Eligible companies receive a 
tax credit to offset 100 percent of the business and occupation tax, business franchise tax, corporate net income tax, and personal income tax on certain income for 20 years.
 Ongoing 
West Virginia Coal Loading 
Facilities Credit West Virginia 
Department of Tax and Revenue Tax Credit Enhance coal industry 
competitiveness Coal industry The credit is equal to 10% 
of calculated qualified investment and applied over a 10-year period to offset up to 50% of annual tax liability for Business Franchise Tax, Business and Occupation Tax and Severance Tax. Ongoing  
  G/SCM/N/253/USA  
 
- 294 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Wisconsin Small Cities 
Community 
Development Block Grant Program for Blight Elimination & Brownfield Redevelopment
 Department of Administration Grant Community Development Block 
Grant Program-Blight Elimination and Brownfield Redevelopment Program provides financial assistance to communities in assessing or remediating environmental contamination on abandoned, idle or underused, and blighted commercial or industrial sites to promote development of those sites. Local governments, businesses and 
individuals assesssing and remediating the environmental contamination of an abandoned, idle, or underused industrial or commercial facility or site.  Awards are made as grants 
to eligible local governments. The local government may loan or grant the funds to local businesses or non-profit organizations to conduct an environmental audit or environmental remediation. The maximum award is $100,000 for environmental audits and $500,000 for environmental remediation 
projects. The local 
government must  contribute 
at least 25 percent of the total project cost from other sources. Municipalities that receive grants must make a commitment to pursue recovery of environmental remediation costs from parties causing the contamination and to reimburse the Department a proportional share of CDBG funds. In addition, all program income received in connection with loans to businesses or nonprofit corporations must be paid to the Department within 30 days. Ongoing  
  G/SCM/N/253/USA  
 
- 295 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Wisconsin Tax 
Incremental Financing Department of 
Revenue Loan Tax Incremental Financing (TIF) 
can help a municipality undertake a public project to stimulate beneficial development or redevelopment that would not otherwise occur. It is a mechanism for financing local economic development projects in underdeveloped and blighted areas. Taxes generated by the increased property values pay for land acquisition or needed public works. A city or village can designate a 
specific area within its boundaries as a TIF district and formulate a plan to develop it. TIF projects 
must be approved by the municipality's planning commission and legislative body. At least 50 percent of the TIF district's property area must be blighted, in need of rehabilitation or be suitable as an industrial site. The amount of assistance 
under this program varies depending on the project. TIF is based on two working principles: (1) new private development expands the municipality's tax base, thereby increasing property tax revenues; and (2) if the municipality must provide public improvements to attract the development, the overlying tax districts 
that benefit from the 
resulting increase in the community's tax base should share in the costs of improvement. Ongoing 
Wisconsin Development 
Opportunity Zone Credits   Wisconsin 
Economic Development Corporation (WEDC)  Tax Credit Incentivize new and expanding 
businesses in the cities of Beloit, Janesville, and Kenosha by providing non-refundable tax credits to assist with the creation and retention of new, full-time jobs, environmental remediation, and capital investment. Businesses located in or relocating 
to Beloit, Janesville, or Kenosha. The credit amount is tied to 
the type of activity or number and type of jobs being created. Ongoing 
Wisconsin Early Stage 
Business Investment Program WEDC Tax Credits Allocating non-refundable tax 
credits to investors for the purpose of making investments in certified early-stage businesses known as qualified new business ventures, or QNBVs. Eligible Angel investors include 
(1) Angels: Individuals, (2) Angel Entities: groups of individuals formed to invest in one company only, and (3) Angel Networks: groups or individuals formed to make multiple investments in various qualified companies. To be considered eligible, each individual must meet accreditation standards as a sophisticated, high-net worth person Non-transferrable tax credit 
for 25% of the total amount the investor invests and keeps invested for 3 years in a qualified company. Ongoing  
  G/SCM/N/253/USA  
 
- 296 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Wisconsin Film 
Production Company Investment Tax Credits Department of 
Tourism Tax Credit Tax credits are awarded to 
companies on qualified film production expenses. Film production companies  Tax credit is equal to 
15 percent of price/cost of eligible expenditures. Ongoing 
Wisconsin Food 
Processing and Food Warehousing Investment Tax Credit  Department of 
Agriculture, Trade and Consumer Protection (DATCP) Tax Credit Tax credits awarded for food 
processing modernization or expansion related to food processing or warehousing operations. Food processing plants and food 
warehouses  Tax credit up to 10% of the 
amount paid in the taxable year for food processing plant or food warehouse modernization or expansion.
 Ongoing 
Wisconsin Woody 
Biomass Harvesting and Processing Tax Credit DATCP Tax Credit Tax credits awarded for 
equipment investment used to harvest or process woody biomass for fuel. Eligible recipients that meet the 
equipment investment requirements. Tax credit up to 10% of the 
amount paid in the taxable year for equipment used primarily to harvest or process woody biomass that is used as fuel or component of fuel.  Ongoing 
Wisconsin SBIR-STTR 
Assistance WEDC Grants or Loans  Interagency program providing 
grants or loans to early-stage, high-tech Wisconsin businesses to allay the costs of hiring a qualified, independent third party to perform servic es that assist 
the businesses in securing private or federal funding.  Those starting or expanding 
technology-based or research oriented businesses or a firm located in Wisconsin that relies on use of technology. Up to $4,000 per micro 
grant (up to $8,000 total) per company. Each company must provide at least a 25% cash match per each micro-grant. Ongoing 
Wyoming Brownfield 
Grant 
Program Department of 
Commerce Grants Provide grants to persons, 
businesses and local government 
to remediate contamination on 
abandoned, underused, or blighted commercial and industrial sites. Funds originate from Wisconsin's Environmental Improvement Fund. Eligible recipients include a city, 
village, town, county, individual, 
partnership, corpor ation or limited 
liability company. $6.57 million per year. Ongoing 
Wyoming Film Industry 
Financial Incentive Wyoming Film 
Office Cash Rebate To encourage production 
companies to use Wyoming as a location for film production. Film Industry A cash rebate of 12%-15% 
of dollars spent in the State of Wyoming by film production companies during filming in the state. Minimum spending within the state required: $200,000. Ongoing  
  G/SCM/N/253/USA  
 
- 297 - State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Wyoming Tax 
Exemptions for Manufacturing and Energy Department of 
Revenue Tax Exemption Sales and use tax exemptions to 
promote manufacturing and encourage the expansion of clean coal technology. Manufacturers and Energy 
Companies A comprehensive sales and 
use tax exemption for machinery, equipment and services used in construction of manufacturing or coal to gas/liquid facilities Ongoing 
Wyoming Tax 
Exemptions for Railroads Department of 
Revenue Tax Exemption Sales and use tax exemption to 
promote Wyoming as a location for railcar maintenance and refurbishing facilities. Railroads and their servicing 
agents A comprehensive sales and 
use tax exemption for machinery, equipment and services used in construction of facilities used in and the processes involved with the maintenance and refurbishing of railcars. Ongoing 
Wyoming Taxpayer 
Remedies W.S. 39-17-109(d) Tax Credit Support ethanol producer s. Producers of ethanol. Credit of 40 cents per 
gallon. Ongoing 
Wyoming Vendor 
Discount  Wyoming Film 
Office Discounted 
services To encourage film production in 
the state. Film Industry At the request of the 
Wyoming Film Office, businesses offer a 10 percent discount on production related services including hotels, catering, restaurants, etc. Ongoing 
 
 
__________