WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/USA 
19 October 2011 
 (11-5172) 
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 5 October 2011, 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 2009 and 2010 fiscal years (1 October 2008 throug h 30 September 2010).  
Information on programs granted or maintained at sub-federal levels in the United States is included 
in Attachment I. 
 
 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 actua l identification or measurement of a subsidy, its 
status as an actionable subsidy, or its trade eff ects, the United States has included certain activities in 
this notification which arguably are not (or are not al ways) "specific subsidies" within the meaning of 
the Agreement. G/SCM/N/220/USA 
Page 2  
 
  AGRICULTURE 
 
EXPORT ASSISTANCE PROGRAMS  
Title: The Dairy Export Incentive Program (DEIP)  
 
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.  
2. Policy objective and/or purpose 
 
 In June 1991, USDA published program criteri a 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 effe cts 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 Cr edit 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. 
 4. To whom and how assistance is provided 
 
 Payments may be made in cash, CCC-owned commodities, or generic certificates 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, not 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 
 
 Fiscal Year 2009 
 
 Butter and Butter Oil  Quantity* 1,862 MT   Budgetary Outlays $11,344,667 
 Skim Milk Powder  Quantity* 20,025 MT  Budgetary Outlays   $7,200,925 
 Cheese  Quantity* 152 MT   Budge tary Outlays      $348,231  G/SCM/N/220/USA 
 Page 3 
 
 
   Fiscal Year 2010 
 
 Butter and Butter Oil  Quantity* 15,607 MT  Budgetary Outlays  $2,124,890  Skim Milk Powder Quantity* 17,203 MT Budgetary Outlays          $0  Cheese Quantity* 1,691 MT Budgetary Outlays     $246,543 
 
 *Note:  The quantities are on a July-June b asis and the budgetary outlays are on October-
September fiscal year basis, as notif ied to the Committee on Agriculture. 
 6. Duration 
  The Food, Conservation, and Energy Act of 2008, P.L. 110-246, enacted 18 June 2008, re-authorized the program through 31 December 2012.  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 en ables exporters to offer prices that are competitive 
with those being offered by other countries' exporters in these selected foreign markets.   
 
AGRICULTURAL DOMESTIC SUPPORT PROGRAMS 
 Title: Agriculture Income Support and Mark eting Assistance for Covered Commodities   
 
1. Period covered by notification 
 
 The period covered is fiscal years 2009-2010.  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, s upport, 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 program s were authorized by the Commodity Credit 
Corporation (CCC) Charter Act, the Agriculture  Adjustment Act of 1938, as amended, the 
Agricultural Act of 1949, as amended, the Farm S ecurity and the Rural Investment Act of 2002, 
Public Law 107-171, enacted 13 May 2002.  Othe r 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.  
 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 2012 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 G/SCM/N/220/USA 
Page 4  
 
  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.   Historical base acres and payment yields were established for the following commodities:  
barley;  corn;  grain sorghum;  oats;  other o ilseeds (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 2009 – $5,222 million    FY 2010 – $4,898 million  (b) Counter-cyclical Payments Program 
 
 Counter-cyclical payments are available to c overed commodities whenever the effective price 
was less than the target price.  The effective price is equal 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 paym ent amount equals the product of the payment rate, 
the payment acres, and the payment yield.  Cove red commodities include:  barley;  corn;  grain 
sorghum;  oats;  other oilseeds (canola, crambe , flax, 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 a dded under the 2008 Farm Act.  Payments were 
computed using the historical base acres and paymen t 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 extended the Counter-cyclical Payments 
program through the 2012 crop year.   
 Total expenditures by fiscal year:   
  FY 2009 – $731 million    FY 2010 – $903 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 Ch ickpeas, Lentils, and Dry Peas. 
  The Food, Conservation, and Energy Act of  2008 extended the Marketing Assistance Loan 
program through the 2012 crop year.  The progra m 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 ownershi p of the commodity amount pledged as collateral to 
the Commodity Credit Corporation (CCC) as full settle ment of the loan, without 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 mark eting loan gains, loan deficiency payments, 
and certificate exchange gains):     G/SCM/N/220/USA 
 Page 5 
 
 
   FY 2009 – $1,168 million  
  FY 2010 – $199 million  (d) Average Crop Revenue Election (ACRE)   
 An optional revenue-based counter-cyclical  program, 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 w ith covered commodities and/or peanuts can elect 
to participate in the ACRE program for all c overed 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.  For ACRE participants , direct payments are reduced by 20 per cent and 
marketing assistance loan rates are reduced  by 30 per cent on enrolled farms.  
  Total expenditures by marketing year:    
 MY 2009 – $447 million  
  MY 2010 – $24 million  
Price Support for Milk and Sugar 
 
(e) Dairy Products 
 
 The 2008 Act replaces 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 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.   Net expenditures by fiscal year:     FY 2009 – $994 million   
  FY 2010 – $355 million 
  The Food, Conservation, and Energy Act of 2008 re-authorized the national dairy market loss 
payments program through September 30, 2012.  Under the program, producers enter into Milk 
Income Loss Contracts.  A monthly direct payment is made to qualifying dair y farm operators when 
the monthly Class I price in Boston (Federal Marke ting Order 1) is less than $16.94 per cwt.  The 
payment quantity per farm operator shall not 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 m illion 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 increases to $9.50/cwt beginning 1 September 2012. 
  The 2008 Act defined payment rates for three specific periods:  
 From 1 October 2007-30 Se ptember 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; 
 G/SCM/N/220/USA 
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   From 1 October 2008–31 August 2012, 45 per cent of difference between $16.94/cwt 
(as adjusted for feed costs) and Class I pr ice 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 cost s) and Class I price in the Boston milk 
marketing order for the applicable month.   
  Total expenditures by fiscal year:     FY 2009 – $757 million    FY 2010 – $182 million 
 
(f) Sugar   The non-recourse marketing loan program was continued under the 2008 Food, Conservation, and Energy Act through fiscal year 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" pr ovision.  There were no expenditures on this 
program in fiscal years 2009 or 2010.   
Other Commodity Products  
 
(g) Tobacco 
  Under the Tobacco Transition Payment Program (Tobacco Quota Buyout), Title VI of the American Jobs Creation Act of 2004, the Fair  and Equitable Tobacco Reform Act of 2004 
(P.L. 108-357), 22 October 2004, elig ible tobacco quota holders and producers will receive payments 
under this program in 10 instalments in each of the 2005 through 2014 fiscal years.  Transition 
payments will be based on the Basic Quota Leve ls 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 fa rm during 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 pr ice, 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 2009 – $953 million   FY 2010 – $954 million   G/SCM/N/220/USA 
 Page 7 
 
 
  (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 be low 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 2009 – $10 million 
 FY 2010 – $28 million 
 (i) Economic Adjustment Assistance for Upland Cotton   The 2008 Act initiates economic adjustment assi stance payments to domestic users of upland 
cotton for all documented use of upland cotton on a m onthly 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 applicable  payment rate is reduced to $0.03 per pound. 
  Total expenditures by fiscal year:    
 FY 2009 – $75 million 
 FY 2010 – $76 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 befo re 30 September 2011.  Five disaster assistance 
programs are included.  
1. Supplemental Revenue Assistance Payments (SURE) are made to eligible producers 
on farms in disaster counties that incurre d 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.  (Given the lag in disbursements, data 
for 2008 were not available for the previous  notification.  2009 data are incomplete 
and 2010 data are not yet available.) 
    Total expenditures by crop year:   
 
   CY 2008 – $2,100 million  
   CY 2009 – $167 million  
 
2. Livestock Indemnity Payments provides paym ents 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 va lue of applicable livestock on day before G/SCM/N/220/USA 
Page 8  
 
  death, as determined by Secretary.  (Giv en the lag in disbursements, data for 2008 
were not available for the previous notifi cation. 2010 data are not yet available.) 
    Total expenditures by calendar year:    
   CY 2008 – $25 million 
   CY 2009 – $62 million  
3. Livestock Forage Disaster Program payments  are available to eligible producers of 
covered livestock for grazing lo sses due to drought or fire on public managed land.  
Payment rates are based on monthly feed costs.  (Given the lag in disbursements, data 
for 2008 were not available for the previ ous notification.  2010 data are not yet 
available.) 
     Total expenditures by calendar year:   
 
   CY 2008 – $16 million    CY 2009 – $97 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 Program or by the Livestock Forage Disaster Program. Total payments are limited to $50 million per year.  (Given the lag in disbursements, data for 2008 were not ava ilable for the previous notification.  
2010 data are not yet available.) 
 
   Total expenditures by calendar year:       CY 2008 – $11 million    CY 2009 – $12 million  
 
5. Orchard and Nursery Tree Assistance Pr ogram 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 pe r cent of the cost of salvaging damaged 
trees and preparing land to replant trees.  (Given the lag in disbursements, data for 
2008 were not available for the previous notification.  2010 data are not yet 
available.) 
 
   Total expenditures by calendar year:   
 
   CY 2008 – 0 
   CY 2009 – $1 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 benef its 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.   G/SCM/N/220/USA 
 Page 9 
 
 
   Total expenditures by fiscal year:   
  FY 2009 – $62 million  FY 2010 – $99 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 (indemn ities divided by premiums) of 1.0.  Benefits are 
reported as the premium subsidies on a marketing year basis.  (A revised 2008 figure is also included, 
as submitted to the Committee on Agri culture, because the legislative change in the 2008 Farm Act 
necessitated a change in methodology.)     Total expenditures by marketing year:   
 
 Marketing year 2008 – $5,691 million  Marketing year 2009 – $5,426 million   
 Other Programs 
 
(m) Grazing Livestock on Federal Land 
  Net budget outlays (minus producer fees) fo r livestock grazing on public range land in 
16 Western States:     
 FY 2009 – $45 million 
 FY 2010 – $45 million   (n) Trade Adjustment Assistance (TAA) for Farmers    The American Recovery and Reinvestment Ac t 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 de velop and implement Business Adjustment Plans. 
  FY 2009 – $1 million 
 FY 2010 – $4 million 
 5. Duration 
  The policies described were generally in effect  for fiscal years 2009-2010.  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.   
 G/SCM/N/220/USA 
Page 10  
 
  OTHER AGRICULTURAL PROGRAMMES
1 
 
Title: Expensing of Multi-period Livestock and Crop Production Costs 
 
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 2. Policy objective and/or purpose 
  To ease record-keeping for small farm businesses.    
3. Background and authority 
 
 Section 263A of the Internal Revenue Code, enact ed 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 $120 million in 2009 and $140 million in 2010.   
 7. Duration 
  Indefinite.    
8. Trade effects 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    Title: Treatment of Loans Forgiven  Solvent Farmers as if Insolvent 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.   
 
2. Policy objective and/or purpose 
  To address certain consequences of farm credit crises.    
                                                      
1 All the programmes in this section ar e tax-related, authorized under the U.S. Internal Revenue Code.    G/SCM/N/220/USA 
 Page 11 
 
 
  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 forg iveness is accounted for as a gain (income) of the 
debtor, who must either report the gain or reduce his recoverable basis in the property to which the 
loan relates.  If the debtor elects to reduce basi s and the amount of forgiveness exceeds his basis on 
the property, the excess forgiveness is taxable.  Howe ver, in the case of insolvent (bankrupt) debtors, 
the amount of loan forgiveness never results in an in come 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 per cent of the taxpayer' s gross receipts for the three tax years preceding the 
tax year in which the discharge of indebtedn ess occurs is attributable to farming.   
 
6. Amount 
 
 The revenue loss was $20 million 20 09 and $20 million in 2010.   
 7. Duration 
  Indefinite.    8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title:  Capital Gains Treatment of Certain Agricultural Income 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    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.   G/SCM/N/220/USA 
Page 12  
 
  5. To whom and how assistance is provided 
 
 Certain agricultural income, which would norma lly 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 ordi nary income ranged from 10 per cent to 35 per cent 
in 2009 and 2010.  For individual taxpayers, long-term capital gains are taxed separately from other 
income at a maximum rate of 15 per cent.    6. Amount 
 
 The revenue loss was $700 million in 2009 and $490 million in 2010.   
 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 effects may result from the use of this 
provision.   
 
Title: Exemption from Excise Tax for Toba cco Products Supplied to Their Employees by 
Tobacco Product Producers 
 
1. Period covered by notification 
  The period covered is fiscal years 2009 and 2010.   
 2. Policy objective and/or purpose 
  To permit producers of tobacco products to suppl y their workers with free cigarettes and other 
tobacco products.   
 
3. Background and authority 
  Section 5704(a) of the Internal Revenue Code.    
4. Form 
 
 Exemption from otherwise applicable excise tax.    5. To whom and how assistance is provided 
 
 Producers of tobacco products may furnish lim ited quantities of tobacco products for use or 
consumption by employees without payment of tax.  6. Amount 
 
 Prior to 1 April 2009, the subsidy per unit amounts to the following:  (i) for cigarettes, 
$19.50 per thousand;  (ii) for cigars, $1.828 to $48.75 per thousand (depending on size);  (iii) for 
snuff, $0.585 per pound;  (iv) for chewing tobacco, $0.195 per pound;  and (v ) for pipe tobacco and 
roll-your-own tobacco, $1.0969 per pound.  Af ter 31 March 2009, these rates increased to the 
following:  (i) for cigarettes, $50.33 per thousand;   (ii) for cigars, $50.33 to $402.60 per thousand  G/SCM/N/220/USA 
 Page 13 
 
 
  (depending on size);  (iii) for snuff, $1.51 per po und;  (iv) for chewing to bacco, $0.5033 per pound;  
(v) for pipe tobacco, $2.8311 per pound;  and (vi)  for roll-your-own tobacco, $24.78 per pound.   
 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.  
 
Title: Five-year Recovery Period for Cert ain Farming Business Machinery or Equipment 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    2. Policy objective and/or purpose 
  To encourage investment in new farming machinery and equipment. 
 
3. Background and authority 
  Section 168(e)(3)(B)(vii) of the Internal Revenue Code, enacted as part of P.L. 110-343.    
4. Form 
 
 Income tax concession.    5. To whom and how assistance is provided 
 
 Any machinery or equipment (other than any grain bin, cotton ginning asset, fence, or other 
land improvement) used in a farming business that would normally be classified as seven-year 
property is temporarily classified as five-year property.  This allows farmers to recover the cost of the 
investment at a faster rate.  
6. Amount 
 
 The revenue loss was $220 million in fiscal year 2009 and $240 million in fiscal year 2010.    7. Duration 
 
 This provision applies to property placed in  service after 31 December 2008 and before 
1 January 2010.    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/220/USA 
Page 14  
 
  ENERGY & FUELS 
(ENERGY DEVELOPMENT, STORAGE AND TRANSPORTATION 
& OTHER RELATED SECTORS) 
 
 Title:   Energy Supply – Renewable Energy Resources  
 
1. Periods covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 
2. Policy objective and/or purpose 
  To lead the national effort to develop renewa ble energy technologies, to accelerate acceptance 
and use of renewable energy technologies and to improve the United States' overall economic, energy 
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" (1974)  P.L. 93-410, "Geothermal Energy Research, Development and Demonstration Act" (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. 95-618, "Energy Tax Act of 1978"  P.L. 95-619, "National Energy Con servation Policy Act" (NECPA) (1978) 
 P.L. 95-620, "Power plant and I ndustrial Fuel Use Act of 1978" 
 P.L. 96-294, "Energy Security Act" (1980) 
 P.L. 100-12, "National Applian ce 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. 109-190, "Energy Policy Act" (2005) 
 P.L. 110-140, "Energy Independence and Security Act of 2007" (2007) 
 P.L. 110-234, "The Food, Conservation, and Energy Act of 2008"  G/SCM/N/220/USA 
 Page 15 
 
 
  4. Form 
 
 Grants, cooperative agreements, cooperativ e research and development agreements 
(CRADAs)2 and other forms of collaboration accomp lished 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 2009 and 2010 annual appropriations, including recovery act spending on these 
programs, (approximate dollars in millions) were as follows:    
   FY 2009        FY 2010 
 
 Hydrogen Technology   207.6     174.0 
 Biomass/Biorefinery Systems R&D   991.4       220.0 
 Solar Energy   288.4     247.0 
 Wind Energy Systems   161.3       80.0 
 Geothermal Technology    436.4       44.0 
 Water Power     70.7       50.0 
 
7. Duration 
  The renewable energy resources programs are not subject to any fixed co mpletion date.  Their 
continuation is contingent upon ongoing annual a ppropriations 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 ever result from this program.  
Title:   Energy Conservation Programs – Transportation Sector  
 
1. Periods covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
                                                      
2 The term "CRADA" has a specific meaning as a result 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 ag reement 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, equipm ent and other resources to a collaborative R&D activity, 
as well as to the disposition of any intellectual property which the R&D yields.  A CRADA is just one of several 
legal instruments or mechanisms through which government agencies work in partnership with business and academia in pursuit of shared or co mplementary R&D objectives.  Exampl es of other such instruments are 
"cooperative agreements", contracts and grants.   G/SCM/N/220/USA 
Page 16  
 
  2. Policy objective and/or purpose 
 
 To develop more energy-efficient and envi ronmentally friendly highway transportation 
technologies (for both cars and trucks) that meet  or exceed 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 Offi ce of Energy Efficiency and Renewable Energy 
Office of Transportation Technologies (EERE-OTT) .  Legislative authority derives from:   
  P.L. 95-91, U.S. Department of Energy Organization Act" (1977)  P.L. 102-486, "Energy Policy Act" (1992)  P.L. 109-190, "Energy Policy Act of 2005" (2005) 
 P.L. 110-140, "Energy Independence and Security Act of 2007" 
 4. Form 
  Assistance under the program is provided th rough grants, cooperative agreements, CRADAs 
and other forms of collaboration accomplished through consortium-ba sed 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 2009 and 2010 annual appropriations, including recovery act spending on these 
programs, (approximate dollars in millions) are as follows:  
   FY 2009 FY 2010 
 
 Total, Energy Conservation and Supply,  Vehicle Technologies        3062.9    304.2 
 
 Applicable Vehicle Technologies Sub-Programs  
 
Hybrid Electric Systems     122.7          -  
Batteries and Electric Drive Technology3        -  98.6 
Vehicle and Systems Simulation & Testing3        -  43.7 
Advanced Combustion Engine R&D       39.7         56.0 Materials Technology       38.8         49.3 
Fuels Technology       19.6         23.4 
Outreach, Deployment & Analysis
4       46.4         33.2  
Commercial Vehicle Integration/X-prize5     109.2           0.0  
Advanced Battery Manufacturing4   1990.0           0.0  
Transportation Electrification4     398.0           0.0 
Alternative Fueled Vehicles4     298.5           0.0 
                                                      
3 Formerly Hybrid Electric Systems, divided into two programs going forward. 
4 Formerly Technology Integration. 
5 Recovery act monies.  G/SCM/N/220/USA 
 Page 17 
 
 
  7. Duration  
 
 The Vehicle Technologies program is not subject to any fixed completion date.  Its continuation is contingent upon ongoing annual a ppropriations 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 ever result from this program. 
 
Title: Energy Conservation Programs - Building Technologies  
 
1. Periods covered by the notification 
  The period covered is fiscal years 2009 and 2010. 
 
2. Policy objective and/or purpose 
  The mission of the Building Technologies Program (BT) is to develop technologies, techniques, and tools for making residential an d commercial buildings more energy efficient, 
productive, and affordable.   
 
3. Background and authority 
  Legislative authority derives from:    
 P.L. 94-163, Energy Policy and Conservation Act (1975) 
 P.L. 94-385, Energy Conservation and Production Act (1976)  P.L. 95-91, Department of Energy Organization Act (1977)  P.L. 95-618, Energy Tax Act of 1978  P.L. 95-619, National Energy Conservation Policy Act (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 Applian ce Energy Supply Amendments (1988) 
 P.L. 100-615, Federal Energy Ma nagement Improvement Act of 1988 
 P.L. 102-486, Energy Policy Act of 1992 
 P.L. 109-58, "Energy Policy Act" (2005) 
 P.L. 110-140, "Energy Independence and Security Act of 2007"  4. Form 
  Assistance under the programs is provided th rough grants, cooperative agreements, CRADAs 
and other forms of collaboration accomplished through consortium-ba sed 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.    G/SCM/N/220/USA 
Page 18  
 
  6. Amount 
 
 Fiscal years 2009 and 2010 annua l appropriations (approximate dollars in millions) are as 
follows:   
 
       FY 2009      FY 2010 
 
 Total, Building Technologies               457.3   219.0 
 
 Applicable Sub-programs  
 
 Residential Buildings Integration   90.0   39.2 
 Commercial Buildings Integration 117.6    38.3  Emerging Technologies 164.4  84.6 
 Technology Validation and Market Introduction   50.6    22.0 
 Equipment Standards and Analysis   34.7  35.0 
 
7. Duration 
 
 The program is not subject to any fixed comple tion date.  Its continuati on is contingent upon 
ongoing annual appropriations and au thorizations 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 ever result from this program.   
 
Title: Energy Conservation - Industry Sector  
 
1. Periods covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 
2. Policy objective and/or purpose 
 
 To reduce the energy intensity of the U.S. i ndustrial sector through a balanced portfolio of 
collaborative technology investments, valida tion, 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.  
 
3. Background and authority 
  These programs are administered by the Departme nt 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 Con servation 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"  P.L. 109-190, "Energy Policy Act" (2005)  P.L. 110-140, "Energy Independence and Security Act of 2007"  G/SCM/N/220/USA 
 Page 19 
 
 
  4. Form 
 
 Assistance under the programs is provided th rough grants, cooperative agreements, CRADAs 
and other forms of collaboration accomplished through consortium-ba sed 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 2009 and 2010 annua l appropriations (approximate dollars in millions) are as 
follows:   
  
  FY 2009 FY 2010 
   
 Total, Industrial Technologies 349.7  94.3  
 
 Applicable Sub-programs  
 
 Industries of the Future (Specific)   
 Forest and Paper Products   1.4    1.4 
 Steel Industry   4.4    4.2 
 Aluminium Industry   2.1    1.8  Metal Casting Industry   1.9    0.0 
 Glass Industry   1.0    0.0 
 Chemicals Industry   4.3    4.4  
 Next Generation Manufacturing Processes
6  
 Nanomanufacturing and Other Interagency Manufacturing R&D   4.9     4.5 
 Combustion   0.8       -    
 Industrial Materials of the Future   4.7     4.5 
 Industrial Distributed Energy/CHP Generation 24.4   24.7  Energy-Intensive Process R&D 14.8   14.3 
 Fuel and Feedstock Flexibility   3.9     3.6  
 Industrial Technical Assistance 19.6   30.9 
 ARRA:  Industries of the Future (Crosscutting) 202.9     - 
 ARRA:  Efficiency of Information and Communications 48.6     -  Technology and Standards 
 ARRA:  Industrial Techni cal Assistance           9.95       - 
 
7. Duration 
  The program is not subject to any fixed comple tion date.  Its continuati on is contingent upon 
ongoing annual appropria tions 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 ever result from this program.   
                                                      
6 Formerly Industries of the Future (Crosscutting). G/SCM/N/220/USA 
Page 20  
 
  Title: Fossil Energy Research and Development  
 
1. Periods covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 
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 thr ee types of activities:  (1) managing and performing 
energy-related research that reduces market barrier s to reliable, efficient and environmentally-sound 
production and use of fossil fuels for domestic c onsumption and power gene ration and conversion to 
other fuels such as hydrogen;  (2) partnering with industry and others to a dvance 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 adequate supplies of a ffordable and clean energy.   
 3. Background and authority 
  The program is administered by the DOE Offi ce of Fossil Energy.  Legislative authority for 
the program derives from Title XX, Section 2011 of  the Energy Policy Act of 1992;  the Energy 
Policy Act (2005);  and the Energy Independence and Security Act of 2007, P.L. 111-008, "Omnibus 
Appropriation Act" (2009).  4. Form, to whom and how assistance is provided 
 
 To ensure that federally funded research and development technologies and analyses are 
relevant to market and public needs, and transfe rred to commercial 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 2009 and 2010 Appropriations (approxi mate dollars in millions) are as follows:   
 
  FY 2009   FY 2010 
 
Total, Fossil Energy Research and Development    4261.7     476.8 
 
Applicable Programs  
 
Coal    4069.9   404  
Natural Gas Research         19.4     17.8  
Petroleum - Oil Technology          4.9      0.0 
Unconventional Fossil Energy Technologies          0.0    20.0 
Plant and Equipment (e.g., maintenance costs)        18.0    20.0  
Fossil Energy Environment Restoration          9.7    10.0  
Cooperative Research and Development           4.9      5.0 
 
6. Duration 
  While it is not subject to any fixed completion date, the program's con tinuation is contingent 
upon ongoing annual appropriations by the Congress.   
  G/SCM/N/220/USA 
 Page 21 
 
 
  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 ever result from this program.   
 
Title:   Innovative Technology Loan Guarantee Program  
1. Periods covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 
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 increasi ng affordable, reliable, secure, and clean sources 
of energy for the United States.    3. Background and authority 
  The 1703 Loan Guarantee Program is authori zed under Title XVII of the Energy Policy Act 
of 2005.  The 1705 Loan Guarantee Program is au thorized under Title XVII of the Energy Policy Act 
of 2005, as amended by Section 406 of the Amer ican Recovery and Reinvestment Act of 2009 
(P.L. 111-5).  4. Form 
  Loan guarantees.    5. To whom and how assistance is provided 
  Section 1703 of the Act authorizes DOE to provide loan guarantees for renewable energy 
systems, advanced nuclear facilities, coal gasifi cation, carbon sequestration, energy efficiency, and 
many other types of projects that use advanced  technologies in commercial projects that avoid, 
reduce, or sequester air pollutants or anthropoge nic emissions of greenhouse gases.  Section 406 of 
the American Recovery and Reinvestment Act of 200 9, P.L. 11-5 amended the authorizing legislation 
to establish Section 1705, a temporary program for the rapid deployment of renewable energy and 
electric power transmission projects.  
 6. Amount 
  Fiscal years 2009 and 2010 Appropriations (appr oximate dollars in millions) are as follows: 
   
       FY 2009        FY 2010 
 
Section 1703 Innovative Technology Loan Guarantee Program          0.0          0.0 
Section 1705 Temporary Loan Guarantee Program    3935.0          0.0 
 
 Under the published regulations DOE may i ssue guarantees for up to 100 per cent of the 
amount of the 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 eligib le project.  DOE's policy through FY 2010 is to only 
issue loan guarantees under Section 1703 if there is no net cost to the government for the program as a 
whole (i.e., no "credit subsidy cost," as defined in  section 502(5)(C) of the Federal Credit Reform Act G/SCM/N/220/USA 
Page 22  
 
  of 1990 (2 USC 661a(5)(C) and 74 Fed. Reg. 63544,  63550).  Specifically, the terms and conditions 
of the loan guarantee agreements under the progra m must fully cover the government's cost of 
providing the guarantees.  Under the Section 1705  temporary program, credit subsidy costs (as 
defined above) are directly provide d for by congressional appropriation. 
 
7. Duration 
 
 See above.  Commitments under Section 170 5 are possible through fiscal year 2011. 
 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 effects may ever result from this program. 
 
Title:   Advanced Technology Vehicle Manufacturing Program (ATVM) 
 
1. Periods covered by the notification 
  The period covered is fiscal years 2009 and 2010.    2. Policy objective and/or purpose 
  The ATVM loan program provides loans to au tomobile and automobile parts manufacturers 
for the cost of reequipping, expanding, or establis hing manufacturing facilities in the United States to 
produce advanced technology vehicles or qualifie d components, and for associated engineering 
integration costs. 
 
3. Background and authority 
  The ATVM program was established by Section 136 of the Energy Independence and Security Act of 2007.   
4. Form 
 
 Loan guarantees.    5. To whom and how assistance is provided 
  Section 136 of the Energy Independence and Security Act of 2007 established an incentive program – the Advanced Technology Vehicles Manuf acturing Loan Program – consisting of direct 
loans to support the development of advanced t echnology vehicles and associated components in the 
United States.  The ATVM Loan Program supports th e President's goal to create green jobs in the 
automotive and component manufacturing industri es and will help ensure that new advanced 
technology vehicles (ATV) meet a higher standard  (125 per cent of the 2005 base year CAFE fuel 
efficiency standards) than similarly classed convent ional technology vehicles.  In 2010, Section 136 
was amended to include ultra-efficient vehicles with in the definition of advanced technology vehicles. 
 6. Amount 
  Fiscal years 2009 and 2010 Appropriations (approxi mate dollars in millions) are as follows:   
 
      FY 2009        FY 2010 
    7500.0      0.0  G/SCM/N/220/USA 
 Page 23 
 
 
  7. Duration 
 
 DOE is planning to transition from loan origin ation to portfolio management in FY 2011, and 
does not seek additional appropriations for credit subsidy.  
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 effects may ever result from this program. 
 
 
OTHER ENERGY AND FUELS7 
 
Title: Expensing of Exploration and Developm ent (E&D) Costs for Oil, Gas and other Fuels 
 1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    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 domes tic oil and gas wells, intangible drilling costs, 
such as wages, the costs of using machinery for gr ading and drilling and the costs of unsalvageable 
materials used in constructing we lls, may be expensed for tax purposes rather than amortized over the 
productive life of the property.  Integrated oil companies may currently deduct only 70 per cent of such costs and amortize the remaining 30 per cent ove r five years.  The same rule applies to the 
exploration and development costs of surface strippi ng 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 Re venue Code of 1986.  Th e expensing of intangible drilling costs was 
originally established in a 1916 Treasury regulation w ith the rationale that such costs were ordinary 
operating expenses.  Limitations on expensing for in tegrated oil companies were applied in 1976 and 
later years.    
4. Form 
 
 Income tax concession.    5. To whom and how assistance is provided 
 
 Fuel mineral producers are permitted acceler ated deductions from taxable income.   
 6. Amount 
  The revenue loss was $1,640 million in 2009 and $400 million in 2010.   
 
                                                      
7  The programmes in this section are tax-related, authorized under the U.S. Internal Revenue Code.   G/SCM/N/220/USA 
Page 24  
 
  7. Duration 
 
 Indefinite.  8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: Excess of Percentage over Cost De pletion for Oil, Gas and Other Fuels 
 1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    
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 bur dens 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 allo wed to take percentage depleti on deductions rather than cost 
depletion on limited quantities of output for tax purpo ses.  Under cost depleti on, 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 per cent for oil, gas and oil shale, and 10 per cent for coal.  The deduction is limited to 
50 per cent of net income from the property, ex cept for oil and gas where the deduction can be 
100 per cent of net property income.  For domestic  production from marginal wells, the 100 per cent 
of net income limitation has been suspended for ta xable years before 1 January 2012.  Additionally, 
the percentage depletion deduction for all oil and gas properties may not exceed 65 per cent 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 per cent of net income, but with no 
limit on output and no limitation with respect to qua lified producers.  Unlike depreciation or cost 
depletion, percentage deple tion deductions can exceed the cost of the investment.   
 
 Percentage depletion is authorized under sections 611-613, 613A, and 291 of the Internal 
Revenue Code.  Percentage depleti on for oil and gas goes back to 1918 or before and was extended to 
coal and most other minerals in 1932.  The Ta x Reduction Act of 1975 eliminated the percentage 
depletion allowance for major oil and gas compan ies and reduced the rate for independents to 
15 per cent for 1984 and beyond.    
4. Form 
 
 Income tax concession.    5. To whom and how assistance is provided 
  Independent fuel mineral producers and royalt y owners are permitted deductions from taxable 
income for percentage depletion.     G/SCM/N/220/USA 
 Page 25 
 
 
  6. Amount 
 
 A deduction from income is allowed for the gr eater of cost or percentage depletion.  
Percentage depletion is 15 per cent of revenue  for non-integrated oil and gas producers and 
10 per cent for coal producers.  The revenue loss was $340 million in 2009 and $980 million in 2010.  
 
7. Duration 
  Indefinite.    
8. Trade effects 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    Title: Alternative Fuel Production Credit  
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    
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 oil 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 pro duction are permitted credits against federal 
income tax.   
 6. Amount 
  The revenue loss was $60 million in 2009 and $170 million in 2010.   
 G/SCM/N/220/USA 
Page 26  
 
  7. Duration 
 
 Qualified facilities are facilities placed in service before 1 January 1993, or after 
30 June 1998, and before 1 January 2010. 
 
8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title:   Capital Gains Treatment of Royalties on Coal 
 1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    
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  under sections 1231 and 631 of the Internal 
Revenue Code.  When the capital gain rate is belo w 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 in come ranged from 10 per cent to 35 per cent in 2007 
and 2008.  For individual taxpayers, long-term capit al gains are taxed separately from other income, 
generally at a maximum tax rate of 15 per cent.    6. Amount 
  The revenue loss was $70 million in  2009 and $50 million in 2010.   
 7. Duration 
 
 Indefinite.   
 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/220/USA 
 Page 27 
 
 
  Title:   Energy Efficient Appliance Credit 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010. 
 
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 the 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 a nd before 31 December 2011 with the exception 
that the $200 refrigerator credit and the $250 cloth es 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 washers and refri gerators.  The Energy Policy Act of 2005 added the 
credit for energy efficient appliances.  The Emer gency Stabilization Act of 2008 modified the tax 
credit amount and standards for energy efficient household appliances produced after 2007.  The Tax 
Relief, Unemployment Insurance Reauthorization,  and Job Creation Act of 2010 modified the tax 
credit amount and standards for energy effici ent household appliances 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 manufactur ers that produce qualifying appliances.   
 
6. Amount 
  The revenue loss was $130 million in 2009 and $150 million in 2010.   
 
7. Duration 
 
 The provision applies to applian ces produced before 1 January 2012. 
 8. Trade effects 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: Alcohol Fuel Credit 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    G/SCM/N/220/USA 
Page 28  
 
  2. Policy objective and/or purpose 
 
 To encourage the substitution of alcohol fuel s 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 gall ons of alcohol per year.  In addition, a credit 
is available for cellulosic biofuel production.  Th e 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 sections 38, 40, 6426, a nd 6427 of the Internal 
Revenue Code.  The alcohol fuel credits were en acted as part of the Crude Oil Windfall Profit Tax 
of 1980, at the rate of 40 cents per gallon for alc ohol 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 cred its 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 Act of 2004 eliminated reduced rates of excise tax for 
most alcohol-blended fuels and substituted the cu rrent rules providing for income and excise tax 
credits or direct payments.  The credit for alc ohol fuel was lowered from 51 cents per gallon to 
45 cents by the Heartland, Habitat, Harvest, and Hor ticulture Act of 2008.  The credit for cellulosic 
biofuel was also enacted by this legislati on.  The Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010 extended  the alcohol fuel credits expiring at the end of 
2010 through 2011.  Mixtures of a by-product of th e manufacturing of pulp and paper (black liquor) 
and diesel fuel were excluded from the cellulosic biofuel credit by the Health Care and Education Reconciliation Act of 2010.  4. Form 
 
 Income tax concession, excise tax concession, or di rect payment for fuels containing alcohol.   
 5. To whom and how assistance is provided 
  The small ethanol producer credit reduces the in come tax liability of qualifying producers.  
All other credits reduce federal income or excise ta x of, or result in a direct payment to, qualifying 
producers, blenders, or users.    6. Amount 
  The revenue loss was $5,520 million in fiscal  year 2009 and $8,570 million in fiscal 
year 2010.  
 7. Duration 
  The credits expire at the end of 2011 except for the cellulosic biofuel credit, which expires 
1 January 2013. 
  G/SCM/N/220/USA 
 Page 29 
 
 
  8. Trade effects 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    Title: Biodiesel and Renewable Diesel Credit 
 
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 
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 di esel used as a fuel.  This credit is equal to 
$1.00 per gallon for biodiesel (including agri-biodi esel).  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 cr edit 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.  Th e Emergency Stabilization Act of 2008 increased the 
credit for recycled biodiesel from $0.50 per gallo n to $1.00 per gallon and extended the credits 
through 31 December 2009.  The Tax Relief, Unem ployment 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 ta x of, or result in a direct payment to, qualifying 
producers, blenders, or users.    6. Amount 
  The revenue loss was $840 million in fiscal year  2009 and $510 million in fiscal year 2010.  
 
7. Duration 
  The credit expires at the end of 2011.    
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/220/USA 
Page 30  
 
  Title: Alternative Fuels Credit 
 
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010. 
 
2. Policy objective and/or purpose 
  To encourage the substitution of alternat ive fuels for gasoline and diesel fuel.   
 
3. Background and authority 
 
 An excise tax credit is available for alterna tive fuels including liquefied petroleum gas, 
P Series fuels, compressed or liquefied natural g as, liquefied hydrogen, liquefied fuel derived from 
coal through the Fischer-Tropsch process, compres sed 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 per cent of su ch facility's total carbon dioxide emissions.  The 
sequestration percentage increases to 75 per cent for fuel produced after 30 December 2009.  The 
alternative fuel credit is 50 cents per gallon of a lternative fuel or gasoline gallon equivalents.  The 
excise tax credit was enacted as part of the Safe, Accountable, Flexible, Efficient Transportation Act 
of 2005.  The Tax Relief, Unemployment Insuranc e 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 64 26 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 $4,570 milli on in 2009 and $3,960 million 2010.  
 7. Duration 
  The tax credit expires 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 effects may result from the use of this 
provision.   
  G/SCM/N/220/USA 
 Page 31 
 
 
  Title : Tax Credit for Refined Coal and Indian Coal 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010. 
 
2. Policy objective and/or purpose 
  To encourage the production of low-emission and Indian coal.    
3. Background and authority 
 
 Taxpayers are allowed a $4.375 per ton credit for refined coal (indexed for inflation after 
1992).  The refined coal credit is allowed for the fi rst ten years of production from a new facility.  The 
refined coal credit applies to production at f acilities placed in service after 22 October 2004 and 
before 1 January 2010.  Taxpayers are also allowe d a credit for Indian coal for a seven-year period 
beginning 1 January 2006, and ending 31 December 2012.  The amount of the credit for Indian coal is $1.50 per ton for the first four years of the seven-y ear period and $2.00 per ton for the last three years 
of the seven-year period.  The credit amounts are indexed annually for inflation using 2005 as the base year.  These provisions were adopted as part of  the American Jobs Creation Act of 2004.  The 
credit for refined coal was extended as part of the Emergency Stabilization Act of 2008.  These 
provisions are authorized in section 45 of the Internal Revenue Code. 
 4. Form 
  Income tax concession.   
 
5. To whom and how assistance is provided 
  The credit reduces federal income taxes fo r taxpayers producing qualifying coal.   
 6. Amount 
  The total revenue loss was less than $50 million per year in 2009 and 2010.   
 7. Duration 
 
 The refined coal credit applies to prod uction at facilities placed in service after 
22 October 2004 and before 1 January 2010.    8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 Title : Credits for Investment in Advanced Coal Fa cilities and Advanced Gasification Facilities 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.  G/SCM/N/220/USA 
Page 32  
 
  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, ta xpayers are allowed investment credits of 
20 per cent for investments in integrated gasi fication combined cycle (IGCC) facilities and 
gasification facilities and 15 per cent for investments in  other advanced 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 fa cilities.  The credit was adopted as part of the 
Energy Policy Act of 2005.  This provision is aut horized in sections 48A and 48B of the Internal 
Revenue Code.  
 Under the second round of credit allocations, the credit rate is increased to 30 per cent for 
new IGCC and other advanced coal projects.  An addi tional $1.25 billion of credits can be allocated to 
qualifying projects.  Under the second round of cr edit allocations, qualifying projects must include 
equipment which separates and sequesters at leas t 65 per cent of the project's total carbon dioxide 
emissions.  Under the second round of  credit allocations, the gasification project credit is increased to 
30 per cent.  An additional $250 million of credits ca n be allocated to qualified projects that separate 
and sequester at least 75 per cent of carbon dioxide emissions.  The credit was adopted as part of the 
Emergency Stabilization Act of 2008.  This 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 ta xpayers investing in qualified facilities.   
 
6. Amount 
  The revenue loss was $180 million in 2009 and $240 million in 2010.   
 
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 effects may result from the use of this 
provision.    
Title:  Advanced Energy Property Credit 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.   G/SCM/N/220/USA 
 Page 33 
 
 
  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 per cent credit is available for investme nt in qualified property used in a qualified 
advanced energy manufacturing project. A qualifie d advanced energy project is a project that 
re-equips, expands, or establishes a manufacturing fac ility for the production:  (1) property designed 
to be used to produce energy from renewable resour ces;  (2) fuel cells, microturbines, or an energy 
storage system for use with electric or hybrid-el ectric vehicles;  (3) electric grids to support the 
transmission of intermittent sources of renewable 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 pl ug-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 desi gned 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 sections 48C of the Internal Revenue Code. 
 
4. To whom and how assistance is provided 
  The credit reduces federal income taxes for ta xpayers investing in qualified projects.   
 
5. Amount 
 
 The revenue loss was $180 million in 2010.    6. Duration 
 
 Property qualifying for the credit genera lly must be placed in service by 2014. 
 7. Trade Effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title : Credit for Production of Low-Sulfur Diesel and Deduction for Investment in Low-Sulfur 
Diesel Refineries 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.  2. Policy objective and/or purpose 
 
 To assist refiners in complying with Envir onmental Protection Agency low-sulfur diesel 
requirements.    G/SCM/N/220/USA 
Page 34  
 
  3. Background and authority 
 
 Small refiners are allowed to deduct 75 per cen t of the costs they incur in complying with 
EPA low-sulfur diesel requirements and are allowe d a credit of 5-cents-per-gallon for low sulphur 
diesel produced.  A taxpayer's credit is limited to 25 per cent of the costs incurred in complying with 
EPA low-sulfur diesel requirements.  The deduction and credit were adopted as part of the Energy 
Policy Act of 2005.  This provision is authorized in sections 48H and 179B 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 taxpa yers that incur costs to comply with EPA 
low-sulfur diesel requirements.    6. Amount 
  The revenue loss was under $10 milli on per year in 2009 and 2010.  
 
7. Duration 
  The tax credit applies to costs incurred during the period beginning 1 January 2003 and ending 31 December 2009.   
 
8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title : 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 per cent of  the costs they incur to increase refinery 
capacity.  The deduction was adopted as part of the En ergy Policy Act of 2005.  This provision is 
authorized in section 179C of the Internal Revenue Code.   
4. Form 
 
 Income tax concession.     G/SCM/N/220/USA 
 Page 35 
 
 
  5. To whom and how assistance is provided 
 
 The credit reduces federal income taxes for taxpa yers that incur costs to increase refinery 
capacity.    
6. Amount 
 
 The revenue loss was less than $770 m illion in 2009 and $760 million in 2010.  
 7. Duration 
  The tax credit applies to costs incurred afte r 8 August 2005 for property placed in service 
before 1 January 2012.    8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title : Amortization of Geological and Geophysical Expenditures 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.  2. Policy objective and/or purpose 
  To encourage oil and gas exploration.    3. Background and authority 
  Taxpayers are allowed to amortize costs incurre d in exploring for oil and gas.  For costs 
incurred in 2006, amortization was permitted over two years for both in tegrated and non-integrated oil 
companies.  For costs incurred after 2006 and be fore 20 December 2007, amortization was permitted 
over five years for integrated oil companies.  For costs incurred after 19 December 2007, amortization 
is permitted over seven years for integrated oil co mpanies.  The amortization deduction was adopted 
as part of the Energy Policy Act of 2005.  The am ortization period was increased by the Tax Increase 
Prevention and Reconciliation Act of 2005 and the Ener gy Independence and Security Act of 2007.  
This provision 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 taxpa yers that incur costs in exploring for oil 
and gas.   
 
6. Amount 
  The revenue loss was less than $40 m illion in 2009 and $150 million in 2010.  
 G/SCM/N/220/USA 
Page 36  
 
  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.  
Title: Deduction for Tertiary Injectants 
 1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.  
2. Policy objective and/or purpose 
 
 To encourage the development of domestic oil resources.   3. Background and authority 
 
 Taxpayers engaged in petroleum extraction ac tivities may generally deduct qualified tertiary 
injectant expenses used while applying a tertia ry recovery method, including carbon dioxide 
augmented water flooding and immiscible carbon diox ide displacement.  The tax credit was enacted 
as part of the Crude Oil Windfall Profit Tax of 1980.   The credit is authorized in section 193 of the 
Internal Revenue Code. 
 
4. Form 
  Income tax concession.    5. To whom and how assistance is provided 
  Oil producers are permitted accelerated deductions from taxable income.     6. Amount 
 
 The total revenue loss was less than $10 million annually in 2009 and 2010.  
 7. Duration 
  Indefinite.    
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/220/USA 
 Page 37 
 
 
  FISHERIES  
 
Title:   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 2009 and 2010.    2. Policy objective and/or purpose  
  The purpose of FFP is to provide fixed-rate fi nancing with a term equal to the estimated 
useful life of the equipment financed.  The pred ecessor program – the FOG Program – which operated 
from 1972 through 1996, provided government-backed loan guaran tees 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 
Congressional directives from financing any proj ect that could be construed to lead to 
overcapitalization of any fishery.  In 1996, the pr ogram'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 Fi shing Quota (IFQ) purchases and Community 
Development Quota loans.    3. Background and authority 
  Background is provided above.  The statutor y 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 fish ing and aquaculture industries.  The interest 
rates charged on FFP loans are 2 percentage points above 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 provi ded 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 guarantees and secondary colla teral and forecloses loan collateral.  All of 
these factors have resulted in no net outflow of government funds.   
  Below is a table showing the total amount of loans  that have been authorized since 2007.  
(If this program provided a subsidy, the benefit woul d be based on the difference between the interest G/SCM/N/220/USA 
Page 38  
 
  rate charged under the program and the amount th e firm would pay on a comparable commercial 
loan.)  
TYPE OF LOAN FY07  FY08 FY09 FY10 
Traditional $43 $30 $59 $59 
Halibut/Sablefish IFQ $5 $8 $8 $10 
 
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 overcapitalization 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 progr am are likely to be minimal, if any.  
 
Title: Saltonstall-Kennedy Grant Progr am:  Fisheries Research and Development 
 
1. Period covered by the notification 
 
 The period covered is fiscal year 2009 and 2010.    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 mo stly 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 go es 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 Ac t (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 Is lands, Republic of Palau, or the Federated States 
of Micronesia, corporations, partnerships, associ ations, 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 Fish ery Management Councils and their employees are 
ineligible.  Projects are selected  for funding through a competition/call for proposals announced in the 
Federal Register .   
  G/SCM/N/220/USA 
 Page 39 
 
 
  6. Amount 
 
 It is difficult to estimate a subsidy per unit for a diverse R&D (S-K) grant program.  In the 
year 2009 there were $8.07 million in competitive grants awarded.  In the year 2010 there were 
$4.82 million in competitive grants awarded.  In 2009 and 2010, $20.94 million and $3.47 million, 
respectively, was distributed through the na tional program for research, seafood safety, 
marketing, etc.   7. Duration 
 
 Indefinite.   
 8. Trade effects 
  The trade effects if any, of this program ar e 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.  
 
Title:   Sea Grant 
 
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.    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, envi ronmental stewardship, and responsible use of 
ocean, coastal, and Great Lakes resources, including 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 ar e intended to support eff ective 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.    3. Background and authority  
  In 1965, Sea Grant Colleges were first iden tified 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 hi gher education (including Sea Grant College, Sea 
Grant Institute or other institutions), non-profit or ganizations, commercial organizations, state, local 
and Indian tribal governments, and individuals.  Each Sea Grant College Program administers a 
"request for proposal" (RFP) process to address stat e priorities, in addition to RFPs for National G/SCM/N/220/USA 
Page 40  
 
  Strategic Investments administered by the National Sea Grant Office.  The National Marine Fisheries 
Service headquarters administers a separate RFP pr ocess 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.  Therefore, it is difficult to determine the value of 
any subsidy that may be provided under this progr am.  Total program appropriations (fisheries and 
non-fisheries) for fiscal year 2009 were $55.0 million. Of that 2009 amount, approximately 
$2.5 million were devoted to research focused  on commercial fisheries and approximately 
$2.6 million were devoted to research focused on a quaculture.  Total appropriations (fisheries and 
non-fisheries) for fiscal year 2010 were $63.0 million.  Of that 2010 amount, approximately $2.5 million were devoted to research focused  on commercial fisheries and approximately 
$6.5 million were devoted to research focused on aquaculture.  
7. Duration 
 
 Federal grants for research and developm ent 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 trade promotion program.  Very little of the funds provided directly impact the U.S. fishing indus try.  Additionally, much of the results of research 
conducted with Sea Grant funds is in the public doma in.  In light of these considerations, the trade 
effects of this program, if any, are likely to be minimal.   
 
Title: Columbia River Fishery Development Program (Mitchell Act)   
 
1. Period covered by the notification 
 
 The period covered is fiscal year 2009 and 2010.   
 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 salmon hatcheries, the conduct of engineering 
and biological surveys and experiments, and the installation 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 da ms for hydroelectric power, and also by other 
factors, such as agricultural runoffs, logging, and urban development.  Over the years, Mitchell Act 
hatchery production has changed to meet two other objectives.  First, some hatchery production has 
shifted to areas above the Bonneville Dam in order to provide harvestable salmon under the Columbia 
River Treaty Indian Trust.  Second, a portion of th e hatchery production is being shifted to fulfil a 
conservation role in preserving endangered salm on stocks (captive breed) and in conservation 
hatcheries supplementing their recovery.  With the application of the Endangered Species Act 
throughout the Columbia River Basin, substantia l changes have been, and will continue to be, 
required of the Mitchell Act Program.  The Mitche ll Act environmental impact statement will be 
finalized in 2012 and will provide a basis to inform the policy direction for hatchery production in the 
future.    G/SCM/N/220/USA 
 Page 41 
 
 
  3. Background and authority 
 
 The Columbia River Fishery Development Pr ogram 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 appropriati ons since 1950, and is 
funded by general appropria tions legislation.   
 4. Form 
 
 The United States Government provides opera ting 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. Fi sh and Wildlife Service (USFWS), Department of 
Interior.  In addition, the program funds irriga tion screens and fishways operated by ODFW, WDFW, 
the Idaho Department of Fish  and Game (IDFG), and YN, a nd funds MER projects conducted by 
ODFW, WDFW, YN, USFWS, and th e 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 provide d to the USFWS through an intergovernmental 
transfer.    6. Amount 
 
 In fiscal year 2009, the appropriation under the Mitchell Act Program was approximately 
$15,592,693 to fund the operations and maintena nce of the hatchery program in Oregon and 
Washington.  In fiscal year 2010, the appropria tion was approximately $25,868,000 to fund the 
operations and maintenance of the program.    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 depl eted 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 Ca lifornia and off Alaska varies from year to year 
given natural variability but the Mitchell Act fund ed 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 th at the Mitchell Act funded hatchery production 
contributed $36 million in personal income to  the regional economy an d 871 jobs based upon 
hatchery production of approximately 70 million juve nile salmon and a catch of 252,000 adults in the 
commercial, recreational and tribal fisheries in th e 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/220/USA 
Page 42  
 
  LUMBER & TIMBER 
 Title: Capital Gains Treatment of Certain Timber Income  
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    2. Policy objective and/or purpose 
 
 To encourage domestic timber production.   
 3. Background and authority 
  The capital gains tax treatment is authorized  under 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 cap ital gains for income tax purposes.  Income tax 
rates for individuals on ordinary income ranged fro m 10 per cent to 35 per cent in 2009 and 2010.  For 
individual taxpayers, long-term capital gains are ta xed separately from other income at a maximum 
rate of 15 per cent.   
 6. Amount 
  The revenue loss was $70 million in  2009 and $50 million in 2010.   
 
7. Duration 
 
 Indefinite.    8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: Expensing of Multi-period Timber Growing Costs 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    2. Policy objective and/or purpose 
  The ability to expense indirect costs of timbe r growing was based on the view that these costs 
were maintenance costs, and thus deductible as ordi nary 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 capitaliz ed, the Tax Reform Act of 1986 included uniform  G/SCM/N/220/USA 
 Page 43 
 
 
  capitalization rules which required indirect expenses  to be capitalized in most cases.  Where the 
application of these rules was deemed to be undu ly 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 part y.  Timber production, however, was specifically 
exempted from these multi-period cost rules and permitte d to subject such costs to current expensing.  
This expensing is authorized by sections 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 $210 million in 2009 and $230 million in 2010.   
 
7. Duration 
  Indefinite.    
8. Trade effects 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: Expensing and Seven-Year Amortization for Reforestation Expenditures 
 1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    
2. Policy objective and/or purpose 
 
 To promote reforestation on private timberlands.    3. Background and authority 
 
 Expensing is allowed for up to $10,000 invest ed annually in clearing land and planting trees 
for the ultimate production of timber.  Reforest ation expenditures beyond this amount may be 
amortized over a seven-year period.  Without this preference, reforestation expenditures would have 
to be capitalized and could be rec overed (deducted) only when the trees were sold or harvested years 
later.  These provisions are authorized by section 194 of the Internal Revenue Code.  They were 
originally enacted in the Recreational Boating Sa fety and Facilities Improvement Act of 1980 and 
were modified by the American Jobs Creation Act of 2004.   G/SCM/N/220/USA 
Page 44  
 
  4. Form 
 
 Income tax concession.    5. To whom and how assistance is provided 
  Allows taxpayers to recover the reforesta tion costs on an accelerated basis in computing 
taxable income.    6. Amount 
  The revenue loss was $40 million in  2009 and $50 million in 2010.   
 7. Duration 
 
 Indefinite.   
 8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title: Reduced Corporate Capital Gain s Tax Rate for Qualified Timber Gain 
 
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 2. Policy objective and/or purpose 
  This provision is designed to reduce the tax differential between corporate and non-corporate 
entities with timber gains.   
 
3. Background and authority 
  The reduced capital gains tax rate is author ized under section 1201 of the Internal Revenue 
Code.  The provision was enacted as part of the Food, Conservation, and Energy Act of 2008.   
 
4. Form 
  Income tax concession.    5. To whom and how assistance is provided 
  Timber capital gains received by entities subject to individual tax rates faced a maximum capital gains rate of 15 per cent in 2009 and 2010.  Corporate capital gains were generally taxed at 
35 per cent in 2009 and 2010.  This provision temporar ily reduced the corporate capital gains tax rate 
on qualified timber gains to 15 per cent.  Only sales of timber held longer than 15 years were eligible 
for the reduced rate. 
  G/SCM/N/220/USA 
 Page 45 
 
 
  6. Amount 
 
 The revenue loss was $70 million in  2009 and $50 million in 2010.   
 7. Duration 
  The reduced rate applies to qualified timber  sales made after 22 May 2008, and before 
23 May 2009.  8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.     
MEDICAL 
 Title: Orphan Drug Tax Credit  
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 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 per cent 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 r easonable expectation that businesses could recoup 
the costs of developing a drug for such disease or condition from U.S. 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 $270 million in 2009 and $470 million in 2010.   G/SCM/N/220/USA 
Page 46  
 
  7. Duration 
 
 Indefinite.    8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: The Office of Isotopes for Medicine and Science 
 
1. Period covered by the notification 
  This notification covers fi scal years 2009 and 2010.   
 
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 pr oducts, services, and related technology used in 
medicine, homeland security applications, and scientific research.    
3. Background and authority 
 
 The DOE Office of Nuclear Energy, Science, and Technology, Isotope Programs, administers the program.  The program operates under a revolving  fund established by the 1990 Energy and Water 
Appropriations Act (Public Law 101-101), as modified  by Public Law 103-316.  All income is 
deposited into the fund, including the annual Ener gy and Water Developm ent Appropriations.   
 4. Form 
  No direct financial assistance is provided.  DOE sells commercial isotopes at full-cost recovery, which includes direct costs related to  the production of a specific isotope, as well as 
infrastructure costs.  Research is otopes 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 commercia l and research institutions in the medical, 
industrial, and research communities – commercial a nd non-commercial – both in the United States 
and abroad.    6. Amount 
 
 Production expenses associated with the manufacture, processing, and distribution of isotopes 
are offset by revenue generated from sales.  Infrast ructure costs are covered in part by an annual 
Congressional appropriation.  For fiscal year  2009, the appropriated budget amount was 
$39.6 million, and in fiscal year 2010,  the amount was $19.12 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.     G/SCM/N/220/USA 
 Page 47 
 
 
  8. Trade effects 
 
 Even if it were possible to quantify trade e ffects that might ensue from a program of this 
nature, it is doubtful that this particular program h as led to any meaningful trade effects.  The isotopes 
made available have been sold throughout the wo rld to over 250 customers, primarily for medical 
research. 
 
 
METALS, MINERALS AND EXTRACTION (NON-FUEL) 
 
Title: Emergency Steel Loan Guarantee Program 
 
1. Period covered by the notification 
 
 This period covered is fiscal years 2009 and 2010.  
 
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 
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 qualified steel companies by private banking and investment institutions in accordan ce with rules established by the Gu arantee 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.  Th e guaranteed loan was issued in August 2003 and 
repaid in May 2008.  This was the third, and likel y final, loan guarantee issued under the program.   
 7. Duration 
 
 The Board's authority to issue guarantees expires 31 December 2011.  Currently there are no 
applications pending under this program.    G/SCM/N/220/USA 
Page 48  
 
  8. Trade Effects 
 
 It is not possible to estimate what trade eff ects, if any, may result from this program.   
Title: Excess of Percentage over Cost Depletion for Non-fuel Minerals 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.  2. Policy objective and/or purpose 
  To encourage the development of th e domestic non-fuel mineral industry. 
 3. Background and authority 
 
 The provisions permit most non-fuel mineral extr actors to make use of percentage depletion 
rather than cost depletion, with percentage de pletion rates ranging from 22 per cent for sulphur to 
5 per cent for sand and gravel.  Percentage depletion is authorized by sections 611-613 and 291 of the 
Internal Revenue Code.  Percentage depletion si milar to its current form was provided in 1932 at 
23 per cent for sulphur and 15 per cent for metal min es.  From 1932 to 1950, percentage depletion 
was extended to most other minerals.  The allowa nce was extended to additional minerals by the 
Revenue Act of 1951, and was extended again in 1954. In 1969, the top depletion rates were reduced.  
The Tax Equity and Fiscal Responsibility Act of 19 82 reduced the allowance for corporations that 
mined iron ore by 15 per cent.  The Tax Reform Act of 1986 raised the cutback in corporate allowances of iron ore from 15 to 20 per cent.    
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.   
 6. Amount 
 
 The revenue loss was $700 million in 2009 and $770 million in 2010.   
 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/220/USA 
 Page 49 
 
 
  Title: Expensing of Exploration and De velopment Costs for Non-fuel Minerals 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.   
 
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 non-fuel minerals to be expensed rather th an depreciated over the life of the asset.  These 
provisions are authorized by sections 263, 263A, 29 1, 616-617, 56 and 1254 of the Internal Revenue 
Code.  Expensing of mine devel opment expenditures was enacted in 1951 to reduce ambiguity in the 
then-existing treatment of , and to encourage, mi ning.  The provision for mine exploration was added 
in 1966.  The Tax Equity and Fiscal Responsibility Act of 1982 limited expensing for corporations 
to 85 per cent;  the remaining 15 per cent must be depreciated.    4. Form 
  Income tax concession.    5. To whom and how assistance is provided 
 
 Non-fuel mineral producers and royalty owne rs are 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 less than $50 milli on in 2009 and $110 million in 2010.   
 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.    
Title : Capital Gains Treatment of Iron Ore 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.   
 
2. Policy objective and/or purpose 
  To encourage the mining of domestic iron ore.    G/SCM/N/220/USA 
Page 50  
 
  3. Background and authority 
 
 The capital gains tax treatment is authorized  under sections 1231 and 631 of the Internal 
Revenue Code.  As with coal, per centage depletion is not allowed wh en the capital gains tax rate is 
below the regular tax rate.   
 
4. Form 
  Income tax concession.    
5. To whom and how assistance is provided 
 
 Certain iron ore and timber sold under a royalty contract may be treated as capital gains for 
income tax purposes.  Income tax rates for individua ls on ordinary income ranged from 10 per cent to 
35 per cent.  For individual taxpayers, long-term cap ital gains are taxed separately from other income, 
generally at a maximum rate of 15 per cent rate.   
 6. Amount 
  The revenue loss was less than $10 m illion per year in 2009 and 2010.   
 
7. Duration 
 
 Indefinite.    8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: Special Rules for Mining Reclamation Reserves 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    2. Policy objective and/or purpose 
  In allowing the current deduction of mine reclamation and similar expenses, the provisions encourage reclamation and prevent adverse economic  effects on mining firms that might result from 
the application of general tax rules re garding deduction for future costs.   
 3. Background and authority 
  The provisions permit taxpayers to establis h reserves to cover certain costs of mine 
reclamation and of closing solid waste disposal properties.  Net increases in reserves may be taken as a deduction against taxable income.  The provisions are authorized by section 468 of the Internal Revenue Code and were enacted in 1984.   
 
4. Form 
  Income tax concession.     G/SCM/N/220/USA 
 Page 51 
 
 
  5. To whom and how assistance is provided 
 
 Taxpayers with mining and solid waste dispo sal properties receive deductions from taxable 
income based on the accrual of liabilities rath er than the realization of costs.   
 
6. Amount 
 
 The revenue loss was less than $10 m illion per year in 2009 and 2010.   
 7. Duration 
  Indefinite.    8. Trade effects 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
 
SHIPYARDS 
 
Title: Assistance to Small Shipyards Grant Program  
1. Period covered by the notification 
  The period covered is fiscal years 2009 and2010.   
 
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, a nd reconfiguration.  Grant funds may also be used for maritime 
training programs to foster technical skills and operational 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 Defe nse Authorization Act for Fiscal Year 2006, 
authorized the U.S. Maritime Administration (MAR AD) 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 comm unities whose economies are substan tially related to the maritime 
industry.  The program has been managed by MAR AD 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 norm al annual appropriations.  The additional funds 
formed part of the US government's stimulus in response to the economic downturn of 2008-09 and 
were not continued after FY 2009. 
 
P.L. 109-163, National Defense Aut horization Act for Fiscal Year 2006 
P.L. 110-161, Consolidated Appropriations Act, 2008 P.L. 110-417, National Defense Aut horization Act for Fiscal Year 2009 
P.L. 111-5, American Recovery and Reinvestment Act of 2009 
P.L. 111-8, Omnibus Appropriations Act, 2009 G/SCM/N/220/USA 
Page 52  
 
  P.L. 111-117, Consolidated Appropriations Act, 2010 
P.L. 112-10, Department of Defense and Fu ll-Year Continuing Appropriations Act, 2011 
 
4. Form 
 
 Federal grants may fund 75 per cent of the co st of a project, matched by a contribution of 
25 per cent by the beneficiary shipyard.  
5. Amount 
 
 Congress first funded the program with $10 milli on through the Consolidated Appropriations 
Act of 2008.  In FY 2009, the total amount appropriated for the SSGP was $115.15 million.  Under 
ARRA, $98 million of this amount was disbursed in the form of grants to small shipyards and 
$2 million was reserved for administrative purposes.  Additionally, $17.5 million was provided to the 
program through normal annual appropriations.  Of t hose funds, $17.15 million was disbursed in the 
form of grants, while $350,000 was r eserved for administrative purposes. 
  In FY 2010, the total amount appropriated for the SSGP was $15 million. $14.7 million was 
disbursed in the form of grants and $300,000 was reserved for administrative purposes.   
 
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. 
 
 
TEXTILES 
 
Title: The Textile/Clothing Technology Corporation Program (TC2)  
 
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.   2. Policy objective and/or purpose 
 The Textile/Clothing Technology Corporation is a non-profit membership organization designed to 
stimulate economic growth in the U.S. textile and apparel sector.  It has programmes to demonstrate 
advanced equipment and techniques, to educate partic ipants in the sector, and to do basic research.  
Only the basic research element is funded by  the federal government through a grant from the 
U.S. Department of Commerce ( DOC).  The basic research is performed internally by the 
organization and, in part, by external entities on a cont ractual basis.  The results  of the basic research 
are made available throughout the textile and a pparel sector of the United States.  No production 
subsidies are provided under this programme.     G/SCM/N/220/USA 
 Page 53 
 
 
  3. Background and authority 
 
 The programme is administered by DOC's Offi ce 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 Tec hnology Corporation following the presentation of a 
proposal describing the research projects which will be undertaken.    
6. Amount 
 
 Appropriations for fiscal year 2009 were approxi mately $1.0 million, and for fiscal year 2010 
were approximately $0.9 million.    7. Duration 
  Grants were first distributed under the progra mme in 1981.  Funding must be reauthorized by 
the US Congress on an annual basis.  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 improve their productivity, TC2 assistance does not 
directly benefit the production or export of particular companies or products.   
  
TIMEPIECES AND JEWELRY  
 
Title: The Insular Possessions Watch and Jewelry Programs . 
 
1. Period covered by the notification 
  The period covered is calendar year 2009 and 2010.  2. Policy objective and/or purpose 
  The insular watch and jewelry programs ar e designed to encourage watch and jewelry 
production in the U.S. insular possessions and th ereby stimulate development of the insular 
economies.  
3. Background and authority 
 
 The U.S. Department of Commerce and the U.S. Department of the Interior jointly administer 
the Insular Possessions watch program under P ublic Law 97-446, as amended by Public G/SCM/N/220/USA 
Page 54  
 
  Law 103-465, Public Law 106-36 and Public Law 1 08-429.  The watch program provides for duty 
exemptions and duty refunds in the form of negotiable production incentive certificates. 
  The U.S. Department of Commerce and the U.S.  Department of the Interior also jointly 
administer the Insular Possessions jewelry progra m 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 
U.S. notes to chapter 71 of the Harmonized Tariff Schedule of the United States ("HTSUS") to provide a duty-refund benefit for any article of jewe lry within heading 7113 that is a product of the 
U.S. Virgin Islands, American Samoa, Guam and the Northern Mariana Islands in accordance with 
the provisions of the note in chapter 71 and additiona l US Note 5 to chapter 91.  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 U.S. Virgin Islands, 
American Samoa, Guam and the Northern Mariana Islands.  At present, there are producers only in 
the U.S. Virgin Islands.   The watch program establishes an annual allocation for watches and watch movements assembled in these areas to enter th e United States free of duty.  Both the watch and jewelry programs 
provide production incentive certificates that au thorize a duty refund from Customs and Border 
Protection ("CBP") on (HTSUS non-column 2) articles 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 issu ed to watch and jewelry companies.  Since the 
watches, the watch movements and jewelry prod uced under the programs already receive duty-free 
entry into the Customs territory of the United States, the certificate is negotiable and may be 
transferred to another company having a record of duty-paid imports.  The value of the certificate is 
based on the producers average cred itable 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 increments up to a maximum of 750,00 0 units for watches and watch movements and 
10,000,000 units for jewelry. 
 
5. Amount 
 
 Production Incentive Certificate ("PIC") 
 
Year (1)              Product           Total Amount (2) 
 
2009 Watches  $1,141,531 
 
2009 Jewelry  $1,338,809  
2010 Watches  $1,092,605 
 
2010 Jewelry  $1,446,201  
  
(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. 
  G/SCM/N/220/USA 
 Page 55 
 
 
  Duty Exemption   Amount (3) 
 
2009        $7,304 
 
2010    $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 watc hes and watch movements assembled in these 
areas to enter the United States free of duty is au thorized 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 per cent of U.S. annual pers onal domestic consumption of watches and jewelry 
(Department of Commerce, Bureau of Economic Anal ysis).  Also, the watches and jewelry covered 
by the program are only shipped into the United States market.   
OTHER 
 
Title: Empowerment Zones and Renewal Communities  
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 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 assistan ce, to be a driving force behind the increased 
economic activity.  Some restrictions on the ty pes of business activities and investments were 
imposed in order to limit potential abuses.   
 
3. Background and authority 
  The Omnibus Budget Reconciliation Act of 1993 provided 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) and 
authorized the designation of 40 renewal communities (12 rural and 28 urban).  State and local governments jointly nominated distressed areas and proposed strategic plans aimed at economic and 
social revitalization.  Rural empowerment zones we re designated by the Secretary of the Department 
of Agriculture, while urban empowerment zones a nd all renewal communities were designated by the 
Secretary of the Department of Housing and Urban Development.  The tax provisions for G/SCM/N/220/USA 
Page 56  
 
  empowerment zones, renewal communities, a nd the DC Zone are found in sections 1391 
through 1400J of the Internal Revenue Code.     Qualified businesses located in empowerment zon es are eligible for the following federal tax 
incentives:  (i) an employment tax credit for 20 per cent of the first $15,000 of qualifying wages paid 
to employees who live and work in the empowerment zone;  (ii) an additional $35,000 per year of 
expensing, instead of depreciation, of capital i nvestments by small businesses;  and (iii) a new 
category of tax-exempt private activity bonds.  In ad dition, taxpayers may elect to defer capital gains 
from certain sales and re-investments in qualified empowerment zone assets and the exclusion on the gain from the sale of qualified small business stock that is held for more than five years is increased 
from 50 to 60 per cent for empowerment zone businesses.   
  Qualified businesses located in renewal communiti es are eligible for the following federal tax 
incentives:  (i) an employment tax credit for 15 per cent of the first $10,000 of qualifying wages paid 
to employees who live and work in the renewal comm unity;  (ii) an additional $35,000 per year of 
expensing, instead of depreciation, of capital i nvestments by small businesses;  (iii) a commercial 
revitalization deduction;  and (iv) an exclusi on for capital gains on qualified community assets held 
more than five years.     Incentives for the DC Zone include the employ ment 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 five 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 privat e activity bonds requires a local initiation and State 
offering of the bonds.  The subsidy is reflected in th e lower interest rate charged on the bonds because 
interest income on them is excluded from federa l taxable income.  The capital gains incentives are 
provided to investors in qualified zone or community assets by reducing the amount of capital income subject to tax.    
 To qualify for the employment credit, substan tially all of the employee's services must be 
provided in the zone or community.  The $35,000 of additional expensing is ta rgeted to assist small 
businesses because the benefit of expe nsing begins to phase out when investment exceeds $800,000.  
To qualify for the expensing, businesses must also m eet other criteria, such as having at least 35 per 
cent of employees who reside in the zone or comm unity.  Businesses located in empowerment zones 
are eligible for the new category of tax-exempt bonds.   Up to $3 million per business per zone in bond 
funding and $20 million per business fo r 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.  The exclusion of capital gains from qualified renewal community assets held more than five years does not apply to gains earned before 2002 or after 2014.    
6. Amount 
 
 The revenue loss was $1,130 million in fiscal year 2009 and $730 million in fiscal year 2010.    G/SCM/N/220/USA 
 Page 57 
 
 
  7. Duration 
 
 Tax incentives have been available si nce the first zones were designated on 
21 December 1994.  Empowerment zone and DC Zone tax benefits are generall y scheduled to expire 
on 31 December 2011.  Renewal community ta x benefits expired on 31 December 2009.  
 
8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    Title: New Markets Tax Credit  
1. Period covered by the notification 
  The period covered is fiscal years 2009 and 2010.   
 2. Policy objective and/or purpose 
  To encourage capital investment in businesses located in economically distressed areas.   
 
3. Background and authority 
 
 The Community Renewal Tax Relief Act of 200 0 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 per cent of the investment for each of the 
first three years and 6 per cent for each of the foll owing 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 $5 billion in 2009 and $3.5 billion in 2010.    6. Amount 
  The revenue loss was $580 million in 2009 and $720 million in 2010.   
 
7. Duration 
  This credit first became effec tive in 2001, and credit allocations to qualified CDEs will be 
made through 2011.   
 
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/220/USA 
Page 58  
 
  Title: New York Liberty Zone 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.   
 
2. Policy objective and/or purpose 
  To encourage the redevelopment of the area surrounding 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, en acted 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 immedi ately surrounding the World Trade Center in 
New York City.  The following tax incentives are pr ovided:  (i) 30 per cent expensing, instead of 
depreciation, of certain property placed in service within the Zone;  and (ii) authorization for 
New York State and New York City to issue an a dditional $8 billion in tax-exempt private activity 
bonds to finance property placed in service within the Zone.   
 6. Amount 
  The revenue loss was $40 million in  2009 and $20 million in 2010.   
 
7. Duration 
 
 The bonus depreciation for structures expired on 31 December 2009.  The additional authority 
to issue tax-exempt bonds expires on 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.    
Title: Gulf Opportunity Zone 
 1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    
2. Policy objective and/or purpose 
 
 To encourage the reconstruction of the area affe cted by Hurricanes Katrina, Wilma, and Rita.   
  G/SCM/N/220/USA 
 Page 59 
 
 
  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  per cent 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 rec onstruction within the Zone ;  (iii) an additional 
advance refunding of tax-exempt bonds for Louisian a, Mississippi, and Alabama;  and (iv) authority 
for the states of Alabama, Louisiana, Mississippi to issue Gulf tax credit bonds.   6. Amount 
  The revenue loss from the bond provisions was $300 million in 2009 and $360 million 
in 2010.   
 7. Duration 
  These provisions are generally scheduled to expire by 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.  Title: Kansas Disaster Area  
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.   
 
2. Policy objective and/or purpose 
  To encourage the reconstruction of the area af fected by tornadoes and severe storms occurring 
in May 2007, in and surrounding Kiowa County, Kansas.    
3. Background and authority 
 
 P.L. 110-246 authorized certain provisions  related to the Gulf Opportunity Zone 
(sections 1400N through 1400S of th e Internal Revenue Code) to apply to the Kansas disaster area.   
 
4. Form 
 
 Income tax concession.    G/SCM/N/220/USA 
Page 60  
 
  5. To whom and how assistance is provided 
 
 The Kansas disaster area is the portion of Kan sas declared by the President to be a major 
disaster area as a result of severe storms and torna does beginning on 4 May 2007.  The tax incentives 
provided include:  (i) an additional $100,000 per year of expensing, in stead of depreciation, of capital 
investments by small businesses within the disaster area;  (ii) 50 per cent expensing, instead of 
depreciation, of certain property placed in service within the disaster area;  (iii) 50 per cent expensing 
of the costs of removing debris or structures from re al property;  and (iv) extended net operating loss 
carryback provisions.   
6. Amount 
 
 The revenue loss was $100 million in 2009.    7. Duration 
  These provisions expired on 31 December 2009.    8. Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision. 
 
Title: Midwestern Disaster Area 
 
1. Period covered by the notification 
 
 The period covered is fiscal years 2009 and 2010.    2. Policy objective and/or purpose 
  To encourage the reconstruction of the area affe cted by tornadoes, severe storms and flooding 
occurring in 2008, in the states of Arkansas, Illinoi s, Indiana, Iowa, Kansas, Michigan, Minnesota, 
Missouri, Nebraska, and Wisconsin.   3. Background and authority 
 
P.L. 110-343 authorized certain provisions rela ted to the Gulf Opportunity Zone (sections 
1400N through 1400S of the Intern al 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 th e states of Arkansas, Illinois, Indiana, Iowa, 
Kansas, Michigan, Minnesota, Missouri, Nebraska, a nd Wisconsin declared by the President to be a 
major disaster area after 19 May 2008, and befo re 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) au thority for the affected states to issue tax credit  G/SCM/N/220/USA 
 Page 61 
 
 
  bonds;  (iii) 50 per cent expensing of the costs of re moving debris or structures from real property;  
(iv) extended net operating loss carryback provisi ons;  and (v) an employee retention credit.  
 6. Amount 
 
 The revenue loss was $180 million in 2009 and $100 million in 2010.   
 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/220/USA 
Page 62 Attachment 1 – Sub-federal Programs 
 
 
State Program Title Program Authority Form of Subsid y 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. Appalachian Regional Commission 
(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% of total 
project cost spent on serving more than 
one industry.  Can bring federal participation up to 80% of eligible project cost. Ongoing 
Alabama Capital Investment 
Tax Credit Alabama Department 
of Revenue 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 research 
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 
- Subsector 511, 927 
- Industry Groups 5142 and 5415  - Industries 54138 and 54171 
- Industry 514191 ;517110;  561422 
inbound call centers  - or any  -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 
Alabama Department of Revenue 
(ADOR).  The capital credit is available each year, for 20 years.  The capital 
credit is calculated at 5% of the total 
capital costs of the qualifying project and the credit begins in the year the qualifying project is 'placed in service'. Ongoing 
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 USDA Rural 
Development 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  
   G/SCM/N/220/USA
 Page 63State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Alabama Delta Regional 
Authority (DRA)   Alabama Department 
of Economic and 
Community Affairs 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 Delta economy. 
DRA funds can be used to leverage other federal and state programs. 
 
Under federal law, at least 75% 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.  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.  Ongoing 
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 USDA Rural 
Development Loan A loan program funded by the 
Rural Economic and Community 
Development (REDC) to strengthen 
the economy of rural communities. Priority scoring is gi ven 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 1% per annum.  The intermediary sets the term of the loans and sets the interest rate 
that they will char ge to ultimate 
recipients.  The maximum loan to an 
intermediary is $750,000.00. Ongoing  
  G/SCM/N/220/USA 
Page 64 State Program Title Program Authority Form of Subsid y 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 research 
activity defined as any trade or business described in the 1997 North American 
Industry Classification System 
(NAICS) as:   
- Sectors 31, 32, 33 and 42 Subsector 
511, 927 
Industry Groups 5142 and 5415  Industries 54138 and 54171 
Industry 514191 ;  517110;  561422 and 
create at least 50 new jobs;  renewable energy facilities;  R&D facilities;  
project 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% of the 
original cost of the industrial 
development propert y, or $2 Million. Industrial projects may be exempted 
from ad valorem  (property) taxes for up 
to 10 years (except school taxes) with 
fixed assessment ratio established at 20% of appraised market value for businesses.  Approval is granted locally.Ongoing  
   G/SCM/N/220/USA
 Page 65State Program Title Program Authority Form of Subsid y 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 research 
activity defined as any trade or business described in the 1997 North American 
Industry Classification System 
(NAICS) as: 
- Sectors 31, 32, 33 and 42 Subsector 
511, 927 
Industry Groups 5142 and 5415  
Industries 54138 and 54171 
Industry 514191 ;  517110;  561422 and create at least 50 new jobs;  renewable 
energy facilities;  R&D facilities;  
project 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% of the 
original cost of the industrial 
development propert y, or $2 Million. Industrial projects 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.  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, 
manufacturing related services located 
in the Southeast. Equity requirement that is established 
locally usually falls between 5% and 
25%.  The interest rate is normally 
below prime and can be fixed or 
variable.  Program requires 
conventional lender participation. Ongoing  
  G/SCM/N/220/USA 
Page 66 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Alabama Renewal Community 
(RC) Program Alabama Department 
of Economic and 
Community Affairs Mixed Tax The RC Program is a federal tax 
incentive program created to assist in the economic development and 
expansion of 40 communities throughout the United States.  In 
January 2002, three areas received 
federal designation as RCs in the State of Alabama.  Those 
designated include areas of nine 
counties in Southern Alabama, Greene and Sumter counties, and East Mobile and Prichard. Must be located in RC as designated by 
the program. Generally, an RC business is defined as a corporation, partnership, 
or sole proprietorship that for each taxable year actively conducts every 
trade or business of the entity in a RC;  
at least 50% of the total gross income of the entity is derived from the active 
conduct of business within a RC;  a 
substantial portion of the use of the tangible property of the entity is within 
a RC;  a substantial portion of the 
intangible property of the business is used in the active conduct of the 
business;  a substantial portion of the 
services performed for the employer by its employees occur within a RC;  at 
least 35% of the employees reside in a 
RC;  no more than 5% of the property is nonqualified financial property except 
for reasonable amounts of working 
capital held in cash, cash equivalents, or debt instruments;  and no more than 5% 
of the property is works of art or other 
collectibles unless held for sale to 
customers. Available incentives include wage 
credits for employing RC residents;  increased Section 179 deduction;  
commercial revitalization deduction;  and zero capital gains rate for RC assets. Terminated in 
2010. 
Alabama Rural Business 
Enterprise Grants USDA Rural 
Development Grant A grant program funded by Rural 
Economic and Community Development (REDC) to strengthen 
the economy. Any area other than an incorporated 
city or town with greater than 50,000 population and the urbanized area 
contiguous and adjacent to such city or 
town. Must assist small and emerging private 
business (50 or less employees and less than $1,000,000 in projected gross 
income). Ongoing 
Alabama Rural Business 
Opportunity Grant USDA Rural 
Development Grant To promote development in rural 
communities. Any area other than an incorporated 
city or town w ith 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 persistently poor or have experienced long-term population decline or job deterioration. $50,000 limit on unearmarked funds per 
applicant per state. Ongoing  
   G/SCM/N/220/USA
 Page 67State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 
Alabama Water and Waste 
Disposal Funds USDA Rural 
Development Loan Indirect financing for public bodies 
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.  Loans and grants are limited to applicants serving rural areas and 
towns with populations not in 
excess of 10,000.  Applicants must not be able to obtain the financing 
form 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 USDA  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 25,000 population or 
less. Loan program funded by Rural 
Economic and Community 
Development (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.   Ongoing  
  G/SCM/N/220/USA 
Page 68 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 NA Ongoing 
Alabama  ThyssenKrupp Steel 
Plant Project Alabama Port 
Authority Incentive Package To win site selection for TK'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 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. Eligible businesses 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. Industrial, commercial and institutional 
facilities;  agricultural property owners;  
and city, county, and state government entities are eligible. 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 th e 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 
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 Qualified companies receive 25% tax 
rebate of all state certified expenditure 
and a 35% tax rebase of all payroll paid 
to residents of Alabama.  Production 
expenditures for a project must be equal or exceed at  least $500,000 but not exceed $10,000,000. Ongoing  
   G/SCM/N/220/USA
 Page 69State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Alaska Oil and Gas 
Production Tax Credit  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) Finance 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% above the prime 
rate, not to exceed 10.5%.  Interest rate 
for Product Quality Improvement or 
engine efficiency upgrade is 2% 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 
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 (in the TCC region). Sole proprietorships, partnerships, 
corporations, cooperative. In addition, 
any 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.  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% above the prime rate.  A loan commitment fee of 
1% will be assessed on the principal 
amount of each loan.  Each applicant 
will normally be required to provide in 
the form on new equity a minimum of 
25% 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. Ongoing 
Alaska Film Promotion 
Program Department of 
Commerce, 
Community & Economic Development No state sales and 
income tax To promote commercial film 
production. Film Industry Not available. Ongoing  
  G/SCM/N/220/USA 
Page 70 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 1%, not to exceed 
9.5%. 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% above the prime rate, not to exceed 
10.5%. Ongoing 
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 1%, but not less than 6%. Ongoing 
Alaska Forestry Development Department of 
Commerce, 
Community, and 
Economic 
Development  Financial support. To deve lop emerging technologies 
using wood industry. Alaska Village Initiative is partnering 
with State, Fairbanks Economic 
development Corporation and others to 
explore wood-based energy 
opportunities in rural Alaska, including cordwood systems, pellet-feed systems and bio-diesel. Not available. Ongoing 
Alaska Bulk Fuel Revolving 
Loan Fund Alaska Energy 
Authority (AEA) Loan Bulk fuel revolvi ng 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 par ties in researching, 
assessing, transferring property 
associated with contaminated land. 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 other government agencies. Not available. Ongoing  
   G/SCM/N/220/USA
 Page 71State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 the 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 developmen t. Provides funding to private landowners, 
including ANCSA (Alaska native corporations) corporations, for forest 
planning, including biomass inventory. Not available. Ongoing 
Alaska Community Forestry 
Program Department of Natural 
Resources Financing To support the development of 
local nursery industry to meet multi-million dollar and growing 
market for trees and other plants, especially native and wetland plants. Program provides technical and 
financial assistance in arboriculture, forest and natural resource management 
in communities, and use of cost efficient natural systems to clean air 
and water, treat storm water and 
conserve energy. Not available. Ongoing 
Alaska Exploration Incentive 
Credits Department of 
Revenue Tax credits To encourage exploration for 
subsurface resources. Tax credits provided to various 
schemes for exploration wells located at distance from known oil and gas 
resources and for seismic survey 
acquisitions outside the unit. Not available. Ongoing 
Alaska Restoration  Cost 
Share Program Department of Fish 
and Game Financing To sustain and enhance valuable 
salmon habitat in Anchorage, 
Fairbanks, and the South-central 
and Southeastern regions of Alaska.Provides funding, educational outreach 
and technical project assistance to public and private landowners. Not available. Ongoing 
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  
  G/SCM/N/220/USA 
Page 72 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Alaska Alaska Film Industry 
Tax Credit Department of 
Commerce, Community & 
Economic Development, Alaska Film Office Tax credit between 
30 and 44% for in-
state expenditures. Promotion of Film Production in 
Alaska Filmmakers Up to $100 million in Tax Credits (over 
the life of the program) 5 years (through 
2013) 
Alaska Alaska Capstone 
Avionics Revolving 
Loan Program Department of 
Commerce, 
Community, and 
Economic 
Development, Division of Investments (ADI) Financing To provide l ong 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 finan ced 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 
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. Companies that are engaged in the 
conversion of existing and installation 
of new storage and dispensing equipment. Subject to funding availability, the 
director shall award grants equal to the 
lesser of $75,000 or the conversion cost per site. Ongoing 
Arizona Healthy Forest 
Enterprise Incentives 
Program (HF) Arizona Department 
of Commerce Income Tax Credit To promote forest health in 
Arizona. For certified businesses that are 
primarily engaged in harvesting, initial 
processing or transporting of qualifying forest products. Income tax credit can be earned over a 
three-year period for each new job 
created, totaling up to $3,000 per employee.  Ongoing 
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 
Arizona The Renewable 
Energy Tax Incentive Program Arizona Department 
of Commerce Tax incentives To promote the renewable energy 
industry in the state of Arizona. Companies engaged in the production 
and use of renewable energy products.  
Qualifications are:  1) primarily 
engaged (50% or more) in the manufacturing for systems and 
components that are used in 
manufacturing renewable energy equipment;  2) is expanding or locating 
either a renewable energy or 
manufacturing facility in Arizona;  3) creates full-time employment 
positions of which at least 51% are paid 
125% of state's annual median wage;  4) offers to pay 80% of health insurance 
costs and 5) spends at least $250,000 in 
qualifying investments during each 
12 month period. The program offers two benefits:  1) up 
to a 10% refundable income tax credit;  
2) up to a 75% reduction on real and 
personal property taxes. Ongoing  
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Program 
Arizona Defense Restructuring 
Program 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, and consolidate facilities into this state. Defense contractors (manufacturer, 
assembler or fabricator).  No new certifications to the Department of 
Revenue after 30 June 2001. A credit allowed against corporate 
income taxes for up to 40% 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 zone 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%.  
Thirty-five per cent 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% of full-cash value) 
for a period of 5 years.  (Primary 
portion of property tax is reclassified). Ongoing 
Arizona Military Reuse Zone 
Program Arizona Department 
of Commerce Tax Credit Eases the restrictions on the 
designation and renewal of a closed 
military facility as a military reuse 
zone by allowing the Governor to 
designate the zone upon either the execution of a long-term lease or title transfer. Manufacturers, assemblers, or 
fabricators of aviation or aerospace 
products, as well as providers of 
aviation or aerospace services, located 
within a Military Reuse Zone.  Companies will have their real and 
personal property classified as class six 
property with an associated assessment 
ratio of 5% (normally rate is 25%) for a 
period of five years.  In addition, tax credits are based upon net new 
employees.  The credit is a dollar 
amount allowed for each new employee up to $7,500 (up to five years).  There is 
also an exemption of the Transaction 
Privilege Tax available for a prime contractor having a contract with a 
qualified MRUZ business for work in 
the zone. Ongoing  
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Page 74 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Arizona Motion Picture 
Production State Transaction Privilege 
Tax Refund Arizona Department 
of Commerce Tax Refund Film incentives  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% transaction privilege (sales) tax 
refund to qualifying production companies for projects filmed in 
Arizona.  Specific Department of Revenue (DOR) rules must be followed 
to both apply and qualify for this rebate 
against the 5.6% state sales tax. Terminated 
during reporting 
period. 
Arizona Credit for Motion 
Picture Production 
and Investment Arizona Department 
of Commerce Tax Credit To encourage film production 
within the State. Any single medium or multimedia 
program, including commercial 
advertising that is created by production 
activities conducted in whole or part 
within the state. Computes the tax credit as follows:  
1) If the total amount of the actual 
investment made and spent by the 
certified production in Arizona as a 
production-related cost is more than $100,000 but less than or equal to 
$5 million, the credit is 10% of the 
actual investment made by the taxpayer. 2)  If the total amount of the actual 
investment made and spent by the 
certified production in Arizona as a production-related cost is more than $5 million but less than or equal to 
$10 million, the credit is 15% of the 
actual investment made by the taxpayer.  3) If the total amount of the actual 
investment made and spent by the 
certified production in Arizona as a production-related cost is more than 
$10 million, the credit is 20% of the 
actual investment made by the taxpayer.Terminated 
during reporting 
period. 
Arizona Motion Picture 
Production Tax 
Incentives Program Arizona Department 
of Commerce Tax exemption and 
income tax credit To encourage film production 
within the State. Film Industry Tax exemption and income tax credit. 
Transaction Privilege Tax Exemption (most purchases related to production);  
Use Tax Exemption (e.g. machinery, equipment);  Income Tax Credit equal 
to 10-20% of investment in production 
costs. Cap of 5 million per film. Terminated 
during reporting 
period. 
Arizona Solar Energy Tax 
Incentive The Department of 
Commerce Tax Credits To promote solar energy. Businesses purchasing solar energy 
device or system. Up to 10% of the total capital project 
costs. Program 
terminates 31 December 
2014  
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Program 
Arizona Solar Liquid Fuel Tax 
Credit The Department of 
Revenue Tax Credit To promote solar energy. 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 as 
provided by section 41 of the internal 
revenue code. Program 
terminates 
31 December 
2021 
Arkansas  Research & 
Development Arkansas Economic 
Development 
Commission State Income Tax 
Credit The Research and Development 
incentives are intended to provide incentives for uni versity-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 
(5) years;  and Pay at least 150% of the lesser of the county or state average 
wage;  and 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 logistic s;  and Bio-based 
products. Payroll threshold is less than $100,000 
but more than $1,000,000. Must have 
proof of equity investments of 
$400,000. Transferable income credit is 
10% of annual payroll of new 
employees. 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 
Arkansas  Tax Increment 
Financing Act 1197 of 2001, 14-
68-301, et seq. Local revenue 
bonding authority Enable local governments to issue 
bonds to finance improvements in a 
redevelopment district.  The bonds are secured and paid back from the 
incremental local  ad valorem  
revenue (except first 25 mils for educational base, libraries, firemen 
pension funds and hospitals) as a 
result of the improvements. A redevelopment district must be in an 
area that is defined as blighted, 
deteriorated or underdeveloped. Not available. Ongoing  
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Program 
Arkansas  Advantage Arkansas Arkansas Economic 
Development Commission 
(Consolidated Incentive Act of 2003, 15-4-2701, et seq) Income tax credit To encourage job crea tion. Eligible businesses paying at least 
minimum lowest county wage ($10.13 for 2010) include:  
manufacturers and corporate headquarters;  and the following with 
75% out-of-state revenues:  distribution 
centers/intermodal facilities;  office sector;  commercial, physical or 
biological research;  and, scientific-
technical services businesses, digital content and motion picture production 
companies and certain information 
services businesses. Income tax credit based upon a 
percentage of payroll of new permanent employees. Minimum payroll thresholds 
and benefits are dependent on the tier in which the company locates or expands;  
Tier 1 - $125,000 minimum payroll - 
1% benefit;  Tier 2 - $100,000 minimum payroll - 2% benefit;  Tier 3 - 
$75,000 minimum payroll - 3% benefit;  
Tier 4 - $50,000 minimum payroll - 4% benefit.  Maximum credit is 50% of 
income tax liability each year.  Credit 
accrues for 5 years. Ongoing 
Arkansas  Create Rebate Arkansas Economic 
Development Commission 
(Consolidated Incentive Act of 2003, 15-4-2701, et seq) Annual cash rebate 
(At discretion of AEDC Executive 
Director) To encourage job creation. Eligible  businesses (must create at least 
$2 million in new annual payroll)  include:  manufacturers and corporate 
headquarters;  and the following with 75% out-of-state revenues:  distribution 
centers/intermodal facilities;  office 
sector;  commercial, physical or biological research;  and, scientific-
technical services businesses, digital 
content and motion picture production companies and certain information services businesses. Incentive based upon a percentage of 
payroll of new permanent employees. Minimum payroll thresholds and 
benefits are dependent on the tier in which the company locates or expands:  
Tier 1 - 3.9%;  Tier 2 - 4.25%;  Tier 3 - 
4.5%;  Tier 4 - 5%.  Term of the agreement is determined by the 
Director, up to 10 years. Targeted 
businesses (see above) paying 175% of lesser of state or county average wage) 
may receive 5% for up to 10 years 
regardless of tier status. Ongoing 
Arkansas  Invest Ark Arkansas Economic 
Development 
Commission 
(Consolidated 
Incentive Act of 2003, 
15-4-2701, et seq) Sales and use tax 
credit To encourage investment and 
growth within the state. Companies established in Arkansas at 
least two years that expend $5 million 
or more in plant or equipment for new 
construction, expansion or 
modernization.  Credit equals the percentage of 
investment in new construction and 
equipment equal to half per cent above 
the state tax rate at the time of 
application (6 1/2% for 2009-2010) . Credit earned cannot exceed 50% of 
sales and use tax liability. Carry forward 
for 5 years. Ongoing 
Arkansas  Research in Area of 
Strategic Value;  In-House Research in 
Area of Strategic 
Value Arkansas Science & 
Technology Authority Income tax credit To encourage investment in 
research and development. Qualified research expenditures and 
approval determined by ASTA board of 
directors. Income tax credit equal to 33% of 
qualified research expenditures. Agreement term is five years and credit 
claimed limited to $50,000 per tax year. 
May be carried forward for nine years. Ongoing  
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Program 
Arkansas  Targeted Business 
Incentives  Arkansas Economic 
Development Commission  (AEDC) 
(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 five years;  have an equity 
investment of at least $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 bio-based 
products. Eligible companies may receive up to 
three  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 (AEDC) 
(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 1 state certified 
production or post-production project. Companies may receive two incentives 
under this program:  (a) production rebate equal to 15% of qualified 
Arkansas production/post-production expenditures and (b) payroll rebate 
equal to 10% of payroll of Arkansas 
residents engaged in eligible productions.  Expenditures for entire 
program capped at $5 million. Only 
$21,312 was disbursed in 2009-2010. Until funding ($5 
million) is 
exhausted 
Arkansas  Targeted ArkPlus Arkansas Economic 
Development 
Commission (AEDC) 
(Consolidated 
Incentive Act of 2003, 
15-4-2701, et seq) State income or 
sales and use tax 
credits (At the 
discretion of the 
AEDC Executive 
Director) To encourage investment and job 
creation in Arkansas. Targeted businesses  include:  
manufacturers and corporate 
headquarters;  distribution 
centers/intermodal facilities;  office 
sector;  commercial, physical or biological research;  and, scientific-
technical services businesses, digital 
content and motion picture production companies and certain information 
services businesses  investing $250,000 
and creating new payroll of $250,000 for employees paid at least 175% of the 
lesser of the state or county average 
wage. Credits equal to 2% of investments from 
$250,000 to $500,000, 4% of 
investments from $500,000 to 
$1 million, 6% of investments from 
$1 million to $2 million and 8% of investments in excess of $2 million.  Up 
to 50% of tax liability may be offset for 
businesses paying 175% of the lesser of the state or county average hourly wage 
75% for wages exceeding 200% thereof, 
and 100% for wages exceeding 225% 
thereof. Ongoing  
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Page 78 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Arkansas  Equity Investment 
Incentive Arkansas Economic 
Development Commission, 
Arkansas Science and Technology Authority 
and Arkansas 
Development Finance Authority, Act 566 of 
2007, 15-4-3301 et 
seq Income tax credit To encourage capital investment by 
targeted, early stage and start-up businesses that create new high 
paying jobs. Eligibility is limited to investments in 
one of the following six sectors:  advanced materials and manufacturing 
systems;  agriculture, food and environmental sciences;  biotechnology, 
bioengineering and life sciences;  
Information technology;  transportation logistics;  and bio- based products or in 
businesses that receive assistance in the 
form of equity investments from capital investment funds that target early-stage 
businesses and start-up businesses if the 
business pays 150% of the lesser of state or county average wage and meets other criteria specified by the code. Transferrable 33.33% income tax 
credits based upon qualified investment amounts.  Credits cannot offset more 
than 50% of income tax liability 
annually.  Ongoing 
Arkansas  Wind Energy Income 
Tax Exemption Arkansas Department 
of Finance and 
Administration 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 are based 
upon various calculations which result 
in the number of years the income tax 
exemption is granted to the qualified 
windmill blade or windmill component 
manufacturer. Ongoing 
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 Grant To increase th e 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 to feedstock processors shall not 
exceed $3 million or 50% of the project 
cost, whichever is less in any fiscal year.  Grants to distributors shall not exceed $300,000 or 50% of the project 
cost, whichever is less in any fiscal 
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 technology-based enterprises in 
Arkansas. Technology-based enterprises (see 
targeted businesses listed in Targeted Ark Plus program) 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 capita l for their growth 
and development.  A portion of this 
fund will be used to validate early state 
technology before other investments 
can be made.  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.  For example, there is a limit of $100,000 for technology 
validation funds, and a limit of 
$750,000 for enterprise development. Ongoing 
California Manufacturing 
Enhancement Areas Department of 
Housing and Community 
Development Tax Credits 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. Ongoing  
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Program 
California New Hire Tax Credit   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 Old Growth 
Diversification 
Revolving Loan Fund California Trade and 
Commerce Agency Loan With funding from the U.S. Forest 
Service, the Old Growth 
Diversification program provides 
low cost capital to businesses to 
create and retain jobs in areas of Northern California affected by 
timber harvest reductions and 
sawmill and related plant closures.  Emphasis will be placed on value-
added wood products and other 
resource-related manufacturing, and on business ventures which 
diversify the local economy.  
Where possible, preference will be given to those projects which 
employ displaced timber workers.  
Expanding businesses as well as start-up ventures will be considered. Businesses in areas of Northern 
California affected by timber harvest 
reductions and sawmill and related plant closures. Businesses may borrow from $25,000 to 
$100,000.  Loan terms may go up to 
10 years for real estate or equipment, 
and up to five years for working capital. 
Lines of credit with a one-year maturity are also available.  The interest rate may 
be fixed or variable, and will be set at 
the time of loan approval, depending on 
the borrower's individual circumstances.Discontinued as 
of 30 June 2003 
California Recycling Market 
Development Zone 
Program California Integrated 
Waste Management 
Board (part of 
CalEPA) Mixed Financing The Recycling Market 
Development Zone 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% 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, 5% 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/220/USA 
Page 80 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
California Tax exemption:  
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 e quipment. 5% 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% 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% credit against their bank or 
corporation tax liab ility for qualified in-
house research expenses, and a 
24% credit against basic research 
payments to outside organizations. Ongoing 
California  Rural Investment Tax 
Exemption Board of Equalization Partial sales and use 
tax exemption To increase investment in high 
unemployed counties. Qualifying businesses in designated 
high-unemployment counties. Business 
must be located or plan to locate in a 
California county with unemployment 
at 5% or more than the state average. Total exemption is capped at $5 million 
per year. Ended in 
31 December 
2005 
California  Small Business Loan 
Guarantee Program California Workforce 
and Development 
Agency Loan guarantees on 
revolving lines or 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% 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% ethanol 
or methanol.   Pay an excise tax of one half the normal 
rate for each gallon used.    
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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;  or they must hire new full-
time employees;  or pay for 50%+ of an employee's health insurance;  
or conduct R&D activities in the 
zone;  or invest in job training;  or 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 
anywhere within a designated enterprise zone is potentially eligible.  Specific 
programs, however, are targeted at agricultural processing, manufacturing, and R&D. An investment credit of 3% is for 
investments in equipment used exclusively in the enterprise zone.  
There is a 25% income tax credit (not to exceed $50,000) to rehabilitate vacant 
buildings.  There is a 10% credit for 
employer job training expenses.  There is a $500 tax credit for each new 
full-time employee and an additional 
$500 credit for each full-time agricultural processing or 
manufacturing employee and an 
additional $200 for each employee that the employer pays for their health 
insurance.  A 3% tax credit is granted 
for increases in R&D expenditures.  There is also a tax credit of 25% (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 
Colorado Biotech Sales 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 1 January and no later than 1 April 
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  
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Page 82 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Colorado Colorado Film 
Incentive House Bill 06-1362 Rebate (effective as 
of 5 June 2006) To encourage film and television 
production within the State. Film/Television Industry 10% rebate of below the line cost of 
producing a film, documentary or 
television program. 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 
Colorado  Ad hoc incentive 
package Colorado Economic 
Development 
Commission and OEDIT Cash incentives;  
job training funds To increase employment in 
Colorado Lockheed Martin Colorado will provide funding in the 
aggregate amount of $900,000 to be 
disbursed at a rate of $3,000 per new 
job created .  As of January 2008 no 
funds have been disbursed. 2007-2011 
Connecticut Apprenticeship 
Training Tax Credit in Manufacturing, 
Plastics, Plastics-Related, or 
Construction Trades - 
§12-217g   Connecticut 
Department of Labor Tax Credit This is a tax credit granted under 
Gen. Stat. 12-217g and amended by 
P.A. 97-295. Available statewide. 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% 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 limi ted to the lesser of 
50% 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% used to induce 
bank lending in targeted areas.  Up to 9.5% 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 with 100 pr 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  
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 Page 83State Program Title Program Authority Form of Subsid y 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 form 
$50,000 to $4 million within which real property loans cannot exceed 90% of 
their cost or 20 years in term;  machinery and equipment cannot 
exceed 80% 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% 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 SBIC.  Up to $1 million to 
state or local development corporations. Ongoing 
Connecticut Connecticut 
Innovations Connecticut 
Innovations, Inc. Equity The goal of th ese 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% of the project funds between $50,000 and 
$1,000,000 in funds. Companies may apply for up to $500,000 under CTP.  
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%.  The structure of the 
investment terms depends upon the risk 
assessment made by Connecticut Innovations' staff, and the needs of the business. Ongoing  
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Page 84 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Connecticut Enterprise Corridor 
Zones Department of 
Economic and Community 
Development Mixed Tax 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 locat ed 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% level of corporate 
credits, the hiring level for new full time positions remains at 30% of those 
positions being filled by residents of the 
community in which the project takes 
place, who are JTPA 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. Enterprise zones or entertainment 
districts.  Manufacturers, R&D, 
warehousing and certain services and entertainment related business as defined by regulations. Allows a business 25% or 50% 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 
Connecticut Enterprise Zone 
Program State of Connecticut 
Department of 
Economic and 
Community 
Development Mixed Tax 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% 
abatement of local taxes on real estate 
improvements and personal property acquisitions;  2) Ten-year, 25% credit 
on corporate business taxes (50% if at 
least 5% 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 assistance;  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 gradua ted tax deferral on 
increased assessments for improvements to property, exemptions on state real 
estate conveyance tax, and local 
incentives.   Ongoing  
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 Page 85State Program Title Program Authority Form of Subsid y 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. Statewide- Manufacturing or economic 
base business.  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 
cluster, 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% of total project costs;  up to 
75% for joint ventures between two or more municipalities, up to 90% in 
targeted investment communities, and up to 100% for defense diversification 
projects.  The term of the state's 
economic development loans is typically for a period of 10 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% are available 
through the Department of 
Economic and Community Development (DCED) for 
corporations (including 
manufacturing facilities) that are located in designated distressed 
municipalities and enterprise zones 
within Connecticut. Corporations (including manufacturing 
facilities) that are located in designated 
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. Operating in a designated area of high 
unemployment The credit period lasts for 10 years 
beginning with the first year following 
certification. Ongoing 
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% corporate tax credit for 10 years. Ongoing  
  G/SCM/N/220/USA 
Page 86 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Connecticut Tax Increment 
Financing Connecticut 
Development 
Authority 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 Authority prior to 1 July 1996 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% local property 
tax abatement for five years for both real and personal property;  
2) A corporate business tax reduction of 
25% for ten years;  3) Working capital loans for small business;  and 4) A 0.5% 
reduction in charges for state industrial 
mortgage guarantees.  Facility owners are entitled to the property tax 
incentives;  all ot her incentives are 
reserved for facility occupants. Ongoing 
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 the next three years. 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 with in 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% abatement of local 
property taxes. 2) 10 year, 25% or 
50% 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% abatement of local 
property taxes. 2) 10 year, 25% or 
50% credit on that portion of the 
Connecticut Corporation Business tax. Ongoing   
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Program 
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 1per cent application fee. Ongoing  
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. Credits 
are assignable (salable). 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 
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  
  G/SCM/N/220/USA 
Page 88 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Connecticut Connecticut 
Brownfields & Information 
Technology Projects Tax Incremental Financing Connecticut 
Brownfields Redevelopment 
Authority (CBRA) 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 ProgramDepartment 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 
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% 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 Ad hoc incentive 
package Department of 
Economic and Community 
Development Loans and tax 
incentives To bolster the submarine's 
manufacturer's renovation of two 
dry docks. General Boats/General Dynamics $20 million 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 facilities, 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  
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 Page 89State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 
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 la ter 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 
the 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 pr ivate-sector lenders meet 
their client's financing 
requirements. Economic base businesses. Guarant ees can fully cover losses up to 
40% of the principal balance Ongoing 
Connecticut 25% 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 wi thin a Targeted 
Investment Community or an Enterprise Zone (or other area having Enterprise Zone level benefits). Ongoing  
  G/SCM/N/220/USA 
Page 90 State Program Title Program Authority Form of Subsid y 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 encourag e 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 
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. 5% credit:  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.10% credit:  A tax credit 
equal to 10% of the incremental increase in expenditu res 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  
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 Page 91State Program Title Program Authority Form of Subsid y 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 cred it 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 
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 that 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 certificati on.  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/220/USA 
Page 92 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Delaware Delaware Access 
Program Delaware Economic  
Development 
Authority Loans To provide a source of financing to 
companies that for various reasons (i.e. creditworthiness) cannot 
access loan funding sources. To companies that need financing but 
have found that traditional funding 
sources are not available to them. Amount are negotiated between the 
bank and the borrower.  The Delaware Access Program is designed to give 
banks a flexible and extremely non-bureaucratic tool to make business loans 
that are somewhat riskier than a 
conventional bank loan, in a manner 
consistent with safety and soundness.   Outgoing. 
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. Some specific 
uses of the fund are listed below: 
a) Economic Development Loans or Grants b) Green Industries Loans 
c) Governmental Units 
Development Assistance d)SBIR Bridge Grants and e) Brownfield 
Grants 
Typically, a request  for financial 
assistance from the Strategic Fund is first discussed with the Business 
Development Section of the 
Delaware Economic Development 
Office.       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  
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 Page 93State Program Title Program Authority Form of Subsid y 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, development 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% 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 This is an enhancement to 
Corporate Income Tax Credits.  
When the targeted industry locates 
in a Targeted  area,   Gross Receipt 
reductions further increase the incentive by providing a fifteen year  reduction of Gross Receipts;  
100% the first five years, 90% in 
the sixth year decreasing by 10% each year until 5% in the final (fifteenth) year.  Targeted industries locating in a 
targeted area. 100% reduction the first five years. 
90% reduction beginning in the sixth 
year. 
80% the seventh year until the fifteenth 
and final year with a 5% reduction. Ongoing 
Delaware Gross Receipt Tax 
Reductions 
for targeted industries.Department of 
Finance Tax Reductions 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% beginning in 
the first year, 80% the second year 
until 5% in the last  (tenth) year.  Targeted industries eligible for 
Corporate Income Tax credits. 90% reduction the first year. 
80% the second  year. 
70% the third year until 5% the last (tenth) year. Ongoing 
Delaware Headquarters 
Management 
Corporation (HMC) Department of 
Finance Tax Reductions Designed to attract headquarter 
operations. Headquarters:  In 2004, Delaware 
approved a new corporation category, designed to strengthen the states 
location for Headquarter operations.  This is a result of various states putting 
pressure on Delaware Holding 
Companies.  Taxpayers gave to add jobs or increase purchases of would 
have to add jobs in state services to be 
designated as a HMC. The benefit equals a 20% reduction in 
taxes owed for each new Delaware employee.  HMCs must pay a minimum 
$5,000 tax. Ongoing  
  G/SCM/N/220/USA 
Page 94 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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% 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 
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% 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% reduction 
the first year, 80% the second until 5% 
in the final (tenth) year. Ongoing 
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% 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/220/USA
 Page 95State Program Title Program Authority Form of Subsid y 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%.  The 
utility tax on the consumption of 
electric by licensed manufacturers and food or agribusiness processors 
is reduced from 4.25% to 2%. 
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 per cent (50%) 
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 No state sales tax. Ongoing 
District of 
Colombia Film DC Economic 
Incentive Grant Fund Office of Motion 
Picture and TV Grant To promote commercial film and 
television production. Film/Television Industry Reimburse ment for expenses related to 
production of nationally distributed film and television projects with a minimum 
spend of $500,000 in Washington, DC in period of five days or more.  Grant is 
not exceed the lesser of 10% of the 
qualified expenses or 100% of the taxes 
paid to DC on the qualified expenses. Ongoing 
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. Several address-specific 
criteria exist for ea ch of the potential 
benefits. Enterprise Zone Map:  
www.dcbiz.dc.gov 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 five years). Ongoing  
  G/SCM/N/220/USA 
Page 96 State Program Title Program Authority Form of Subsid y 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 collecti on 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 taxes 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% 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 
Florida Incentive for Digital 
Media Effects Companies and 
Relocation Projects Office of the Film and 
Entertainment Cash rebate To promote film production within 
the state. Film Industry Rebate of 5% of its annual gross 
revenues, not to exceed $100,000;  qualified relocation project eligible for a 
rebate of 5% of its first 12 months of gross revenues in Florida, not to exceed $200,000. Ongoing 
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 do llars in tax incentives. Ongoing  
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 Page 97State Program Title Program Authority Form of Subsid y 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 than have the potential to create jobs and 
stimulate the local economy. Researchers and Entrepreneurs in Leon 
County. Can receive up to $15,000 in grants.  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 
5% of the eligible capital costs generated by a qualifying project and no 
more than or a specified percentage of the annual corporate income tax liability 
generated by the project, whichever is 
lower.  Those percentages are:   100%, for a project with a cumulative 
capital investment of at least 
$100 million; 75%, for a project with a cumulative 
capital investment of at least 
$50 million but less than $100 million;  and 
50%, for a project with a cumulative 
capital investment of at least 
$25 million but less than $50 million. Ongoing 
Florida  Enterprise Zone Jobs 
Tax Credit (Corporate 
Income Tax) Office of Tourism, 
Trade and Economic 
Development 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. State-designated enterprise zones.  
Firms must earn more than $5,000 to 
take advantage of the credit. The credit amounts to 20% of wages 
paid to new employees who are 
residents of a Florida enterprise zone.  If 20% or more of the permanent, full-time employees are residents of a Florida 
enterprise zone, the credit is 30%.  The 
credit is available for up to two years per new employee.  In "Rural Enterprise 
Zones" businesses will receive a credit 
of 30% paid to new eligible employees in a full-time job who are residents of a 
"Rural County".  If 20% or more of the 
permanent, full-time employees are 
residents of a zone, the credit is 45%. Ongoing 
Florida  Enterprise Zone Jobs 
Tax Credit (Sales and 
Use Tax) Florida Department of 
Revenue 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. State-designated enterprise zones. The credit amounts to 20% of wages 
paid to new employees who are 
residents of a Florida enterprise zone.  If 20% or more of the permanent, full-time 
employees are residents of a Florida 
enterprise zone, the credit is 30%.  The credit is available for up to two years 
per new employee.  In "Rural Enterprise 
Zones" businesses will receive a credit of 30% paid to new eligible employees 
in a full-time job who are residents of a 
"Rural County".  If 20% or more of the permanent, full-time employees are resident of a zone, the credit is 45%. 31 December 
2015  
  G/SCM/N/220/USA 
Page 98 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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% of ad valorem  taxes paid on 
the new or improved property. 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% 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. 31 December 
2015 
Florida  Florida Enterprise 
Zone Program Office of Tourism, 
Trade and Economic Development and 
Florida Department of 
Revenue Tax Credit Florida's Enterprise Zone Program 
offers financial investment opportunities to businesses located 
in designated areas found in both 
urban and rural communities. Tax savings are offered to businesses 
who are located within a designated Enterprise Zone who employ zone 
residents, rehabilitate real property or purchase business equipment.  Tax 
investments are also available to 
businesses who pay either the Florida Corporate Income Tax or the Florida Sales and Use Tax. The following state incentives are 
offered to encourage private investment in the zones as well as employment 
opportunities for the area's residents: Enterprise Zone Jobs Tax Credit (Sales 
& Use Tax),  
Enterprise Zone Jobs Tax Credit (Corporate Income Tax), Sales Tax 
refund for building materials, sales tax 
refund for business machinery and equipment, and sales tax exemption for 
electrical energy, and community 
contribution tax credit. 31 December 
2015 
Florida  High Impact Business 
Performance IncentiveOffice of Tourism, 
Trade and Economic 
Development Grant The High Impact Business 
Performance Incentive (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. 75 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/220/USA
 Page 99State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Florida  Qualified Defense 
Contractor Tax 
Refund Program Office of Tourism, 
Trade and Economic 
Development 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% increase in Florida employment, or a minimum of 80 jobs. All- In order to qualify for 
consideration under the program an applicant must:  pay an average annual 
wage that is at least 115% of the state or local average wages;  have in the last 
year derived at least 60% of its Florida 
gross receipts from Department of Defense contracts and not less that 
80% over the preceding five years;  
create at least a 25% 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 the 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% of the total refund may be taken per year as long as the business in 
maintaining 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% 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% of the 
refund for which they would otherwise 
qualify. Ongoing 
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 business. 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 basi s as per terms of 
the grant agreement.  The maximum grant term is 24 months. Ongoing  
  G/SCM/N/220/USA 
Page 100 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Florida  Qualified Target 
Industry Tax Refund 
Program (QTI) Office of Tourism, 
Trade and Economic 
Development Tax Refund The Qualified Target Industry 
(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, Information 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% of the average 
annual wage, add $1, 000 per job;  for 
businesses paying 200% 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 it verification of job 
creation/maintenance and required wage payments.  Local communities, except 
rural counties, must pay 20% of the 
refund. Ongoing 
Florida  Rural Job Tax Credit 
Program Office of Tourism, 
Trade and Economic 
Development Tax Credit The Rural Job Tax Credit is a 
$1,000 tax credit per qualified employee to be taken against either 
the Florida Corporate Income Tax 
or the Florida Sales and Use Tax. 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%, 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. 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 (MME) 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 
Florida  Sales Tax Exemption 
for Electrical Energy 
Used in an Enterprise 
Zone Florida Department of 
Revenue Tax Exemption Businesses lo cated in an enterprise 
zone may receive 50% 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% of the state 
sales tax on utilities.  If 20% of the firm's employees are zone 
residents, the business is totally 
exempt from the tax. State-designated Enterprise Zones with 
local ordinance exempting 50% of the 
municipal utility tax. These exemptions are available for up 
to five years. 31 December 
2015  
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 Page 101State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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% of employees are EZ residents) for sales taxes paid 
on building materials used to 
rehabilitate real pr operty located in 
the zone. Enterprise Zones The maximum refund per application 
will be no more than $5,000 or 97% of the tax paid. If 20% 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% 
of the tax paid. 31 December 
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. State-designated Enterprise 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% of the tax paid per parcel of property.  If 20% 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% of the tax paid per 
parcel. 31 December 
2015 
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 manufacture, process, compound, or 
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 
Florida  Rural Community 
Development 
Revolving Loan Office of Tourism, 
Trade and Economic 
Development Grant To promote rural development 
projects in rural areas which will 
stimulate economic growth. All businesses Low interest rates loans Ongoing   
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Page 102 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Florida  Florida's Centers for 
Excellence 
Technology Fund Office of Tourism, 
Trade and Economic 
Development Grant The three Centers:  Center of 
Excellence in Regenerative Health Biotechnology, Florida Photonics 
Center of Excellence and Center of Excellence in Biomedical and 
Marine Biotechnology are designed 
to help bridge the gap between academia and industry and give 
university-produced innovations a 
push towards commercialization.  High-technology industries Each  center receives $10 million and 
businesses have access to R&D resources provided by the Universities, 
which is normally too expensive for 
commercial industries. 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. List to include activities such as retail, 
manufacturers, customer service centers 
and hotels. Credit ranges from $500 to $2,000 per 
qualified job and can be taken against either corporate income tax or sales and 
use tax, but not both.  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 year 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. $3m pool.  Loans equal $200,000 per 
qualifying business, or 50% of total 
project cost.  Loans are usually made "below market rate." Ongoing 
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 can not be less than:  
Industrial-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% property tax reduction in the first 
five years and 80, 60, 40, and 20% reductions in subsequent five year 
periods;  a 100% exemption exists for 
inventory for 25 years.  Housing and Commercial:  Zone created for 10 years 
with exemptions for real property being 
100% for 5 years;  80% 6 and 7 years;  60% for 8 years;  40% for 9 years;  
20% for 10 years.  Non-exempt real 
property is taxed by the City. Ongoing  
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Program 
Georgia Foreign Trade Zones Foreign Trade Zones 
Board, Georgia 
Foreign-Trade Zone Mixed Tax Foreign trade zones 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, repacked, 
exhibited, manipulated, re-labeled, used in manufacture, stored until 
needed, or shippe d back into the 
United States, at which time duties 
would be paid. Manufacturers, importers.  
Manufacturers using both domestic and 
foreign components. 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 
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  -- 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% of the average wage for Tier 2 counties, at 
least 110% of the average wage of Tier 
3 counties, and at least 115% of the average wage for Tier 4 counties.  -- 
Within one year, a company must 
invest $1 million and create 100 jobs at a new headquarters facility.  -- 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% 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 
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 qua lified 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% credit that increases to 8% for 
recycling, pollution control, and defense 
conversion activities.  Companies expanding in Tier 2 counties are eligible 
to receive a 3% tax credit that increases 
to 5% for recycling, pollution control, and defense conversion activities.  
Companies expanding in Tier 3 or 
Tier 4 counties are eligible to receive a 1% credit that increases to 3% for 
recycling, pollution control, and defense 
conversion activities. Ongoing  
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Page 104 State Program Title Program Authority Form of Subsid y 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, processing, 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.  A $500 credit bonus is 
available for a business locating within the jurisdiction of a Joint Development 
Authority of two or more contiguous 
counties.  Credit values can be taken for up to five years and carried forward for 
10 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 availabl e in Tier 1 counties 
are potentially available to companies in 
certain "less developed" census tracts in 
the metropolitan areas of the state.   Ongoing 
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 businesses in 
Georgia. Businesses must first be eligible to 
receive either the Jobs Tax Credit or the Investment Tax Credit.  To receive the 
Port Activity Bonus, businesses must increase their port traffic tonnage 
through Georgia ports by more than 
10% 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  
   G/SCM/N/220/USA
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Program 
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. Flat tax credit of 20% based on a 
minimum investment of $500,000 on qualified productions in Georgia.  An 
additional 10% 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% 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 north Georgia. Projects which are beneficial to the 
37-county area of Appalachian Georgia.Approximately $2,300,000;  
Infrastructure $300,000;  Operational 
$100,000 or less. Ongoing 
Georgia  Sales Tax Exemption Georgia  Tax Exemption Tax exemption provided by 
Georgia law 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. Depends on cost of eligible equipment.  
State sales tax rate is 4%. Ongoing  
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Page 106 State Program Title Program Authority Form of Subsid y 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 wh en 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 
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;  
effective 2009.  Companies that employ at least 1,800 
net new employees and either invest a minimum of $450 million or have an 
annual payroll of $150M 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 (started 
in 2009) 
Hawaii Motion Picture and 
Film Production 
Income Tax Credit Department of 
Business, Economic 
Development and Tourism Tax Credit Each taxpayer subject to Hawaii's 
net income tax, who incurs 
production costs and transient 
accommodations costs in Hawaii 
while producing a motion picture or television film that benefits 
Hawaii's economy, may claim a 
motion picture a nd film production 
income tax credit for the taxable year. Motion picture and film industry. The ta x credit is comprised of two parts:  
(1). An amount up to 4% of the costs 
incurred in Hawaii in the production of 
motion picture or television films. 
(2). An amount up to 7.25% of the costs incurred in Hawaii in the production of 
motion picture or te levision films for 
actual expenditures for transient accommodations.  This tax credit is also refundable. Ongoing  
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Program 
Hawaii Enterprise Zone 
Partnership Program Hawaii Revised 
Statutes (HRS) Chapter 209E. 
Act 143. Administered by 
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 c ounty. Program 
enabling tax breaks for selected 
companies in designated areas. To enroll in the Enterprise Zone 
partnership, at least half of a firm's annual gross income in an EZ must be 
from one or more of the following activities:  Agricultural production or processing;   
Manufacturing;  Wholesaling/ 
Distribution;  Aviation or maritime 
repair or maintenance;  Telecommunications switching and delivery systems;   
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 already in an EZ must increase their average annual 
number of full-time employees by at 
least 10% by the end of the first year. 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.  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/220/USA 
Page 108 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Hawaii Qualified High-
Technology Business Investment Tax 
Credits (QHTB) §§235-110.9, 241-4.8, 
and 431:7-209, HRS Tax credits To benefit high-technology 
businesses involved in qualified 
research Any taxpayer subject to income tax, 
franchise tax, or insurance premium tax, may invest in an unlimited number 
of QHTBs per taxable year and claim a nonrefundable tax credit. QHTBs are 
businesses that conduct more than 
50% of their total activities in qualified research, which includes:  
IRC § 41 Research and Development 
(research involving physical or biological science, engineering or 
computer science), .development of 
computer software, biotechnology, performing arts, sensor and optic 
technologies, ocean sciences, 
astronomy and nonfossil fuel energy-related technology. QHTBs may qualify 
for income tax exclusion for income 
from royalties and from stock options. At least 75% of research must be done 
in Hawaii. More than 75% of gross 
income must come from Qualified 
Research. Nonrefundable 100% state tax credit of 
up to $2 million.  The credit is graduated over five years (35% to 10%) 
from the date of investment for investments made through 2010.  Some 
of the credit claimed will be recaptured 
from the taxpayer if the QHTB ceases to 
qualify as a QHTB.   
Hawaii Revolving Venture 
Capital Fund Hawaii Strategic 
Development 
Corporation Equity The Corporation invests public 
funds in professionally managed 
venture capital limited partnerships.High-technology and innovation 
businesses are given priority. Corporation has committed $14 million, 
pooled with private capital, into seven 
venture capital funds. Ongoing 
Hawaii Royalties Tax 
Exemption Department of 
Taxation 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  
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 Page 109State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Hawaii Stock Options Tax 
Exemption Department of 
Taxation 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. High technology industry  All inco me received from stock options 
from a qualified high technology 
business is exempted from income tax. Ongoing 
Hawaii Motion Picture, 
Digital Media, & Film Production Income 
Tax Credit Department of 
Business, Economic Development and 
Tourism Refundable tax 
credit To encourage motion picture 
production. Film Industry Equals 15% of qualified production 
costs incurred on Oahu, and 20% on the neighbor islands (Big Island, Kauai, 
Lanai, Maui, Molokai). Cap of 
$8 million per production.  Ongoing 
Hawaii  High Technology 
Business Investment 
Tax Credit Department of  
Taxation Non-refundable 
income tax credit To encourage motion picture 
production. Film Industry Equal to 100% of the investment 
amount, payable of five years. Ongoing 
Hawaii Business Investment 
Tax Credit Hawaii §235-110 Tax credit To promote high technology 
businesses. Through 31 December 2010, taxpayers 
making a high technology business 
investment. A 'qualified high 
technology business' is one in which 
more than 50% of  the activities are 
qualified research (75% of which is 
conducted in Hawaii) and in which 
more than 75% of the income (i.e. income from products sold from, 
manufactured or produced in Hawaii or 
from services performed in Hawaii) is derived from qualified research. 
'Qualified research' includes research 
that is related to non-fossil fuel energy-
related technology. The tax credit is given for the year the 
investment is made and for the 
following four years.  The tax credit is 
equal to a percentage of the investment 
made. 31 December 
2010 
Hawaii Alternative Fuel Sales 
Tax Exemption Hawaii 237-27.1 Tax credit To promote the use of alternative 
fuels in the state of Hawaii.  Fuel blends of at least 10% alcohol fuel 
blended with petroleum fuel, and 100% 
alcohol fuel. Exemption from the 4% state excise tax 
on retail sales.    
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Page 110 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Hawaii Ethanol Production 
Incentive Hawaii 235-110.3, 
HI SB 3207, 
ACT no 40 Tax credit To encourage ethanol production.  Facilities that are in production before 
1 January 2012. An ethanol production incentive equal 
to 30% of nameplate capacity is available for 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.   
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 
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 3% 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  
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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. New guidelines adopted in 2001 provide 
a rural component that increases training funds from $2,000 to 
$3,000 per employee, eliminated the matching requirement and simplified 
the application process if the business is 
in a distress rural county.  Idaho basic industries will be given priority over other industries.  Ongoing 
Idaho Rural Community 
Block Grant Dept. of Commerce Grant To finance and facilitate business 
development, expansion, or 
relocation and requires job creation.Rural Counties and Cities Except 
Entitlement Cities Up to $500,000 for communities in rural 
Idaho which 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 
Idaho 100% Production 
Sales Tax Exemption Idaho Tax 
Commission Tax Exemption Encourage manufacturing Any company Businesses purchasing equipment and 
raw materials used directly in 
manufacturing, processing, mining, 
fabrication or logging operations;  for 
clean rooms used in semiconductor and semiconductor equipment 
manufacturing;  for any equipment or 
material used in research and development activities;  and processing 
materials, substances or commodities 
for use as fuel for the production of 
energy may earn a sales tax exemption.  Ongoing  
  G/SCM/N/220/USA 
Page 112 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Idaho Sales and Tax Rebate Idaho Tax 
Commission Tax rebate To encourage motion picture 
production. Film Industry Rebate of 6% sales tax on tangible 
personal property when $200,000 is spent on a wide variety of qualifying 
expenses;  lodging tax of 2% and sales tax of 6% 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 channeling 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 potential 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 Mixed financing 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 
Illinois Property Tax 
Incentives Illinois Department of 
Commerce and Economic 
Opportunity Tax exemptions, 
abatements Only realty is subject to property 
taxes.  Taxing districts may abate partial abatements to commercial or 
industrial development  Enterprise zones may offer total property tax abatement. Enterprise zone abatement are limited 
to Illinois' 93 enterprise zones. Property tax abatement are limited to 
$4 million over 10 years, except in 
Illinois' 93 enterprise zones. Ongoing 
Illinois Sales Tax Incentives Department of 
Commerce and 
Community Affairs 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% 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 enterprise z one incentives are 
limited to Illinois' 93 enterprise zones. Credit equal to 50% of what the sales 
tax would have been if manufacturing 
machinery was taxed. Ongoing  
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Program 
Illinois Tax Increment 
Finance (TIF) 
Districts Illinois Department of 
Commerce and 
Community Affairs 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. TIF districts have a lifetime of 23 years. Ongoing 
Illinois Illinois Film 
Production Tax CreditIllinois 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% of 
the project costs up to $150,000 at a set 
fixed rate of 6%. 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% of the 
project. Ongoing  
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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% 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 
Illinois Coal Competitiveness 
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 su ch 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% of the total project cost. Generally, 
grants will be awarded for up to 20% of the total project costs. Grants to 
upgrade, rebuild or repair existing 
mining equipment will be limited to 10% 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. 
(Inception in 
1996)  
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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 the recipients are universities and research 
institutions engaged in coal research activities 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 universities 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 
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, 
but the program benefits Illinois coal 
producers and electric utilities. 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 partners, 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 
(Inception in 
1981)  
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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 at 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 ma y 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. (Final 
program rules were adopted on 
23 August 2002.) 
Illinois Biogas and Biomass 
to Energy Grant 
Program DCEO 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 eligib le 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 
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 refinancin g 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  
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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.  This program involves 8 states and five local subsidies 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 .5% 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 
Illinois Economic 
Development For a 
Growing Economy 
Tax Credit Program 
(EDGE)  Department of 
Commerce and 
Economic Opportunity Tax credit To offer a special tax incentive 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 Illinoi s. 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 cred it can be carried 
forward for up to five years. Ongoing  
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Page 118 State Program Title Program Authority Form of Subsid y 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 
Act  Tax incentives, such 
as sales tax exemption and 
property tax 
abatement To designate zones in four cities 
Aurora, East St. Louis, Elgin and 
Rockford. 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 
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. Ethanol Tax Exemption Sales and use 
taxes do not apply to ethanol-blended fuels (containing between 70% and 
90% 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. 
However, 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  
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Program 
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, depending 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 
Indiana Ad hoc incentive 
package Spencer County Tax Abatement The purpose of this program was to 
aid in the construction of a new 
$285 million structural mill in Whitley County.  Spencer County tax abatements. Steel Dynamics Up to $59 million in tax abatements. 10 years. 
Indiana Hotel Lodging Tax 
Exemption Indiana Code 6-9-3-4 Tax exemp tion To encourage film production 
within the State. Film Industry 6% lodging tax exemption for 
production companies staying longer 
than 30 days.  Ongoing 
Indiana Certified Technology 
Park Designation Indiana Code 36-7-32 Tax Revenue 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  
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Page 120 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Indiana Enterprise Zone 
Program Indiana Economic 
Development 
Corporation (IEDC) Various tax 
exemptions 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, Upgrading EZ public 
services (Fire, Police), Sales Tax 
exemption for purchase of machinery and equipment, Targeted crime and 
drug prevention. Ongoing 
Indiana Tax Abatement and 
Assistant City of East Chicago Tax abatement To upgrade machinery and 
equipment at ISG Burns Harbor  International Steel Group (since sold in 
2005 to Mittal Steel (which then 
became Arcelor-Mittal in 2006) 74 million USD over 10 years 2003 
Indiana Ad hoc incentive 
package Erie County, Indiana 
Industrial 
Development Agency Sales and Mortgage 
Tax concessions Assist Delaco Steel Corp. Delaco Steel Corp. $520,000  2005 
Indiana  Loan Guaranty 
Programs Indiana Economic 
Development 
Corporation (IEDC) Guarantee Must create or retain Indiana jobs . Loan guarantees 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% of loan balance or 90% of 
appraised fair market value, whichever 
is less. - If security is personal property, 
guaranty up to 75% of loan balance or 75% of fair market value, which ever is 
less.  Limited working-capital 
guarantees available for high-tech companies.  Amounts:  vary. For rural 
development and value-added 
agricultural projects, the maximum guaranty is $300,000.  The guaranty 
may be larger for high-growth/high-tech 
companies and manufacturing projects. Ongoing  
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Program 
Indiana  Ad hoc incentive 
package DeKalb County Tax Credits/ Bonds The purpose of this program was to 
assist in the start-up of a new $370 million minimill in Butler, 
Indiana.  This subsidy took the form of tax credits, tax abatement, 
bonds, and county economic 
development income tax revenues applied toward project 
(November 1995).  Ongoing tax 
incentives programs previously 
notified. Steel Dynamics DeKalb County tax incentives of 
$77.84 million;  DeKalb County bonds of $11.1 million;  DeKalb County bonds 
to be repaid by property taxes of $5.6 million;  DeKalb County grant 
from economic development income tax 
revenue of $12.5 million.  The total is 
$107.4 million. 10 years. 
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 bus inesses located in 
CRED districts.  There are currently 
10 CRED districts in Indiana. Up to 25% of the qualified investment. Ongoing  
Indiana  The Tech Fund Indiana Economic 
Development 
Corporation (IEDC) Grant Training activities eligible for 
reimbursement must result in a full-
time employee receiving a portable certification in systems 
administration, systems engineering 
or software development;  a professional certification or other 
advanced e-business enabling 
applications. Indiana companies or nonprofit 
corporations that employ Indiana 
residents (US citizens only)  in advanced information technology 
occupations.  Non-resident, contractual 
or part-time employees are not eligible.  Companies must have been in operation 
for at least one year prior to the 
application date and be in good 
standing with the State of Indiana. Funds are available on a reimbursement 
basis.  The business must submit 
quarterly reports on the status of the employees' training.  Amounts:  up to 
50% of eligible training costs.  Awards 
for training have a maximum of $50,000.  30 or fewer employees - up to 
50% of eligible training costs;  30 to 
100 - up to 40% eligible training costs;  100 to 200 up to 30% eligible training costs;  200 and up-to 10% of eligible training costs. Tech Fund was 
terminated in 
2009.   
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% 
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% for the business' job 
training program). Ongoing  
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Program 
Iowa Entrepreneurial 
Ventures Assistance 
Program (EVA) Department of 
Economic 
Development Loan The Entrepreneurial Ventures 
Assistance Program (EVA) provides up to $20,000 in financial 
assistance funds and up to $5,000 in technical assistance funds for a 
business in a sector of the Iowa 
economy with the greatest start-up 
and growth potential for Iowa. Biotechnology;  recyclable materials;  
software development and computer related products;  advanced materials;  
advanced manufacturing;  medical and 
surgical instruments. Up to $50,000 may be awarded to a 
single applicant in the form of financial assistance.  Repayment of the funds 
may be in the form of a royalty investment or low interest loan, which is 
determined upon approval.  Up to 
$10,000 may be awarded to a single applicant in the form of technical 
assistance.  Technical assistance funds 
will be considered a grant and do not 
require repayment. Ongoing 
Iowa Ad hoc incentive 
package State of Iowa Tax incentives Th e incentives were provided by 
the State of Iowa to Ipsco for the 
construction of a new plate mill, 
which cost $360 million. Ipsco Fixed amount of $73 million.  Of this 
amount, $3 million was in the form of a 
state grant and $70 million is in the 
form of tax incentives. 20 years. 
Iowa State Property Fee 
Exemption Iowa Department of 
Economic 
Development Fee exemption Fee exemption is to help promote 
film production within the state. Film Industry No fee for the use of state property for 
filming. Suspended 
Iowa Lodging Tax 
Exemption Iowa Department of 
Economic 
Development Tax exemption To encourage motion picture 
production. Film Industry Tax exemption for hotel/motel 
continuous stays of 30 days or longer, provided that the contract is more than 
30 day or more. Ongoing 
Iowa Targeted Industry 
Demonstration Fund Iowa 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 fo rgivable loan. Ongoing;  
currently funded for 8 years 
beginning 
FY2008 
Iowa Information 
Technology Joint 
Venture Fund Iowa Department of 
Economic Development (Iowa 
Administrative Code 
Chapter 102) Grants and Loans To enc ourage Iowa companies to 
work together to develop targeted 
IT innovations. Iowa-based companies within the 
industries of advanced manufacturing, bioscience, or information technology 
that wishes to partner with another Iowa-based IT company.  Projects must 
result in a product or service available  
for commercial sale and must not be an innovation only used internally by the IT user company. Awards are available up to $100,000 per 
project in the form of a grant or 
forgivable loan.  Ongoing, starting 
in 2007  
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Program 
Iowa Supply Chain 
Development ProgramIowa 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 capabilities and capacities, performance improvement 
programs, and technology 
commercialization services. Awards not to exceed $100,000 per 
project Ongoing 
Iowa Alternative Fuel Loan 
Program Iowa Energy Center Loan To encourage alternative energy 
projects.  Fuel production facilities must be 
located in Iowa. The program offers zero-per cent 
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 Ta x 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-blended 
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. These tax 
incentives expire 
30 June 2007. 
Iowa Ethanol Infrastructure 
Cost-Share Program   Grant Ethanol Infrastructure Cost-Share 
Program is a state cost-share 
program is being 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 will provide 
for the addition of at least 30 new or converted E85 retail outlets and 
four new or converted terminal 
facilities.   The program will provide for a 
maximum of $325,000 annually  For the fiscal 
period beginning 
1 July 2005, and 
ending 30 June 
2011.   
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Program 
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. Statewide, except for 
1) 99 non-metropolitan countries can qualify for enhanced job credits by 
meeting certain requirements;  2) All businesses, including retail, locating in 
cities under 2,500 population or 
counties under 10,000 population can 
qualify for a sales tax exemption. 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% of the tax liability in 
qualified business facility investment. Ongoing 
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;  investing 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 Department 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. The commissioner shall recommend 
funding of companies to KEDFA for 
approval. Ongoing  
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Program 
Kentucky Kentucky Rural 
Economic Development Act 
(KREDA) Kentucky Economic 
Development Cabinet, Department of 
Financial Incentives KRS 154.22-010 et seq. Tax Credit Companies with projects approved 
under KREDA receive state income 
tax credits and job assessment fees. Projects must create new jobs in 
economically distressed counties.  Manufacturing industries are the 
primary target of this program. Companies with projects approved 
under KREDA may potentially receive state income tax credits and job 
assessment fees for up to 100% to investment in land, buildings, site 
development, building fixtures and 
equipment for a project.  The company may collect a job assessment fee of 
4% of the gross wages of each 
employee whose job is created by the approved project and who is subject to 
Kentucky income taxes.  The employee 
receives credits for the fee against state 
income taxes. Discontinued in 
2009 
Kentucky Kentucky Economic 
Opportunity Zone Kentucky Cabinet for 
Economic 
Development KRS 
154.23-010 et seq. Tax Credit A qualified zone consists of one (1) 
to five (5) contiguous census tracts 
located entirely within a county, urban county government, or city 
of the first class. KREDA-certified 
counties are exempt from census tract criteria and may have the 
entire county certified as a zone. 
Only one (1) qualified zone is allowed per county. Eligible 
companies include new or 
expanded manufacturing, service, or technology industries, which must invest at least $100,000 in the 
project and create at least ten (10) 
new full-time jobs for residents of 
the zone.   The Kentucky Economic Opportunity 
Zone Act (KEOZ) focuses on 
development of areas with high 
unemployment and poverty levels. An approved company may receive up 
to one hundred (100) per cent credit 
against Kentucky income tax liability on taxable income generated by the 
project (s).  The company may carry 
forward credits during the agreement 
term, which shall be ten (10) years. Discontinued 
2009 
Kentucky Kentucky Industrial 
Development Act 
(KIDA) Kentucky Economic 
Development Cabinet, 
Department of 
Financial Incentives Tax Credit To induce the location of 
agribusiness, electric generation, or 
manufacturing facilities within the state to create new jobs and new 
sources of tax revenue for the 
support of public services. Investments in new and expanding 
manufacturing projects may qualify for 
tax credits.  Companies that create at least 15 new full-time jobs and invest at 
least $100,000 in projects approved 
under KIDA may receive state income tax credits for up to 100% of 
investment in eligible land, buildings, 
site development, building fixtures and equipment used in a project, or the 
company may collect a job assessment 
fee of 3% of the gross wages of each employee whose job is created by the 
approved project and who is subject to 
Kentucky income taxes. Maximum approved cost as determined 
by negotiation Discontinued in 
2009  
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Program 
Kentucky Kentucky Film Tax 
Rebate Program Commerce Cabinet, 
Tourism Department Tax rebate To encourage commercial film and 
television production in the state. Film/Television Industry 6% 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 Cabinet for 
Economic 
Development 
Department of 
Commercialization 
and Innovation 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 Revenue 
Cabinet Tax incentives A taxpayer with one or more 
projects will be entitled to a tax 
credit equal to the total for each 
major recycling project. 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% 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% 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% 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 equi pment is purchased, 
the credit is limited to 10% of total 
credit allowed and 25% 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% of the taxpayer's 
state income tax liability. Ongoing 
Kentucky SBIR-STTR Matching 
Funds Program Kentucky Cabinet for 
Economic 
Development, Department of 
Commercialization 
and Innovation Grants Assist high-tech small businesse s 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  
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Program 
Kentucky  Kentucky Jobs 
Retention Act (KJRA) Kentucky Economic 
Development Finance Authority KRS 
154.27-010 et seq. Tax incentives Encourag e existing automotive 
manufacturers to modernize their 
facilities and retain existing jobs.  Existing automotive manufacturers in 
Kentucky Up to 50% 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% 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 e ligible to receive 
up to a 100% credit against the Kentucky income tax liability generated 
by the project. Ongoing 
Kentucky Incentives for Energy 
Independence (2007) KRS 154.27-010 
et seq. Reimbursement of 
sales and use taxes, income tax credit or 
wage assessment 
incentives To encourage projects to improve 
energy independence For companies doing projects in the 
areas of:  gasification, alternative energy or renewable energy. 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. The negotiated incentives cannot exceed 
50% of the capital expenditures. Incentives may include 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)  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, processes, 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 over 
$750,000 Ongoing  
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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 real and personal 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  
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Program 
Louisiana Biomedical Research 
and Development Park (NORMC) 
Incentives Department of 
Economic 
Development Mixed Tax Qualified medical 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) per cent 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 A nnual 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 30% 
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 100% 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 Credit 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 Credit Phases in a state sales and use tax 
exclusion for certain custom 
computer software over a four-year period.   Technology Companies The current 4% sales tax rate will 
decrease 1% per year until it reaches 0% 
on 7-1-2005. Ongoing 
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% for projects located in 
parishes with per capital income below 
the median for all parishes;  75% for projects in parishes with unemployment 
rates above the statewide average;  or 
50% for all other projects. Ongoing  
  G/SCM/N/220/USA 
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Program 
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 
Louisiana Restoration Tax 
Abatement Department of 
Economic 
Development Tax 
Abatement/Reducti
on 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 Developm ent 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) per cent 
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  
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 Page 131State Program Title Program Authority Form of Subsid y 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 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 30% 
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  100% 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 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 
employment 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 in dustries 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% of the eligible 
training costs, not to exceed $500,000.  
The Workplace-based Retraining award 
may cover up to 50% 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  
  G/SCM/N/220/USA 
Page 132 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Louisiana Digital Media Tax 
Incentive Program Louisiana Department 
of Economic 
Development Tax Credit Support digital media production in 
Louisiana. Video game developers For pr ojects certified prior to 2010, 
income tax credits shall be earned at the rate of 20% of Louisiana investment for 
the first 2 years;  Income tax credits shall be earned at the rate of 15% of the 
Louisiana investment for the following 
2 years of the project;  Income tax credits shall be earned at the rate of 10% for a final 2 years of the project. Ongoing 
Louisiana Rail Rolling Stock 
Tax Exemption Louisiana Department 
of Revenue Sales and use tax 
exemptions  Attract railroad repair facilities to 
Louisiana. Manufacturing 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 
Commercialization 
Tax Credits Louisiana Department 
of Economic 
Development Tax Credit Support investment in technology 
and the commercialization of 
products. Companies partnering with Louisiana 
universities on new products and new 
technologies. Annual 15% tax credit of total costs 
associated with the product 
development for up to eight years. 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 
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 Development 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  
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Program 
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 
Maine High Technology 
Investment Tax CreditDepartment 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 afte r the allowance of 
any credits, and it cannot reduce the tax 
liability in the curren t 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 encour age the development of 
biotechnology Businesses engaged in a biotechnology 
application. Not available. Ongoing  
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Page 134 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Maine Maine Technology 
Institute Maine Technology 
Institute Grants Maine Technol ogy 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 
Maine  Pine Tree 
Development Zones Department of 
Economic and 
Community 
Development Tax Free Zone Maine offers qualified businesses 
in manufacturing, financial 
services, and targeted 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_mai
ne/pine_tree_zones.asp. Certified businesses which locate in a 
Pine Tree Development Zones (PTDZ). Certified businesses which locate in a 
PTDZ may be eligible for the following 
benefits for up to 10 years:  1) 100% Corporate Income Tax Credit for 5 years and 50% credit for the 
second 5 years,  2) 80% reimbursement 
of its employees' state personal income tax withholdings, 3) 100% sales tax 
exemption on purchases of qualified 
building materials and personal property, 4) access to other state and local incentive programs.  31 December 
2018  
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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 f acility 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% 
• 3rd and 4th tax years:  39% • 5th and 6th tax years:  26% 
• Remaining tax years:  0% 
Credit against the personal or corporate income tax, or the insurance premiums 
tax: 
• 1st and 2nd tax years:  28% • 3rd and 4th tax years:  21% 
• 5th and 6th tax years:  14% 
• Remaining tax years:  0% Ongoing 
Maryland Biofuels Production 
Credits Renewable Fuels 
Incentive Board Tax Credit Under the Renewable Fuels 
Promotion Act of 2005, ethanol and biodiesel producers may apply to 
the Renewable Fuels Incentive Board for ethanol and biodiesel production credits.   Credits may be offered to certified 
producers of ethanol or biodiesel in Maryland for ethanol or biodiesel 
produced on or after 
31 December 2007.  Ethanol production credits are as 
follows:  a) $0.20 per gallon of ethanol produced from small grains such as 
wheat, rye, triticale, oats, and hulled or hull-less barley;  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. The Board may 
not pay a credit for ethanol or 
biodiesel produced after 
31 December 
2017. 
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 producers 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  
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Program 
Maryland Biotechnology 
Investment Tax CreditDepartment of 
Business and Economic 
Development  Tax Credit This tax credit program offers 
incentives for investment 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 cred it is equal to 50% 
of an eligible investment made in a qualified Maryland biotechnology 
company during the taxable year up to 
$250,000.   Ongoing 
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% state sales tax on 
property and services used in connection with filming activity. Ongoing 
Maryland Wage Rebate Program Maryland Film Offi ce Wage Rebate To encourage production of films 
in the state. Film/Television Industry Rebates of 50% of up to $25,000 in 
earnings per employee on any 
production spending more than $500,00 
in the State of Maryland.  Wages for 
employees earning more than $1 million 
will not be eligible. Ongoing  
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Program 
Maryland  Maryland Small 
Business Development 
Financing Authority 
(MSBDFA) Department of 
Business and Economic 
Development (DBED) Mixed Financing Provide s 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 
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% royalty on revenues in excess 
of $500,000 for a period of ten years. The firm must also pay a 1% royalty on 
equity raised in excess of $500,000.  
The royalty payments are capped at three times the Challenge investment received.   Ongoing  
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Program 
Maryland  Empowerment Zone 
Incentives Empower Baltimore 
Management 
Corporation Mixed Tax A federally designated 
Empowerment Zone in Baltimore encompasses 6.8 square miles in 
three distinct areas of the City, two of which include sites zoned 
for heavy industrial use. The 
Empowerment Zone is also a state 
enterprise zone.  All companies located within the 
Empowerment Zone. Empowerment zone incentives include:  
federal income tax credits,  increased depreciation on equipment, tax exempt 
bond financing and job training 
resources. Expired 
31 December 
2010 
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 n 
Maryland for five years. 
• A minimum 3:1 match by a 
sophisticated investor 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-designated z ones, 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.  
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Program 
Maryland  Job Creation Tax 
Credit Maryland 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 positions 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 with in 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% 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 
5% 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 qualifie d 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  
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Page 140 State Program Title Program Authority Form of Subsid y 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. (Day 
Care, Animal Waste Technology, 
Brownfields, Aquaculture, and the Arts 
& Entertainment Districts)  Ongoing  
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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,  agriculture, 
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, rehabilita tion, 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 
Maryland Neighborhood 
Business 
Development ProgramDepartment 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 and to increase the 
amount of research expenditures in 
that area. 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.  
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Page 142 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Massachusetts Economic 
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. Designated Economic Target Areas. The Economic Development Incentive 
Program (EDIP) is a tax incentive program designed to foster job creation 
and stimulate business growth throughout the Commonwealth. 
Participating companies may receive 
state and local tax incentives in exchange for job creation, 
manufacturing job retention and private 
investment commitments.  Incentive Tax Credits Can range up to 10% and in 
certain cases up to 40%.  There is also a 
10% Abandoned Building Tax 
Deduction available in certain cases. Ongoing 
Massachusetts Investment Tax Credit Massachusetts Office 
of Business 
Development Tax Credit The Massachusetts Investment Tax 
Credit (ITC) offers a three-per cent 
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 e ngaged 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 
Massachusetts Seafood Loan 
Program Mass Development Loan The Seafood Loan Program was 
created to enhance the 
competitiveness of Massachusetts 
$1 billion 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 ra te at prime plus a 
premium. Ongoing  
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Program 
Massachusetts Seafood Revolving 
Loan Fund Mass Development 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 depleted stocks of cod, 
haddock and flounder.  The fund is capitalized through the a grant from 
the Economic Development 
Administration with matching funds provided by Mass Development.  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% 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 
Massachusetts Emerging Technology 
Fund Massachusetts 
Development Finance 
Agency (Mass Development) Loan The Emerging Technology Fund 
provides loan guarantees to 
leverage private de bt 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 ad vanced research 
and development of new and 
emerging technologies in the 
Commonwealth. Technology Companies The maximum guarantee amount is 
$1,500,000 or 50% participation of the 
aggregate debt, whichever is less.  The 
maximum loan amount for facilities is 
$2,500,000 or 33 1/3 per cent participation of the aggregate debt, 
whichever is less.  The maximum loan 
amount for equipment is $500,000 or 33 1/3 per cent participation of the aggregate debt, whichever is less. Ongoing 
Massachusetts Jobs 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 
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 entitl ed to an incentive 
payment equal to 50% 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.  
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Page 144 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Massachusetts Massachusetts Motion 
Picture Tax Incentive Massachusetts 
Department of 
Revenue Tax credit/tax 
exemption To encourage film production 
within the State. Film Industry 20% tax credit based on total payroll in 
state- 25% tax credit based on production expenses in state, as long as 
half shot in MA or half expenses spend in state.  Tax credits carry forward 
5 years or be sold. In state production 
spending over $250,000 is sales tax exempt. Total tax credits per production capped at $ 7million. Ongoing 
Massachusetts Massachusetts 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 implemented 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 fe asibility studies are 
capped at the lesser of $40,000 or 80% 
of actual costs. Ongoing 
Massachusetts Massachusetts 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 mo re.  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% for development activities.  A cost share is required. Ongoing 
Massachusetts Massachusetts 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% of the renewable energy 
produced will be used behind the meter 
or assigned through the net metering provisions of the Green Communities 
Act base don annual production and 
usage estimate. Grants vary based on size and other 
characteristics of the wind project . 
Non-public entities have a 20% cost 
share requirement associated with the 
grant.  Ongoing 
Massachusetts Massachusetts 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  
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Program 
Massachusetts Massachusetts 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 
Massachusetts Massachusetts 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 
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% for new facilities and 100% for renovation projects.  They are available 
for up to 12 years.   Ongoing 
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% 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%.  Ongoing  
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Page 146 State Program Title Program Authority Form of Subsid y 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 technologi es 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. Businesses that 
receive the 200% credit under this 
accelerated scenario cannot 
exceed a 
seven-year time period for the credit. 
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 (2) SBIR/ STTR Phase II federa l grants within the 
previous five years. Company may 
receive no more than two (2) 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 
Michigan MEGA Rural Job 
Creation Tax Credits Michigan Economic 
Development 
Corporation Tax Credit The state's response to interstate 
competition for company 
expansions and relocations, may 
provide 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% of an amount 
equal to the salaries and wages and 
employer-paid health care benefits 
multiplied by the personal income tax 
rate. Ongoing  
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Program 
Michigan Mich igan Incentive 
Pass Michigan Film Office Tax rebate   To encourage film production 
within the State. Film Industry Graduated s cale for rebate based on 
spending in state. $200,000-$1million (12%);  $1million-$5million (16%);  
$5million-$10million (20%);  > $10million (20% on first $10 million spent). Effective 
1 January 2007 
Michigan  Michigan 
Manufacturing 
Diversification Strategy Michigan Economic 
Development 
Corporation Grant Help 400 manufacturing firms 
navigate through the diversification 
process during the program's first 
year. Assist 100 firms in achieving 
quality systems certif ication 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 
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, 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 Mich igan 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  
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Program 
Michigan Renaissance Zones Michigan Economic 
Development 
Corporation Tax Credit The zones are designed to provide 
selected communities with a powerful market based incentive--
no taxes-- to spur new jobs and 
investment. Michigan's Tax-Free Renaissance 
Zones are composed of 152 geographic areas of the state.  There are also 
industry specific zones for firms doing business in agricultural processing, 
renewable energy, forest products 
processing  and in the tool and die 
industry. By law, Renaissance Zones waive the 
following local and state taxes:  Michigan Single Business Tax;  
Michigan Personal Income Tax;  Michigan's 6 mil State Education Tax;  
Local Personal Property Tax;  Local 
Real Property Tax;  Local Income Tax;  and Utility Users Tax.  These taxes 
represent nearly all state and local 
taxation on a Michigan business. Ongoing 
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 with in 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. 
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% of the annual average state unemployment rate;  a growth in 
local population that is less than 75% of 
the state's population growth rate;  or a change in local state equalized value 
that is less than 50% of the state's five-
year average. Determined on a case-by-case basis. Ongoing  
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Program 
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 
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% 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 
Michigan Technology 
Collaboration Credit Michigan Economic 
Development 
Corporation Tax Credit Develop strategic partnerships 
between emerging technology 
companies and larger, established businesses by providing an 
incentive for the larger companies 
to invest in the smaller companies, while helping to diversify Michigan's economy. The larger, established company 
assumes the role of a qualified taxpayer 
proposing to fund, support and collaborate in the research and 
development and technology innovation 
with an eligible business located in 
Michigan. Only one credit per year may 
be granted to a qualified taxpayer. The TCC credit is available for a three-
year period.  Thirty per cent of the value 
of the contribution from the qualified taxpayer to the eligible business is 
eligible with a maximum credit of up to 
$300,000. Through 2010  
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Page 150 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Michigan Economic 
Development Job 
Training Michigan Economic 
Development 
Corporation Grant Provide job training assistance to 
employers Advanced Manufacturing, Information 
Technology, and Life Science/Bio 
Technology. Michigan's Economic Development Job 
Training (EDJT) Program provides approximately $7 million in competitive 
grants to companies th at need to train or 
retrain workers to meet marketplace 
needs. Grants average $500 per 
employee. The employer must match 25% of the state grant.  Match can be in-kind. Expired in 2010 
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% 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 ½ of one per cent of the estimated value of 
the incentive will be co llected.  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  
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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 cots.   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. Matching funds are provided for the 
following:  25% of phase I Small Business Innovation Research/Small 
Business Technology Transfer awards up to $25,000. 25% of phase II 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 
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 educati on 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.    Ongoing  
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Program 
Minnesota Job Opportunity 
Building Zones 
(JOBZ) Department of 
Employment & Economic 
Development Reimbursement of 
MN productions expenditures as 
defined by MN stature 116U.2 Stimulate economic 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%, 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. 
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% 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, 
and the payment of costs incurred by the authority to establish and administer the program. Ongoing 
Minnesota Ethanol Production 
Incentive    Minnesota Statutes 
Section 41A.09 Grant Increase the production of ethanol. This incentive only applies to qualified 
ethanol production facilities that began 
production on or before 30 June 2000.  Ethanol production incentive of 
$0.20 per gallon of ethanol produced.  
Annual payments are limited to $3 million to any one producer.  Expires 30 June 
2010  
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 Page 153State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Minnesota Ethanol Program Minnesota 
Department of 
Agriculture Grant The 20-cent 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, plus: 
   1. $550 million was spent for total corn/ethanol plant construction and 
startup costs. 
   2. $370 million in private sector financing was contingent on local equity 
capitol. 
   3. $180 million in local equity capitol was raised by over 8,000 farmer and business members. Ongoing 
Minnesota The Value-Added 
Agricultural Product 
Loan Program (Stock Loan Program) Department of 
Employment & 
Economic Development Loan To help farmers 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 
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. Ongoing  
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Page 154 State Program Title Program Authority Form of Subsid y 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% 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% of 
contract bond amount or $112,500, whichever is less.  A contractor may 
have more than one guaranteed bond as long as total ties do 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 related facilities. Taxpayers who utilize the port facilities 
at state, county and municipal ports in 
Mississippi. The following are charges which a 
taxpayer may claim as a credit:  
receiving into a port, handling to a vessel, wharfage. Amount of Credit:  credit may not exceed 50% 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 $1million dollars for the period 1 January 1994 through 31 December 1998. Ongoing  
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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, if the 
building materials or equipment are purchased directly from a supplier.  
New or expanding manufacturers 
located in either moderately developed or developed counties pay a:  
(1) 3.5% sales tax for purchases of 
building construction materials and new machinery or equipment not used 
directly in the manufacturing process, 
and (2) 0.75% sales tax on purchases of all machinery and equipment that is 
used directly in the manufacturing 
process. Ongoing 
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% of 
its workforce as scientists, 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% 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 development activities. It also provides for a rate of 1.5% on electricity, current, 
power, steam, coal, natural gas, 
liquefied petroleum gas or other fuel sold to or used by a technology intensive enterprise. Ongoing 
Mississippi Research and 
Development and 
Technology-Based 
Business and Industry 
Loan Mississippi 
Development 
Authority Loan To support R&D and  technology 
based business in the state. The company must employ at least 
10 persons in full time positions. The maximum amount of the loan shall 
not exceed $750,000. The rate will be 
the rate on the most recent issue of 
20-year state general obligation bonds 
occurring prior to the date the loan is 
made. Repealed 
effective 
1 January 2011  
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Page 156 State Program Title Program Authority Form of Subsid y 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 processing enterprises that provide an 
average annual wage of 100% of the 
county or state wage, whichever is less;  Manufacturers and distributors paying 
an annual average wage of 110% of the 
county or state wage, whichever is less;  Research and development enterprises 
paying 150% of the state or county 
wage, whichever is le ss;  or Technology 
intensive enterprises paying 150% of the state wage.  Provides for a cash rebate of Mississippi 
withholding taxes to qualified employers for a period of up to 
10 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 
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 
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 per 
cent 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. 60 months 
(5 years)  
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Program 
Missouri Missouri "Build" 
Program Department of 
Economic Development/Missour
i 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.  Su ch incentives may 
include tax abatement, discounted utility 
fees or others.  Minimum bond issue:  
$500,000. Ongoing  
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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% 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% of the increased amount of 
real property taxes and 50% 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. An area, as defined by a municipality, 
that benefits from the improvements.  There are no particular limitations 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 pr ojects to receive 
appropriated amounts, from the newly created Missouri supplemental tax 
increment financing fund, of up to 50% 
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 ea rmarked 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 bus iness into the state of 
Missouri. Vineyards and wine producers. State income tax credit to an individual, 
partnership or corporation in an amount 
equal to 25% 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 
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, 
service, 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. Offers state tax credits to taxpayers 
making contributions to a not-for-profit 
corporation in the amount of 50% of the 
contribution.  Credits authorized under 
this program are limited to $4 million 
per fiscal year. Ongoing  
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Program 
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 majori ty 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% and 100% of the real property 
improvements for up to 25 years.  Tax 
credits issued under this program are 
limited to $24 million annually. Ongoing 
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% 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% 
of the amount of the new local sales 
tax (and earnings tax in St. Louis and Kansas City) and 100% 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% of the buildings must be 35 years old or older. Other 
restrictions apply. Projects can be 
"community enhancement" 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  
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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% of the amount of the new local 
Economic Activity Tax (sales and 
utility tax, etc.), and 100% of the amount of the new real property tax 
created by the project each year, or 
a comparable amount of local funds from the municipality or a private non-profit organization.  Any incorporated Mi ssouri 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% 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% of its 
employees at the facility in the 
distressed community;  have fewer than 
100 employees total at all facilities 
nationwide;  and pr imarily engage in 
manufacturing, biomedical technology, 
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% equipment tax 
credit or 40% income tax liability tax 
credit and the employees may receive a 
1.5% employee tax credit.  Eligible business already located in a distressed 
community may be eligible for a 25% 
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% state income tax credit on 
company expenditures in state for 
company's spending over $300,000 in 
state.  Up to $1 million available per 
project. Ongoing  
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Program 
Missouri  Enterprise Zones Department of 
Economic 
Development Tax credit The Department of Economic 
Development may recommend the establishment of enterprise zones in 
economically depressed areas that are not likely to achieve 
development otherwise.  The 
recommendations are made to the Joint Legislative Committee on 
Economic Development Policy and 
Planning, which may designate the area an enterprise zone.  Enterprise 
zones offer many types of tax 
credits, exemptions, abatements and refunds to taxpayers who 
establish new or expanding, 
facilities in any designated 
enterprise zone. Areas designated as federal 
empowerment zones or enterprise communities are automatically granted 
state enterprise zone status.  In order to qualify for either the income exemption 
or the investment credit, the taxpayer 
must in addition to the above criteria, meet the "30 per cent test." To meet the 
test, at least 30% of the new employees 
at the new or expanded facility must be either residents of the enterprise zone, 
or have been unemployed for at least 90 
days prior to being employed at the new or expanded facility, or eligible for 
AFDC or General Relief, or some 
combination thereof.  The Department of Economic Development may waive 
or reduce this requirement for one year 
if there are 20 or fewer persons 
employed at the facility. Tax benefits may include:  $400 for 
each new job created, and $400 for each qualified employee who is a resident of 
the enterprise zone, and $400 for each qualified employee who was either 
unemployed for at least 90 days prior to 
the time he/she was hired at the new or expanded facility or who was eligible 
for AFDC or General Relief at the time 
he/she was employed at the new or expanded facility, and up to $400 for 
each qualified employee who is trained 
from the employer's own funds, and a possible exemption equal to one-half of 
the income attributed to the new or 
expanded portion of the facility, and a 
possible investment tax credit equal to 
10% of the first $10,000 of new 
investment, 5% on the next $90,000 of new investment and 2% on all 
investment over $100,000, and up to a 
$75,000 refund for unused tax credits earned by a new facility, and a real 
property tax abatement of at least 50% 
for 10 years if the f acility is used for 
manufacturing, mining, wholesale 
distribution or warehousing.   This program was 
sunsetted during the 2004 
legislative session and has been 
replaced with 
Enhanced 
Enterprise Zone 
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 Busine sses:  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  
  G/SCM/N/220/USA 
Page 162 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Montana Ethanol Facility Tax 
Exemption Montana Code 
Annotated 15-6-138 Tax exemption To support ethanol production. Manufacturer s 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 
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 that are Made in Montana, 
exemption from 7% Accommodation 
Tax for production companies staying 
longer than 30-days at the same hotel.  Ongoing 
Montana Aerospace and 
Technology 
Infrastructure 
Development ProgramOffice of the 
Governor Bond The state would own the 
improvements funded and would 
lease the infrastructure to the local government tax increment 
financing district or the business 
being assisted.  The lease amount would be set at a nominal fair value 
taking into consideration job 
creation and overall tax revenue generated by the project.  The statute provides for the principal 
and interest payback of the bonds 
from increased state taxes 
generated by the projects funded. Aerospace and technology companies  The State of Montana may issue and sell 
up to $20 million  in general obligation 
bonds for aerospace transportation and technology infrastructure development projects.  Ongoing  
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Program 
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 There are numerous specialized tax 
incentives, which can  be researched 
with the Department of Revenue on a 
case by case basis. Ongoing 
Montana Property Tax 
Abatements Department of 
Revenue Tax Abatement If approved by the 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 Machinery used in  canola seed oil 
processing is eligible for a taxable 
valuation rate of 2% in tax year 2001, 
1% in tax year 2002, and 0.0% 
thereafter. Ongoing 
Nebraska Community 
Improvement 
Financing 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.  CIF, in effect, can reduce developer capitalization to a level that makes investment feasible. Not available. Ongoing  
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Program 
Nebraska Employment and 
Investment Growth 
Act Department of 
Revenue Mixed Tax  Credits 
and Refunds The goal of Nebraska's 
Employment and Investment Growth Act (LB775) is the creation 
of jobs and business investment and expansion through the provisions of 
performance-based incentives to 
qualified businesses.  Businesses such as manufacturers, 
processors, research and development facilities, insurance and financial 
companies, telecommunications companies and administrative 
headquarters facilities of such firms, are 
eligible for the tax incentives by 
meeting minimum thresholds for 
employment and investment.  
Qualifying businesses are eligible for credits attained over a seven year period 
and accumulated credits may be used 
during a 15 year period.  If required levels of investment and employment 
are not met within or maintained for a 
period of seven years, all or part of the incentives shall be disallowed or recaptured.   Three levels of incentives are available 
to qualifying businesses. Terminated for 
new applications on or after 
1 January 2006 
Nebraska Ethanol Tax Credit Department of 
Revenue Tax Credits Support of ethanol producers. 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 private 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.  The 
arrangements between the issuer and the 
company using the facility may be in the form of a lease.  Loans and 
installment sales contracts are 
permissible only if the project is located 
in blighted area. Ongoing  
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Program 
Nebraska Invest Nebraska Act Department of 
Revenue Tax Credit This law provides wage benefit tax 
credits to companies meeting certain minimum levels of 
investment, job cr eation, and wages 
for new employees. The credits can be earned by businesses 
in the following industries:  research and development;  data processing, 
telecommunications, or insurance services;  financial services;  
manufacturing;  warehousing;  and 
administrative and headquarters 
facilities. For projects located in counties with 
populations of less than 100,000, the minimum thresholds to qualify for the 
tax credits are 25 new jobs, $10 million in new investment, and pay for the new 
jobs that is at least equal to Nebraska's 
average annual wage.  For projects located in counties with populations of 
more than 100,000, the minimum 
thresholds are 500 new jobs and $50 in new investment, or 250 new jobs and 
$100 million in new investment, and 
pay for the new jobs that is at least 110% of the state's average annual 
wage.  If the average compensation for 
the new employment is under $20,000 annually, no credit is available.  If it is 
between $20,000 and $30,000, the 
credit is 3%;  if it is between $30,000 and $40,000, it is 4%;  and if it is over $40,000, it is 5%. Terminated for 
new applications on or after 1 June 
2005 
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 20% of the increased 
investment or employment, not to 
exceed $10,000 per taxpayer or 
$2 million total per year. Ongoing through 
2010. 
Nebraska Nebraska 
Redevelopment Act Department of 
Economic 
Development Loan The program allows cities to 
declare land within ten miles of 
their city limits blighted, thus property taxes on the subsequently 
improved property can then be used 
to reimburse companies for land purchase and project development.  
This legislation authorizes 
Community Improvement Financing, also known as Tax 
Increment Financing, for real estate 
and equipment in a project that adds at least 500 new jobs and $50 million of new investment. The location would apply to designated 
blighted and substandard areas, if 
located within the fo llowing ranges:  up 
to ten miles outside a metropolitan or 
primary class city;  up to six miles 
outside a first class city;  and up to three miles outside of cities of second class or a village or villages. This type of financing allows new 
property taxes from the new investment 
to go back to the project to help finance rehabilitation, acquisition and 
redevelopment costs through bonds.  
Such financing would apply for 15 years.  Existing property taxes 
continue to go for local general fund 
purposes. Terminated for 
application filed 
on or after 
1 February 2000  
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Program 
Nebraska The Nebraska 
Advantage Rural 
Development Act Department of 
Revenue Tax Credit  This is a program that provides tax 
credits to qualifying businesses common 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 No State Income Tax 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.  The Revolving 
Loan Fund derives its funds from 
the CDBG Program. 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  
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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 the 
Nevada facility 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 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.  Qualifying employers may apply for an 
abatement of 50% of the modified business tax otherwise due during the 
first four years of its operations. Ongoing  
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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 the 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  
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Program 
Nevada Sales and Use 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, 
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 
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. 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 Up to $200,000 over five years, capped 
at $40,00 per year.  The credit is against 
the corporate income tax. Due to sun set in 
2011 unless 
renewed by the New Hampshire legislature 
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.   On going  
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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% 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. On going 
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 Employment 
Incentive Program 
(BEIP) New Jersey Economic 
Development 
Authority Grant Legislation directs the New Jersey 
Economic Development Authority (EDA) to make direct payments in 
the form of grants to expanding or relocating businesses that will 
create new jobs in New Jersey.  
Businesses must be economically viable, and demonstrate that the incentive grant is a material factor 
in their decision to locate or expand 
in New Jersey. Available statewide.  Point of final 
purchase retail facilities are not eligible for incentive grants. In the base year, 
the company must create at least 25 jobs or 10 technology jobs. Qualifying 
businesses must maintain a project in 
New Jersey for at least 1.5 times the 
number of years of the grant. The incentive grant, which may be for 
up to 10 years, will equal 10% to 80% of the total amount of  state income taxes 
withheld by the business during the calendar year for the new employees 
hired.  No grant monies will be 
disbursed until the Treasurer certifies that the amount of withholdings received from the business at least 
equals the grant amount.  Businesses 
receiving relocation grants are not eligible unless approved by the State 
Treasurer.  Grant assistance from this 
and other programs may not exceed 80% of a business' withholdings unless approved by the Treasurer. Ongoing 
New Jersey Business Retention 
and Relocation 
Assistance Grant (BRRAG) New Jersey Economic 
Development 
Authority Tax Credit Encourage economic development 
and job creation and to preserve 
jobs that currently exist in New 
Jersey but which are in danger of 
being relocated to premises outside 
of the State. Businesses that undertake a project to 
relocate and maintain a certain number 
of full time jobs within the state.  A business that relocates more than 
2,000 full time jobs into a designated 
urban center get a bonus award of 50% 
of the original tax credit;  not applicable 
if the jobs are relocated from an urban enterprise zone.  A business that 
relocates at least 50 jobs get credit equal 
to total allowable relocation costs plus any applicable bonus award. Tax credit 
not to exceed 80% of the projected tax 
revenues from the retained full time jobs covered by the project agreement, 
subject to aggregate annual limit of 
$20 million.   Ongoing   
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Program 
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 
New Jersey Direct Loans New Jersey Economic 
Development 
Authority Loan Businesses that are unable to get 
sufficient bank credit on their own or through the Statewide Loan Pool 
or EDA guarantee are eligible to apply for  fixed asset and working 
capital loans.  Preference is given 
to enterprises located in an 
economically targeted area or 
representing a targeted business 
sector. Businesses in targeted areas or sectors. Loans are made for up to $1,250,000 for 
fixed assets and up to $750,000 for working capital for a maximum term of 
5 years.  The interest rate is equal to the federal discount rate at the time of 
approval or closing, but no lower 
than 2%. Ongoing 
New Jersey Economic 
Redevelopment and Growth Grant 
Program (ERG) New Jersey Economic 
Development 
Authority Grants ERG provides incentive grants to 
developers, businesses, and owners to address redevelopment project 
financing gaps.   Developers with a project in Planning 
Area 1 (Metropolitan), Planning Area 2 (Suburban) or a center designated under 
the State Development and Redevelopment Plan;  a Pinelands 
regional growth area, Pinelands town 
management area, Pinelands village, or a federal installation area established 
per Pinelands comprehensive 
management plan;  a transit village (local incentive grants only), or federally owned land approved for 
closure by the federal Base 
Realignment Closing Commission. ERG is available to shovel-ready 
projects that have not commenced any 
construction at the site of a proposed redevelopment project prior to 
submitting an application. 
Developer/owner must make a minimum capital investment of 20% of the project's total cost. The program provides gap financing of 
up to 20% of the total project cost, paid 
out over a period of up to 20 years. Ongoing 
New Jersey Edison Innovation 
Clean Energy 
Manufacturing Fund New Jersey Economic 
Development 
Authority/Board of Public Utilities Mixed Financing To encourage companies in certain 
renewable energy industries to 
locate in New Jersey. Certain renewable energy industries 
investing in manufacturing facilities. $3 million in loans, zero interest, 
10 year term to support site 
improvements, equipment purchases, 
and facility construction and 
completion.  Minimum 50% cash match from non-state grants, loans or equity required.  Ongoing 
New Jersey Edison Innovation 
Commercialization 
Fund New Jersey Economic 
Development 
Authority Loan To foster growth in the technology 
sector Technology companies Up to $200,000 in the form of a 
subordinated, convertible note with 
warrants taken by state. Ongoing  
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Program 
New Jersey Edison Innovation 
Digital Media Tax 
Credit New Jersey Economic 
Development 
Authority Tax Credit Increase employment in field of 
digital media Companies involved in production of 
digital media with at least $2 million in 
expenditures. 20% tax credit toward qualifying 
content production expenses to a maximum of $5 million per year (total 
allocation) Ongoing 
New Jersey Edison Innovation 
Growth Fund New Jersey Economic 
Development 
Authority Loan To foster growth in the technology 
sector Technology companies Up to $1 million with 1:1 cash match.  
Company must have proven concept. Ongoing 
New Jersey Edison Innovation R 
& D Fund New Jersey Economic 
Development 
Authority & 
Commission on 
Science and 
Technology Mixed Financing Grants and Loans to support R & D 
related activities. Technology companies Up to $500,000. Ongoing 
New Jersey Energy Sales Tax 
Exemption Program in 
Urban Enterprise Zones and Certain 
Counties (Salem 
County) New Jersey Economic 
Development 
Authority Tax Exemption Extends the eligibility for the sales 
and use tax exemption of energy 
and utility service purchases by certain manufacturing-intensive 
businesses in Urban Enterprise 
Zones and certain counties with 
reduced sales tax. Manufacturers in UEZs and certain 
counties, currently limited to Salem 
County, that employ, respectively, at least 250 and 50 people, of whom at 
least half are directly employed in the 
manufacturing process. 50% of sales tax amounts Ongoing 
New Jersey Enterprise Zone Sales 
and Use Tax 
Exemption for Energy 
and Utility Service New Jersey Economic 
Development 
Authority Tax Exemption Tax benefit for companies in 
enterprise zone employing at least 
500 people. Companies in enterprise zone with at 
least 500 employees, of whom at least 
50% are directly employed in 
manufacturing.   Amount of sales and use tax exempted 
on the purchase of energy and utility 
service. Ongoing  
New Jersey Film Tax Credit New Jersey Economic 
Development Authority Tax credit To encourage commercial film 
production. Film Industry 20% tax credit for qualified production 
expenses with certain criteria:  1) at 
least 60% 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. Ongoing 
New Jersey Hazardous Discharge 
Site Remediation 
Loan and Grant Program New Jersey Economic 
Development 
Authority Mixed Businesses may qualify for loans of 
up to $1 million for up to 10 years 
for site investigation and clean up. 
Municipalities owning or holding a 
tax sale certificate on a property may apply for grants and loans of 
up to $2 million per year for 
investigation and remedial 
activities. Industrial businesses that are required 
to perform remediation activities due to 
a closure of operations or transfer of 
ownership or operations and do not 
have a funding source;  persons who have discharged a hazardous substance 
or are responsible for such a substance 
and do not have a funding source;  and municipalities and persons who 
voluntarily undertake remediation are 
eligible to apply. Grants may be used for preliminary 
assessments, site investigation and 
remedial investigations of eligible sites.  
Loans may be used for these purposes 
and for clean up of the site. Interest shall be equal to the Federal Discount 
Rate at time of approval or closing, 
whichever is lower, with a minimum of 2%.  DEP charges administrative and oversight fees. Ongoing 
New Jersey Incubator Seed 
Program New Jersey Economic 
Development 
Authority Grant This program is designed to fill 
financing gaps in the availability of seed capital for growing 
technology-based companies.  Technology-based companies Loans range from $20,000 to $50,000. Ongoing  
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Program 
New Jersey Invest NJ New Jersey Economic 
Development 
Authority Grant Economic Stimulus Available statewide to companies 
operating for two years  (for job creation grant, company must have 
operated in state of NJ for two years). $3,000 per job created up to $500,000 
per employer.  7% of capital 
improvement up to $1 million. 1 January 2011 
New Jersey Local Development 
Financing Fund 
(LDFF) New Jersey Economic 
Development 
Authority Loan Loans ranging from $25,000 to $2 
million may be made for commercial and industrial projects 
in targeted communities.  Financing is in the form of a permanent 
subordinated mortgage loan made 
at a below market rate of interest.  The municipality in which the 
business is located must sponsor 
the request for financial assistance. Projects must be located in state 
designated Urban Aid communities and 
have municipal support. There is a required minimum 
1:1 public/private dollar match but generally the financing is limited to no 
more than 25% of the project costs. Ongoing 
New Jersey New Jersey Business 
Growth Fund New Jersey Economic 
Development 
Authority Guarantee Provide access to capital to small 
and mid-sized companies that 
create jobs in state. Manufacturers, business/personal 
services technology, transportation, and 
wholesale. Loan up to $2 million provided by PNC 
Bank with up to 50% EDA guarantee. Ongoing 
New Jersey Statewide Loan Pool 
Program New Jersey Economic 
Development 
Authority Mixed Financing To provide access to capital for 
New Jersey companies Businesses or non profits in state 
located in urban aid municipality and 
creating 1 job per $50,000 of assistance.• Fixed asset loans - $1.25 million.   
• Working capital loan - $750,000            
• Guarantees:  $1.5 million Ongoing 
New Jersey Technology Business 
Tax Credit Certificate 
Transfer Program New Jersey Economic 
Development 
Authority Tax Incentives Approved businesses may sell their 
unused net-operation-loss carry 
forwards and unused research and development tax credit carry 
forwards to any corporate taxpayer 
in the state for at least 75% of the value of the tax benefits.  They can then use the money raised for 
working capital to buy equipment 
or facilities or for other business 
expenses.  Technology or biotechnology 
businesses must have 224 employees or 
less, of whom at least 75% must be based in New Jersey, and meet certain other criteria. Up to $60 million allocated each year. Ongoing - 
Program available 
30 June of each 
year 
New Jersey Underground Storage 
Tank Loans New Jersey Economic 
Development 
Authority Mixed Financing The EDA and Department of 
Environmental Protection jointly 
administer a fund to make loans and grants available to eligible 
owners and operators of regulated 
oil tanks to help finance costs associated with the upgrade, 
closure and remediation of tanks.  
Hardship grants  not to exceed 
$500,000 are available to 
owners/operators for 100% of the 
project costs.  Grant amount is based on the portion of costs EDA 
determines the applicant cannot 
reasonable expect to pay. Business owners who own or operate 
less than 10 petroleum underground 
storage tanks in NJ;  have a net worth of less than $2 million, and demonstrate 
inability to obtain a commercial loan 
for all or a portion of the eligible costs.For hardship grants , applicant must 
have taxable income of less than 
$250,000 or net worth of less than $500,000, exclusive of primary 
residence and pension, and satisfy a 
financial hardship test.  Grant recipient must stay in business 15 years after the 
award or a prorated portion of the grant 
must be repaid. Up to 100% of eligible costs.  Loans 
cannot exceed $1 million per facility.  
The interest rate is determined by EDA and may range from 2% to the Prime 
Rate.  Loan term may not exceed 10 
years. Ongoing  
  G/SCM/N/220/USA 
Page 174 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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.   New Jersey has 32 Urban Enterprise 
Zones which provide significant incentives and benefits to businesses 
that locate within the zones.   50% 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 FT 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% 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 
New Jersey Urban Plus New Jersey Economic 
Development 
Authority Loan Redevelopment in key urban 
locations of Trenton, Newark, Elizabeth, Jersey City, New 
Brunswick, Camden, Atlantic City, 
E. Orange, and Paterson. Developers and companies in New 
Jersey creating new jobs Up to $3 million term loan for up to 
50% of project cost.  Interest rate of 50% of Federal Reserve discount rate 
with a floor of 2%.  Terms up to 
10 years. Ongoing 
New Jersey Urban Transit Hub 
Tax Credit Program New Jersey Economic 
Development Authority Tax Credit Qualified businesses located in 
Urban Transit Hubs may qualify for 
tax credits equal to 100% of the 
qualified capital investment that may be applied against corporation 
business tax, insurance premiums 
tax or gross income tax liability. Qualified businesses located in Urban 
Transit Hubs - Camden, East Orange, 
Elizabeth, Hoboken, Jersey City, 
Newark, New Brunswick, Paterson and 
Trenton $1.5 billion over the lifespan of the 
program, or $150 million per year for 
10 years. 
 The tax credit program is for businesses 
making at least $50 million in qualified 
capital investments in a single business facility in an urban transit hub and 
employing at least 200 persons at that 
facility.   Ongoing for 
10 years 
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 Manuf acturers 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  
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 Page 175State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
New Mexico Enterprise Zones NM Economic 
Development 
Department Mixed Tax Municipalities, 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. Statewide, 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 CDBG funds 
for infrastructure gran ts and low-interest 
economic development loans;  
Technical assistance through workshops 
and one-on-one meetings to assist  local governments in coordinating targeted 
development efforts;  and 65% in-plant 
training reimbursement for qualified 
businesses. Ongoing 
New Mexico Film Crew 
Advancement 
Program New Mexico Film 
Office/EDD Labor & Training 
Reimbursement 
Funds The Job Training Incentive 
Program sets aside a portion of the 
allocation to be used directly for 
the film industry.   Film Industry Fifty per cent (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 High Wage Tax 
Credit NM Economic 
Development 
Department & 
Taxation and Revenue 
Department Tax Credit Eligible employers may receive a 
tax credit for each new high-wage 
job created (pays at least $28,000 in 
communities with a population of 
less than 40,000 or at least $40,000 
in communities with a population 
exceeding 40,000).  Must be an 
eligible business, must meet wage 
requirements and employment 
conditions.  Eligible employers may receive a tax 
credit for each new high-wage job 
created (pays at least $28,000 in 
communities with a population of less 
than 40,000 or at least $40,000 in 
communities with a population 
exceeding 40,000).  The credit equals 10% of the wages and 
benefits paid for each new job, may be 
taken up to four years and applied 
against GRT, compensating and 
withholding tax liabilities.  Any excess 
credit is refunded but shall not exceed 
$12,000 per year/per job.  Ongoing  
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Page 176 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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.  In rural areas, wages are reimbursed at 
a higher rate than urban areas. Maximum Program Benefits:  30-400% 
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 
New Mexico New Mexico Property 
Tax Abatement County or City 
Government and NM 
Economic 
Development 
Department Tax Exemption Real and tangible personal property 
is assessed and taxes are collected 
at the local level. 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 No State Sales Tax New Mexico Film 
Office Tax exemption To attract business and investment 
to state.   Film Industry.  Geared toward local 
commercials and other productions that 
do not qualify for the 25% Tax Credit. No state sales tax. Not to be used in 
conjunction with the 25% Tax Credit. Ongoing 
New Mexico Preferential Tax Rate 
for Small Wineries 
and Breweries New Mexico Taxation 
and Revenue 
Department Tax Abatement/ 
Reduction Preferential tax rate for small 
wineries and breweries. Winery/brewery 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 CreditNM 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 
(=400,000,000 kilowatts) of electricity produced for 10 consecutive years, 
beginning with the first year of 
production. This credit is fully 
refundable. Ongoing 
New Mexico Rural Jobs Tax Credit NM Economic 
Development 
Department & 
Taxation and Revenue 
Department  Tax Credit Encourage job creation in rural 
communities. 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.  Employer must meet eligible 
employer qualifications.  Maximum credit is $1,000/per job.  tax 
credit of 6.25% 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.  Any excess can 
be carried forward for up to 3 years.   Ongoing  
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Program 
New Mexico Tax Increment 
Financing New Mexico Taxation 
and Revenue 
Department Unspecified 
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 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.  Qualified research activities The additional credit is earned and 
doubled  when the company increases 
its payroll.   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/220/USA 
Page 178 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
New York Empire Zones 
Program NYS Department of 
Economic 
Development Tax Incentives New York State's Empire Zone 
program was created to stimulate economic growth through a variety 
of tax incentives designed to attract new businesses to New York and to 
enable existing businesses to 
expand and create more jobs.   Property must be located in an empire 
zone identified as such by the State Empire Zones Designation Board 
(administered by the New York State Department of Economic Development). Within Empire Zones, financial 
incentives include:  (1) Investment tax credit  (2) Wage tax credit (3) Zone 
capital tax credit (4) New York State sales tax refund (5) Utility rate 
reduction (6) Real property tax 
exemption (7) Local sales tax refund (8) Energy incentives are available to 
eligible businesses that locate or are 
established in EZs. These include gas and electric utilities rate reductions.  
Many utilities offer certain EZ certified 
businesses rate reductions of 3% to 60% for new load.  Telephone rate reductions 
of 5% for the life of the EZ on 
intrastate-intralata charges are available to certified businesses that use NY 
Telephone or GTE;  rate reductions of 
5% are also available to certified businesses from NYNEX and Citizens Telecom.   Program expired 
30 June 2010, and replaced by the 
Excelsior Jobs 
Program 
New York Empowerment Zone 
Program New York 
Empowerment Zone 
Corporation (NYEZC) Mixed Financing Estab lished 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 
trade 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 farms with assets greater than 
$500,000 at close of tax year. Triple tax exempt enterprise zone 
facility 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% of the net 
proceeds of the bond issue must be used 
to finance qualified zone property. Ongoing  
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 Page 179State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
New York Energy Products 
Center New York State 
Energy R&D 
Authority Technical 
Assistance 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.  In order to receive a loan, persons should be a customer of one of 
the following utility companies:  
Central Hudson Gas & Electric Corporation, Consolidated Edison 
Company of New York, New York 
State Electric & Gas Corporation, Niagara Mohawk Power Corporation, 
or Orange and Rockland Utilities, Inc.  
Customers must have identified an eligible improvement project, have the 
necessary documentation and a loan 
commitment from a participating 
lender. Up to $500,000 of project cost may be 
funded, with 50% 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%.  The average cost of a 
project being funded is up to $200,000.  Ongoing 
New York Enterprise 
Communities Empire State 
Development 
Corporation Mixed Financing To stimul ate 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% 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/220/USA 
Page 180 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
New York Excelsior Jobs 
Program Empire State 
Development 
Corporation Tax Credits Created in 2010 to replace the 
Empire Zones Program, designed to 
provide job creati on 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.   ESD 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 f our 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).  Started 2010, 
funding begins 
2011;  Ongoing 
New York General Development 
Financing Job Development 
Authority Loan Assistance for projects that 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, cultural, or historical facilities for tourist 
attraction. (For a list of designated 
distressed areas in NYS, contact 
ESD Economic Revitalization). 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, cultural, or historical facilities for tourist attraction. Loans of $75,000 to $2,000,000 for up 
to 40% of total project cost at interest 
rates no lower than 3% 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%.  Loan guarantees of $75,000 to $2,000,000 or up to 60% 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%.  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/220/USA
 Page 181State Program Title Program Authority Form of Subsid y 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. These areas include 
New York City and parts of Nassau, 
Westchester, and Rockland counties. Loans of up to a maximum of 
$5,000,000, or 10% 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% 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 
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 December 
2014  
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Page 182 State Program Title Program Authority Form of Subsid y 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);  2.  QETC Capital Tax Credit;  3.  QETC Facilities, 
Operations, Training Credit 
(refundable). 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 sales 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 classified (as 
determined by the National Science Foundation (NSF) in the most recently 
published results from its Survey of 
Industry Research and Development, or a comparable successor survey as determined by the Tax Department). Lending for certified government 
contractors and eligible government 
contractors  1 and 2 are 
ongoing;  3 expires 
31 December 
2011. 
New York Qualified Empire 
Zone Enterprise 
Incentives NYS Dept. of 
Economic 
Development/ 
New York State 
Department of Tax 
and Finance Tax Credit Empire Zone- certified businesses 
locating and increasing 
employment in Empire Zones 
("Qualified Empire Zone 
Enterprises" or QEZEs) may be eligible for enhanced sales, property and business tax credits.  
These enhanced benefits include:  
Sales Tax Exemptions;  QEZE Credit for Real Property Taxes;  QEZE Tax Reduction Credit.  All qualified businesses located in a 
New York enterprise zone. 
Businesses operate virtually "tax-free" 
for up to 10 years.   
Sales Tax Refunds:  Refund from the 
state and local portion of the sales tax 
for all goods and services (including 
energy and utility services) used directly 
and predominantly in the zone. State 
portion of refund is only available if 
locality also offers local portion of the 
sales tax refund. 
Real Property Tax Credit:  Credit for 
real property taxes paid based on a 
formula that considers job creation, 
wages and benefits or investments made 
in the zone. 
Tax Reduction Credit:  Credit against 
tax equal to a percentage of income 
taxes attributable to the zone enterprise 
based on its employment growth in the 
zone.  EZ program 
expires 30 June 
2010. 
Currently 
certified 
businesses can 
continue to 
receive benefits 
for the remainder 
of their benefit 
period.  
   G/SCM/N/220/USA
 Page 183State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
New York Upstate Regional 
Blueprint & Downstate 
Revitalization Funds  Empire State 
Development 
Corporation Loans New York's Upstate Regional 
Blueprint Fund (Upstate Fund) and Downstate Revitalization Fund 
(Downstate Fund) seek to promote economic development by 
financing capital investment in 
New York State.  Although funding is offered prior to the start of the 
project as an incentive to undertake 
the project, funds generally are disbursed as reimbursement for 
expenses already undertaken.   
 The two Funds are largely similar with regard to purpose and use, but 
are distinct with regard to 
geography between the Upstate and 
Downstate regions.  Eligibility 
A wide range of entities are eligible to apply for assistance, including but not 
limited to:  for-profit businesses  not-for-profit corporations  
business improvement districts  
local development corporations  public benefit corporations (including 
industrial development agencies)  
economic developmen t organizations  
research and academic institutions, 
incubators, technology parks, 
municipalities, counties, regional planning councils, tourist attractions  
community facilities. 
 Start-up companies generally will not 
be funded.  Applicants under the 
Business Investment Track generally should have an operating history of at least three years.   Incubator assistance  The Upstate Fund 
and Downstate Fund were 
enacted in 2008, with the first 
round of awards 
being announced 
in October 2009.  
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 produc tivity 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. 
These bank loans are subsidized by 
corresponding "linked" state 
deposits. 2% interest rate reduction for: 
Manufacturers with 500 or fewer 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% of gross revenue derived 
from defense contracts/subcontracts 
investing to reduce dependence on the 
defense industry by diversifying 
production to non-military markets  The program provides a two to three 
percentage points savings on the 
prevailing interest rate for "Linked 
Loans," to make borrowing less 
expensive with a maximum loan amount 
of $500,000 for four years. Ongoing  
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Page 184 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
New York NYC Biotechnology 
Tax Credits NYC Finance  Tax Credits To encourage the biotechnology 
industry in NYC. 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% 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. 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. 2010 - 2012 
North Carolina 15 per cent Tax Credit Department of 
Commerce Tax credit To encourage business 
development within the State. Film Industry 15% tax credit on productions over 
$250,000 and not exceeding a  credit 
per project over $7.5million. Repealed 
10 July 2010 
North Carolina Article 3F Technology 
Development Tax 
Credit Department of 
Commerce, General 
Statutes § 105-129.50 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%. 
• Low-tier research:  For expenses for 
research performed in a Tier 1 county, a 
business is permitted a credit of 3.25%.
• 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%. Technology development tax credits 
may be used to offset up to 50% 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 2014  
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 Page 185State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
North Carolina Article 3J Business 
Property Tax Credit Department of 
Revenue 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;  motorsports 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 "f ailure 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.   Ongoing 
Sunset 2013 
North Carolina Article 3J Jobs 
Creation Tax Credit Department of 
Revenue 
General Statutes 
§105-129.80 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;  motorsports 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 "f ailure 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.   Ongoing 
North Carolina Economic Incentive 
for Computer 
Manufacturing 
Companies Department of 
Commerce Grants/Tax 
Incentives To encourage high-technology 
development and create jobs within 
the state of North Carolina. Computer manufacturing companies For each year in which the company 
meets the required performance targets, 
the state will provide a grant equal to 
75% of the state personal income 
withholding taxes derived from the 
creation of new jobs.  Repealed 
1 July 2010  
  G/SCM/N/220/USA 
Page 186 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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. Ongoing; 
Sunset 2014 
North Carolina Interactive Digital 
Media Tax Credit Department of 
Commerce, 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 media 
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 are awarded 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% of compensation and wages for 
full-time employees and other allowable 
expenses; 
-- 20% of research expenses paid to 
North Carolina universities or 
participating community colleges. Ongoing 
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.  The General 
Assembly has appropriated $5 million 
for the 2008-09 fiscal year.  Annual 
payments to grantees would be 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 
North Carolina Ports Tax Credit Department of 
Commerce, 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% 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. Sunset 2014  
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 Page 187State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
North Carolina Renewable Energy 
Property Tax Credit  Department of 
Commerce 
General Statutes 105-
129.15 and 105-
129.16A Tax Credit Taxpayers who construct, purchase, 
or lease renewable energy property, are eligible for a tax credit equal to 
35% of the cost of the property.  Renewable energy property includes:  
equipment that uses renewable biomass resources to produce ethanol, methanol, 
biodiesel, or methane produced via anaerobic biogas utilizing agricultural 
and animal waste or garbage;  and 
related devices for converting, conditioning, and storing the liquid 
fuels and gas produced with biomass 
equipment.  A ceiling of $2,500,000 per installation 
applies to renewable energy property placed in service for any purpose other 
than residential.  Ongoing 
Sunset 2016 
North Carolina Sales and Use Tax 
Refunds Department of 
Revenue, General Statutes N.C.§105-
164.14A & B 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 el igible facility is 
allowed an annual refund of sales and use taxes on purchases of building 
materials, fixtures and equipment if the facility costs at least $50 million in 
Tier 1 counties and $100 million in 
Tier 2 and 3 counties.  The sales tax and 
use tax refunds sunset 2013 and 
2038, 
respectively. 
North Dakota Agricultural 
Commodity 
Processing Facility 
Investment Tax CreditTax 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, 
corporation, 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 ownership interests. The credit is equal to 30% 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/220/USA 
Page 188 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
North Dakota Biodiesel Tax Credits Tax Department Tax Credits To encourage biodiesel production. Biodiesel 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 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 December 2004, a 
licensed fuel supplier who blends at least 5% biodiesel 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 December 2004, a seller 
of biodiesel 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 blend.  Ongoing 
North Dakota Biofuels PACE Bank of North Dakota Interest Rate 
Subsidies To encourage biofuels production.
Production Criteria 
-- 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 facility and residents 
of North Dakota who own at least 
50% Ethanol and biodiesel producers. Biofue ls 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.  No community 
match.  A maximum of $4.5 million of 
the $5 million PACE program will fund ethanol production, biodiesel 
production, feedlot operations and dairy 
operations. Ongoing  
   G/SCM/N/220/USA
 Page 189State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 
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.  Debt averages:  working capital 3-5 years, 
machinery/equipment 5-7 years, 
commercial real estate 10-25 years. Equity averages:  5- 10 years. Internal 
rate of return negotiated on case by case 
basis.  Total program cost for 2009 was 
$5.6 million. Ongoing 
North Dakota Sales & Use Tax 
Exemptions for 
Agricultural 
Processing Plant Construction Materials Tax Department Tax Exemption North 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 pro cessing 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 qualifying 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 5% sales tax exemption 
based on the cost of construction 
materials for a qualifying agricultural 
commodity processing facility. Ongoing 
Ohio Advanced Energy 
Program Ohio Department of 
Development  Grant To utilize energy efficient measures 
and technologies. Projects 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 companies 
may receive grants under three funding 
programs:  Distributed Energy 
Resources Project (DERP), 
Manufacturing Facilities' Energy 
Efficiency (MFEE), and Renewable 
Energy Program (REP).  DERP:  25% of project cost, maximum 
$100,000.  MFEE:  25% project cost, 
maximum $50,000.  REP:  50% project 
cost, maximum $150,000. Ongoing  
  G/SCM/N/220/USA 
Page 190 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Ohio Community 
Reinvestment Areas Department of 
Development Real Property Tax 
Exemption 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 Department of 
Development 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% exemption  for up to 
15 years.  In some instances, local 
school board approval may be required. Sunsets on 
15 October 2011 
Ohio Film Production Tax 
Credit Department of 
Development  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 eligib le 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 $10 million in tax credits are 
available in Fiscal Year 2010 and 
$20 million in Fiscal Year 2011.  Ongoing 
Ohio Governor's Office of 
Appalachia Grants Department of 
Development 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  Department of 
Development Loan  Provides financial resources for 
product commercialization for 
leading technology companies. Established Ohio businesses with a 
proven operating history undertaking an 
investment project in one of the 
following targeted industry sectors:  
advanced materials;  instruments, controls and electronics;  power and 
propulsion;  bioscience;  and 
information technology.  The IOF can finance up to 75% of a 
project's qualifying costs through loans 
in the range of $500,000 to $3 million. Ongoing.  
Ohio No Sales Tax Department of 
Development 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  
   G/SCM/N/220/USA
 Page 191State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Ohio Ohio Third Frontier Department of 
Development Grants and loans Expand Ohio's high-tech research 
capabilities, promote innovation 
and company formation and create 
high-paying jobs. Companies or organizations proposing 
projects in one of the following 
categories: 
- Advanced Energy and Fuel Cell 
Programs 
- Entrepreneurial Signature Program 
- Innovation Ohio Loan Fund 
- Internship Programs 
- Ohio Research Commercialization 
Grant Programs 
- Ohio Research Scholars 
- Pre-seed and seed Fund Initiatives 
- Research and Commercialization 
Programs 
- Targeted Industry Attraction Program
- Wright Centers of Innovation 
- Wright Projects $14 million in funding projects. ongoing 
Ohio Ohio Workforce 
Guarantee Program Department of 
Development Grants Create opportunities for Ohio's 
workers and companies to stay 
competitive and current in their fields. The Ohio Workforce 
Guarantee 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 
following industrial  sectors: 
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 Ohio Workfor ce Guarantee will 
reimburse grantees the cost of approved 
training for full-time employees receiving at least $10.88 per hour, 
excluding benefits.  The program 
provided a total of $11.6 million and over $13 million in grants in 2009 and 2010, respectively. Ongoing 
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 off-site public 
infrastructure improvements (i.e., 
water, sewer, roads);  and private 
developers. Maximum loan available is $1 million 
and cannot exceed 75% of total eligible 
costs. Ongoing  
  G/SCM/N/220/USA 
Page 192 State Program Title Program Authority Form of Subsid y 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 w ith 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 undergradua te or graduate 
degree within 1 year of beginning 
employment with the qualified 
employer. Ongoing since 
2009. 
Program is 
currently under a 
moratorium 
effective 1 July 
2010, until 30 
June 2011. Will 
be effective again 
beginning 1 July 
2011.  
Oklahoma Alternative Energy 
Sources Tax Credits Tax Commission; 
68 O.S. 2357.32A  
and B Tax Credit To encourage alternative, 
zero-emission fuel production. Producers of electricity utilizing 
alternative, zero-emission fuel and 
small wind turbine  manufacturers. Producers may receive 
75 one-hundredths of one cent per kilowatt-hour. 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/220/USA
 Page 193State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Oklahoma Construction 
Materials Oklahoma Tax 
Commission Sales refund 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 on eligible costs. Ongoing since 
1981. 
Oklahoma Construction Tax 
Credit Oklahoma Film and 
Music Office Tax credit To encourage the development of 
commercial film industry within 
the state. Film Industry Offers companies building production 
facilities in Oklahoma state income tax 
credits ranging from 10% on a minimum $500,000 construction project 
to 25% for projects over $1 million. Ongoing 
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 
inducements for business.  Double 
the Investment/New jobs tax credit is allowed and low interest loans 
may be made available through the 
enterprise district 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 
zones.  By statute, funds for these 
programs would 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.These loans can be for up to 100% of 
the estimated cost of the building and 
equipment. Ongoing  
  G/SCM/N/220/USA 
Page 194 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Oklahoma Ethanol Tax Credits House Bill 1556 
(2005) Tax Credit Credit for ethanol against the tax 
imposed by Section 2355 and 2370 of Title 68, and Sections 624 and 
628 of Title 36. Any ethanol facility producing ethanol 
pre-denaturing at the rate of at least 25% of original design capacity, on or 
before 31 December 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 December 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 
December 2010.  Capped at 25 million 
gal per year, total 125 million gal for all 60 months. 
Beginning 1 January 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. 
Oklahoma Ethanol Tax Credits Senate Bill 429 (2003)  Tax Credit Credit for ethanol against the tax 
imposed by Section 2355 of 
Title 68. Any ethanol facility producing ethanol 
pre-denaturing at the rate of at least 
25% of original design capacity, on or 
before 31 December 2006, and where 
production is kept at least at average 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 December 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 December 2010.  Capped at 
25 million gal per year, total 
125 million gal for all 60 months. Beginning 1 January 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.  
   G/SCM/N/220/USA
 Page 195State Program Title Program Authority Form of Subsid y 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. 2001 
Sec. 2902 Tax Exemption To encourage certain manufacturers 
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 locat ed in a larger 
county, an additional 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, 
improvements, 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/220/USA 
Page 196 State Program Title Program Authority Form of Subsid y 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 1% 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.  The taxpayer that invests 
in qualifying property and also adds new employees should figure the 
tax credit both ways (total capital 
expenditures if over $50,000 or net increase in full time equivalent 
employees) and take the larger 
credit.  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.  It may be necessary to retain up to ten years of records to properly document the credit. 
Ongoing;  unused 
credits may be 
carried forward 
indefinitely. 
Credits earned 
between 1 July 
2010 and 30 June 
2012 may be 
claimed 
beginning with 
tax year 2012 
returns. 
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 Office Rebate To encourage the development of 
commercial film industry within 
the state. Film Industry 35 to 37% rebate of Oklahoma 
production expenditures to companies 
filming in the state capped at $5 million 
per year. Additional 2% when $20,000 
spent on music recorded in Oklahoma Ongoing  
   G/SCM/N/220/USA
 Page 197State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Oklahoma Quality Jobs 10-Year 
Cash Back Incentive Department of 
Commerce Tax Refund Utilize the new Oklahoma Quality 
Jobs program by having a new 
payroll investment of $2.5 million 
or more.  Easy-access program 
provides direct payment incentives 
(based on new wages paid) to 
companies for up to 10 years.  
Provides quarterly cash payments 
of up to 5% of new taxable payroll 
directly to qualifying companies for 
up to 10 years.  Beginning in 2003, 
jobs included in the $2.5 million 
threshold must be paid at least 
equal to the average county wage 
where the company is located, not 
to exceed $25,965, indexed 
annually. 
Firms cannot utilize the jobs or 
investment tax credit, sales tax 
exemptions for construction, or a 
variety of additional tax credits and 
exemptions. Fast growing businesses within the SIC 
Codes 20-39. Payments are generally limited to 5% of 
payroll and for most businesses will be in the 4% to 5% range.  In 2009, the 
program cost a total of $60.6 million. Ongoing 
Oklahoma Reinvestment Tax 
Credit Oklahoma Film and 
Music Office Tax credit To encourage the development of 
commercial film industry within 
the state. Film Industry Provides state taxpayers who invest in 
film or music projects produced in state a 25% income tax credit on profits made 
when those profits are reinvested in another film or music project produced 
in Oklahoma. Legislature 
imposed an 
indefinite 
moratorium in 
June 2010 
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 Tax Exemption to 
qualified productions on sales taxes paid 
for property or service to be used in 
productions. Ongoing  
  G/SCM/N/220/USA 
Page 198 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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% 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% 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 
Oregon Business 
Development Fund Business Oregon Loan Revolving loan fund that 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% Oregon Business 
Development Fund participation.  
Maximum loan size is $750,000.  The term of the loan cannot exceed the useful life of the co llateral 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 OregonThe tax credit is 35 % of the eligible 
project costs, to be taken over five 
years:  10% in the first and second years 
and 5% 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% of eligible project costs, to be claimed at 10% each year for five 
years. 
Total cost of the program in 2009 was 
$71.9 million. Sunset:  1 January 
2012  
   G/SCM/N/220/USA
 Page 199State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Oregon Business Retention 
Services Business Oregon  Business assistan ce The Oregon Business Retention 
Service 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.  The consultant's fees are paid by the 
department, but the company is obligated to repay th e cost of service 
within two years.  No interest will be charged, and the ability to repay will be 
taken into consideration.  Participating 
businesses receive up to $4,000, or 
approximately 40 hours, of management 
counsel.  The appli cant for a feasibility 
study of a closed industrial facility must provide 25% 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% 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% 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:  1 July 
2012 
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 
2013 
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 current 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 subtracted (exempt) from state taxable 
income Ongoing 
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% 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% of eligible annual 
expenses in excess of base amount consistent with U.S. IRC §41, up to 
$2 million per year. Sunset:  1 January 
2012 
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-per cent abatement on qualified, new plant & equipment. Exemptions 
last from three to five years, depending 
on special local approval/criteria. Sunset:  30 June 
2013  
  G/SCM/N/220/USA 
Page 200 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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% 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 manufacturers Lesser of $5,000 or 15% of wages for 
new hires in making eligible/licensable vessels with capacity for 50 or more 
passengers Sunset:  1 January 
2012 
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 since 
1 July 2004. 
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 are variable.  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. Variable 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 investment firm that 
will utilize funds as mezzanine 
capital to close on projects that that 
have been historically underserved 
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 and will be 
matched by the private investors 
looking to facilitate projects within the 
state. Ongoing  
   G/SCM/N/220/USA
 Page 201State Program Title Program Authority Form of Subsid y 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 business 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. There are no minimum or maximum 
loan sizes. Ongoing 
Pennsylvania Citizens Job Bank Department of 
Community and 
Economic Development Loan To promote investment within the 
state. Eligible PA manufacturing, industrial 
and distribution operations and select 
businesses which will create one full-time job for each $40,000 borrowed. Loan minimum $1,000,000 to 
$10,000,000;  Loans may not exceed 
75% of project cost;  Building 
acquisition/remodeling loans limited to 
75% of appraised value.  Discontinued in 
2009  
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:  Loans up to $100,000 or 50% of 
total eligible project cost, whichever is 
less.  2% interest rate;  Flexible terms Ongoing 
Pennsylvania Enterprise Zone 
Program Department of 
Community and 
Economic Development Grant/Loan Designed to assist financially 
disadvantaged communities in 
preparing and implementing 
business development strategies 
within municipal Enterprise Zones. Local governments, redevelopment 
authorities, nonprofit economic 
development organizations, private sector firms. Planning grants to municipalities up to 
$50,000;  basic grants up to $75,000;  
grants-to-loans for businesses up to $350,000. Ongoing 
Pennsylvania Film Tax Credit 
Program Department of 
Community and Economic 
Development Tax Credit Act 55 of 2007, the Film Tax 
Credit Law (Act 55) authorized the issuance of $75 million in tax 
credits in an effort to expand the activity of film, te levision 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% of Qualified Pennsylvania production 
expenses for the project. Ongoing  
  G/SCM/N/220/USA 
Page 202 State Program Title Program Authority Form of Subsid y 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 creditsPartnerships 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.Ongoing as of 
March 2011;  
program is 
currently under 
re-evaluation. 
Pennsylvania Keystone Opportunity 
Zone (KOZ) Department of 
Community and 
Economic Development Tax 
Abatement/Reducti
on 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.  Projects in KOZs are given 
priority consideration for assistance 
under various community and economic 
building initiatives. 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 
Community 
Development Bank 
Loan Program Department of 
Community and 
Economic 
Development Loan Provides debt financing for 
Community Development Financial 
Institutions (CDFIs);  Public funds (25 percent) matched with private 
sector funds (75 percent) to create a 
loan pool to promote economic development and job creation.  
Also, provides direct loans entirely 
from PCD Bank funds to CDFI's. State accredited community 
development financial institutions 
(CDFIs) are eligible. 3-, 5-, and 7-year loans of amounts from 
$250,000 to $5 million.  Principal and 
interest repaid quarterly;  interest rate is 
a blend between public rate of 50 basis 
points and private rate of U.S. Treasury 
rate plus 100 basis points;  Collateral 
required.   Still ongoing, 
funding was 
eliminated in 
2009.  May be 
terminated in 
future, as all 
program funds are 
spent. 
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 
Pennsylvania PNC Working Capital 
Growth Fund Department of 
Community and Economic 
Development Loan Low-interest rate financing to 
businesses inside Pennsylvania so 
they can continue to grow. Businesses in designated key growth 
industry, including advanced 
technology, food processing. Line of credit from $10,000 to 
$2 million, at below standard interest 
rate. Discontinued in 
2009  
   G/SCM/N/220/USA
 Page 203State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Pennsylvania PTIA (Pennsylvania 
Technology Investment Authority) 
- Investment Department of 
Community and Economic 
Development Equity Financing available as direct 
investment to or on behalf of technology-oriented businesses 
located in or maintaining a substantial operating presence in Pennsylvania. For-profit businesses that must fall 
within certain SIC or NAICS codes. Investment amounts vary. 
Discontinued in 
2009 
Pennsylvania Sales Tax Exemption 
- Film Production Department of 
Community and 
Economic Development Tax Exemption Promote the production of feature 
length films in Pennsylvania 
distributed to a national audience. Feature film producers. Not available. 
Terminated in 
2008 
Pennsylvania Second Stage Loan 
Program Department of 
Community and 
Economic Development Loan guarantees Loan Gu arantees 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 
Pennsylvania Underground Storage 
Tank Upgrade Loan 
Program (USTULP) Department of 
Community and Economic 
Development Loan Low-interest loan financing to 
business owners of regulated underground storage tanks to meet 
federal Environmental Protection 
Agency upgrade requirements. Business owners of regulated 
underground storage tanks to meet 
Federal EPA upgrade requirements. Amounts of $500,000 or 75% of the 
total eligible cost, whichever is less.  10 years maximum term.  The interest 
rate is fixed for the term of the loan and shall equal the interest rate for a 5-year 
U.S. Treasury note as determined by the 
Department. Terminated 
19 July 2006;  no 
longer used. 
Puerto Rico Film Entity Tax 
Credits, Act No. 362 
of December 24, 1999Puerto Rico Film 
Commission  Tax Credit The tax credit is an incentive for 
investors in a Film Entity dedicated to producing a film project in 
exchange of stock or unit 
participations. A Film entity that has organized its 
financing structure in Puerto Rico A tax credit equivalent to 40% of 
budget items paid to Puerto Rico entity 
or resident or up to 50% of the cash 
invested as equity in the project. To be replaced by 
new legislation in 
2011  
  G/SCM/N/220/USA 
Page 204 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Puerto Rico Economic Incentives 
for the Development 
of Puerto Rico Act 
(Act No. 73 of 2008) Puerto Rico Industrial 
Development 
Company Tax credit/Low 
fixed income tax 
rate/     Exemption/    
Grants Provides attractive tax and other 
incentives to foster investment in 
key sector of PR's economy Businesses engaged in the following in 
Puerto Rico:  
• Scientific research and development 
• Recycling 
• Hydroponics 
• Software development 
• Others  General Scenario: 
• 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, among others 
• Special grants through the Special 
Economic Development fund Ongoing 
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. Designated 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% within an R.I. enterprise zone may take 
a credit equal to 75% of the total wages 
paid to enterprise job employees living in an enterprise zone.  The maximum 
credit is [$15,000 per employee.] 
$5,000 per enterprise zone resident new hire and $2,500 per non-enterprise zone 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% of the 
actual wages paid to the qualifying 
apprentice or $4,800, whichever is less. Ongoing 
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% motion picture company 
transferable tax credit for all Rhode 
Island spending. No caps and it also 
includes salaries for people working on 
the ground in state. Ongoing  
   G/SCM/N/220/USA
 Page 205State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 a pply for the credit, a 
company must produces traded goods 
or services, 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;  Industrial 
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 
South Carolina Economic 
Development General 
Obligation Bond South Carolina 
Budget & Control 
Board Grant To bring new jobs to the State. Companies creating a minimum of 400 
jobs and investing $400 million are 
eligible for   grants to off-set the cost of 
infrastructure and land. Varies depending on infrastructure 
need, project size and project 
importance. Ongoing 
South Carolina Economic Impact 
Zone Investment Tax 
Credit South Carolina 
Department of 
Commerce Tax Credit To help offset the impact of federal 
downsizing in the state and spur 
growth in areas surrounding Charleston Naval Base, Myrtle 
Beach Air Force Base, and the 
Savannah River Site. Manufactures located in Economic 
Impact Zones. One-time credit against a company's 
corporate tax of between 1% and 5% of 
a company's investment in new production equipment. Credit 
percentage depends on the applicable 
recovery period for property under the 
Internal Revenue Code. Ongoing 
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 renewable 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 renewable 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.  
  G/SCM/N/220/USA 
Page 206 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
South Carolina Fee-in-lieu of Local 
Property Taxes Local Governments Property Tax 
Abatement/ 
Reduction A company can negotiate a Fee-in-
Lieu of property taxes agreement with a county if certain investment 
criteria are met.  The advantages to a company include:  (1) savings, as 
payments to local government are 
reduced significantly through negotiation of a lower assessment 
ratio and negotiation of an 
applicable millage rate;  (2) planning, as payments to local 
government are stabilized for the 
term of the agreement (generally up to twenty years);  and 
(3) scheduling, as the payment 
stream can be negotiated to meet the financing needs of the 
company.  A company can qualify 
to negotiate a FILOT with an 
investment as low as $2.5 million. Qualifying investments of $2.5 million 
or more Savings will occur by reducing the 
assessment ratio from 10.5% to a minimum of 6.0% (4.0% for very large 
investments) and potentially locking in the millage rate fo r the life of the 
agreement generally up to 20 years 
(30 years for very large investments).  
All terms are negotiated with counties. Ongoing 
South Carolina Jobs Development 
Credit SC Coordinating 
Council for Economic 
Development Discretionary Tax 
Credit To create high-paying quality jobs 
with an emphasis on rural areas. Companies in the state which operate 
manufacturing, tourism, processing, 
warehousing, distribution, research and development, corporate office, 
qualifying service-related, 
extraordinary retail, qualifying technology intensive and bank facilities, and which create new jobs and bring in new capital investment. Support is in the form of a refundable 
credit against employee withholding 
taxes.  Amount varies depending on wage rates and the county in which the 
project locates. It can be  up to 5% of 
wages, if compensation levels are high 
enough.   Ongoing 
South Carolina Jobs Tax Credit for 
New Job Creation SC Department of 
Revenue Tax Credit Provides a credit to corporate 
income tax or premium tax based 
upon new jobs created by a 
company locating or expanding a 
facility in any county in the state.  The dollar credit is based on each 
new full-time job created with the 
credit value varying by county. Companies in the state which operate 
manufacturing, tourism, processing, 
warehousing, distribution, research and 
development, corporate office, 
qualifying service-related, extraordinary retail, qualifying 
technology intensive and bank facilities 
and which create new jobs in the state The credit is available for a five-year 
period beginning with Year 2 of the 
Project.  (Year 1 is used to establish the 
created job levels).  The number of new 
jobs is calculated as the increase in the average monthly employment from one 
year to the next.  Generally, a monthly 
average of 10 new jobs must be created, but the required number may vary 
depending on the type of business.  The 
credit can be applied against corporate income tax or premium tax, not to 
exceed 50% of the year's tax liability.  
Unused credits may be carried forward for 15 years from the year earned.  
Credit value ranges from $1,500 to as 
high as $9,000 per job for 5 years, 
depending on the location of the facility.Ongoing  
   G/SCM/N/220/USA
 Page 207State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 
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 
$250,000 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, mu st 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 in SC. 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 The amount of the credit is determined 
by the SC Coordinating Council for 
Economic Development.   Ongoing 
South Carolina State and Local Sales 
and Use Tax 
Exemption South Carolina 
Department of Parks, Recreation & Tourism 
- Film Commission Tax exemption Promote the production of feature 
length films in South Carolina. Film Industry No state and local sales and use taxes on 
personal property used in the state in connection with the filming or 
production of a motion picture when 
spending at least $250,000. Ongoing 
South Carolina State and Local Sales 
and Use Tax 
Exemption South Carolina 
Department of 
Revenue Tax exemption Promote the production of feature 
length films in South Carolina. Film Industry No state and local sales and use taxes on 
technical equipment, machinery and 
electricity sold to motion picture companies for use in filming or producing motion pictures. Ongoing  
  G/SCM/N/220/USA 
Page 208 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
South Carolina Tax Increment 
Financing for Redevelopment 
Projects Local Governments Loan Incorporated municipalities are 
authorized to issue obligations for the purpose of redevelopment 
within their boundaries.   Areas eligible for redevelopment 
projects include vacant or improved areas that, according to specifications, 
are classified as blighted areas or conservation areas.  Areas that are 
deteriorating and declining and 
threatening to become blighted areas if such decline is not ch ecked are eligible.  
Eligible projects can be buildings, 
improvements (e.g., street, water, or sewer), parking facility, or recreational facilities owned by the municipality. Total aggregate area within any one 
municipality may not exceed 5% of the total acreage of the municipality.  The 
area designated for redevelopment may not be less than a total of 1.5 acres.  The 
debt service for such obligations is to be 
funded from the added increments of tax revenues resulting from the projects.  
Obligations must mature within 
30 years, and interest rates are determined by the governing body of the municipality. 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 
South Dakota Tax Credit for Ethanol 
Blending Statute 10-47B-136 
(1995) Tax Credit Credit for blending of gasoline with 
ethanol. Licensed blender producing E85 
ethanol or M85 methanol blended 
gasoline. Credit on a per gallon basis in the 
amount that the rate for motor fuel 
exceeds the rate for ethanol blend E85 
or M85. (Unclear) Repealed in 2009, 
went inactive on 
1 July 2009 
Tennessee 15% Headquarters 
Refund Tennessee 
Department of 
Revenue & Tennessee Film, Entertainment 
and Music 
Commission Cash Refund To promote film production within 
the state. Production company headquartered in 
Tennessee which has incurred at least 
$1,000,000 in qualified expenses producing a theatrical film or television show in Tennessee. A 15% refund calculated upon Qualified 
Expenses that are necessary for the 
production of a theatrical film or television show in Tennessee. In order 
to qualify for the 15% refund the 
production company must be headquartered in Tennessee and it or its subsidiary must incur at least 
$1,000,000 in qualified expenses in the 
state. Ongoing 
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 remodeling 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 cred it 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 benefited during a 
fiscal year may be refunded to the taxpayer in the form of a cash overpayment. Ongoing  
   G/SCM/N/220/USA
 Page 209State Program Title Program Authority Form of Subsid y 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 (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.   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%.  
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 
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 remodeling 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/220/USA 
Page 210 State Program Title Program Authority Form of Subsid y 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 
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 f ootprint 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 integrat ed 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  
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Program 
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 
Tennessee Minority Business 
Development Loan 
Fund Tennessee Valley 
Authority Loan TVA's Minority Business 
Development Loan fund is a 
revolving loan fund established to support the start, growth, and 
expansion of minority and other 
socially and economically disadvantaged business owners in the Valley. Business must be located in the TVA 
power service area.  '"Social and 
economical disadvantage" have the meanings described in the Small 
Business Act (15 U.S.C. 
Section 637 (a)). Loans range from $50,000 up to 
$500,000.  Loans are generally awarded 
for a period of three to ten years - from five to seven years for equipment and 
eight to ten years for real property.  
Terms and rates are determined on a project by project basis.  Loans are 
typically below market rate with 
specific rates determined on a case by 
case basis. Ongoing 
Tennessee Sales and Use Tax 
Exemptions Tennessee 
Department of 
Revenue Tax Exemption The sales tax applies to any person 
or company who manufactures, 
distributes or retails tangible personal property within the state.  The sales tax places the legal 
incidence of tax upon the seller.  
The Tennessee state sales tax is 7% and the local option sales tax ranges from 1% to 2.75%. Various industries Tennessee offers the following sales tax 
incentives and exemptions:  No sales 
tax on purchases, installation and repairs of qualified industrial machinery;  purchases of material 
handling and racking equipment 
associated with the required capital investment of $10 million by a 
distribution or warehouse facility;  raw 
materials for processing;  pollution control for manufacturers.  Other 
pollution control equipment may be 
eligible for sales tax credit.  Reduced sales tax rates for manufacturers' use of 
energy fuel and water;  tax exempt if 
used directly in the manufacturing process. Credit of 4.5% for state sales 
and use taxes paid on building 
materials, machinery, and equipment for new or expanded corporate headquarters 
(regional, national, or international) 
meeting capital investment requirement of $50 million. Refund on taxes paid on 
goods and services by motion picture 
production companies filming or producing in Tennessee that meet expenditures requirement of $500,000.  Ongoing  
  G/SCM/N/220/USA 
Page 212 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Tennessee Special Opportunities 
Counties (SOC) 
Program Tennessee Valley 
Authority Loan The TVA Special Opportunities 
Counties (SOC) fund is a 
$16 million revolving loan program 
that provides low interest loans 
targeted to companies expanding or 
relocating in the Tennessee Valley's 
most economically distressed 
communities. Only the 50 counties in the Valley with 
the lowest per capita income ranked by the per cent of residents below the 
poverty level are eligible for the program.  This list is updated on an 
annual basis.  TVA maintains a current 
listing of eligible Tennessee counties. The maximum loan investment is 
$300,000.  Funding is provided to the local government/development 
organization to be loaned by them at the TVA long-term borrowing rate 
(established at the time the loan is 
closed).  Equipment loans are generally five to seven years and loans for real 
property are made for up to I0 years.  
All funding is subject to availability of 
funds. Ongoing 
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 
claimed 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 
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 established 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 incentiv es 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% of the 
projected jobs, whichever is less. Ongoing  
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 Page 213State Program Title Program Authority Form of Subsid y 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 zone 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% 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 $2,500, 
$5,000 or $7,500 per new job created up 
to a maximum of $1.25 million, $2.5 million and $3.75 million 
respectively.  The number of jobs 
eligible for a refund cannot exceed 500. Ongoing 
Texas Freeport Exemption Texas Communities Ta x 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% 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  
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Page 214 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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% 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 
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 
Texas Property Tax 
Abatement Texas Comptroller of 
Public Accounts Tax Abatement / 
Reduction Property taxes are levied by local 
governments and special tax 
districts on all real and tangible 
personal property.  Intangible 
property, with certain exceptions, is not taxed.  Local municipalities and 
counties can designate areas within 
their jurisdiction. Companies located in reinvestment 
zones statewide. Designation of a rei nvestment 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  
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 Page 215State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Texas Rural Municipal Loan  
Program Texas Department of 
Agriculture Loan Guaranty The Texa s Agricultural Finance 
Authority (TAFA) provides financial assistance to 
governmental entities located in the state's rural regions.  Applicants 
must be located in a rural area;  
provide economic benefits for rural area;  show evidence to repay the commitment. City and county governments, 
economic development corporations, hospital districts, rail districts, utility 
districts, special districts, agricultural districts and private water and wastewater corporations. From $100,000 to an amount approved 
by Texas Agricultural Finance Authority (TAFA) board of directors, 
but targeting projects of less than $1,000,000.  TAFA has the authority to 
purchase an anticipation note from a 
municipality in an amount not to exceed $500,000 for any single project for a 
term of not more than 30 years, without 
the approval of the Attorney General's 
Office. Program 
suspended 
31 August 2009 
Texas Sales and Local Tax 
Exemption Texas Film 
Commission Tax exemption To promote commercial film 
production. Film Industry Filmmakers are exempt from 100% of 
state and local sales taxes on most items 
and services bought or rented for direct use in production.  Filmmakers are 
exempt from 100% of state and local 
sales taxes on most items and services bought or rented for direct use in production. Ongoing 
Texas State Sales & Use Tax 
Exemptions - 
Manufacturing 
Machinery and 
Equipment Texas Comptroller of 
Public Accounts Tax Incentives 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 repa iring 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% 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  
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Page 216 State Program Title Program Authority Form of Subsid y 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, sellers, or installers of 
solar energy devices. Franchise tax amounts exempted or 
deducted. Ongoing 
Texas Product/Business 
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  
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 Page 217State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Utah EDTIF Tax Credit 
(UCA 63M-1-2401) Governor's Office of 
Economic 
Development Tax Credit A post-performance refundable 
income tax credit for business 
relocation and expansion. Medium to large businesses.  Must be 
an existing business 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% of new state taxes over the life of the project on 
a post-performance basis;  no more than 
50% rebate in one year;  new jobs created must pay at least 125% above 
the county average wages within the 
urban area and for rural areas 100% 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 business 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. Subject to 
legislative 
appropriations 
Utah REDI Tax Credit 
(UCA 63M-1-2803) Governor's Office of 
Economic 
Development 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% above 
the county average wages within the 
urban area and for rural areas 100% 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  
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Page 218 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 tax 
credit and cash 
rebate 
appropriations 
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% state tax credit on machinery and 
equipment;  20% state credit on the first 
$10,000 of expenditures (up to $2,000) 
on eligible operating costs;  technical 
assistance from economic development specialists;  various local incentives including  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 least 2 years and have at least 2 full-time employees. Funds are disbursed as follows:  $1,000 
for each new incremental job paying 
110% of the county's average annual 
wage;  $1,250 for each new job paying 
115% of the county's average annual wage;  $1,500 for each new incremental job paying 125% of the county's average annual wage Ongoing, subject 
to legislative 
appropriations  
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 fi lm, 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 
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  
   G/SCM/N/220/USA
 Page 219State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 
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 Economic 
Advancement Tax 
Incentive 32 VSA Section 
5930b (No new 
authorizations after 
31 December 06;  
existing authorizations continue until expired)  Payroll, Capital 
Investment, R&D, 
Workforce 
Training, High 
Tech,  Sustainable Technology Tax Credits The Vermont Economic Progress 
Council (VEPC) and Vermont Tax 
Department administer a 
performance-based tax incentive 
program for both businesses for 
economic development activity.   Eligible companies  Varying credits depending on 
investment levels. No new 
authorizations 
after 
31 December 
2006. Existing authorizations 
continue until 
expiration (approximately 2010) 
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  
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Page 220 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Vermont Industrial 
Development Bonds:  Agricultural Facility 
and Debt Stabilization 
Loans Vermont Economic 
Development 
Authority Loans The Vermont Economic 
Development Authority (VEDA) promotes economic prosperity and 
increases employment for Vermont businesses by providing low-cost capital for eligible facilities. Eligible facilities. No t available. Ongoing. 
Vermont Industrial 
Development Bonds:  
Rural Economic Activity Loans Vermont Economic 
Development 
Authority Loans The Vermont Economic 
Development Authority (VEDA) 
promotes economic prosperity and 
increases employment for Vermont 
businesses by providing low-cost 
capital for eligible facilities. Eligible facilities. No t available. Ongoing. 
Vermont Lodging Tax 
Exemption   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   Tax exemption To encourage business and 
investment within state. Film Industry Sales and use tax exemption on goods 
and services purchased  an used in the 
making of a film. Ongoing 
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% 
of local spending, capped at $1 million annually. Ongoing 
Virginia Enterprise Zone 
Program Virginia Department 
of Housing and 
Community 
Development Tax Credit and 
Grant Virginia's Enterprise Zone Program 
is designed to stimulate business 
development in distressed urban and rural areas.  Fifty-seven out of 
a possible 60 Zones have been 
designated statewide.  Virginia's Enterprise Zone program offers 
several special state incentives for 
qualified businesses locating or 
expanding in a Zone. Sixty Enterprise Zones are authorized 
statewide.  *Program changed by 2005 
legislation. Acts of Assembly, 
Chapter 0863  (1) Real Property Investment Grant;  
(2) Job Creation Grant;  (3) Job Grants;  
(4) Investment Tax Credit;  and, (5) General Income Tax Credit. These 
tax credits are being phased out, as last 
date for companies to qualify for the credits was 1 July 2005, and credits can be provided for ten years. Ongoing;  but 
Tax Credits 
expiring  
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. The fund shall be used by the Governor 
to assist production companies or 
producers that meet the eligibility requirements set forth in the guidelines.  
The Authority shall assist the Governor 
in the development of guidelines for the use of the Fund.  The guidelines should 
include provisions for geographic 
diversity and a cap on the amount of 
money available for a certain project. Ongoing  
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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 buildings;  or grants or loans to Industrial 
Development Authorities.  Eligible 
projects must meet the following conditions:  (1) projects of a minimum 
private investment of $10 million and 
create at least 100 jobs.  In localities with a population of 50,000 to 100,000, 
a minimum private investment 
requirement is $5 million and the minimum job creation requirement is 
50 jobs.  In localities with a population 
under 50,000, a minimum private investment requirement is $2.5 million 
and the minimum job creation 
requirement is 25 jobs. Local financial participation is required 
on a dollar for dollar basis. Ongoing 
Virginia Loan/Grant Progr am 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 of far 
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 VC EDA 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 
and Tourism Zones Localities Mixed Virginia cities, counties and towns 
have the ability to establish by 
ordinance, one or more technology 
and tourism zones to attract growth 
in targeted industries.  Qualified businesses locating 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 
and tourism industries Once a local technology or tourism 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/220/USA 
Page 222 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Virginia Major Business 
Facility Job Tax 
Credit Virginia Department 
of Taxation Tax Credit Qualifying companies locating or 
expanding in Virginia receive a $1,000 corporate income tax credit 
for each new full-time job created over a threshold number of jobs to be claimed over two to three years. Companies locating in Enterprise Zones 
or economically distressed areas. Components of the job tax credit 
include:  (1) companies locating in Enterprise Zones or economically 
distressed areas are required to meet a 50 job threshold, all other locations 
have a 100 job threshold;  (2) the $1,000 
credit is available for each job in excess of the threshold and is taken in equal 
installments over three years (i.e. 
$333 per year);  (3) credits are available for taxable years beginning on and after 
1 January 1995, but before 1 January 
2005;  and (4) unused credits may be 
carried over 10 years. Ongoing 
Virginia New Markets Tax 
Credit Virginia Small 
Business Financing 
Authority (VSBFA) Tax Credit To help existing businesses fund 
the purchase of real estate occupied 
by their companies and /or capital 
equipment used in their operation. Eligible Borrowers:  • All borrowers 
must comply with the Community;  
Reinvestment Fund's guidelines for the use of loan proceeds. Certain 
geographic and other re strictions apply. 
• All borrowers must meet the 3 criteria of a "qualified active low-income 
community business." 1. minimum 50% 
of borrower's tangible property must be located in a low- income community 
2. minimum 50% of services performed 
for the borrower by its employees must be in a low income community. 3. collectibles not for resale and 
nonqualified financial property must 
each represent less than 5% of borrower's assets • All borrowers must 
have a history of positive cash flow, 
operating ratios consistent with industry norms, sufficient working capital to 
meet current obligations, and cash 
equity in the project. Loan funds can be used to: 
1. Acquire, improve, expand, and/or 
rehabilitate owner occupied commercial real estate (maximum 90% funding up 
to $500,000 & 85% over $500,000). 
2. Purchase and install machinery and/or equipment (maximum 70% of 
new equipment, 50% used). 
3. Refinance or restructure existing 
debt. Ongoing  
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 Page 223State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Virginia Recycling Equipment 
Tax Credit Virginia Department 
of Taxation Tax Credit An income tax credit is available to 
manufacturers for the purchase of certified machinery and equipment 
used for processing recyclable materials in taxable years 
beginning on or after 1 January 
1999, but before 1 January 2015.  The credit is equal to 10% of the 
total original capita lized cost of the 
equipment.  In any taxable year, the amount of credit allowed cannot  
exceed 40% of the company's 
Virginia income tax liability before the credit.  The unused amount of 
the credit may be carried over for 
10 years. Participating Virginia Businesses In any taxable year, the amount of credit 
allowed cannot exceed 40% of the company's Virginia income tax liability 
before the credit. Ongoing 
Virginia Sales/Use and 
Property Tax 
Exemptions Department of 
Taxation;  Localities Tax Exemption Business incentive Sales and use tax exemption for 
purchasers of 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 cr eation, 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. Amount of VA sales tax exempted at 
the total rate of 5% combining state (4%) and local (1%) taxes.  Unspecified 
reductions in property tax. Ongoing  
  G/SCM/N/220/USA 
Page 224 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Virginia Solar Photovoltaic 
Manufacturing Grants Department of Mines, 
Minerals and Energy Grant The Solar Photovoltaic 
Manufacturing Grant (SMIG) program is designed to encourage 
the full value-added product development and manufacture of a 
high technology, renewable energy 
source in Virginia.  Any manufacturer who sells solar 
photovoltaic panels, manufactured 
in Virginia, is entitled to receive an annual grant based on its 
production.  Grants may be 
provided for up to six million watts of production.  The SMIG program 
provides seventy-five cents per 
watt of the rated capacity of panels sold in the first two years, fifty 
cents in the third and fourth years, 
and twenty-five cents in the fifth 
and sixth years. Manufactures of high-technology and 
renewable energy sources. After 1 January  2002, new companies 
beginning or expa nding manufacturing 
of solar photovoltaic panels can receive 
an annual solar photovoltaic manufacturing incentive grant for six years. Ongoing;  but 
Sunsetting 1 July 
2012 
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 ROI 
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 
Virginia Virginia Investment 
Partnership (VIP) Grant and Major 
Eligible Employer 
(MEE) Grant Virginia Economic 
Development 
Partnership Grant The Virginia Investment 
Partnership Grant Fund is a discretionary performance 
incentive program in which grants are negotiated and made to special 
projects that invest in Virginia and 
promote stable or growing 
employment opportunities. All companies that have been in 
business in VA for at least five years. Companies must have operated in 
Virginia for at least five years and propose projects that fall into one of the 
following two categories:  Tier one - Virginia manufacturers that make a 
capitalized investment of at least 
$25 million to increase the productivity of a Virginia manufacturing facility or 
to utilize a more advanced technology 
while at least maintaining stable employment levels.  Tier two - Virginia 
basic employers that make a capitalized 
investment of at least $100 million and 
create at least 1,000 new jobs. Ongoing  
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 Page 225State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Virginia Virginia Tobacco 
Commission Southside Capital 
Access Program 
(TCAP) Virginia Small 
Business Financing 
Authority (VSBFA) Loan The TCAP provides access to 
capital for new and existing businesses located in the Southside 
tobacco region by encouraging banks to make loans that they 
would otherwise not make due to 
borrower's risk profile. Businesses that reside in the Southside 
tobacco region of the state. Maximum loan size is $250,000 and 
enrollment fee is typically between 3%-
7% of the loan amount. Ongoing 
Virginia Clean Fuel Vehicle 
Job Creation Tax 
Credit SB690 (Code Sec. 
58.1-439.1) Tax Credit Income tax credit for job creation 
related to manufacture of clean fuel 
vehicles or components. Companies that create new full-time 
jobs in either (i) the manufacture of the major components of the energy 
storage, energy supply or engine, motor, and power train mechanisms 
unique to a vehicle fueled by clean 
special fuels;  (ii) the manufacture of components uniquely used to convert 
vehicles designed to operate on 
gasoline or diesel fuel to operate on clean special fuel;  (iii) the conversion 
of vehicles designed to operate on 
gasoline or diesel fuel to operate on clean special fuel;  or (iv) the 
manufacture of vehicles designed to 
operate on clean special fuel. Credit against income tax equal to 
$700 per new 40-hour/week job created 
in the taxable year. 1996 through 
2011. 
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 se t by the federal 
Economic Development Administration 
and are generally those with an 
unemployment rate one per cent higher than the national average for the most 
recent 24-moth period, or that have a 
per capita income no greater than 80% of the national level.  Eligible 
borrowers include local Industrial or 
Economic Development Authorities and businesses engaged in technology, 
biotechnology, tourism, 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% of a business project 
or $1 million, whichever is less.  
Generally, loans have a 10-year 
maturity. Ongoing  
  G/SCM/N/220/USA 
Page 226 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Washington Coastal Loan Program Washington State 
Office of Trade and Economic 
Development Loan This fund provides business and 
technical assistance loans to create economic opportunities in 
Jefferson, Clallam, Grays Harbor, Pacific, and Wahkiakum counties.  
Business borrowers must 
demonstrate job creation and private investment to qualify for 
loans.  Technical assistance loans 
for public agencies businesses are available for feasibility studies and 
planning projects that benefit the 
community and create jobs, 
especially for dislocated workers. Jefferson, Clallam, Grays Harbor, 
Pacific, and Wahkiakum counties Variable.  Loans up to $150,000.  
Technical assistance loans up to $50,000 for public agencies and 
$20,000 for businesses for feasibility 
studies Ongoing 
Washington Distressed Area  
Business and 
Occupational Tax 
Credit  Washington State 
Office of Trade and 
Economic 
Development Tax Credit;  Tax 
Exemption 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 
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  
   G/SCM/N/220/USA
 Page 227State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Washington Fishing Boat Fuel Department of 
Revenue Tax Exemption 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 
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% for nonprofit corporations and 
associations and 2.5% 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 
Washington Rural Washington 
Loan Fund Washington State 
Office of Trade and 
Economic 
Development Loan The Development Loan Fund 
provides gap financing for 
businesses that will create new jobs or retain existing jobs, particularly 
for lower-income persons, in non-
entitlement areas of the state experiencing high unemployment. 
Priority is given to distressed area 
projects.  Primarily for distressed and timber 
impacted areas. RWLF may lend up to $350,000, in 
participation with private lenders, and in 
special cases up to $700,000. Ongoing  
  G/SCM/N/220/USA 
Page 228 State Program Title Program Authority Form of Subsid y 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 
Competitiveness 
Program Department of 
Community, Trade and Economic 
Development Rebate RCW 82.04.4489 supports the film 
industry by providing rebate to 
qualified companies. Film Industry Rebate of up to 20% 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 Ex emptions Department of 
Community, Trade 
and Economic 
Development Sales and use tax 
exemption RCW 82.08.0315, 82.12.0315 
support the film industry by 
providing tax exemptions to 
qualified companies. 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 HB2939 (2006) Loans and Grants Provide low-interest loans and 
grants in 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. 
Washington Biofuels Production 
Tax Exemption RCW 82.04 (2006) Tax Exemption Sales/use and property/leasehold 
tax exemption on investments in buildings, equipment and labor for 
the purpose of manufacturing biodiesel, biodiesel feedstock or alcohol fuel. Biofuel manufacturers. Amount of  sales tax exempted at the 
rate of 6.5%.  Amount of excise tax exempted at the rate of 0.138%.  
Amount of leasehold (12%) and 
property (%?) taxes exempted. Exemption from 
sales, leasehold, property tax 
through 2015. 
Washington Wood Biomass Fuel 
Tax Incentives HB2146 (2003) Tax incentives Provides tax incentives for wood 
biomass fuel production, 
distribution, and sale:  deferral of 
sales and use taxes, 6-year 
exemptions from property and leasehold excise tax, deduction for business and occupation tax. Producers and distributors of wood 
biomass fuels.  Sales and use tax 
deferrals apply only to certain geographic areas. Business/occupation tax is 0.138% and 
0.484% of gross sales for agricultural 
processing and manufacturing, 
respectively.  Total sales and use taxes 
range from 7% to 8.9% of sales depending on locality.  Rates for property and leasehold taxes not given. Expired on 
30 June 2009, and 
is no longer in effect.  
   G/SCM/N/220/USA
 Page 229State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 Lo cation  West Virginia 
Department of Tax 
and Revenue Location discounts To en courage film production 
within the State. Film Industry Most state owned property is fee free, 
fee may occur in certain circumstances, 
including cost recovery. 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 
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% of adjusted 
qualified investment.  If the corporate headquarters relocation results in 50 or 
more new jobs, the allowable credit is 
50% (or such other allowable new jobs percentage) of adjusted qualified 
investment. Ongoing  
  G/SCM/N/220/USA 
Page 230 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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. Repayment of a loan in full or in part 
may be made at any time without penalty.  Credit decisions will be based 
on the applicant's ability to repay the loan and collateral offered to secure the 
loan. 
Interest Rates for a for-profit sponsor is a minimum of the prime rate minus 3% 
(to be fixed at closing).  Interest rates 
for public or not-for-profit sponsor will not exceed prime minus 3%.  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 ma ximum participation 
rate for each project is 70% for private sector projects and 90% for public sector projects. Ongoing 
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 Establishe s 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 $55,039,950 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 15 of each year, 50% of 
the unused revenues are distributed to qualified businesses locating in 
an enterprise community/enterprise 
zone and 50% is available for other 
eligible projects. Qualified businesses Determin ed by market.  Capital 
expenditure limit of $10 million. 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% tax credits 
for in-state expenditures.  Funded at 
$10 million annually. Ongoing  
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 Page 231State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
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 semi conducers that create at least 20 
new jobs.  Eligible companies receive a tax credit 
to offset 100% 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 
Wisconsin Community-Based 
Economic 
Development Program-Local 
Economic 
Development Project 
Grants Department of 
Commerce Grant Community-Based Economic 
Development Program-Local 
Economic Development Project Grants are intended to enable 
eligible organizations to conduct 
local economic development 
projects. Eligible uses include business startups, 
planning, technical assistance, 
incubation, operations  and expansion. 
Community-based organizations, 
political subdivisions and non-profit 
foundations are all eligible.  Up to 50% of costs (75% for CBOs) are 
provided, up to $100,000 for starting or 
expanding an incubator, up to $10,000 for technical assistance to start an 
incubator, up to $30,000 to fund 
operations of an existing incubator, up to $50,000 to capitalize a revolving loan 
fund that benefits tenants of an 
incubator. Recipients must enter into a contract with Commerce, the terms of 
which must establish planned results, 
require reporting of performance at regular intervals, require verification of performance by recipient 
attestation/documentable proof, and 
allow Commerce to perform site audits. Program ended 
on 1 July 2009, 
and no longer in 
effect. 
Wisconsin Small Cities 
Community Development Block 
Grant Program for Blight Elimination & 
Brownfield 
Redevelopment Department of 
Commerce 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. Most cities, villages and towns with 
populations under 50,000 and all counties except Waukesha, Dane and 
Milwaukee Counties. Entitlement 
municipalities are not eligible. 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% 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  
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Page 232 State Program Title Program Authority Form of Subsid y 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 muni cipality's planning 
commission and legislative body.  At 
least 50% 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 Wisconsin 
Development Opportunity Zone 
Program Department of 
Commerce Tax Credit Allocates non-refundable tax 
credits to businesses for the purpose of engaging in 
development in a legislatively-approved region. The zone as well 
as its duration and maximum tax 
benefit levels are determined by legislative prescription, and may be 
specific to one business or to a 
larger geographic area. Currently businesses in Beloit, West 
Allis, Eau Claire, Kenosha and 
Milwaukee.  Zone businesses submit a project plan in 
conjunction with the local governing body of the zone for specific economic 
activities to earn tax credits. The type of tax credits zone businesses are eligible 
to earn varies, but all zones are eligible 
to receive the development zones tax credit and the development zone 
investment credit.  Project plans must 
include details on j obs, investment, and 
reasonable attempts to hire employees 
from the targeted population. At least 
25% of claimed tax credits must be earned based on job creation/retention. At least 1/3 of these benefits must be 
based on creating jobs filled by 
members of the target population. Jobs must be full-time and pay at least 150% 
of the federal minimum wage.  
Maximum tax level benefits per zone 
are currently set at $5,000,000.  Ongoing 
Wisconsin Forward Innovation 
Fund Department of 
Commerce Grants and Loans Forward Innovation Fund (FIF), 
provides grants and loans to assist 
minority businesses, businesses in distressed areas, and certain industry clusters. Minority businesses, businesses in 
distressed areas, and certain industry 
clusters. Varies Ongoing 
Wisconsin Rural Economic 
Development ProgramDepartment of 
Commerce Grants and Loans Provides grants and loans to small 
businesses for the purpose of 
establishment or expansion of operations in rural communities. Small (<50 employees) for-profit 
businesses or cooperatives, engaged in 
startup or expansion and located in a rural municipality Up to 75% or $100,000 for eligible 
costs, which include working capital, 
fixed asset financi ng, or employee 
relocation costs.  Cash match of 25% 
required. Ongoing  
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 Page 233State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Wisconsin Technology Venture 
Loan Fund Department of 
Commerce Loans Provides loans to hi-tech small 
businesses for the purpose of enhancing the ability to obtain early 
stage financing from third-party 
sources. Wisconsin small businesses 
(<100 employees) or individual entrepreneurs with significant growth 
potential, and which will be producing a product substantially manufactured in 
the state, or, providing a service 
principally sold in the state Up to 50% or $250,000 of project costs, 
which include any activities enhancing the applicant's ability to obtain early-
stage financing from third parties.  Eligible project costs including working 
capital and equipment. Loan terms are 
typically 2%, forgivable fixed rate notes for the life of the loan  with maturities of 
5-7 years for working capital and 
5-10 years for equipment. Ongoing 
Wisconsin Technology Bridge 
Grant Program Department of 
Commerce Grants Provides grants or loans to small 
businesses for the purpose of maintaining research and 
managerial operations between use of a federal phase I R&D award 
and receipt of a phase II or other 
federal follow-on funding decision. Wisconsin small businesses 
(<100 employees) with significant growth potential that have won federal 
or 3rd party phase I R&D awards and have submitted an application for 
follow-on funding from the same 
source as early financing (or furnish the 
completed application to be submitted). Up to 75% or $100,000 of eligible costs 
directly attributable to maintaining research and funding basic operations 
until the follow-on funding or federal 
grant application is approved or denied. Ongoing 
Wisconsin Technology Matching 
Grant Program Department of 
Commerce Grants or Loans Provides grants or loans to high-
tech businesses for the purpose of 
securing a federal funding decision, such as a Phase II SBIR or 
Advanced Technology Program 
award. Wisconsin small businesses 
(<100 employees) or individual 
entrepreneurs with significant growth 
potential. Up to 20% or $250,000 of project costs 
including professional activities related 
to developing a proposed technologically innovative product, 
process, or service. Awards are 
contingent upon receipt of the remaining 80% of project costs from a federal early-stage award (or commitment to fund). Ongoing 
Wisconsin  Technology 
Assistance Grant Department of 
Commerce 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 services that assist the businesses in securing private or federal funding Wisconsin small businesses 
(<100 employees) or individual 
entrepreneurs with significant growth 
potential who will be completing a 
grant application for federal early-stage 
research and development funding. Up to the lesser of 75% or $15,000 of 
project costs, which include 
independent third-party research and 
technical assistance to complete a 
federal grant application – this includes professional federal grant writing 
assistance and commercialization plan 
expenses, such as market research and commercialization planning. The 
recipient must provide the remaining 
25% with their own cash match Ongoing 
Wisconsin Early Stage Business 
Investment Program Department of 
Commerce 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 three years in (a) 
qualified company(y)(is). Ongoing  
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Page 234 State Program Title Program Authority Form of Subsid y Policy Objective To Whom Amounts Duration of the 
Program 
Wisconsin Film Production 
Company  Investment 
Tax Credits Department of 
Commerce Tax Credit Tax credits are awarded to 
companies on qualified film 
production expenses. Film production companies  Tax credit is equal to 15% of price/cost 
of eligible expenditures. Ongoing 
Wisconsin Food Processing and 
Food Warehousing 
Investment Tax Credit Department of 
Commerce 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 Department of 
Commerce 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 
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, corporation 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. On going 
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 On going 
Wyoming Tax Exemptions for 
Railroads Department of 
Revenue Tax Exemption Sales and Use Tax Exemption to 
Promote Wyoming as a location for 
rail car maintenance and refurbishing facilities Rail roads 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 rail cars. On going 
Wyoming Taxpayer Remedies W.S. 39-17-109(d) Tax Credit Support of  ethanol producers. Producers of ethanol. Credit of 40 cents p er gallon. Ongoing 
Wyoming Vendor Discount  Wyoming Film Office Disc ounted services To encourage film production in 
the state Film Industry Wyoming businesses offer production 
companies a 10% discount on 
production related services including 
hotels, catering, restaurants, etc. Ongoing 
 
 
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