WORLD TRADE  
ORGANIZATION  G/SCM/N/186/USA 
18 May 2010 
 
 (10-2749) 
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 23 April 2010, 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 2007 and 2008 fiscal years (1 October 2006 throug h 30 September 2008).  
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/186/USA 
Page 2  
 
  AGRICULTURE 
 
EXPORT ASSISTANCE PROGRAMS  
Title: The Export Enhancement Program (EEP) 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007-2008.    
 Policy objective and/or purpose
 
  In June 1991, the U.S. Department of Agriculture (USDA) published program criteria 
governing the selection of proposed sales initia tives under the EEP.  All EEP initiatives were 
evaluated based on five criteria:   
 
• Trade Policy Effect - the expected contributio ns 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 - possible effects, if any, on non-subsidized exporters of 
agricultural products;   
• Subsidy Requirements - the expected benef its compared with expected costs of the 
initiative;  and 
• Market Development – the extent to whic h the initiative can be used for market 
development purposes.   
 
 Background and authority  
  The EEP operated under various authoriti es beginning in May 1985.  The Food, 
Conservation, and Energy Act of 2008, P.L. 110- 246, enacted 18 June 2008, terminated the EEP. 
 
 Form
 
  Cash bonuses paid to participating agricultural exporters.     Amount
 
 
 The program was not used in fiscal years 2007-2008.     Duration
 
  The EEP operated under various authoriti es beginning in May 1985.  The Food, 
Conservation, and Energy Act of 2008, P.L. 110- 246, enacted 18 June 2008, terminated the EEP. 
  Trade effects
 
  The EEP program has not been used since fi scal year 2000 and was terminated in 2008.  
Therefore, there were no trade effects.   
  G/SCM/N/186/USA 
 Page 3 
 
 
  Title: The Dairy Export Incentive Program (DEIP)  
 
 Period covered by the notification  
  The period covered is fiscal years 2007-2008. 
 
 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.   
  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.   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.   
 
 Amount  
  The program was not used in fiscal years 2007-2008.    Duration
 
 
 Section 153 of the Food Security Act of 1985, as amended, authorized the program 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.  G/SCM/N/186/USA 
Page 4  
 
   Trade effects
 
  The DEIP program was not used during fiscal years 2007 or 2008.  Therefore, there were no trade effects.   
 
AGRICULTURAL DOMESTIC SUPPORT PROGRAMS 
 
Title: Agriculture Income Support and Mark eting Assistance for Covered Commodities   
 
 Period covered by notification
 
 
 The period covered is fiscal years 2007-2008.  For some programs, payments are reported on 
a marketing year basis, which can differ by commodity.   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.    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, which w as during fiscal year 2008, but in general did not 
affect outlays for agricultural programs in the period covered by this notification because many 
provisions did not come into effect until fiscal year 2009.  
 To whom and how is assistance provided
 
 (a) Direct Payments   The Direct Payment Program provided payments to eligible recipients on farms enrolled for 
the 2002 through 2007 crop years.  Payments were computed using the historical base acres and 
payment yields established for the farm.  Payments were not tied to current or future production of 
specific crops, the amount of production, or the price of the crop.  Eligible producers were not confined to producing crops for which they we re receiving payments, and could choose not to 
produce any crop.    
 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, beginning in 2003;  
rice, excluding wild rice;  soybeans;  upland cotton;  and wheat.    
 The Food, Conservation, and Energy Act of 2008 extended Direct Payments through the 2012 
crop year.     G/SCM/N/186/USA 
 Page 5 
 
 
   Total expenditures by fiscal year:   
  FY 2007 – $ 3,957 million    FY 2008 – $ 4,821 million  
(b) Counter-cyclical Payments Program 
  Counter-cyclical payments were available to  covered commodities wh enever 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 payment amount equals the product of the 
payment rate, the payment acres, and the payment yield.  Covered commodities include:  barley;  
corn;  grain sorghum;  oats;  other oilseeds (can ola, crambe, flax, mustard, rapeseed, safflower, 
sesame and sunflower);  peanuts, beginning in 2003;   rice, excluding wild rice;  soybeans;  upland 
cotton;  and wheat.  Payments were computed using the historical base acres and payment yields 
established for the farm.  Payments were not tied to  current or future production of specific crops, the 
amount of production, or the price of the crop.  El igible 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 2007 – $3,159 million    FY 2008 – $359 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 2002 Farm Act extended marketing loan provisions to peanuts, wool, mohair, honey, 
small chickpeas, lentils, and dry peas.  Loan rates we re fixed in the legislation.  Marketing assistance 
loans for each commodity had a term of nine months  beginning on the first day of the first month after 
the month in which the loan is made.  For ELS and upland cotton, the 2002 Farm Act reduced the 
previous loan term of ten months to nine months .  The Food, Conservation, and Energy Act of 2008 
extended the Marketing Assistance Loan program through the 2012 crop year.  
 
 Total expenditures by fiscal year (combine d marketing loan gains, LDPs, and certificate 
exchange gains):     FY 2007 – $1,193.1 million    FY 2008 – $7.2 million 
 
Price Support for Milk and Sugar
 
 
(d) Dairy Products  
 The 2002 Farm Act continued the support price of milk at $9.90 per hundredweight (cwt) for 
calendar years 2002 through 2007.  Under the 2008 F ood, Conservation, and Energy Act, beginning 
1 January 2008, support prices were established at the following rates:  G/SCM/N/186/USA 
Page 6  
 
  • for cheddar cheese in blocks at not less than $1.13/lb  
• cheddar cheese in barrels at not less than $1.10/lb  
• butter at not less than $1.05/lb  
• nonfat dry milk at not less than $0.80/lb  
  Total expenditures by fiscal year:     FY 2007 – $2 million  
  FY 2008 – less than one million 
  The 2002 Farm Act established a national da iry market loss payments program, ending on 
30 September 2005.  Producers entered into Milk Income Loss Contracts.  A monthly direct payment was made to qualifying dairy farm operators when  the monthly Class I price in Boston (Federal 
Marketing Order 1) was less than $16.94 per cwt.  The payment rate was 45 per cent of the difference 
between $16.94/cwt and the Class I price in the Bo ston milk marketing order for the applicable 
month.  The payment quantity for a producer equale d the quantity of eligible production marketed by 
the producer during the month.  Producers, on an operation-by-operation basis, received payments on 
no more than 2.4 million pounds of milk marketed  per year.  The Agricultural Reconciliation Act 
of 2005 reauthorized the program through 30 September 2007.  The payment rate was 34 per cent of 
the difference between $16.94/cwt and the Class I pri ce in the Boston milk marketing order for the 
applicable month during the period 1 Oct ober 2005, through 30 September 2007.   
  The Food, Conservation, and Energy Act of 2008 re-authorized the program through 30 September 2012.  The $16.94 price will be adjusted  by the percentage that the National Average 
Dairy Feed Rations Cost exceeds $7.35/cwt for an y 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 Act defined payment rates for 3 specific periods:  
• From 1 October 2007-30 September 2008, 34% of difference between $16.94/cwt (as 
adjusted for feed costs) and Class I price in the Boston milk marketing order for the 
applicable month  
• From 1 October 2008-31 August 2012, 45% of difference between $16.94/cwt (as 
adjusted for feed costs) and Class I price in the Boston milk marketing order for the 
applicable month  
• For period starting 1 September 2012 and thereafter, 34% of difference between 
$16.94/cwt (as adjusted for feed costs) and Class I price in the Boston milk marketing 
order for the applicable month  
 
 Total expenditures by fiscal year:     FY 2007 – $156.6 million    FY 2008 – $2.2 million 
 
(e) Sugar   The 2002 Farm Act extended the sugar non-rec ourse loan program through FY 2008.  Sugar 
loans were unchanged at 18 cents per pound for raw cane sugar, and 22.90 cents per pound for refined 
beet sugar.  The Farm Act eliminated the forfe iture penalties, whereby processors were assessed a 
penalty of 1 cent per pound in the case of raw cane sugar and 1.364 cents per pound for refined sugar.  
Marketing assessments were eliminated. Marketin g allotments were introduced. The non-recourse 
marketing loan program was continued under th e 2008 Food, Conservation, and Energy Act.  G/SCM/N/186/USA 
 Page 7 
 
 
   
 The sugar program operates under a "no-cost" pr ovision.  Net expenditures on this program 
were (negatives indicate net revenues from the program):     FY 2007 – $24.7 million  
  FY 2008 – (-$35.0) million 
 
Other Commodity Products 
 
 
(f) Tobacco 
 
 Under the Tobacco Transition Payment Program (Tobacco Quota Buyout), Title VI of the American Jobs Creation Act of 2004, the Fair a nd Equitable Tobacco Reform Act of 2004 (P.L. 108-
357), 22 October 2004, eligible tobacco quota holders  and producers will receive payments under this 
program in 10 instalments in each of the 2005 through 2014 fiscal years.  Transition payments will be 
based on the Basic Quota Levels determined for each farm.  For quota holders, payments are based on 
ownership shares in the farm and for producers, paym ents are based on shares in the risk of producing 
quota tobacco on the farm during the years 2002, 2003 and 2004.  Payments are funded through 
assessments on tobacco product manufacturers and impor ters.  Payments are not based on current or 
future tobacco production or price, and there is  no requirement to produce any commodity.  The 
legislation also terminated the U.S. Department of Agriculture's tobacco price and income support 
program at the end of the 2004 marketing season.   
  Total expenditures by fiscal year:   
 
  FY 2007 – $955.5 million   FY 2008 – $954.8 million  (g) Special Competitiveness Program for extra long staple (ELS) Cotton  
 The Special Competitiveness Program for ELS co tton was in effect under the 2002 Farm Act 
and was continued under the Food, Conservation,  and Energy Act of 2008 through 31 July 2013.  
Payments were made to domestic users and exporters when the wo rld market price was below the 
U.S. price for four consecutive weeks and the lowest priced competing ELS cotton was less than 
134 per cent of ELS loan rate. 
 
 FY 2007 – $1.1 million  FY 2008 – $29.8 million  
Disaster Assistance and Risk Management  Assistance for Agricultural Producers
 
 (h) Disaster payments 
  Programs provided emergency assistance for agricultural producers under multiple legislative authorities relating to weather-related losses.  Elig ible commodities included field crops, trees, and 
specified livestock.  Authorities included the "U .S. Troop Readiness, Veterans' Care, Katrina 
Recovery, and Iraq Accountability Appropriations Act, 2007" (2007 Act), signed into law on 25 May 
2007;  and the Consolidated Appropriati ons Act, 2008 of 26 December 2007. 
  FY 2007 – $61.4 million  FY 2008 – $2,298.9 million  G/SCM/N/186/USA 
Page 8  
 
  (i) 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 lo ss.  The Food, Conservation, and Energy Act of 
2008 raised fees paid by producers. 
  FY 2007 – $127.0 million  FY 2008 – $74.0 million  
(j) 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.  Benefits are reported as net indemnities 
(premiums paid by producers minus indemnities re ceived) for all insured products on a marketing 
year basis.   
  Marketing year 2007 – $801 million  Marketing year 2008 – $4,509 million   
Other Programs
 
 
(k) Grazing Livestock on Federal Land   Net budget outlays (minus producer fees) fo r livestock grazing on public range land in 
16 Western States were as follows:   
 
 FY 2007 – $36.43 million  FY 2008 – $39.21 million    Duration
 
 
 The policies described were in  effect for fiscal years 2007-2008.  Not all policies or programs 
were in effect or made payments for both years.     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.   
 
OTHER AGRICULTURAL PROGRAMS1 
 
Title: Expensing of Multi-period Livestock and Crop Production Costs 
  Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.    
 Policy objective and/or purpose
 
  To ease record-keeping for small farm businesses.   
                                                     
 
1 All the programs in this section are tax-related, authorized under the US Internal Revenue Code.    G/SCM/N/186/USA 
 Page 9 
 
 
   Background and authority  
  Section 263A of the Internal Revenue Code, enact ed as part of the Tax Reform Act of 1986.   
 
Form
 
 
 Income tax concession.     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.     Amount
 
 
 The revenue loss was $70 million in  2007 and $80 million in 2008.   
  Duration
 
  Indefinite.   
 
 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 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.   
 
 Policy objective and/or purpose
 
  To address certain consequences of farm credit crises.    
 Background and authority
 
  Sections 108 and 1017 of the Internal Revenue  Code, enacted as part of the Tax Reform Act 
of 1986.     Form
 
 
 Income tax concession.     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 the basis and the amount of fo rgiveness exceeds his basis 
on the property, the excess forgiveness is taxable.   However, in the case of insolvent (bankrupt) G/SCM/N/186/USA 
Page 10  
 
  debtors, the amount of loan forgiveness never resu lts in an income tax liability.  Farmers with 
forgiven debt are considered insolvent for tax pur poses, 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 inde btedness occurs is attributable to farming.   
 
 Amount
 
  The revenue loss was $20 million 20 07 and $20 million in 2008.   
  Duration
 
 
 Indefinite.     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 
 
 Period covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.     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.     Background and authority
 
 
 Section 1231 of the Internal Revenue Code.  
  Form
 
  Income tax concession.   
 
 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 2007 and 2008.  For individual taxpayers, long-term capital gains are taxed separately from other 
income, generally at 5 per cent and 15 per cent rates.     Amount
 
 
 The revenue loss was $940 million in 2007 and $950 million in 2008.   
  Duration
 
  Indefinite;  this has been a permanent provision since at least 1954.    G/SCM/N/186/USA 
 Page 11 
 
 
   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 
 
 Period covered by notification
 
 
 The period covered is fiscal years 2007 and 2008.   
  Policy objective and/or purpose
 
  To permit producers of tobacco products to suppl y their workers with free cigarettes and other 
tobacco products.   
  Background and authority
 
  Section 5704(a) of the Internal Revenue Code.    
 Form
 
  Exemption from otherwise applicable excise tax.     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.   Amount
 
 
 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 s nuff, $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.    
 Duration
 
  Indefinite.     Trade effects
 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of these 
provisions.  
 G/SCM/N/186/USA 
Page 12  
 
   
ENERGY & FUELS 
(ENERGY DEVELOPMENT, STORAGE AND TRANSPORTATION 
& OTHER RELATED SECTORS) 
  
Title:   Energy Supply -- Renewable Energy Resources  
 
 Periods covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.   
  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.     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)    G/SCM/N/186/USA 
 Page 13 
 
 
   Form  
  Grants, cooperative agreements, c ooperative research and development 
agreements (CRADAs)
2 and other forms of collaboration acco mplished through consortium-based 
activities between government laboratories and private industry.   
 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.  
 Amount
 
  Fiscal years 2007 and 2008 annual appropriations (approximate dolla rs in millions) were as 
follows:    
   FY 2007
        FY 2008  
 Hydrogen Technology   189.5     211.1 
Biomass/Biorefinery Systems R&D   196.3       198.2 
Solar Energy   157.0     168.5 
Wind Energy Systems     48.7       49.5 
Geothermal Technology        5.0       19.8 
Water        0.0         9.9 
  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. 
  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  
 
 Periods covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.  
                                                      
2 The term "CRADA" has a specific meaning as a result of legislation and regulations developed to 
implement a variety of US 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/186/USA 
Page 14  
 
   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.   
  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" 
  Form
 
  Assistance under the program is provided th rough grants, cooperative agreements, CRADAs
3 
and other forms of collaboration accomplished through consortium-ba sed activities between 
government laboratories and private industry.   
  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.   
  Amount
 
  Fiscal years 2007 and 2008 annua l appropriations (approximate dollars in millions) are as 
follows:  
   FY 2007
 FY 2008  
 Total, Energy Conservation and Supply, Vehicle Technologies    183.6    213.0 
 
Applicable Sub-Programs  
 
Hybrid Electric Systems       0.0           94.1 
Vehicle Systems     13.0           0.0 Hybrid and Electric Propulsion     59.2           0.0 Advanced Combustion Engine R&D     48.3         44.6 Materials Technology     29.0         39.6 
Fuels Technology     18.4         17.8 
Technology Integration       0.0         16.8  
Innovative Concepts       0.5           0.0 Technology Introduction     15.0           0.0 
                                                     
 
3 See footnote 2, above.    G/SCM/N/186/USA 
 Page 15 
 
 
   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. 
 
 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  
 
 Periods covered by the notification
 
  The period covered is fiscal years 2007 and 2008. 
 
 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.   
 
 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 Management 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"   Form
 
  Assistance under the programs is provided th rough grants, cooperative agreements, CRADAs
4 
and other forms of collaboration accomplished through consortium-ba sed activities between 
government laboratories and private industry.     To whom and how assistance is provided
 
 
 Participation in the programs is determined  through various competitive procedures, which 
are open to all eligible parties.    
                                                     
 
4 See footnote 2 above.   G/SCM/N/186/USA 
Page 16  
 
   Amount
 
 
 Fiscal years 2007 and 2008 annua l appropriations (approximate dollars in millions) are as 
follows:   
 
       FY 2007       FY 2008  
 Total, Building Technologies            103.0   109.0 
 
Applicable Sub-programs  
 
 Residential Buildings Integration 17.3   24.5  Commercial Buildings Integration   8.7    11.9  Emerging Technologies 41.8  37.4  Technology Validation and Market Introduction 18.3    13.2 
 
 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.   
 
 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  
 
 Periods covered by the notification
 
  The period covered is fiscal years 2007 and 2008.   
 
 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, validation,  and dissemination of information on energy-
efficiency technologies and best energy manage ment 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.  
 
 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/186/USA 
 Page 17 
 
 
   Form  
  Assistance under the programs is provided th rough grants, cooperative agreements, CRADAs
5 
and other forms of collaboration accomplished through consortium-ba sed activities between 
government laboratories and private industry.   
 
 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.   
 
 Amount
 
  Fiscal years 2007 and 2008 annua l appropriations (approximate dollars in millions) are as 
follows:   
 
  FY 2007
 FY 2008  
   Total, Industrial Technologies   55.8  64.4 
 
Applicable Sub-programs  
 
Industries of the Future (Specific)   
 Forest and Paper Products  2.9   1.7 
 Steel Industry  3.6   3.6  Aluminium Industry  2.3   1.7 
 Metal Casting Industry  1.0   0.2 
 Chemicals Industry  6.8   3.7  
Industries of the Future (Crosscutting)  
 Industrial Materials of the Future  9.6 11.0 
 Combustion  1.5   0.0 
 Sensors & Automation  1.0   3.1 
 Industrial Technical Assistance  6.9   6.4  Energy-Intensive Process R&D  0.0   7.2  Fuel and Feedstock Flexibility  0.0   2.8  Nanomanufacturing and Other Interage ncy Manufacturing R&D  0.0   4.8 
 Industrial Distributed Energy  0.0 14.5 
 Energy Efficient Information Technologies  0.0   2.9   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.  
 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.   
   
                                                     
 
5 See footnote 2 above.   G/SCM/N/186/USA 
Page 18  
 
  Title: Fossil Energy Research and Development  
 
 Periods covered by the notification
 
  The period covered is fiscal years 2007 and 2008.   
 
 Policy objective and/or purpose
 
  The program's goal is to create public benefits  by enhancing U.S. economic, environmental, 
and energy security. The program carries out three 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.   
  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.   
  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.
6   
  Amount
 
 
 Fiscal years 2007 and 2008 Appropriations (approxi mate dollars in millions) are as follows:   
   FY 2007
    FY 2008  
 Total, Fossil Energy Research and Development   580.9       742.8 
 
Applicable Programs and Subprograms  
 Coal 
 Clean Coal Power Initiative     58.7   69.4 
 FutureGen     52.5   74.3 
 Fuel and Power Systems   303.2 349.7 
 
Natural Gas Research      11.7    19.8  
Petroleum - Oil Technology       2.6     4.9 
Plant and Equipment (e.g., maintenance costs)     12.0   12.9  
Fossil Energy Environment Restoration       9.7     9.5  
Cooperative Research and Development        0.0     5.0 
 
                                                     
 
6 See footnote 2 above.    G/SCM/N/186/USA 
 Page 19 
 
 
   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.    
 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  
 
 Periods covered by the notification
 
  The period covered is fiscal years 2007 and 2008.   
 
 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.    
  Background and authority
 
  The Loan Guarantee Program is authorized under Title XVII of the Energy Policy Act 
of 2005.   
  Form
 
  Loan guarantees.    
 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 anthropogenic emissions of greenhouse gases.   
  Amount
 
  Regulations were first published for this progr am on 23 October 2007.  No guarantees were 
provided in fiscal year 2007.  Under the publishe d regulations DOE may issue 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 tota l cost of an eligible project.  DOE's policy is to 
only issue loan guarantees 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 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 program must fu lly cover the government's cost of providing the 
guarantees.  During fiscal years 2008 through 2011, commitments to guarantee loans under Title XVII 
of the Act will total $38.5 billion.  Of the total provided, $20 billion will be available through fiscal 
year 2010 to support projects such as uranium enrichment, coal based power, advanced coal 
gasification, renewables and electricity delivery.   The remaining $18.5 billion will be available G/SCM/N/186/USA 
Page 20  
 
  through fiscal year 2011 to support nuclear power faci lities.  The $38.5 billion provided in fiscal years 
2008 through 2011 will be in addition to the $4.0 billion in authority provided in fiscal year 2007 under Public Law 110-05, section 20320(a) for a total loan volume limitation of $42.5 billion.            
  Duration
 
 
 See above.  Commitments are possible through fiscal year 2011.   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 
 
 Period covered by the notification  
  The period covered is fiscal years 2007 and 2008.    
 Policy objective and/or purpose
 
  To encourage the development of domestic oil, natural gas and coal resources.   
  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.   
  Form
 
  Income tax concession.    
 To whom and how assistance is provided
 
  Fuel mineral producers are permitted acceler ated deductions from taxable income.   
  Amount
 
 
 The revenue loss was $530 million in 2007 and $1,650 million in 2008.   
 
                                                      
7 The programs in this section are tax-related, au thorized under the US In ternal Revenue Code.    G/SCM/N/186/USA 
 Page 21 
 
 
   Duration  
  Indefinite.     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 
  Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.    
 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.  
  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, except for oil and gas where the deduction can be 100 per cent of net property income.  For domestic production fro m marginal wells, the 100 per cent of net income 
limitation has been suspended for taxable years befo re 1 January 2010.  Additionally, the percentage 
depletion deduction for all oil a nd 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 cen t of net income, but with no limit on output and no 
limitation with respect to qualified producers.  Un like depreciation or cost depletion, percentage 
depletion deductions can exceed the cost of the investment.    
 Percentage depletion is authorized under sections 611-613, 613A, and 291 of the Code.  
Percentage depletion for oil and gas goes back to 1918 or before and was extended to coal and most 
other minerals in 1932.  The Tax Reduction Act of 1975 eliminated the percentage depletion 
allowance for major oil and gas companies and re duced the rate for independents to 15 per cent 
for 1984 and beyond.    
 Form
 
  Income tax concession.     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/186/USA 
Page 22  
 
   Amount
 
  A deduction from income is allowed for the gr eater of cost or percentage depletion.  
Percentage depletion is 15 per cent of revenue fo r non-integrated oil and gas producers and 10 per 
cent for coal producers.  The revenue loss wa s $790 million in 2007 and $920 million in 2008.  
 
 Duration
 
  Indefinite.    
 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  
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.    
 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.    
 Background and authority
 
  A tax credit of $3 per barrel (in 1979 dollars) of oil-equivalent pr oduction is provided for 
several forms of alternative fuels.  In addition,  a tax credit of $3 per oil-equivalent barrel of 
production (in 2004 dollars) is provided for coke and coke gas during a four-year period.  The credit 
begins to phase out if the annual average unregulated  wellhead price per barrel of domestic crude oil 
exceeds $23.50 (in 1979 dollars).  The credit is aut horized under section 45K of the Internal Revenue 
Code and was instituted as part of the Crude Oil Windfall Profit Tax Act of 1980.  The Energy Policy 
Act of 2005 extended the credit to facilities that produce coke and coke gas.   
  Form
 
 
 Income tax concession.     To whom and how assistance is provided
 
  Producers and royalty owners of qualifying pro duction are permitted credits against federal 
income tax.   
  Amount
 
  The revenue loss was $2,920 million in 2007 and $590 million in 2008.   
 
 Duration
 
  For most qualifying fuels, the production tax cr edit was available through 2002, provided that 
the wells were drilled before 1993.  For gas pro duced from biomass, and synthetic fuels produced  G/SCM/N/186/USA 
 Page 23 
 
 
  from coal or lignite, the credit is available through 20 07, provided that the facility is placed in service 
before July 1998.  The Energy Policy Act of 2005 ex tends the credit to facilities that produce coke or 
coke gas and are placed in service before 1 January 2010.   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 
  Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.    
 Policy objective and/or purpose
 
  To encourage the development of the domestic coal industry.   
  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.   
  Form
 
 
 Income tax concession.     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.     Amount
 
 
 The revenue loss was $180 million in 2007 and $110 million in 2008.   
  Duration
 
  Indefinite.   
 
 Trade effects
 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   G/SCM/N/186/USA 
Page 24  
 
  Title:   Energy Efficient Appliance Credit 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008. 
 
 Policy objective and/or purpose
 
  To encourage the manufacture of energy efficient appliances.  
 
 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 with the exception that the $200 refrigerator credit 
and the $250 clothes washer credit are not limited.   The Energy Policy Act of 2005 added the credit 
for energy efficient appliances.  The Emergency Stabilization Act of 2008 modified the tax credit 
amount and standards for energy efficient househol d appliances produced after 2007.  The credit is 
authorized in section 45M of the Internal Revenue Code.   Form
 
 
 Income tax concession.     To whom and how assistance is provided
 
 
 The credit reduces income taxes for manufactur ers that produce qualifying appliances.   
  Amount
 
  The revenue loss was $80 million in 2007 and $120 million in 2008.   
 
 Duration
 
  The provision applies to appliances produced before 1 January 2011.   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  
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.     Policy objective and/or purpose
 
 
 To encourage the substitution of alcohol fuel s produced from renewable sources for gasoline 
and diesel fuel.     G/SCM/N/186/USA 
 Page 25 
 
 
   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 enacted  as part of the Crude Oil Windfall Profit Tax of 
1980, at the rate of 40 cents per gallon for alcohol that was 190 proof or more, and 30 cents per gallon 
for alcohol between 150 and 190 proof.  The credits  were increased in 1982 and 1984.  The Omnibus 
Reconciliation Act of 1990 reduced the credits to 54 cents and 40 cents for ethanol and ethanol blends 
and introduced the 10-cent-per-gallon income tax credit for small ethanol producers.  In 1998, the 
Transportation and Equity Act for the 21
st Century reduced the alcohol fuel credit, as described above.  
The American Jobs Creation Act of 2004 eliminated  reduced rates of excise tax for most alcohol-
blended fuels and substituted the current rules provi ding for income and excise tax credits or direct 
payments.  The credit for alcohol fuel was lowe red from 51 cents per gallon to 45 cents by the 
Heartland, Habitat, Harvest, and Ho rticulture Act of 2008.  The credit for cellulosic biofuel was also 
enacted by this legislation.   
 Form
 
  Income tax concession, excise tax concession, or di rect payment for fuels containing alcohol.   
  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.     Amount
 
 
 The revenue loss was $3,360 million in fiscal  year 2007 and $4,460 million in fiscal 
year 2008.    Duration
 
 
 The credits expire at the end of 2010 except for the cellulosic fuel credit, which expires 
1 January 2013.   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 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.    G/SCM/N/186/USA 
Page 26  
 
   Policy objective and/or purpose
 
  To encourage the substitution of biodiesel and renewable diesel for diesel fuel.     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 agri-biodiesel from $0.50 per gallon to $1.00 per gallon and extende d the credits through 
31 December 2009. 
  Form
 
  Income tax concession, excise tax concession,  or direct payment for fuels containing 
biodiesel.   
 
 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.   
  Amount
 
  The revenue loss was $750 million in fiscal year 2007 and $1,218 million in fiscal year 2008.   
 Duration
 
  The credit expires at the end of 2009.     Trade effects
 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: Alternative Fuels Credit 
  Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.   Policy objective and/or purpose
 
 
 To encourage the substitution of alternat ive fuels for gasoline and diesel fuel.   
  G/SCM/N/186/USA 
 Page 27 
 
 
   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 credit is authorized in sections 64 26 and 6427(e) of the Internal Revenue Code.   
  Form
 
 
 Excise tax concession.   
  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. 
 
 Amount
 
  The revenue loss was under $90 milli on in 2007 and $310 million 2008.  
 
 Duration
 
  The tax credit applies to property placed in service after 31 December 2005, and (except in 
the case of hydrogen refuelling property) before 1 Ja nuary 2011.  In the case of hydrogen refuelling 
property, the property must be placed in service before 1 January 2015.    
 Trade effects
 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title : Tax Credit for Refined Coal and Indian Coal 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.  
 Policy objective and/or purpose
 
  To encourage the production of low-emission and Indian coal.     Background and authority
 
 
 Taxpayers are allowed a $4.375 per ton cred it for refined coal (indexed for inflation 
after 1992).   The refined coal credit is allowed for the first ten years of production from a new 
facility.  The refined coal credit applies to prod uction at facilities placed in service after 22 October 
2004 and before 1 January 2010.  Taxpayers are also allowed a credit for Indian coal for a G/SCM/N/186/USA 
Page 28  
 
  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 firs t four years of the seven-year 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. 
  Form
 
  Income tax concession.   
 
 To whom and how assistance is provided
 
  The credit reduces federal income taxes for taxpaye rs producing qualifying electricity or coal.   
 
 Amount
 
  The total revenue loss was less than $50 million per year in 2007 and 2008.   
  Duration
 
 
 The refined coal credit applies to production at facilities placed in service after 22 October 
2004 and before 1 January 2010.     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 
 
 Period covered by the notification  
 
 The period covered is fiscal years 2007 and 2008.   Policy objective and/or purpose
 
 
 To encourage the development of advanced technology facilities for generating electricity 
from coal and synthesis gas.     Background and authority
 
  Under the first round of credit allocations, taxpa yers are allowed investment credits of 20 per 
cent for investments in integrated gasification combined cycle (IGCC) facilities and gasification 
facilities and 15 per cent for investments in other adva nced coal facilities.  The credit is subject to a 
national limitation of $800 million for the IGCC credit, $500 million for other advanced coal 
facilities, and $350 million for gasification facilities.  The credit was adopted as part of the Energy 
Policy Act of 2005.  This provision is authorized  in sections 48A and 48B of the Internal Revenue 
Code. 
  Under the second round of credit allocations, the credit rate is increased to 30 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  G/SCM/N/186/USA 
 Page 29 
 
 
  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. 
  Form
 
  Income tax concession.   
 
 To whom and how assistance is provided
 
  The credit reduces federal income taxes for ta xpayers investing in qualified facilities.   
 
 Amount
 
  The revenue loss was $30 million 20 07 and $30 million in 2008.   
  Duration
 
 
 The tax credit applies to investments after 8 August 2005.   
  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 
 
 Period covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.   Policy objective and/or purpose
 
 
 To assist refiners in complying with Envir onmental Protection Agency low-sulfur diesel 
requirements.     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.  
 
 Form
 
  Income tax concession.    G/SCM/N/186/USA 
Page 30  
 
   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.    
 Amount
 
  The revenue loss was under $10 milli on per year in 2007 and 2008.  
  Duration
 
 
 The tax credit applies to costs incurred during the period beginning 1 January 2003 and ending 31 December 2009.     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 
 
 Period covered by the notification  
  The period covered is fiscal years 2007 and 2008.   Policy objective and/or purpose
 
 
 To encourage investments in increased refinery capacity.   
  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.    Form
 
 
 Income tax concession.   
  To whom and how assistance is provided
 
  The credit reduces federal income taxes for taxpa yers that incur costs to increase refinery 
capacity.   
 
 Amount
 
  The revenue loss was less than $30 m illion in 2007 and $350 million in 2008.  
 
 Duration
 
  The tax credit applies to costs incurred afte r 8 August 2005 for property placed in service 
before 1 January 2012.     G/SCM/N/186/USA 
 Page 31 
 
 
   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 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008. 
 
 Policy objective and/or purpose
 
  To encourage oil and gas exploration.    
 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 amortization period was extended 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.  
 
 Form
 
  Income tax concession.     To whom and how assistance is provided
 
 
 The credit reduces federal income taxes for taxpaye rs that incur costs in exploring for oil and 
gas.     Amount
 
 
 The revenue loss was less than $50 m illion in 2006 and $20 million in 2007.  
  Duration
 
  Amortization is available for costs incurred in  tax years beginning after 8 August 2005.   
 
 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  
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008. G/SCM/N/186/USA 
Page 32  
 
   Policy objective and/or purpose
 
  To encourage the development of domestic oil resources.   Background and authority
 
 
Taxpayers engaged in petroleum extraction activities may generally deduct qualified tertiary injectant 
expenses used while applying a tertiary recovery  method, including carbon dioxide augmented water 
flooding and immiscible carbon dioxide displacement.  The tax credit was enacted as part of the Crude Oil Windfall Profit Tax of 1980.   The cred it is authorized in section 193 of the Internal 
Revenue Code. 
  Form
 
  Income tax concession.   
 
 To whom and how assistance is provided
 
  Oil producers are permitted accelerated deductions from taxable income.      Amount
 
 
 The total revenue loss was less than $10 million annually in 2007 and 2008.  
  Duration
 
 
 Indefinite.   
  Trade effects
 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
FISHERIES  
 
Title:   Fisheries Finance Program (FFP) (Prior to 1996, this program was known the Fisheries 
Obligation Guarantee (FOG) Program.)   
 
 Period covered by the notification
 
  The period covered is fiscal year 2007 and 2008.     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.     G/SCM/N/186/USA 
 Page 33 
 
 
   In 1996, the FOG Program began providing direct  loans, and the name of the program was 
changed to the Fisheries Finance Program.  At this time, FFP lending authority was extended to 
include aquaculture, vessel buybacks, Individu al Fishing Quota (IFQ) purchases and Community 
Development Quota loans.    
 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).   
 
 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.   
  To whom and how assistance is provided
 
  Under the FFP, loans are provi ded directly to individuals or  business enterprises that have 
qualified projects. 
 
 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 2005.  
(If this program provided a subsidy, the benefit woul d be based on the difference between the interest 
rate charged under the program and the amount th e firm would pay on a comparable commercial 
loan.)  
TYPE OF LOAN FY 05 FY 06 FY07 FY 08 
Traditional $59 $59 $43 $30 
Halibut/Sablefish IFQ $5 $5 $5 $8 
Non-Pollock Groundfish Buyback (Bering 
Sea and Aleutian Islands) $35 $0 $0 $0 
 
 In fiscal year 2005, the FFP completed a buy back loan to the Bering Sea Aleutian Islands 
Non-Pollock Groundfish fishery.  The loan of $35 million will be completely repaid by the industry 
through a fee on future harvests.  All fishing perm its (including those outside the buy back fishery) 
held by the buy back vessels were permanently re voked.  The vessels' fisheries endorsements were 
revoked and their titles amended to restrict foreign transfer.  The loan carri es the FFP's normal market 
rate of interest and there is no net outflow of government funds.   
  Duration
 
 
 Indefinite.   G/SCM/N/186/USA 
Page 34  
 
   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 
nonexistent, the trade effects from this program  are likely to be minimal, if any.   
 
Title: Saltonstall-Kennedy Grant Progr am:  Fisheries Research and Development 
 
 Period covered by the notification
 
 
 The period covered is fiscal year 2007 and 2008.     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.     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 establishe d by the American Fisheries Promotion Act of 
1980, which amended the Saltonsta ll-Kennedy Act (15 U.S.C. 713c-3(c)).  The National Marine 
Fisheries Service administers the program.   
 
 Form  
  Grants are awarded annually on a competitive basis.     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 .   
  Amount
 
 
 It is difficult to estimate a subsidy per unit for a diverse R&D (S-K) grant program.  In the 
year 2007 there were no competitive grants as in year s past.  In the year 2008 there were $2.61 million 
in competitive grants awarded.  In 2007 and 2008,  $3.3 million and $4.5 million, respectively, was 
distributed through the national program to the stat es for research, seafood safety, marketing, etc.  
 
 Duration  
  Indefinite.     G/SCM/N/186/USA 
 Page 35 
 
 
   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 
 
 Period covered by the notification
 
 
 The period covered is fiscal year 2007 and 2008.   
  Policy objective and/or purpose
 
  The Sea Grant program provides grants to sel ected universities to carry out research that 
addresses many aspects of the long-term economic development, environmental stewardship, and 
responsible use of marine and inla nd resources, including fish and shellfish.  A majority of these 
grants are intended to support effective conservation a nd 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.   
 
 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 state Sea Grant programs currently participate in this program.   
  Form
 
  Direct federal grants are normally paid to an  academic institution or other organization.   
 
 To whom and how the assistance is provided
 
  Grants may be provided to any individual;  any public or private corporation, partnership, or other association or entity (including any sea grant coll ege, sea grant institute or other institutions);  or 
any state political subdivision, or agency or officer thereof.  Each Sea Grant institution administers a 
"request for proposal" (RFP) process to address local and state concerns.  The National Marine 
Fisheries Service headquarters administers a separat e RFP process to elicit proposals with a national 
scope.     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) were $55.5 million for fiscal year 2007. Of this amount, approximately $4.7 million 
were commercial fisheries appropr iations and $1.2 million were aquaculture appropriations.  Total 
appropriations for 2008 were $57.1 million.  Of th is amount, $4.4 million were commercial fisheries 
appropriations and $1.1 million were for aquaculture.  G/SCM/N/186/USA 
Page 36  
 
   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.   
 
 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 Hatcheries   
  Period covered by the notification
 
  The period covered is fiscal year 2007 and 2008.     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 establishment of salmon hatcheries, the c onduct of engineering and 
biological surveys and experiments, and the installati on of fish protective devices.  It also authorizes 
agreements with state fishery agencies and constr uction of facilities on state-owned lands.  The major 
objective of this program has traditionally been to m itigate the negative effects of lost salmon habitat 
caused primarily by the building of dams for hydroel ectric power, and also by other factors, such as 
agricultural runoffs, logging, and urban developmen t.  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 provi de harvestable salmon under the Columbia River 
Treaty Indian Trust.  Second, a portion of the ha tchery 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 Mitchell Act environmental impact statement is being 
developed;  when completed, it will help inform the policy direction for the future.   
 
 Background and authority  
  The Mitchell Act salmon hatcheries program ha s received federal appropriations since 1950, 
and is funded by general appr opriations legislation.   
 
 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, the 
Washington Department of Fish and Wildlife, th e Confederated Tribes and Bands of the Yakama 
Nation and the U.S. Fish and Wildlife Service, Department of Interior.   
  G/SCM/N/186/USA 
 Page 37 
 
 
   To whom and how assistance is provided  
  The funds are provided to the Oregon Depart ment of Fish and Wildlife, the Washington 
Department of Fish and Wildlife, and the Confed erated Tribes and Bands of the Yakama Nation 
through Cooperative Agreements.  Funds are also provided to the U.S. Fish and Wildlife Service 
through an intergovernmental transfer.   
  Amount
 
  In fiscal year 2007, the appropriation under the Mitchell Act Program was approximately 
$16,305,642 to fund the operations and maintena nce of the hatchery program in Oregon and 
Washington.  In fiscal year 2008, the appropria tion was approximately $14,214,771 to fund the 
operations and maintenance of the program.     Duration
 
 
 Indefinite.     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 or 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 and recreational fish ery in general.  It is generally accepted that 
they have no discernible trade effect. 
 
LUMBER & TIMBER 
 
LUMBER & TIMBER 
 
Title: Capital Gains Treatment of Certain Timber Income 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.   
 
 Policy objective and/or purpose
 
  To encourage domestic timber production.     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.     Form
 
 
 Income tax concession.    G/SCM/N/186/USA 
Page 38  
 
   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 2007 and 2008.  For 
individual taxpayers, long-term capital gains are ta xed separately from other income, generally at 
5 per cent and 15 per cent rates.   
  Amount
 
  The revenue loss was $170 million in 2007 and $170 million in 2008.   
 
 Duration
 
  Indefinite.    
 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 
  Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.    
 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 
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.   
  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 an d 263A(c)(5) of the Internal Revenue Code.   
  Form
 
 
 Income tax concession.     To whom and how assistance is provided
 
 
 Timber owners can expense, rather than capitalize, certain costs from taxable income.   
  Amount
 
  The revenue loss was $310 million in 2007 and $320 million in 2008.    G/SCM/N/186/USA 
 Page 39 
 
 
   Duration  
  Indefinite.     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 
  Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.    
 Policy objective and/or purpose
 
  To promote reforestation on private timberlands.     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.   Form
 
  Income tax concession.   
 
 To whom and how assistance is provided
 
  Applies to taxpayers on the reforestation cost s incurred during the year as allowances against 
federal income taxes.   
 
 Amount
 
  The revenue loss was $20 million in  2007 and $30 million in 2008.   
  Duration
 
 
 Indefinite.     Trade effects
 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    G/SCM/N/186/USA 
Page 40  
 
  Title: Reduced Corporate Capital Gain s Tax Rate for Qualified Timber Gain 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.   
 
 Policy objective and/or purpose
 
  This provision is designed to reduce the tax differential between corporate and non-corporate 
entities with timber gains. 
 
 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.   
 
 Form
 
  Income tax concession.     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 2007 and 2008.  Corporate capital gains were generally taxed at 
35 per cent in 2007 and 2008.  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. 
  Amount
 
  The revenue loss was zero in 2007 (see expl anation below) and $10 million in 2008.   
 
 Duration
 
  The reduced rate applies to qualified timber  sales made after 22 May 2008, and before 
23 May 2009.  
 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  
 Period covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.   
  Policy objective and/or purpose
 
  To encourage research on drugs for rare diseases or conditions.    G/SCM/N/186/USA 
 Page 41 
 
 
   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.   
 
 Form
 
 
 Income tax concession.   
  To whom and how assistance is provided
 
  Taxpayers undertaking qualified research on orphan drugs receive a credit against federal 
income tax.   
 
 Amount
 
 
 The revenue loss was $260 million in 2007 and $290 million in 2008.   
  Duration
 
 
 Indefinite.     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 
 
 Period covered by the notification  
  This notification covers fi scal years 2007 and 2008.   
 
 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.   
 
 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.   G/SCM/N/186/USA 
Page 42  
 
   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.   
 
 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 and non-commercial -- both in the United States 
and abroad.   
 
 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 2007, the appropriated amount was $15.6 million, and in 
fiscal year 2008, the amount was $14.8 million.   
 
 Duration  
 
 The activity is of indefinite duration;  the program operates with a revolving fund and 
maintains financial viability through its revenues from sales.     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: Excess of Percentage over Cost Depletion for Non-fuel Minerals 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008. 
 
 Policy objective and/or purpose
 
 
 To encourage the development of th e domestic non-fuel mineral industry. 
 
 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.  Percenta ge depletion similar to its cu rrent form was provided in 1932 
at 23 per cent for sulphur and 15 per cent for metal mi nes.  From 1932 to 1950, percentage depletion 
was extended to most other minerals.  The Revenue Act of 1951 granted it to even more minerals.  
In 1954, still more minerals were granted the a llowance.  In 1969, the top depletion rates were 
reduced.  The Tax Equity and Fiscal Respons ibility Act of 1982 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.    G/SCM/N/186/USA 
 Page 43 
 
 
   Form  
 
 Income tax concession.   
  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.   
  Amount
 
 
 The revenue loss was $380 million in 2007 and $720 million in 2008.   
  Duration
 
 
 Indefinite.  
 
 Trade effects  
  It is not possible to estimate what, if any,  trade effects may result from the use of these 
provisions.    
Title: Expensing of Exploration and De velopment Costs for Non-fuel Minerals 
  Period covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.   
  Policy objective and/or purpose
 
 
 To encourage the development of domestic non-fuel mineral industry.   
 
 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 such mining expenditur es, and to encourage, mining.  The provision for 
mine exploration was added in 1966.  The Tax E quity and Fiscal Responsibility Act of 1982 limited 
expensing for corporations to 85 percent;  the remaining 15 per cent must be depreciated.   
 
 Form  
  Income tax concession. 
 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.  
 
 Amount
 
  The revenue loss was less than $10 milli on in 2007 and $210 million in 2008.   G/SCM/N/186/USA 
Page 44  
 
   Duration
 
  Indefinite.    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 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.    
 Policy objective and/or purpose
 
  To encourage the mining of domestic iron ore.     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.   
 
 Form  
 
 Income tax concession.   
  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 in 2007 and 2008.  For individual taxpaye rs, long-term capital gains are taxed separately 
from other income, generally at a maximum rate of 15 per cent rate.     Amount
 
 
 The revenue loss was less than $10 m illion per year in 2007 and 2008.   
 
 Duration  
  Indefinite.   
 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 
 
 Period covered by the notification  
 
 The period covered is fiscal years 2007 and 2008.    G/SCM/N/186/USA 
 Page 45 
 
 
   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.   
 
 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.     Form
 
 
 Income tax concession.   
  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.   
 
 Amount
 
  The revenue loss was less than $10 m illion per year in 2007 and 2008.   
 
 Duration
 
  Indefinite.     Trade effects
 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: Emergency Steel Loan Guarantee Program 
 
 Period covered by the notification
 
  This period covered is fi scal years 2007 and 2008.  
  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.     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 program and has the 
authority to guarantee loans until 31 December 2011.    G/SCM/N/186/USA 
Page 46  
 
   Form
 
  The program guarantees loans up to 95 per cent of the principal amount of loans provided by 
private lenders.    
 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.   
  Amount
 
  The Board received an application for a guara ntee of a $250 million loan in September 2002 
that was approved for a guarantee in March 2003.  The guaranteed loan was issued in August 2003 
and repaid in May 2008.  This was the third a nd final loan guarantee issued under the program.   
  Duration
 
  The Board's authority to issue guarantees expires 31 December 2011.  Currently there are no 
applications pending under this program.   
  Trade Effects
 
  It is not possible to estimate what trade eff ects, if any, may result from this program.   
 
TEXTILES 
 Title: The Textile/Clothing Technology Corporation Program (TC2)  
 
 Period covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.    Policy objective and/or purpose
 
 
 The Textile/Clothing Technology Corporati on is a non-profit membership organization 
designed to stimulate economic growth in the U.S. textile and apparel sector.  It has programs to 
demonstrate advanced equipment and techniques, to e ducate participants in the sector, and to do basic 
research.  Only the basic research element is f unded by the federal government through a grant from 
the U.S. Department of Commerce (DOC).  The b asic research is perform ed 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.     Background and authority
 
 
 The program is administered by DOC's Office of Textiles and Apparel.  Authorization and 
funding for the program is provided for as part of  the annual budget and appropriations process for the 
DOC.    G/SCM/N/186/USA 
 Page 47 
 
 
   Form  
  Assistance is provided under this program in the form of grants.     To whom and how assistance is provided
 
 
 A grant is provided to the Textile/Clo thing Technology Corporation following the 
presentation of a proposal describing the rese arch projects which will be undertaken.   
  Amount
 
 
 Appropriations (approximate dollars in millions) in FY 2007 were zero and in FY 2008 
were $1.7.   Duration
 
 
 Grants were first distributed under the program in 1981.  Funding must be reauthorized by the 
U.S. Congress on an annual basis.   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.   
 
TIMEPIECES AND JEWELRY 
 
Title: The Insular Possessions Watch and Jewelry Programs . 
 
 Period covered by the notification
 
  The period covered is calendar year 2007 and 2008.  
 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. 
 
 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 
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 additional U.S. 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.  G/SCM/N/186/USA 
Page 48  
 
   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 ,000 units for watches and watch movements 
and 10,000,000 units for jewelry.   Amount
 
 
Production Incentive Certificate ("PIC") 
 Year (1)  Product Total Amount (2) 
2007 Watches $2,023,264 2007 Jewelry $2,020,563 
2008 Watches $1,729,868 2008 Jewelry $1,693,776 
 
 
(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 sh own above to cover the 
administrative costs of processing by CBP. 
 
Duty Exemption         Amount (3) 
2007    $243,070 
2008    $183,104 
 
 (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 tota l yearly amount of the invo ices billed to customers. 
 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. 
  Trade Effects
 
  Although the precise trade effects cannot be de termined, the Departme nt of Comemrce's 
Bureau of Economic Analysis estimates that benef its from these programs account for less than 1% of 
U.S. annual personal domestic consum ption of watches and jewelry.  In addition, the watches and 
jewelry covered by the program are only shipped into the United States market.  G/SCM/N/186/USA 
 Page 49 
 
 
  OTHER 
 Title: Empowerment Zones and Renewal Communities  
 Period covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.     Policy objective and/or purpose
 
 
 The purpose of this assistance is to encourage re vitalization of distressed areas.  Nominated 
areas must meet population, distress, size, and poverty rate criteria in order to be eligible, ensuring 
that assistance is targeted to areas experiencing hi gh economic distress.  The use of tax incentives 
reflects a desire to encourage the private sector, guided by market forces and supported in a non-bureaucratic fashion through government assistance,  to be a driving force behind the increased 
economic activity.  Some restrictions on the ty pes of business activities and investments were 
imposed in order to limit potential abuses.     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 
empowerment zones, renewal communities, and th e 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 5 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 5 years.   G/SCM/N/186/USA 
Page 50  
 
   Form
 
  Income tax concession.     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 $200,000.  
To qualify for the expensing, businesses must also meet  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 doe s not apply to gains earned before 1998 or after 
2014.  The exclusion of capital gains from qualified renewal community assets held more than 5 years 
does not apply to gains earned before 2002 or after 2014.     Amount
 
 
 The revenue loss was $1,340 million in 2007 and $1,480 million in 2008.   
  Duration
 
  Tax incentives have been available since the first zones were designated on 21 December 
1994.  Empowerment zone, rene wal community, and DC Zone  tax benefits expired on 
31 December 2009.     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 
 
 Period covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.     Policy objective and/or purpose
 
 
 To encourage capital investment in businesses located in economically distressed areas.    G/SCM/N/186/USA 
 Page 51 
 
 
   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.    
 Form
 
  Income tax concession.     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 $18.5 billion from 2001 to 2008.     Amount
 
 
 The revenue loss was $810 million in 2007 and $990 million in 2008.   
  Duration
 
  This credit first became effec tive in 2001, and credit allocations to qualified CDEs will be 
made through 2009.   
  Trade effects
 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title: New York Liberty Zone 
 
 Period covered by the notification
 
 
 The period covered is fiscal years 2007 and 2008.   
  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.   
 Background and authority
 
  Section 1400L of the Internal Revenue Code, en acted as part of the Job Creation and Worker 
Assistance Act of 2002.    
 Form
 
  Income tax concession.    G/SCM/N/186/USA 
Page 52  
 
   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 provided:  (i) qualified small businesses are allowed 
a wage credit equal to 40 per cent of the fi rst $6,000 of qualifying wages paid annually to each 
qualifying employee;  (ii) an additional $35,000 per y ear of expensing, instead of depreciation, of 
capital investments by small businesses within the Z one;  (iii) 30 per cent expensing, instead of 
depreciation, of certain property placed in service within the Zone;  (iv) accelerated depreciation of 
qualified leasehold improvement property placed in service within the Zone;  (v) authorization for New York State and New York City to issue an ad ditional $8 billion in tax-exempt private activity 
bonds to finance property placed in service within the Zone;  (vi) an additional advance refunding of 
tax-exempt bonds up to an aggregate limit of $9 b illion for facilities located in  New York City;  and 
(vii) extension of the replacement period from 2 to 5 years for certain property involuntarily converted 
due to the 11 September 2001 terrorist attack.    
 Amount
 
  The revenue loss was $380 million in  2007 and $10 million in 2008.   
  Duration
 
 
 The wage credit expired at the end of 2003, th e additional authority to issue tax-exempt bonds 
and the bonus depreciation for structures expired at  the end of 2009, the additional advance refunding 
of tax-exempt bonds expired at th e end of 2005, and the other provisions  expired at the end of 2006.   
  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 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.     Policy objective and/or purpose
 
 
 To encourage the reconstruction of the area affe cted by Hurricanes Katrina, Wilma, and Rita.    
  Background and authority
 
  Sections 1400M through 1400T of the Internal  Revenue Code, enacted as part of the Gulf 
Opportunity Zone Act of 2005.   
 Form
 
  Income tax concession.    G/SCM/N/186/USA 
 Page 53 
 
 
   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) an additional $100,000 per year of expensing, 
instead of depreciation, of capital investments by small businesses within the Zone;  (ii) 50 per cent 
expensing, instead of depreciation, of certain prope rty placed in service within the Zone;  (iii) 50 per 
cent expensing of the costs of removing debris or st ructures from real property;  (iv) authorization for 
issuance of additional tax-exempt private activity bo nds to finance reconstruction within the Zone;  
(v) an additional advance refunding of tax-exempt bonds for Louisiana, Mississippi, and Alabama;  
and (vii) an additional $10,000 of  expensing for reforestation expenditures;  expensing of 
environmental remediation expenditures;  and (viii) extended net operating loss carryback provisions.  
 
 Amount
 
  The revenue loss was $2,640 million in 2007 and $940 million in 2008.    
 Duration
 
  These provisions are generally scheduled  to expire by 31 December 2010.   
  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 
 
 Period covered by the notification
 
  The period covered is fiscal years 2007 and 2008.     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.      Background and authority
 
 
 P.L. 110-246 authorized certain provisions re lated to the Gulf Opportunity Zone (sections 
1400N through 1400S of the Internal Revenue Code ) to apply to the Kansas disaster area.   
  Form
 
 
 Income tax concession.   
 
 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.  G/SCM/N/186/USA 
Page 54  
 
   Amount
 
  The revenue loss was $270 million in 2008.     Duration
 
 
 These provisions are generally scheduled  to expire by 31 December 2009.   
  Trade effects
 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.  
 
  
   G/SCM/N/186/USA
 Page 55Attachment 1 – Sub-federal Programs 
 
State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Alabama Appalachian 
Regional 
Commission Grant Alabama 
Department of 
Economic and 
Community Affairs Grant The Appalachian Regional 
Commission (ARC) provides 
supplemental funding for economic development projects under its Area 
Economic and Human Resources 
Development Program. 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 
- Industry 517110 wired telecommunications;  
- 561422 inbound call centers - or any process or treatment facility which 
recycles, reclaims, or converts materials, 
which include solids, liquids, or gases, to a reusable product.       
- or any process or treatment facility which 
recycles, reclaims, or converts materials, which include solids, liquids, or gases, to 
reusable product;   
-or headquarter facilities and data processing centers which create at least 50 new jobs;   
-or renewable energy facilities;   
-or R&D facilities;   -or project owned by utilities that produce electricity from alternative energy resources;  
-or 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 cost s 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  
  G/SCM/N/186/USA 
Page 56 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 fa cility or equipment 
or any statutory limitation on the 
applicant's borrowing ability. Ongoing 
Alabama Delta Regional 
Authority (DRA)   Alabama 
Department of Economic and 
Community Affairs 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 given to applications located 
in areas of high unemployment, areas 
experiencing trauma, and areas where the population has declined.  All territory of a state 
that is not within the outer boundary of any 
city having a population of 25,000 or more, 
according to the latest decennial census. Loans to intermediaries are scheduled 
for repayment over a period of up to 
30 years with an interest rate of 1% per annum.  The intermediary sets the 
term of the loans and sets the interest 
rate that they will charge to ultimate recipients.  The maximum loan to an intermediary is $750,000.00. Ongoing  
   G/SCM/N/186/USA
 Page 57State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Alabama Property Tax 
Abatements for 
Industrial Projects Alabama 
Department of 
Revenue Tax Abatement/ 
Reduction Both real property and personal 
property are subject to ad valorem 
property taxation based on an 
assessment of 20% of fair market 
value.  To encourage the development of new industry in the state as well as 
to encourage the expansion of existing 
industry, an abatement of non-educational property taxation is provided for qualifying projects.   The qualifying project must constitute an 
"industrial, warehousing, or research activity" 
defined as any trade or business described in 
the 1987 Standard industrial Classification 
(SIC) code, promulgated by the U.S. Government Office of  Management and 
Budget as:  Major Groups 20-39, inclusive;  
50 or 51;  Industrial Group Number 737;  or Industry Numbers 0724, 4613, 8731, 8733, or 
8734.    
 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 
property, 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 
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.   The qualifying project must constitute an 
"industrial, warehousing, or research activity" defined as any trade or business described in 
the 1987 Standard industrial Classification (SIC) code, promulgated by the U.S. 
Government Office of  Management and 
Budget as:  Major Groups 20-39, inclusive;  50 or 51;  Industrial Group Number 737;  or Industry Numbers 0724, 4613, 8731, 8733, or 
8734.    
 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 
property, 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/186/USA 
Page 58 State Program Title Program 
Authority Form of Subsidy 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. Ongoing 
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 with greater than 10,000 population and 
the urbanized area contiguous and adjacent to such city or town. Pr iority 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 
Alabama Venture Capital 
Funds Alabama 
Development 
Office Tax Credit House Bill 627 authorizes the 
establishment of CAPCOs certified capital companies to manage such 
funds. Small technology businesses Credits are limited to $12.5 million in 
any year. Ongoing  
   G/SCM/N/186/USA
 Page 59State Program Title Program 
Authority Form of Subsidy 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/186/USA 
Page 60 State Program Title Program 
Authority Form of Subsidy 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 
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 Denji Fund 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 
$150,000. Loan term is 1 to 15 years, depending on the project. No 
repayment penalty. Interest rate is 1% 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/186/USA
 Page 61State Program Title Program 
Authority Form of Subsidy 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 one percent, 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 one percent, 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, pettet-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 / comp anies located in rural 
Alaska. In FY 2009, the program funded 
62 loans for $11.5 million. Ongoing 
Alaska Reuse & 
Redevelopment 
(R&R) Initiative Department of 
Environmental 
Conservation (DEC), Division of 
Spill Prevention 
and Response Financing Assists parties in researching, 
assessing, transferring property 
associated with contaminated land. Brownfields Annual amount for initiative is 
$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/186/USA 
Page 62 State Program Title Program 
Authority Form of Subsidy 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 Southcentral and 
Southeastern regions of Alaska. Provides funding, edu cational 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 
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)  
   G/SCM/N/186/USA
 Page 63State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 Capstone avionics equipment for 
aircraft that operate substantially in 
Alaska The general requirements are that the aircraft 
being financed must be owned by the applicant 
and must be substantially flown in Alaska.  Financing for all forms of aircraft. The interest rate is fixed at 4.0%.  The 
maximum loan term is 10-years.  The 
maximum loan amount is 80% of the 
total project cost.  The borrower is 
responsible to pay all direct costs incurred in processing the loan application. Ongoing 
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 designa ted "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 
five 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-t erm 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  
  G/SCM/N/186/USA 
Page 64 State Program Title Program 
Authority Form of Subsidy 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, telefeatur es, music videos, 
documentaries, episodic television series and 
other television produc tion 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. Ongoing 
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 ac tivities 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. Ongoing 
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. Ongoing 
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  
   G/SCM/N/186/USA
 Page 65State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 one 
hundred and fifty per cent 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 logistics;  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 Arkansas Economic 
Development 
Commission Bond Program Enable local governments to issue 
bonds to finance improvements in a 
redevelopment district.  The bonds are secured and paid back from the 
increased revenue generated as a result 
of the improvements. A redevelopment district must be in an area 
that is considered blighted, deteriorated or 
underdeveloped. Not available. Ongoing 
Arkansas  Advantage Arkansas Arkansas Economic 
Development 
Commission Income tax credit To encourage investment and growth 
within the state. Eligible businesses include:  manufacturers;  
physical and biological research;  and businesses that are computer-related, engaged 
in motion picture pr oduction, distribution 
centers or scientific and technical services. 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 
may be carried forward for 9 years. Ongoing 
Arkansas  Create Rebate Arkansas Economic 
Development 
Commission Tax rebate To encourage investment and growth 
within the state. Eligible businesses include:  manufacturers;  
physical and biological research;  and 
businesses that are computer-related, engaged in motion picture pr oduction, distribution 
centers or scientific and technical services. 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 - 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. Ongoing  
  G/SCM/N/186/USA 
Page 66 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Arkansas  InvestArk Arkansas Economic 
Development 
Commission Tax credit To encourage investment and growth 
within the state. Companies established at least two years that 
expend $5 million or more in plant or 
equipment for new constr uction, 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. 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 encourag e 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 
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 
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-a dded 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 5 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 Recyc ling 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  
   G/SCM/N/186/USA
 Page 67State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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  
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 equi pment. 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 adva ncement of scientific 
or engineering knowledge or improved 
effectiveness of commercial products. Tax credit allows companies to 
receive a 15% credit against their 
bank or corporati on tax liability 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 
7 years. Ongoing  
  G/SCM/N/186/USA 
Page 68 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Colorado Enterprise Zone Office of Econ. 
Dev & Int'l Trade Tax Credit Tax credits granted for investment and 
employment which takes place within 
state designated enterprise zones.  
Companies must invest in equipment 
used exclusively in the zone;  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 define d 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 1January 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  
   G/SCM/N/186/USA
 Page 69State Program Title Program 
Authority Form of Subsidy 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. Qu alified 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 dispursed. 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 limited 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:  UrbanConnecticut 
Development 
Authority Loan Access to bank lending through use of 
portfolio loan in surance.  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  
  G/SCM/N/186/USA 
Page 70 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Connecticut  Connecticut Growth 
Fund Connecticut 
Development 
Authority Loan The purpose of the program is to 
provide financing fo r 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 these efforts is the creation 
and sustainable growth of a 
community of high technology 
companies vital to 
Connecticut's future. To be considered as a Connecticut Innovations 
portfolio client, a company must have a 
proprietary technology, since this is typically the collateral for providing funds. Product development financing is 
available for a minimum of 40% 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  
   G/SCM/N/186/USA
 Page 71State Program Title Program 
Authority Form of Subsidy 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 located in the corridor zones 
are:  Ansonia, Beacon Falls, Derby, Griswold, 
Killingly, Lisbon, Naugatuck, Plainfield, 
Putnam, Seymour, Sprague, Sterling, 
Thompson, Torrington and Winchester.  Municipalities in the enterprise corridor zones 
are not classified as targeted investment 
communities, and are ther efore 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 ar e 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  
  G/SCM/N/186/USA 
Page 72 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Connecticut Manufacturing 
Assistance Act State of 
Connecticut 
Department of 
Economic and 
Community 
Development Loan The most comprehensive of the 
Department's financ ing 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 ten years as recipients of said financial assistance 
are required by  statute to maintain 
their operations in the state of a ten year period. However, the state has 
the authority to set any term it deems 
appropriate. Interest rate charged under the program are slightly below 
market rates. Maximum amount is 
capped at $10 million.  Ongoing 
Connecticut Manufacturing 
Credits to Facilities 
Located in Distressed Municipalities and Enterprise Zones Department of 
Revenue Services Tax Credit Tax Credits up to 50% 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 ten 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 ta x 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 
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 7/1/96 and 
determined to be self-sustaining through the 
generation of incremental taxes collected 
under the sales, admission, cabaret and dues 
taxes. Negotiated sale or competitive bid 
with bond purchasers developed in 
conjunction with the State Treasurer.  Terms generally 10 and 30 years. Ongoing  
   G/SCM/N/186/USA
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 5 years for both real 
and personal property;  2) A corporate business tax reduction of 25% for 
10 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 other 
incentives are rese rved 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 th ree 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 within an enterprise zone, urban 
communities, or distressed areas. Not available. Ongoing  
Connecticut Qualified 
Manufacturing Plant Department of 
Economic and Community 
Development Tax credit and Tax 
abatement  To encourage business development 
within the State. Any targeted investment community with 
approval from the Commissioner of the Department of Economic and Community 
Development, designated a vacant or underutilized manufacturing plant, with an area of at least 500,000 square feet. 1) 5 year, 80% 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  
Connecticut CT Inner City 
Business Loan 
Guarantee Program Department of 
Economic and 
Community 
Development Loan To encourage smal l 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 1% application fee. Ongoing   
  G/SCM/N/186/USA 
Page 74 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Connecticut Digital Animation 
Tax Credit - §12-
217ll   Connecticut 
Commission  on 
Culture and Tourism Tax credit To encourage film production within 
the State. Film Industry For income years beginning on or 
after 1 January 2007, any 
state-certified animation production 
company incurring production 
expenses or costs in excess of $50,000 shall be eligible for a tax credit equal 
to 30% of such production expenses 
or costs. 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 
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  
   G/SCM/N/186/USA
 Page 75State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Connecticut Tax Incentive 
Development 
Program Department of 
Economic and 
Community Development Tax incentives Increase commercial investment in 
Bridgeport. Qualifying projects must a) have a minimum 
of $3,000,000 in estimated costs of 
construction or rehabilitation;  b) if located in 
an Enterprise Zone, have a minimum of 
$1,000,000 in estimated costs of construction, rehabilitation and/or machinery and equipment. Not available. Ongoing 
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 
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 enviro nmental contamination 
located in any Connecticut municipality. Not available. Ongoing  
  G/SCM/N/186/USA 
Page 76 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Connecticut Special 
Contaminated 
Property 
Remediation and 
Insurance Fund 
(SCPRIF) State of 
Connecticut 
Department of 
Economic and 
Community 
Development Loan To provide assistance to 
municipalities, developers or owners 
for Phase II and III investigations, 
Remedial Action Plans (RAP), 
demolition of structures and remedial 
action activities. The current owner of the site, the prospective 
owner or developer of the site, or the 
municipality in which the site is located The program provides a bridge loan to 
allow the applicant to conduct 
investigations, demolition and site 
remediation. Interest is paid during the 
term of the loan and the principal is repaid at the end of the term of the 
loan or when the site  is later sold or 
leased or when the environmental 
remediation is complete. Ongoing 
Connecticut Urban Sites 
Remedial Action 
Program (USRAP) State of 
Connecticut 
Department of Economic and 
Community 
Development Loan For projects that are significant to 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. Guaran tees 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/186/USA
 Page 77State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Connecticut 50% Manufacturing 
Facility Tax Credit 
for Facilities 
Located in an 
Enterprise Zone (or Other Area Having 
Enterprise Zone 
Level Benefits)  -  
§12-217e  State of 
Connecticut 
Department of 
Economic And 
Community 
Development Tax credit To encourage manufacturers and 
certain other businesses to locate in an 
enterprise zone or other area having enterprise zone level benefits. Manufacturers with a with tax liability against 
the tax imposed under Chapter 208 of the 
Connecticut General statutes (Corporate 
Business tax) and businesses engaged in 
biotechnology, pharmaceutical or photonics research, development, or production, with not 
more than 300 employees, located in a 
municipality with a major research university with programs in biotechnology, 
pharmaceuticals, or photonics, and an 
Enterprise Zone. A tax credit equal to 50% allocable to 
a manufacturing facility located 
within a designated Enterprise Zone 
(or other area designated as having 
Enterprise Zone level benefits) is available to a manufacturing facility 
that meets certain employment 
criteria. Other Areas include:  Enterprise Zones, Targeted 
Investment Communities, 
Entertainment Districts, Qualified Manufacturing Plants, Railroad Depot 
Zones Contiguous  Municipality 
Zones, Enterprise Corridor Zones, Defense Plant Zones and Manufacturing Plant Zones. Ongoing 
Connecticut Enterprise Zone Tax 
Credit for Qualifying 
Corporations §12-217v  State of 
Connecticut 
Department of 
Economic And 
Community 
Development Tax credit To encourage businesses to located 
within one of Connec ticut'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 expenditures for machinery and 
equipment is available if the 
corporation employed not more than 250 full-time, permanent employees 
whose wages, salaries, or other 
compensation is paid in Connecticut. Ongoing  
  G/SCM/N/186/USA 
Page 78 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Connecticut Research and 
Development 
(Nonincremental) 
Expenditures Tax 
Credit  -  §12-217n   Department of 
Revenue Services Tax credit To encourage businesses to invest in 
research and development within the 
state. Businesses with tax liability against the tax 
imposed under Chapter 208 of the Connecticut 
General statutes (Corporate Business tax). A qualified small business is entitled 
to a tentative tax credit equal to 6% of 
its research and development 
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 in 
excess of $3 billion and employing more than 2,500 employees, may elect to multiply their research and 
development expenses by 3.5% 
instead of using the credit percentage listed above. 
 
A qualified small business that, as a result of having no tax liability, 
cannot take this tax credit in a taxable 
year in which it could otherwise be taken may exchange the tax credit 
with the State of Connecticut for a 
credit refund equal to 65% of the 
value of the tax credit. 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  
   G/SCM/N/186/USA
 Page 79State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
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 somewh at 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 individua l project basis Ongoing  
  G/SCM/N/186/USA 
Page 80 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Delaware Corporate Income 
Tax Credits Department of 
Finance Tax Credits To encourage new and expanded 
facilities within targeted industries in 
Delaware. Firms within targeted industries, including:  
manufacturers;  wholesalers;  laboratories used 
for scientific, agricultural, or industrial 
research, 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 5 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/186/USA
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Authority Form of Subsidy 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 businesse s. 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 5 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/186/USA 
Page 82 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Delaware Public Utility Tax 
Rebates for 
Industrial Users Department of 
Finance Utility Tax 
Reduction  
(Rebate) To assist licensed manufacturers. 
"Firms meeting the criteria for targeted 
industry tax credits are eligible for a 
rebate of the public utilities tax 
imposed on new or increased consumption of gas and electricity for 
five years. The public utilities tax rate 
is 4.25%.  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 percent) of the Public Utilities Tax 
imposed on new or increased 
consumption of gas and electricity for 
five years. Ongoing 
Delaware Film Promotion 
Program Delaware Film 
Commission State sales tax 
exemption To promote film production within the 
state. Film Industry 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 Reimbur sement for expenses related 
to production of nationally distributed 
film and televisi on 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 
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 bus inesses that locate in 
brownfield sites which are underutilized industrial or commercial sites due to actual or 
perceived environmen tal 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. Project s within the three designated rural areas 
which have been affect ed by extraordinary 
economic events or natural disasters. Varies on an individua l project basis Ongoing  
   G/SCM/N/186/USA
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Florida Ad hoc agreement Jacksonville 
Economic 
Development Commission Tax Incentives To upgrade the Gerdau Ameristeel 
Baldwin steel plant. Gerdau Ameristeel Three million dollars in tax incentives Ongoing 
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 elig ible 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  
  G/SCM/N/186/USA 
Page 84 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Florida  Enterprise Zone Jobs 
Tax Credit (Sales 
and Use Tax) Florida Department 
of Revenue 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 
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 5 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  
   G/SCM/N/186/USA
 Page 85State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Florida  High Impact 
Business 
Performance Incentive Office 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. Seventy-five full-time jobs need to be 
created and there should be a cumulative 
capital investment of at least $75 million over 
a three year period. Section 288.108 (3)(b), Florida 
Statutes, provides guidelines on the 
amount of grant to be given to an eligible high impact business. Ongoing 
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 5 
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 appli cant 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 crea ting high skill/high wage 
jobs, in qualified targeted industries· jobs located in a distressed Urban Inner City Area 
or Rural Area, jobs locat ed 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/186/USA 
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Authority Form of Subsidy 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, Cust omer 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  
   G/SCM/N/186/USA
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Authority Form of Subsidy 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 property 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  
  G/SCM/N/186/USA 
Page 88 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Florida  Rural Community 
Development 
Revolving Loan Office of Tourism, 
Trade and 
Economic Development Grant To promote rural development projects 
in rural areas which will stimulate 
economic growth. All businesses Low interest rates loans Ongoing  
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 wa ges 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 FundGeorgia 
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 5 years and 80, 60, 40, and 20% 
reductions in subsequent 5 year 
periods;  a 100% exemption exists for inventory for 25 years.  Housing and 
Commercial: Zone created for 10years 
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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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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.  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 
5 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 three years and make a minimum $50,000 
additional qualified investment per 
project/location are eligib le 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  
  G/SCM/N/186/USA 
Page 90 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Georgia Job Creation Tax 
Credit Georgia 
Department of 
Community Affairs  Tax Credit Part of Georgia's Business Expansion 
and Support Act of 1994 which allows 
statewide tax credits for businesses locating or expanding in the state.    Industries eligible include manufacturing, 
warehousing and distribution, 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. The four Tiers are as follows:  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 are per job and can be 
taken for up to 5 years and carried forward for ten years.  Credits can be 
taken against 100% of tax liability in 
Tier 1 counties and applied to payroll withholding once all tax liability is exhausted (up to $3,500/job).  Credits 
can be taken against 100% of tax 
liability in Tier 2 counties and against 50% of tax liability in Tier 3 and 4 
counties.  Credits similar to the credit 
available in Tier 1 counties are potentially available to companies in 
certain "less developed" census tracts 
in the metropolitan areas of the state.  At least 30% of the new jobs created 
in these census tracts must be held by 
residents of the eligible census tracts 
or a Tier 1 county.  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 rece ive 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, 5 containers, or 10 TEU's.  
If not, the percentage increase in port traffic will be calculated using 75 net tons, 5 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/186/USA
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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, commer cials, 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  
  G/SCM/N/186/USA 
Page 92 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Georgia Strategic Industries 
Loan Fund  OneGeorgia 
Authority Loan To provide loan  assistance for the 
purchase of fixed assets to eligible 
applicants that are considering a 
relocation or expansion site for an 
emerging or development-stage company in a strategic industry 
targeted by Georgia. It is intended to 
be used only when needed to fill a 
financing gap that is unmet by the private sector.  Eligible applicants and recipients of funds 
awarded under this program shall include, but 
not be limited to, general-purpose local 
governments (municipalities and counties), 
local government authorities and joint or multi-county development authorities.  End 
users are strategic industry companies, 
including but not limited to, aerospace, agribusiness, energy and environmental, 
healthcare, eldercare, life sciences, logistics 
and transportation, that are considering a 
relocation or expansion in Georgia. Loans are not limited in amount. A 
recommended loan amount should be 
included in a letter of support from a 
state agency or organization whose 
statutory powers and duties include community and economic 
development or the enhancement of 
Georgia's strategic industry sectors.  Final approval of loan amounts is at 
the discretion of the Authority. Loan 
amounts generally should not exceed 20% of the asset needs of the 
company's Georgia location.  Terms 
for the loans will be determined during the underwriti ng 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 fo r 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 
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 te levision film that 
benefits Hawaii's economy, may claim 
a motion picture and film production 
income tax credit for the taxable year. Motion picture and film industry. The tax credit is comprised of 
two parts:  (1). An amount up to 4% 
of the costs incurre d 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 
television films for actual expenditures for transient 
accommodations.  This tax credit is 
also refundable. Ongoing 
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 i nnovation businesses 
are given priority. Corporation has committed 
$14 million, pooled with private capital, into seven venture capital 
funds. Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
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, desi gning, modifying, 
programming, and licensing computer 
software. High technology industry  All income 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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Idaho Rural Property Tax 
Exemption Dept. of Revenue 
and Taxation Tax Exemption Increase investment in Idaho Businesses 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 build in a 
rural area as defined by USDA Rural 
Development. Ongoing 
Idaho Large Business 
Property Tax Cap Dept. of Revenue 
and Taxation Tax Exemption Increase investment in Idaho Bu sinesses 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 Dept. of Revenue 
and Taxation Tax Exemption Increase investment in Idaho Businesses 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 Dept. of Revenue 
and Taxation Tax Credit Increase telecom investment into 
Idaho communities Any Business Up to $750,000 on Idaho State 
Income Tax for qualified broadband 
equipment.  Credit is transferable Ongoing 
Idaho Idaho Workforce 
Development Training Fund 
(WDTF) Department of 
Commerce & 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 curre ntly 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 
& Labor Grant To finance and facilitate business 
development, expansion, or relocation 
and requires job creation. Any County or City except Entitlement Cities Up to $500,000 for public owned 
land, buildings, and infrastructure.   Ongoing  
   G/SCM/N/186/USA
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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% Sales Tax 
Production 
Exemption Dept. of Revenue 
and Taxation Tax Credit Increase investment in Idaho Any qualif ying business 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.   Businesses 
purchasing required pollution control 
equipment are exempt from sales tax on those purchases. Required 
pollution control facilities are exempt 
from property tax. Businesses are exempt from paying sales tax on utilities and industrial fuels. Examples 
include power, water, natural gas and 
telephone. Ongoing 
Idaho Sales and Tax 
Rebate Dept. of Revenue 
and Taxation 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 Mixed financing, 
mostly loans Provides loans and grants to 
communities and businesses to 
construct or improve rail facilities. Rail transportation companies, rail 
transportation customers, local communities. Terms of loans are negotiable, but the 
average rate is 3% and the average repayment period is 10 to 20 years.  
Collateral is required. Ongoing 
Illinois Used Tire Recovery 
Program Illinois Department 
of Commerce and Economic 
Opportunity Mixed financing Provides gran ts 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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 zone in centives 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 
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 
Credit Illinois Department 
of Commerce and 
Economic 
Opportunity Income tax credit, 
tax rebate, tax 
exemption (eff. 
1 May 2006) Provides tax credits to encourage 
motion picture production within the 
state. Film Industry 20% income tax credit on all 
production costs when spending 
$100,000 for a production over 30 minutes and $50,000 for a 
production under 30 minutes;  
hotel/motel tax rebate of 14.9% if the stay is longer than 30 days;  state sales 
tax exemption on film processing of 
35mm film. 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 5 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 
Illinois Employer Training 
Investment Program Illinois Department 
of Commerce and Economic 
Opportunity Grants Workforce training program Sterling Steel $68,000  2006 
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.  
   G/SCM/N/186/USA
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Indiana Fee Free Location 
Exemption Indiana Code 6-3.1-
32 Fee exemption To encourage film production within 
the State. Film Industry Provides for the free use of any State 
or University owned property for 
film/media makers. Ongoing 
Indiana Hotel Lodging Tax 
Exemption Indiana Code 6-3.1-
32 Tax exemption 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 Credit 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 
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 (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. De laco Steel Corp. $520,000  2005 
Indiana  Loan Guaranty 
Programs Indiana 
Development 
Finance Authority 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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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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 Department 
of Commerce Tax Credit To encourage revitalization 
investments in designated CRED 
areas. All businesses Up to 25% of the qualified 
investment. Ongoing  
Indiana  The Tech Fund IDOC Gran t 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 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 13% research and development 
activities credits on corporate income taxes. 
5) Additional withholding tax credit 
of 1.5% (total 3% for the business' job 
training program). Ongoing  
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 Page 99State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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 The 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. Ongoing 
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  Research Activities 
Tax Credit Iowa Department of 
Economic 
Development Tax credit To encourage research activities in 
Iowa. Companies that meet the qualifications of the 
Federal Research Activities Credit.  The 
definition of research activities has been 
expanded beyond traditional research and may 
include manufacturing process improvements and the time spent by engineers, management 
and other employees designing and testing 
new  manufacturing processes.  Qualified research expenditures include:  wages paid to 
an employee for performing or supporting a 
research activity conducted at a facility in Iowa or for an employee in Iowa who directly 
supervises or directly supports research 
activities;  supplies including tangible property other than land, improvements to land, and 
depreciable property;  65%  of expenses related 
to contract research.  Credit is double for a 
business an Enterprise Zone Program. Refundable credit equals up to 6.5% 
of expenditures spen t in the state.  
Credit may be doubled up to 13% of 
qualified expenditures for a business 
in an Enterprise Zone Program. Ongoing  
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Page 100 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 forgivable 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 encourag e 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 
Iowa Supply Chain 
Development 
Program Iowa Department of 
Economic 
Development (Iowa Code section 15.411(10)) Grants To encourage manufacturing supply 
chain development initiatives in 
targeted industries. Targeted industries of biosciences, information 
technology, and advan ced manufacturing will 
be provided technical assistance for supply chain development th rough 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 
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  
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 Page 101State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Kansas  Kansas Economic 
Growth Act Kansas Bioscience 
Authority Grants/Convertible 
Debt Created by the Kansas Economic 
Growth Act of 2004, the Kansas 
Bioscience Authority (KBA) is 
investing in the bioscience industry to 
stimulate job growth, attract private venture capital, and increase research and business investments in the state. The KBA focuses resources in bioscience 
sectors in which Kansas has national 
leadership and expertise, including animal 
health, bioenergy, biom aterials, plant biology, 
and drug discovery and de livery;  investing in 
bioscience growth throughout the business 
cycle — from research and development to 
commercialization to e xpansion 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 
Kentucky Kentucky Rural 
Economic 
Development Act 
(KREDA) Kentucky 
Economic 
Development Cabinet, 
Department of 
Financial 
Incentives 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% of 
annual debt service costs for up to 
15 years on land, buildings, site development, building fixtures and 
equipment used in a project.  Total 
benefits can approach one year's gross wages per job.  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  
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Page 102 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Kentucky Kentucky Economic 
Opportunity Zone Kentucky Cabinet 
for Economic 
Development 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 unemploymen t 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. All enterprise 
zones expire 
by 31 
December 
2007.  
Kentucky Kentucky Industrial 
Development Act 
(KIDA) Kentucky 
Economic 
Development Cabinet, 
Department of 
Financial 
Incentives Tax Credit 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 annual debt service costs 
(principal and interest) for up to 10 years on 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. All new and expanding manufacturing projects 
are eligible for KIDA. Financing may be provided by any 
source, typically banks or industrial 
revenue bonds, except debt service paid in connection with other state 
grant programs.  Unused credits may 
be carried forward for the term of the 
agreement. Discontinued 
in 2009 
Kentucky Kentucky Tax 
Rebate Program Commerce Cabinet, 
Tourism 
Department Tax rebate To encourage commercial film and 
television production in the state. Film/Television Industry 6% sale s and use tax rebate eligible 
for motion picture and television 
production companies on expenditures made in connection with the production. Ongoing 
Kentucky Commonwealth 
Seed Capital LLC Kentucky Cabinet 
for Economic 
Development 
Department of 
Commercialization 
and Innovation Loans To facilitate th e commercialization of 
innovative ideas and technologies 
developed in Kentucky.  CSC 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  
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 Page 103State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 (exc luding secondary and 
demolition wastes) and for machinery used exclusively to manufacture products composed substantially of postconsumer waste materials. For the year the equipment is 
purchased, the credit is limited to 10% 
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 businesses Th is 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 f easibility of an idea 
or technology. Phase 2 federal awards, 
which support full-scale research and 
development, would be matched by the commonwealth up to $500,000 in 
each year of the award. Phase 0 and 
Phase 00 funds are available to assist with preparing proposals for Phase 1 and Phase 2 grants, respectively.  Ongoing 
Kentucky  Kentucky Jobs 
Retention Act 
(KJRA)  Kentucky 
Economic 
Development 
Finance Authority 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 rec overy could be 
increased up to 75% if investments are made at multiple sites. 10 years 
Kentucky  The Kentucky 
Reinvestment Act 
(KRA)   Kentucky Cabinet 
for Economic 
Development Tax Credit To encourage reinvestment in 
Kentucky facilities. Automobile assembly manufacturers with an 
existing workforce of at least 1,000 
employees.  The project must involve a 
minimum reinvestment of $100,000,000 and is 
not available to any company that has participated in the KIRA program within the previous five years.  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, 
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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
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 sha ll 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 5 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 thirty 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 
and/or rebates are granted, unless another amount is established by 
contract.  The total amount of rebates 
of local sales/use taxes granted for any fiscal year shall not exceed one 
hundred per cent 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 Loui siana, 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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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 in centive 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 lo cated in a Downtown 
Development District, an Historic District, an 
Economic Development District or be listed on 
the National Register for Historic Places. Property taxes may be abated on the 
amount of improvements to existing 
structures, for a five year period and may be renewed for an additional five years. Ongoing 
Louisiana University Research 
and Development 
Parks Income and Franchise Tax 
Exemptions and 
Credits Department of 
Economic 
Development Mixed Tax Firms located in university research 
and development parks may be 
granted exemptions for state corporation income and franchise 
taxes. Firms located in university 
research and development parks may be granted tax credits against state 
corporate income and franchise tax 
liabilities.  Such credits, which may be carried forward up to five years, shall 
not exceed the cost of purchase by the 
concern of machinery and scientific 
equipment used on the firm's premises.University research and development parks. The total amount of state tax rebates 
and/or exemptions granted for any 
fiscal year shall not exceed thirty (30) 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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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Louisiana University Research 
and Development 
Parks Sales and Use Tax Rebates Department of 
Economic 
Development Tax Refund Qualified firms located in University 
Research and Developments Parks 
may be granted rebates for state and/or 
local sales/use taxes on machinery and 
equipment to be used by the applicant, on materials and building supplies to 
be used in the repair, reconstruction, 
modification, or construction of facilities and on materials and supplies 
necessary for or used in the production 
of the applicant's 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 park s. Annual tax exempti ons, rebates and/or 
credits are subject to the following 
limitations:  The total amount of state 
tax exemptions and/or rebates granted 
for any fiscal year shall not exceed thirty 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 
and/or rebates are granted, unless another amount is established by 
contract. 
The total amount of rebates of local sales/use taxes granted for any fiscal 
year shall not exceed one hundred per 
cent 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 industries identified by the state as target 
industries, and to applicants located in areas of 
the state with high unemployment levels. The New Employee Training award 
may cover up to 100% 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 5 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  
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Authority Form of Subsidy 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 
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 
Credit Department of 
Economic and 
Community 
Development Tax credit Tax credit for businesses engaged in 
high-tech activities. Business primarily engaged in high-tech 
activities;  high-tech activities include the 
design, creation, and production of computer software, computer equipment, supporting 
communications components and other 
accessories that are directly associated with computer software equipment;  it also includes 
the provision of Internet or advanced 
telecommunications services. The credit amount is equal to the 
adjusted basis of eligible equipment 
placed in service in Maine less any lease payments received during the 
taxable year;  the credit cannot reduce 
the tax liability to less than the preceding tax year's liability after the 
allowance of any credits, and it cannot 
reduce the tax liability in the current year below zero;  unused portions of 
the credit may be carried forward 
5 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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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maine Maine Technology 
Institute Maine Technology 
Institute Grants Maine Technology  Institute (MTI) will 
provide research & development 
money to companies and non-profit 
research organizations in the State of 
Maine to support the commercialization of new technology-
related products and services that will 
create and support sustainable, high-
quality jobs for Maine people.  Awards are made on a competitive basis and 
support efforts in any of the state's seven 
targeted technology areas:  Advanced 
Technologies for Forestry and Agriculture, 
Aquaculture and Marine Technology, Biotechnology, Composite Materials 
Technology, Environmental Technology, 
Information Technology, and Precision 
Manufacturing Technology. All MTI programs require a 1:1 cash 
match, and are awarded based on 
scientific or technical merit, 
commercial feasibility, and potential 
for economic impact to the State. MTI offers three awards programs.  These 
awards are considered on an on-going 
basis:   1) Development Awards are 
competitive awards of up to $500,000 
per project and are awarded twice a year;   
2) Seed Grants, awarded four times 
per year, are competitive grants of up to $10,000 per project to support very 
early activities for product 
development, commercialization, or business planning and development;  
3) Cluster Enhancement Awards are 
competitive grants for up to $100,000 for collaborative projects that will 
stimulate and support the formation 
and growth of technology businesses 
and their infrastructure.  Ongoing 
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_maine/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  
   G/SCM/N/186/USA
 Page 109State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maryland Businesses that 
Create New Jobs 
Tax Credit State Department of 
Assessments and 
Taxation Tax Credit Businesses locat ed in Maryland that 
create new positions and establish or 
expand business facilities in the state 
may be entitled to a tax credit.  The 
program is only available in certain 
counties. The business must create at least 25 new 
positions as part of a new or expanded 
business facility in Maryland (5,000 square 
feet or more).  Busine sses 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 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 
Office Wage Rebate To encourag e 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 
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  
  G/SCM/N/186/USA 
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maryland  Challenge 
Investment Program Department of 
Business and 
Economic 
Development 
(DBED) Equity This program provides financing for 
seed-stage companies to cover a 
portion of the initial costs associated with bringing new products to market. Requirements include: 
• The business must have no more than 
25 employees and annual sales of less than 
$1 million.              
• A minimum 1:1 co-investor match is required.  
• Applicants are limited to high tech 
companies whose principal place of business is located in Maryland.  
• The company must remain in Maryland for at 
least three years.  Initial investments are made up to 
$50,000, with incremental 
investments to a maximum of 
$150,000. These incremental 
investments are awarded based upon the client's performance and the 
client's ability to achieve milestones 
set by the Investment Financing Group staff at the time of the initial 
closing.  Investment decisions are 
based on the project's potential return on investment, market potential, 
experience and credibility of the 
management team, and impact on the Maryland economy. Investment 
decisions are also based on the 
strength of the technology (e.g., patents, highly proprietary 
developments preferred).  Companies 
receiving a Challenge investment must pay a 2% 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 
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 fi nancing and job 
training resources. Ongoing 
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 ag ree to maintain its 
principal place of business n Maryland for 5 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  
   G/SCM/N/186/USA
 Page 111State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maryland  Enterprise Zone Tax 
Credits Maryland 
Department of 
Business and 
Economic 
Development 
(DBED) Tax Credit Enterprise zones in the state offer an 
attractive locational 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 zones, Maryland has three Federal 
Empowerment Zone areas that have 
enterprise zone status. These zones represent different mixes of industrial 
and commercial activity that will meet 
the circumstances and preferences of 
new or expanding businesses. Ongoing.  
Enterprise zone 
designation is 
for 10 years;  
Focus area designation is for 5 years. 
Maryland  Job Creation Tax 
Credit Maryland 
Department of 
Business and Economic 
Development 
(DBED) Tax Credit Maryland's Job Creation Tax Credit 
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 
priority funding area. The new or expanded fac ility 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, data 
processing 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 "Priority Funding Area"). A business may also be engaged in the operation 
of entertainment, recreation, cultural or 
tourism related activities in a multi-use facility located within a rev italization area if the 
facility generates a minimum of 1,000 new 
full-time equivalent fille d 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 qualified business entity may not exceed $1 million per credit year. The Job 
Creation Tax 
Credit remains in effect until 1 
January 2014, 
subject to extension by 
the General 
Assembly. 
Maryland  Maryland Economic 
Adjustment Fund 
(MEAF) Department of 
Business and 
Economic Development (DBED) Loan MEAF was established as a non-
lapsing revolving fund to make loans 
to new or existing companies in communities suffering dislocation due 
to defense adjustments to enable the 
companies to modernize their manufacturing operations, develop 
commercial applications for 
technology, or enter into and compete 
in new economic markets • Applicants must demonstrate credit 
worthiness, the ability to repay the obligation, 
and the inability to obtain financing on affordable terms through normal lending 
channels.  
• State designated eligible locations include Baltimore City and Baltimore, Howard, Anne 
Arundel, Harford, Queen Anne's, Somerset, 
Worcester, Dorchester, Allegany and Washington counties.  
• A loan may not be used to relocate jobs from 
one commuting area to another.  The program is administered in 
accordance with the guidelines 
imposed by the Federal Government's Economic Development Act (EDA). 
The maximum amount of the loan to 
any one borrower is $500,000.  
 Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maryland  Maryland Economic 
Development 
Authority and 
Assistance Fund 
(MEDAAF) Department of 
Business and 
Economic 
Development 
(DBED) Mixed Financing Provide assistance to the business 
community and political jurisdictions. To qualify for assistance from MEDAAF, 
applicants are restricted  to businesses located 
within a priority funding area and an eligible industry sector. There are five financing capabilities 
offered through this incentive 
program, with assistance being 
provided to the business community 
and political jurisdictions. The specific program determines the level 
and type of financial assistance 
provided.  The specific capabilities are: 
• 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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the Program 
Maryland  One Maryland 
Economic 
Development Tax Credits Department of 
Business and 
Economic 
Development 
(DBED) Tax Credit To encourage economic development 
projects in distressed counties of the 
state. The business project must be located in a 
"qualified distressed county:" Baltimore City 
or Allegany, Caroline , Dorchester, Garrett, 
Somerset or Worcester County.  The business 
entity must be primarily engaged at the facility in one or more eligible industries:  
manufacturing,  agriculture, testing, computer 
programming, mining,  fishing,  research,  computer-related services,  transportation,  
forestry,  development,  data processing, 
central insurance services, biotechnology, communications, company headquarters, 
central financial services, business services, 
public utility, central ad ministrative 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. Businesses can qualify for up to 
$5.5 million in tax credits under the 
One Maryland Tax Credit Program.  
A qualified business entity may claim 
both a start-up tax credit and a project tax credit.  Tax credits may be 
claimed against State income, 
insurance premium, or financial institution franchise tax. 
Project tax credits of up to $5,000,000 
are based on qualifying costs and expenses incurred by the business 
entity in connection with the 
acquisition, construction, rehabilitation, installation, and 
equipping of an eligible economic 
development project. The business entity must incur at least $500,000 in 
eligible project costs and must create 
at least 25 new qualified positions.  Start-up tax credits of up to $500,000 
are based on a business' cost to furnish 
and equip a new location for ordinary business functions and to move to a qualified distressed county from 
outside Maryland. (50 qualified new 
positions are required to qualify for 
the full $500,000 credit.)  Ongoing 
Maryland Neighborhood 
Business 
Development 
Program Department of 
Housing and 
Community Development (DHCD) Loans The Neighborhood Business 
Development Program provides 
flexible gap financing through loans to 
small businesses. Small businesses starting or expanding in 
locally-designated revitalization areas 
throughout the state. Loans ranging form $25,000 to 
$500,000 are provided to small 
businesses at below-market interest rates.  Loans and grants are also made 
to non-profit organizations whose 
activities contribute to a broader 
revitalization effort. Ongoing 
Massachusetts Economic 
Development 
Incentive Program 
(EDIP) Massachusetts 
Office of Business 
Development Tax Credit Designed to stimulate job creation in 
distressed areas, attract new 
businesses, encourage existing businesses to expand and increase the 
overall economic development 
awareness and readiness of the 185 participating cities and towns across the Commonwealth.   Designated Economic Target Areas.  Through the EDIP, businesses and 
communities negotiate a local real 
estate tax incentive agreement.  In turn, these businesse s become eligible 
for the state's enhanced 5% 
Investment Tax Credit and, where applicable, the state's 10% Abandoned 
Building Tax Deduction.  In addition, 
the program also targets and prioritizes capital spending, including 
such programs as Public Works for 
Economic Development (PWED) monies and Community Development Action Grants, to communities within Economic Target Areas. Ongoing  
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the Program 
Massachusetts Investment Tax 
Credit Massachusetts 
Office of Business 
Development Tax Credit Massachusetts gives businesses a 3% 
Investment Tax Credit against 
corporate excise tax for the 
construction of manufacturing 
facilities.  The credit also applies to 
the purchase or lease of equipment. Companies involved in manufacturing, 
research and development, agriculture or 
commercial fishing in designated Economic Target Areas. Unused portions of the tax credit may 
be carried over to subsequent years. 
An enhanced 5% investment credit is available. 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 rate at prime 
plus a premium. Ongoing 
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 debt financing for specialized 
research and development or 
manufacturing facilities. Two types of projects are eligible for 
financing:  1) The fund can be used to 
leverage private financing for the construction of state of the art 
manufacturing, research and 
development facilities. 2) The fund can be used to provide matching grants 
to universities and private institutions 
for advanced research and development of new and emerging technologies in the Commonwealth. Technology Companies The maximum guarantee amount is 
$1,500,000 or 50% 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  
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 Page 115State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 entitled 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. Ongoing 
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 $ 7 million. Ongoing 
Michigan Border County 
Incentives Michigan 
Economic 
Development 
Corporation Tax Abatement   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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the Program 
Michigan MEGA High-Tech 
Tax Credits Michigan 
Economic 
Development Corporation Tax Credit To promote the development of high-
tech businesses in both traditional and 
emerging 
industries by providing a tax credit 
against the Michigan Business Tax (MBT) and assist in the diversification of Michigan's economy. The following business activities that qualify 
under the statutory high- technology definition 
are as follows: 
Advanced computing used in the design and 
development of computer hardware and software, data communications, information 
technologies and film and digital media 
production Advanced materials Biotechnology 
Electronic device technology 
Engineering or laboratory testing related to thedevelopment 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 5 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 CreditsMichigan 
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 5 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 
Michigan Mich igan Incentive 
Pass Michigan Film 
Office Tax rebate  To encourage film production within 
the State. Film Industry Graduated scale for rebate based on 
spending in state. $200,000-$1million 
(12%);  $1million-$5million (16%);  
$5million-$10million (20%);  > 
$10million (20% on first $10 million 
spent) Effective 1 
January 2007  
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the Program 
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 certification in four new opportunistic markets. Showcase 
Michigan's manufacturing talent at 
national events. Create an online matchmaking database to connect 
Michigan manufacturers to national 
original equipment manufacturers (OEMs). Most importantly, realize 
$1 billion in new multi-year contracts 
upon completion of the program's 
first year.  Growing Industry Sectors:  Alternative Energy  
Wind Focus 
Defense & Homeland Security   
Aerospace    
Medical Devices     Up to $10,000 in a matching-funds 
grant to be used for re-training of 
workers and re-positioning of the company. Ongoing 
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 (Way ne State University), 
Grand Rapids (Grand Valley State University/Van Andel Institute), 
Houghton/Hancock (Michigan Technological 
University), Kalamazoo (Western Michigan University), Lansing/E. Lansing (Michigan 
State University), Mt. Pleasant (Central 
Michigan University), Muskegon (Grand Valley State University), Oakland County (Oakland University), and Pinnacle Aeropark. Business accelerator services include, 
but are not limited to: 
 Business development mentoring 
Networking events 
Business feasibility studies Business planning 
Entrepreneurial training 
Grant writing Incubator and wet lab space Management recruitment 
Market analysis 
Product development Small Business Innovation Research 
(SBIR) assistance 
Small Business Technology Transfer (STTR) assistance 
Technology assessments 
Technology mining Venture capital preparation and introductions Ongoing 
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  
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the Program 
Michigan Technology 
Collaboration Tax 
Credit Michigan 
Economic 
Development Corporation Tax Credit Develop strategic partnerships 
between 
emerging technology companies and 
larger, established businesses by 
providing an incentiv e for the larger 
companies to invest in the smaller 
companies, while helping to diversify 
Michigan's economy. The investment occurs through funding, support and 
collaboration in the research and 
development and technology 
innovations for emerging markets. The larger, established company assumes the 
role of a qualified taxpayer proposing to fund, 
support and collaborate in the research and 
development and technol ogy innovation with 
an eligible business located in Michigan. 
Only one credit per year  may be granted to a 
qualified taxpayer. The smaller, emerging 
technology company is the eligible business engaged in research and development. 
The company, alone or with affiliates, must 
employ fewer than 50 full-time employees or have gross receipts of less than $10 million. 
The eligible business and qualified taxpayer 
cannot have a prior financial relationship. 30% of the value of the contribution 
from the qualified taxpayer to the 
eligible business is eligible with a maximum up to $300,000. 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 5-year average. Determined on a case-by-case basis. Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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 co mpany 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 seven 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 compan ies 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 technol ogy innovation with 
an eligible business locat ed 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  
  G/SCM/N/186/USA 
Page 120 State Program Title Program 
Authority Form of Subsidy 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 approximate ly $7 million in 
competitive grants to companies that 
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. Ongoing 
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 1/2 of 1% of the estimated value of the incentive will 
be collected.  This fee is payable at 
the time the company is certifying its eligibility to receive awards and is 
limited to no more than $100,000. Ongoing 
Michigan The 21st Century 
Jobs Fund Michigan 
Economic 
Development 
Corporation Grants and Loans Spark new investment, creating high-
tech companies and jobs to diversify 
the economy by investing in basic research at universities and non-profit 
research institutions, applied research, 
university technology transfer, and the commercialization of products, processes, and services. A preference for proposals that can contribute 
to the development of economic diversification 
or the creation of employment opportunities in Michigan.  The four  competitive-edge 
technologies are: 
• Life sciences • Alternative energy 
• Advanced automotive, manufacturing and 
materials • Homeland security and defense 
• Also supported are advanced computing or 
electronic device technology, design, engineering, testing, diagnostics, or product 
research and development related to any of the 
four competitive-edge technologies. Appropriated $394 million in 
FY2005-06, $80.7 million in FY2007-
08, and $63.25 million in FY2008-09.  Annual appropriations of $75 million for FY2009-10 through FY2014-15. Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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 
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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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Mississippi Minority Surety 
Bond Guaranty 
Program Mississippi 
Development 
Authority Guarantee This program was created to enable 
minority contractors, not meeting the 
surety industry's standard underwriting 
criteria, to obtain bid and performance 
bonds on contracts with state agencies and political subdivisions within Mississippi. Eligible Minority Business owners include 
women and minorities that meet the 
qualifications below: 
    * Be in the construction or building trade 
business;     * Be a certified Minority Business 
Enterprise through the Minority Business 
Enterprise Division of the MDA;     * Have been in business at least one year 
prior to application; 
    * Have its principal place of business located in Mississippi; 
    * Meet experience and financial standards 
appropriate to the contract;     * Agree to subcontract no more than 75% 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 5 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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the Program 
Mississippi Sales and Use Tax 
Exemption Mississippi 
Development 
Authority Tax Exemption To assist new or expanding 
manufacturers located in less 
developed counties. New or expanding manufacturers located in 
less developed counties. New or expanding manufacturers 
located in less developed counties pay 
no sales taxes for:  (1) building 
construction materials, or 
(2) purchases of machinery or equipment associated with a location 
or expansion, if the building materials 
or equipment are purchased directly from a supplier.  New or expanding 
manufacturers located in either 
moderately devel oped 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 EnterprisesMississippi 
Development 
Authority 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 in clude 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 Mississippi 
Development Authority (MDA). A reduced rate of 1.5% for sales of 
machinery and parts for plant use only 
when the machin ery 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. Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Mississippi Advantage Jobs 
Incentive Program Mississippi 
Development 
Authority Tax rebate This program is designed to assist 
qualified companies that promise 
significant development of the 
economy of the State of Mississippi 
through the creation of quality jobs. In order to receive benefits under the 
Advantage Jobs program, a company must be 
able to demonstrate that the creation of 
proposed jobs will provide a direct benefit to 
the State. To qualify, the company must meet the following requirements at the time an 
application is submitted: 
    * Any business except retailers and gaming establishments that create and maintain a 
minimum of 10 full-time jobs in a Tier Three 
county or 25 full-time jobs in a Tier One or Two county; 
    * Data or information 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 less;  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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Missouri Missouri "Build" 
Program Department of 
Economic 
Development/Miss
ouri 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.  The 
bonds may be used to finance public or private infrastructure used to support the project, or 
the new capital improvements of the business 
at the project location.  Bond proceeds may not be used for working capital, inventory or other 
operating costs of the business or other entity.  
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 must be sold on the basis 
of the business' credit.  The options 
are (a) the business purchases a bank 
letter of credit or bond insurance;  
(b) the business has an investment bond rating;  (c) the business arranges 
for a private placement purchase of 
the bonds;  or (d) the business purchases the bonds.  The political 
subdivision benefiting from the 
project or other local entities must commit significant local incentives.  
Such incentives may include tax 
abatement, discounted utility fees or others.  Minimum bond issue:  $500,000. Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Missouri Real Property Tax 
Increment 
Allocation 
Redevelopment 
(TIF) Department of 
Economic 
Development Loan Tax increment financing can be used 
in any city or county in the State of 
Missouri.  This program, which 
provides incentives for investment in 
areas to be redeveloped, rehabilitated or revitalized, helps small 
communities finance the construction 
of necessary public improvements, such as sewers and roads.  To 
encourage such development, real 
property tax revenues and 50% 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 in creased 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 
earmarked by law, or 2) state income tax withholding.  An aggregate annual 
appropriation of new state revenues 
for super redevelopment areas is limited to $15 million.  The duration 
of redevelopment projects shall not 
exceed 23 years. The 2005 Legislative Session increased program cap to $32 million. Ongoing 
Missouri Wine and Grape 
Production Tax 
Credit Program  Department of 
Economic 
Development Tax Credits To attract bus iness into the state of 
Missouri. Vineyards and wine producers. State income tax credit to an 
individual, partners hip 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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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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 majority 
of their annual revenues will be derived from 
services provided out of the state.  State tax credits will be an amount 
authorized by DED based on the 
number of new jobs/payroll and new 
capital investment that the project 
creates, The real property tax abatement is determined by the 
sponsoring community and may be 
between 50% 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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the Program 
Missouri Missouri Rural 
Economic Stimulus 
Act Missouri 
Department of 
Economic 
Development, 
Department of 
Agriculture Loan A portion of the new state and local 
taxes created by the production facility 
project may be diverted to fund 
construction of eligible public 
infrastructure and related costs for a period of up to 25 years. The local 
funding must be, at a minimum, 50% 
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 Missour i 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 $1million available per 
project. Ongoing  
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the 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. The statute permits governing authorities to 
petition the Department of Economic 
Development to have the boundaries of an 
existing enterprise zone expanded.  The 
expansion may be approved if there have been no more than three expansions. 
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% 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 pr oject:  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 Busi nesses:  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/186/USA 
Page 130 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Montana Film Production 
Refundable Tax 
Credit Montana Film 
Office/Dept. 
Revenue Refundable Tax 
Credit Provide tax incentives to attract film 
production in the state Film industry 14% refundable tax credit for 
Montana crew and talent salaries, 9% 
refundable tax credit on production 
related expenditures 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 
Program Office 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 
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 developmen t 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  
   G/SCM/N/186/USA
 Page 131State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
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 manuf acturers, 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 fo r credits attained over 
a seven year period and accumulated credits may be used during a 15 year period.  If 
required levels of inve stment 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 av ailable to ethanol producer s. $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  
  G/SCM/N/186/USA 
Page 132 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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 
creation, 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 
6/1/2005 
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 5 or fewer employees Businesses with 5 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 following 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 
2/1/2000  
   G/SCM/N/186/USA
 Page 133State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Nebraska The Nebraska 
Advantage Rural 
Development Act Department of 
Revenue Tax Credit limited 
to $3 million per 
year through 2008-
09 and $4 million 
beginning in 
FY2009-10 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;  or livestock modernization projects which have invested at least 
$50,000.  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 
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 5 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  
  G/SCM/N/186/USA 
Page 134 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Hampshire Coos County Job 
Creation Tax Credit New Hampshire 
Department of 
Resources and 
Economic 
Development 
(DRED) Tax Credit Help attract new companies and help 
grow existing companies who are 
creating new jobs above a base line wage. Any business locating in Coos County in 
northern New Hampshire This program is a tax credit to 
businesses hiring new employees in 
Coos County and paying wages equal 
to or above 200% 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  
   G/SCM/N/186/USA
 Page 135State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Jersey Business Retention 
and Relocation 
Assistance 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  
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 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, ten 
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 
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  
  G/SCM/N/186/USA 
Page 136 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 e ligibility 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 
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  
   G/SCM/N/186/USA
 Page 137State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
Certificate 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 le ss, 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 gr ants 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. Eligible business owners are those who own or 
operate less than 10 petroleum underground 
storage tanks in New Jersey;  have a net worth of less than $2 million, and can demonstrate 
the inability to obtain a commercial loan for all 
or a portion of the eligible costs. To qualify for hardship grants, the applicant 
must have a taxable income of less than 
$250,000 or net worth of less than $500,000, exclusive of applicant's primary residence and 
pension plans, and must  satisfy a financial 
hardship test.  A business 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/186/USA 
Page 138 State Program Title Program 
Authority Form of Subsidy 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.   Qualified retailers may charge 50% of 
New Jersey sales tax on "in person" 
purchases;  sales tax exemptions for 
materials and for tangible personal 
property.  Other zone benefits may include:  a one-time corporation tax 
credit of $1,500 for the full-time 
hiring of residents of a city where a Zone is located or a corporation tax 
credit of $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 locat ed 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  
   G/SCM/N/186/USA
 Page 139State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Mexico Enterprise Zones 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. Ma ximum Program Benefits:$50,000 
tax credit to property owners for the 
rehabilitation of qualified business 
facilities;  Fast tracking of-
infrastructure projects;  Tax increment method of financing local enterprise 
zone projects;  Local property tax 
abatement for 10 years on selected property;  Building rehabilitation tax 
credit up to $50,000;Special CDBG 
funds for infrastructure grants and low-interest economic development 
loans;  Technical assistance is 
available through workshops and one on-one meetings to assist  local 
governments in coordinating their 
targeted development efforts;  and 65% in-plant training reimbursement for qualified businesses. 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 Industrial 
Development 
Training Program NM Economic 
Development  
Department Grant The Job Training Industrial 
Development Program (JTIDP) 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:  50-80% 
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, not 
to exceed 40 hours per week, and are based on job z one and other 
qualifying factors.  Trainer costs 
and/or costs outlined in the training plan are reimbursed to the business at 
the approved percentage.  The 
program requires application and 
approval by the JTIP board.   Ongoing 
New Mexico New Mexico 
Property Tax 
Abatement Tax Information 
Office 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 elig ible 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  
  G/SCM/N/186/USA 
Page 140 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Mexico Preferential Tax 
Rate for Small 
Wineries and Breweries New Mexico 
Taxation and 
Revenue Department Tax 
Abatement/Reducti
on 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 Rural Development 
Direct Business and 
Industry Loan 
Program Rural Development Loan Loans to  private entrepreneurs. Rural communities under 50,000 population.  
Funding is targeted to projects located in New 
Mexico's Champion Communities and the 
La Jicarita Enterprise Community. Maximum Program Benefits:  
$500,000 budget. Interest:  Currently 
8.25% and subject to change on a 
quarterly basis. Ongoing 
New Mexico Tax Increment 
Financing New Mexico 
Taxation and 
Revenue 
Department Loan Tax increment financing is a 
mechanism for raising funds for 
economic development purposes.  Tax increment financing in New Mexico is 
available only in a designated enterprise zone.  At the beginning of a project, the 
valuation of the project properties is 
summed.  As the project proceeds, these properties are developed or 
otherwise improved, increasing their 
valuations.  The tax proceeds flowing from the increase in valuation may be diverted to finance the project. Ongoing 
New Mexico 25 per cent Film 
Production Rebate 
Program New Mexico Film 
Office Tax refund To attract business and investment to 
state. Film Industry 25% tax rebate on production 
expenditures (including New Mexico 
labor) that are subject to taxation by the State of New Mexico. Capped at $15 million per project. Ongoing 
New Mexico Film Investment 
Loan Program New Mexico Film 
Office Loan To attract business and investment to 
state. Film Industry Loan with participation in lieu of 
interest, up to $15 million per project 
(which can represent 100% of the 
budget) for qualifying feature films or 
television projects. Terms are negotiated and budget must be at least $1 million. Ongoing 
New Mexico No State Sales Tax New Mexico Film 
Office Tax exemption To attract business and investment to 
state. Film Industry No state sales tax. Ongoing 
New Mexico Film Crew 
Advancement 
Program New Mexico Film 
Office Labor & Training 
Reimbursement 
Funds The Job Training Industrial 
Development Program sets aside a portion of the allocation to be used 
directly for the film industry.    Film Industry Varying percentage reimbursement of 
wages for on the job training for residents in advanced below the line 
crew positions. New Mexican supervisors and keys have the 
opportunity to hire and mentor 
qualifying crew in advanced positions 
for this program. Ongoing  
   G/SCM/N/186/USA
 Page 141State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Mexico High Wage Tax 
Credit 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). The credit equals 
10% of the wages and benefits paid for each new job and may be taken up to four years. 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 and 
may be taken up to four years. Ongoing 
New Mexico Rural Jobs Tax 
Credit Economic 
Development Department & 
Taxation and Revenue Department  Tax Credit Eligible employers may receive a tax 
credit of 6.25% of the first $16,000 in wages paid for a qualifying job. The 
credit may be taken for up to four years depending on the size of the 
rural community where the business is 
located. 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. Ongoing 
New Mexico Aircraft 
Manufacturing Tax 
Deduction Economic 
Development Department & 
Taxation and Revenue Department  Tax Deduction Receipts of an aircraft manufacturer or 
affiliate from selling aircraft or aircraft parts, or from selling services 
performed on aircraft or aircraft components or from selling aircraft 
flight support, pilot training or 
maintenance training services may be 
deducted from gross receipts. Aerospace/Aircraft Not available. Ongoing 
New Mexico Alternative Energy 
Product 
Manufacturers Tax 
Credit 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 Renewable Energy 
Production Tax 
Credit 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 
ten consecutive years, beginning with the first year of production. This credit is fully refundable. Ongoing  
  G/SCM/N/186/USA 
Page 142 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Mexico Technology Jobs 
Tax Credit 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 Direct Loan Program Job Development 
Authority Loan This program, funded through the sale 
of state guaranteed bonds and notes, provides tax-exempt (if eligible 
pursuant to applicable federal law) or taxable bond proceeds. These bond 
proceeds provide financing for the 
growth of manufacturing and other private businesses in New York State, 
in cooperation with Local 
Development Corporations (LDCs) and other Federal and State agencies.  
Financing may be used for the 
acquisition of land, structures, machinery and equipment;  
construction, modernization, and  
renovation of existing facilities and sites;  Loans may be used to purchase 
new or used machinery and equipment 
used in New York State;  Fixed and variable interest rates on direct loans 
for machinery and equipment secured 
by a first priority lien (may be co-equal with a participating lender) on the underlying assets, and second 
mortgage loans for real estate 
acquisitions, construction, or renovations;  No interim or 
construction financing;  Real estate 
loans for terms up to 20 years, and machinery and equipment loans for 
terms up to 10 years or the useful life 
of the collateral, whichever is less. Eligible recipients include small and medium-
sized businesses in manufacturing, distribution, warehousing, and certain service 
industries.  Retail, hotel, or residential facilities, real estate and media/film 
organizations, professional corporations, 
personal service,  medical organizations, and loans for rolling stock, motor vehicles, or 
waterborne craft are not eligible.  Projects 
must show that they anticipate creating or retain one job for every $35,000 of program assistance. A typical JDA assisted financing 
structure is:  50% private or public participating co-lender, 40% JDA, and 
10% equity contribution of loan recipient.  Loans are secured by a 
second lien on the commercial 
property (but subordinate to no more than 50% of project cost) and a 
proportionally co-equal first lien 
position with other lenders for machinery and equipment.  Direct 
loans of $50,000 to $1,500,000 or no 
more than 40% of total eligible project cost (up to 60% in some cases, 
including projects in economically 
distressed areas) Ongoing  
   G/SCM/N/186/USA
 Page 143State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New York Empire Zones 
Program NYS Department of 
Economic 
Development Mixed Tax 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 
expires 30 June 
2010. 
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 facilitie s, 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  
  G/SCM/N/186/USA 
Page 144 State Program Title Program 
Authority Form of Subsidy 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/186/USA
 Page 145State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New York General 
Development 
Financing Job Development 
Authority Loan Assistance 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 
New York Metropolitan 
Economic 
Revitalization Fund 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  
  G/SCM/N/186/USA 
Page 146 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New York Motion Picture and 
Television 
Development Assistance Office for Motion 
Picture and 
Television Development Business assistance 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. 
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 
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). 1.  QETC Employment Credit -- 
$1,000 per new employee for up to 
3-years.               
2.  QETC Capital Tax Credit -- 10% 
or 20% of qualifying investment in a QETC.          
3.  QETC Facilities, Operations, 
Training Credit -- sum of:  18% qualifying R&D property;  
9% qualifying R&D expenditures;  
100% of qualified high technology training expenses;  (maximum credit 
of $250,000 per year, for up to 4-
years).     1 and 2 are 
ongoing;  
3 expires 12/31/2011.  
   G/SCM/N/186/USA
 Page 147State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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. Tax credits permit businesses to 
operate on a virtual "tax-free" basis 
for up to 10 years.    
 Sales Tax Refunds:  A 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. The state portion of the refund is 
only available if the locality also 
offers the local portion of the sales tax refund. 
 
Real Property Tax Credit:  A 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:  A 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. 
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 developm ent 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.   Available funding for the two Funds is 
as follows:       Upstate Fund:  $120 million  
    Downstate Fund:  $35 million The Upstate 
Fund and Downstate 
Fund were enacted in 
2008, with the 
first round of awards being 
announced in 
October 2009.   
  G/SCM/N/186/USA 
Page 148 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New York Minority and 
Women-Owned 
Business (MWBE) 
Development & 
Lending Program    Empire State 
Development 
Corporation Loans To provide financial assistance to 
Minority and Women-Owned 
Business Enterprises (MWBE) in the 
State, as well as to projects and 
programs that assist the development of entrepreneurship among minority 
persons and women in New York 
State. Eligibility 
  
Eligible Recipients include: 
 
Certified minority and/or women-owned business enterprises  
Banking organizations  
Technical assistance providers  Incubator sponsors  
Municipalities  
Authorities  Agencies  
Administering corporations  
  Ineligible Recipients include: 
 
Educational institutions  Hospitals  
Residential health care facilities  
  Eligible Uses include: 
 
Linked deposits, minority and women revolving loan trust fund  Contractor development assistance  
Business development loans, franchise loans  
Loan guarantees  Incubator assistance  
  
Ineligible Uses include:  
Refinancing, retiring or liquidating existing 
debt or equity  Residential construction projects, except for 
government-sponsored projects  
Payment of tax or employee benefit arrearages Projects for newspapers, broadcasting, news 
media, medical facilities, libraries, community 
centers or public infrastructure  The program provides financial 
assistance through: 
 
Lending in conjunction with local, 
community and regionally-based entities  
Lending for certified government 
contractors and eligible government contractors  
Direct financial assistance  
Incubator assistance  
Technical assistance  Ongoing   
   G/SCM/N/186/USA
 Page 149State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 productiv ity 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 inte rest rates. These 
bank loans are subsidized by 
corresponding "linked" state deposits. 2% interest rate reduction for: 
 
Manufacturers with 500 or fewer full-time 
employees in New York State  
Service firms with 100 or fewer full-time employees in New York State that are 
independently owned and operated and not 
dominant in their field    
3% interest rate reduction for: 
 Empire Zone certified business with 100 or 
fewer full-time employees in New York State 
Businesses in highly distressed census tracts with 100 or fewer full-time employees  
Businesses in a Federal Empowerment Zone, 
or Enterprise or Renewal Community with 100 or fewer full-time employees  
Certified Minority- or Women-Owned 
Business Enterprises (MWBEs) that need 
financing to fulfill a New York 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 
North Carolina Worker Training 
Tax Credit Department of 
Commerce Tax Credit Firms eligible for the jobs creation tax 
credit or the machinery and equipment 
tax credit can take a credit of 50% (up to $500 credit value for each employee 
trained in Tier 2-5 counties) against 
eligible training expenses if the firm provides training for 5 or more 
employees.  If the firm is located in 
Tier 1, the maximum credit is $1000 
per employee. Eligible Companies are manufacturing, 
processing, warehousing, distribution, data 
processing, air courier service, electronic mail order, central administrative office as defined 
in NAICS codes.  A company's NAICS code 
must be in one of the categories listed above.  NAICS codes are designated by the Employment Security Commission. There is a 5 year carry forward 
available for any u nused credits.  The 
credit (including carry forwards) may not exceed 50% of the tax  against 
which it is claimed, reduced by the 
sum of all other credits allowed against that tax, excluding payments 
made by the taxpayer.  Either the 
income tax or franchise tax may be 
elected, but not both. 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.  Over the next 
15-20 years 
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. Ongoing 
North Carolina Sales and Use Tax 
Break Department of 
Commerce Sales and Use tax 
cap To encourage business development 
within the State. Film Industry Cap of 1% "privilege" tax on sales and 
use tax purchases or rentals of times 
used in the making of films. Ongoing  
  G/SCM/N/186/USA 
Page 150 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
North Carolina Film Incentives Tax 
Credit  Department of 
Commerce Tax Credit To encourage business development 
within the State. Film Industry A 25% tax credit to filmmakers who 
spend at least $250,000 in qualified 
production-related expenses and a 
point-of-purchase 1% Sales and Use 
tax certificate when purchasing 
production-related goods and services.Ongoing 
North Carolina Jobs Creation Tax 
Credit Department of 
Revenue Tax credit To encourage business location and 
expansion in North Carolina. To qualify for Article 3J  Credits, the following 
eligibility requirements must be met:   
 1.The primary activity at the business 
establishment must be an eligible type of 
business, which includes:   aircraft maintenance and repair;  air courier 
services hub;  company headquarters that 
creates at least 75 new headquarters jobs;  customer service call centers;  electronic 
shopping and mail order houses;  information 
technology and services;  manufacturing;  motorsports facility;  motorsports racing team;  
research and development;  warehousing;  and 
wholesale trade. 
 2. The average wage of all full-time 
workers employed by the taxpayer at the 
establishment during the taxable year must meet or exceed the applicable wage standard 
of the county in which the establishment is 
located.  Note:  There is no wage standard for 
taxpayers located in a tier one county.  
 3. The taxpayer must offer qualifying 
health insurance for all full-time positions at the establishment and pay at least fifty per cent 
(50%) of employee premiums.  
 4. The taxpayer must not have received any 
significant environmental violations with the 
North Carolina Department of Environment and Natural Resources within the prior 5 years. 
 5. The taxpayer must not have received any 
"willful" or "failure to  abate" serious OSHA 
violations at the estab lishment within the prior 
3 years.  
 6. The taxpayer may not have 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  
   G/SCM/N/186/USA
 Page 151State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
North Carolina Business Property 
Tax Credit Department of 
Revenue Tax credit To encourage investment in business 
property. To qualify for Article 3J  Credits, the following 
eligibility requirements must be met:   
   1. The primary activity at the business 
establishment must be an eligible type of 
business, which includes:    aircraft maintenance and repair;  air courier 
services hub;  company headquarters that 
creates at least 75 new headquarters jobs;  customer service call centers;  electronic 
shopping and mail order houses;  information 
technology and services;  manufacturing;  motorsports facility;  motorsports racing team;  
research and development;  warehousing;  and 
wholesale trade.  
   2. The average wage of all full-time 
workers employed by the taxpayer at the 
establishment during the taxable year must 
meet or exceed the applicable wage standard 
of the county in which the establishment is located.  Note:  There is no wage standard for 
taxpayers located in a tier one county.  
   3. The taxpayer must offer qualifying 
health insurance for all full-time positions at the establishment and pay at least fifty per cent 
(50%) of employee premiums.  
   4. The taxpayer must not have received any 
significant environmental violations with the 
North Carolina Department of Environment and Natural Resources within the prior 5 years. 
   5. The taxpayer must not have received any 
"willful" or "failure to  abate" serious OSHA 
violations at the estab lishment within the prior 
3 years.  
   6. The taxpayer may not have 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  
  G/SCM/N/186/USA 
Page 152 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
North Carolina Job Maintenance and 
Capital 
Development Fund Department of 
Commerce 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-pa ying, 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 for JMAC grant 
applicants include: 
• Must be located in a Development Tier 1 
county. 
• Must be a major manufacturing employer. There are two ways to qualify:  1) have at least 
2,000 employees and has or  plans to invest at 
least $200 million, or 2) have at least 320 full-time employees and has invested or plans to 
invest at least $65 million. 
• Must commit to invest $200 million in improvements to real property and additions to 
tangible personal property for the project, 
within 6 years of the initial expenditure for 
companies that qualify under section one of 
the program. If qualifying under section two of 
the program, a $65 million investment must be made within 3 years. 
• 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 peri od 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 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 5 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. Ongoing 
North Dakota Income Tax Credit 
for Agricultural 
Processing Facility 
Investment Tax Department / 
Commerce 
Department's Division of 
Economic 
Development and 
Finance Tax Credit North Dakota offers business a 
favorable tax climate that promotes 
growth and opportunity through traditional tax incentives and innovative new opportunities. An individual, estate, trust, partnership, 
corporation, or limited liability company is 
allowed an income tax credit for investing in an agricultural commod ity 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 
10 years. Ongoing  
   G/SCM/N/186/USA
 Page 153State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 processing facility are exempt 
from sales and use taxes. The processor must 
apply to the State Tax Commissioner for a 
refund of the tax paid by a contractor.  As defined by the sales tax exemption, a 
qualifying agricultural commodity processing 
facility means a proce ssing 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 Enterprise Zones Department of 
Development Real Property Tax 
Exemption / 
Tangible Personal 
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 
10/15/2009 
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 region 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 Local Economic 
Development 
Program of CDD Department of 
Development Grant The grant program provides incentives 
for projects to take place in distressed 
areas where private sector developers are reluctant to invest, including grants 
of up to $50,000 with as much as 
$25,000 of grant being used for project 
development costs. Low and moderate income communities. At least 50% of the grant must be used 
for project implementation costs.  
Requires at least 2:1 ratio of other funds.  As much as $25,000 of grant 
may be used for project development 
(professional services planning and 
administration). 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 
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 eligible for a 
credit.   This program provides a refundable 
tax credit of up to 25% of eligible expenses to a maximum of $5 million 
per project.  A total of $10 million in tax credits are available in Fiscal Year 
2010 and $20 million in Fiscal Year 
2011.  Ongoing  
  G/SCM/N/186/USA 
Page 154 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Ohio Pioneer Rural Loan 
Program Department of 
Development Loan Provides direct loans for businesses 
locating or expanding in Ohio's rural 
areas. Businesses must demonstrate 
that they will create new jobs for Ohio 
citizens in rural areas. Loan may be used for acquisition of land and 
buildings, new construction, 
renovation and expansion of existing buildings and acquisition of machinery and equipment.  Eligible areas include counties with labor 
surplus, distressed counties and situational 
distressed counties. The program seeks to 
finance projects that will create/retain at least 
one job for every $35,000 of state investment 
during the first three years of the project. The maximum loan amount is 
$750,000. Participation by the Pioneer 
Rural Loan Program for any one 
project cannot exceed 75% of the total 
fixed-asset costs. The annual interest rate for the Pioneer Rural Loan 
financing will be fi xed at not greater 
than half the prime rate, which shall be determined solely by the State 
Development Director. The term of 
the Pioneer Rural Loan will be based on the useful life of the assets being 
financed and the term of the bank loan 
in the project. The term on a Pioneer Rural Loan cannot exceed 15 years for 
real estate financi ng or seven years for 
machinery financing. Ongoing 
Ohio Research and 
Development Investment Loan 
Fund  Department of 
Development Loans and 
corresponding Tax 
Credit  The  Research and Development 
Investment Loan Fund was created to promote economic development , 
business expansion and job creation by encouraging private-sector R&D 
investments. The R&D Fund provides 
assistance in the form of a low-interest 
loan partnered with a tax credit. Eligible projects are defined as those in which 
research is undertaken for the purpose of discovering and devel oping new or improved 
products, processes, techniques, formulas, or 
inventions. The R&D Fund can finance up to 50% 
of a project's allowable costs, with loans ranging in size from $1.0 to 
$25 million. 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). Maximum loan available is $1 million 
and cannot exceed 75% of total 
eligible costs. Ongoing 
Ohio Technology 
Investment Tax 
Credit Department of 
Development Tax Credit Ohio's Technology Investment Tax 
Credit program offers a variety of 
benefits to Ohio taxpayers who invest in small, research and development 
and technology-oriented firms. 
Through this innovative program, Ohio investors may reduce their state 
taxes by up to 25% of the amount they 
invest in qualified, technology-based 
Ohio companies.  The Technology Investment Tax Credit can 
benefit investors who meet a variety of 
requirements specified by Ohio law. Investors must invest in Ohio companies which are 
eligible for tax credit investments and are 
engaged in qualified trades or businesses, i.e. 
technology oriented businesses.  The program's maximum credit of 
$90,000 per investment may be 
applied to personal income tax, corporation franchise tax, public 
utility excise tax or the tax on dealers 
in intangibles.  Ongoing  
   G/SCM/N/186/USA
 Page 155State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Ohio Third Frontier 
Action Fund (TFAF)Department of 
Development Grant The Technology Action Fund has been 
renamed the Third Frontier Action 
Fund (TFAF). TFAF continues the 
mission of the Technology Action 
Fund in providing financial support to projects that contribute to technology-
based economic development in Ohio. 
TFAF grant awards are made on a competitive basis. 
In this funding cycle proposals are 
sought in three focus areas. The first focus area is to increase the 
availability of prof essionally managed, 
early-stage capital to Ohio start-up or early-stage technology companies. The 
second focus area provides support for 
collaborations formed to commercialize a near-term specific or 
platform technology or capability. The 
third focus area supports the 
Governor's Fuel Cell Initiative. This initiative will link major existing 
businesses, educational institutions, venture 
capitalists, entrepreneurs, emerging high-tech 
enterprises, and the broader community in 
capitalizing on the region's strengths to foster, connect, leverage, and promote the varied new economy clusters that have emerged there.  The initial purpose of the fund, 
established with a budget of 
$3 million, was to increase the amount 
of federal research dollars leveraged 
into the state. In 2000 and 2001 the Fund was increased to $15 million 
each year and the focus of support 
changed to support entrepreneurial 
activity in technology sectors in Ohio. Ongoing 
Ohio Community 
Reinvestment Areas Department of 
Development Tax abatement on 
real property taxes 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 abatement of up to 100% for 
15 years on real property taxes. Local 
legislative authority establishes terms 
and rates. Ongoing 
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 Oklahoma Film 
Enhancement RebateOklahoma Film and 
Music Office Rebate To encourage the development of 
commercial film industry within the 
state. Film Industry 15% rebate of Oklahoma production 
expenditures to companies filming in 
the state capped at $5 million per year.Ongoing  
  G/SCM/N/186/USA 
Page 156 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 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. Ongoing 
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 
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/186/USA
 Page 157State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Oklahoma Investment New 
Jobs Income Tax 
Credit Oklahoma Tax 
Commission Tax Credit The Investment New Jobs Income Tax 
Credit allows manufacturers or 
qualified aircraft maintenance 
facilities the greater credit of 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.  
  G/SCM/N/186/USA 
Page 158 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Oklahoma Quality Jobs 10-
Year Cash Back 
Incentive Department of 
Commerce Tax Refund The program is targeted to 
manufacturers and certain service 
companies which utilize the new 
Oklahoma Quality Jobs program by 
having a new payroll investment of $2.5 million or more.  It is an easy-
access program which provides direct 
payment incentives (based on new wages paid) to companies for up to ten 
years.  The program provides quarterly 
cash payments of up to 5% of new taxable payroll directly to qualifying 
companies for up to ten 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. Ongoing 
Oklahoma Sales Tax Refunds 
for Computer-related 
Products Oklahoma Tax 
Commission Tax Refund Oklahoma offers a sales tax refund on 
computers, data processing equipment, related peripherals, telegraph or 
telecommunications services or 
equipment. Qualifying companies include: 
a. New or expanded aircraft maintenance and manufacturing facilities that create 250 or 
more jobs, with construction investment of $5 million and purchases of at least $2 million 
worth of computers and other listed items. 
b. Research and development or computer services companies (SIC 7372-7375, 8731-
8734). (SIC 7374 must attain minimum of 
$100,000 purchases), when at least 50% 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  
   G/SCM/N/186/USA
 Page 159State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Oregon Business 
Development Fund Business Oregon Loan Revolving loan fund 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 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 applicant 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 Business Energy 
Facilities (BETC) Oregon Department 
of Energy (ORS 
315.354) Income Tax Credit To encourage business investments in 
energy conservation, recycling, 
renewable energy resources, or less-polluting transportation fuels. Trade, business, or rental property owners who 
pay taxes for a business site in Oregon are 
eligible for the credit. The business, its 
partners, or its shareholders may use the credit. 
The applicant must own or be the contract buyer of the project. The business must use the 
equipment for the project or lease it for use at 
another site in Oregon The tax credit is 35 % 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. Sunset:  
1 January 2012 
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 te levision 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  
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Page 160 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 te levision 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 designa tions 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 
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 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 increased 
available venture capital to technology 
companies. Businesses that fall within identified SIC or 
NAICS codes and venture capital funds.           Amounts are variable.  Ongoing  
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the Program 
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 PartnersDepartment 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 Ben Franklin 
Technology PartnersDepartment 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 th an 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 
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. 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.  Eliminated in 
the FY2009   
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 $500,000. Ongoing 
Pennsylvania Enterprise Zone Tax 
Credit - Community 
Investment Department of 
Community and Economic 
Development Tax Credit Designed to promote development in 
Enterprise Zones. Businesses located within Enterprise Zone s.   Tax credits equal 20% of amount 
invested. Up to $250,000 per project. Ongoing 
Pennsylvania Film Production Tax 
Credit Department of 
Community and Economic 
Development Tax Credit Promote the production of feature 
films, television se ries and television 
shows in Pennsylvania of 15 minutes 
or more in length that are intended for 
a national audience.  Producers of feature films, television series 
and television shows.  Sixty per cent of the total production expenses associated with a 
qualifying production must be incurred in 
Pennsylvania during the taxable year. Tax credit of up to 25% for qualifying 
film or television production 
expenses. 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 th e activity of film, 
television and other production companies in Pennsylvania. Projects eligible for tax credits under the 
program include:  the production of a feature 
film, a television film, a television talk or 
game show series, a television commercial, a television pilot or each episode of a television 
series intended as programming for a national 
audience. The amount of the tax credit available 
for an eligible project is equal to 25% 
of Qualified Pennsylvania production 
expenses for the project. Ongoing 
Pennsylvania Free Use of State-
Owned Property - 
Film Production Department of 
Community and Economic 
Development Free use of state-
owned property Promote the production of commercial 
motion pictures in Pennsylvania. Commercial film producers. Indeterminate Ongoing 
Pennsylvania Keystone Innovation 
Zone (KIZ) Department of 
Community and Economic 
Development Grant Provide grant funds to 
community/university partnerships to generate job growth through tech 
transfer and entrepreneurship. Focused around campuses and property around 
college and universities.  Grant funds 
will be used for Zone coordination, strategic planning, personnel costs, 
hiring of consultants and 
administration of the zone. Companies located in tax zones, in operation less 
than 8 years and fall under the industry 
sector focus are eligible to apply for 
state tax credits Partnerships may include:  institution of higher 
education, economic development organizations, private sector businesses, 
business support organizations, commercial lending institutions, venture capital, and 
foundations. Recommended partners include:  
local government organizations and workforce development organizations. Zone must be 
geographically identified with links to 
institutions of higher education. Maximum for the first year of 
$250,000. Declining funding in following years, operations required 
without state funds after three years. Projects and companies in the KIZ are 
given priority reviews under various 
DCED Programs. Ongoing  
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the Program 
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. 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%) matched with private sector 
funds (75%) to create a loan pool to 
promote economic development and 
job creation. State accredited community development 
financial institutions 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.   Ongoing, 
funding was 
eliminated in 2009.  Likely 
to be 
terminated since 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 FundDepartment 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. Ongoing 
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 th at must fall within 
certain SIC or NAICS codes. Investment amounts vary. Ongoing 
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 
Pennsylvania Second Stage Loan 
Program Department of 
Community and 
Economic 
Development Loan guarantees Loan Guar antees 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  
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the Program 
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. 
Rhode Island Corporate Income 
Tax Rate Reduction Rhode Island 
Economic 
Development Corporation Tax 
Abatement/Reducti
on The Rhode Island Jobs Development 
Act grants incremental income tax 
reductions to companies that create 
new employment in Rhode Island 
between 1 January 1995 and 31 July 
2004. Companies that create new employment in 
Rhode Island between 1 January 1995 and 31 
July 2004. The incremental income tax reduces a 
company's corporate income tax rate 
(currently 9%) by a quarter percentage 
point (0.25) for each 50 new jobs 
created during a three-year period.  For companies with fewer than 
100 employees, the tax reduction 
occurs if at least ten jobs are added during a three-year period. The 
maximum reduction is 6% allowing 
the present state income tax to be 
reduced to as low as 3%. Ongoing 
Rhode Island Enterprise Zones Rhode Island 
Economic 
Development 
Corporation Tax Credit A taxpayer who owns 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 en terprise zones or 
enterprise communities qua lify 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.  Ongoing  
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the Program 
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 th e following trades in 
the metal and plastic industries:  machinist, 
toolmaker, modelmaker, gage maker, 
patternmaker, plastic pr ocess 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 42-35-3(a)(1) of the 
General Laws of 
Rhode Island, and in accordance with 
the Administrative 
Procedures Act Chapter 42-35 of 
the General Laws, 
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 
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 equa l to 20% of  employee 
wages or up to a 30% of  supplier 
expenditures if they spend at least 
$1,000,000 in the state. Ongoing  
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Authority Form of Subsidy 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 millag e rate for 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, extraord inary 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, extraord inary 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  
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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-prod uction 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 
$250,00 in costs must be incurred in 
SC and at least 20% of filming days of principal photography, but not less 
than 10 days of filming, must be done 
in SC.  Limited to $100,000 for all years and cannot exceed 50% of tax liability. Ongoing 
South Carolina Port Volume Credit SC Coordinating 
Council for 
Economic 
Development Tax Credit To promote the use of the port 
facilities 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  
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Authority Form of Subsidy 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 b lighted areas if such 
decline is not checked ar e eligible.  Eligible 
projects can be buildings, improvements (e.g., street, water, or sewe r), 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 
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.   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 credit 
must be used to offset a certified 
green energy supply chain manufacturer's Tennessee franchise 
and excise tax liability. Any credit 
that can not be benefited during a fiscal year may be refunded to the 
taxpayer in the form of a cash 
overpayment. Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Tennessee Emerging Industry 
and HQ Sales Tax 
Credit Tennessee 
Department of 
Revenue  Tax Credit To promote high-skill and high-wage 
jobs in high-technology areas, 
emerging occupations, clean energy technology and headquarters facilities. An emerging industry is one that promotes 
high-skill, high-wage j obs 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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Tennessee Headquarters 
Relocation Credit Tennessee 
Department of 
Revenue  Tax credit - 
potential cash 
refund if no 
franchise and 
excise tax liability To promote the relocation of 
headquarter operations to Tennessee. Qualified headquarters operations relocating 
employees to Tennessee The State of Tennessee allows a credit 
against a taxpayer's franchise and 
excise tax liability equal to any 
qualified headquarters facility 
relocation expenses incurred by the taxpayer during the investment period 
for establishing a qualified 
headquarters facility provided the taxpayer creates at least 100 net new 
full-time jobs paying 150% of the 
average occupational wage.  The company must file and receive 
approval of a Qualified Headquarters 
Business Plan by the Commissioner of Revenue before taking this credit.   
Relocation Expense Credits that 
exceed the company's combined franchise and excise liability will be 
refunded to the company as an 
overpayment.  Qualified Headquarters Facility means a headquarters facility 
where the taxpayer is making a 
minimum investment  of $50 million in a building or buildings, newly constructed, expanded or remodeled 
during the investment period not to 
exceed six (6) years or $10 million and the creation of 100 new full-time 
jobs paying at least 150% of 
Tennessee's average occupational 
wage during the investment period.   Ongoing 
Tennessee Integrated Supplier 
Credit Tennessee 
Department of 
Revenue  Tax Credit To encourage manufacturers to invest 
in and locate their facilities in 
Tennessee and to facilitate the co-location of integrated suppliers on or near a manufacturer's facility. An integrated supplier is a supplier located 
within the footprint of a project site, as 
determined by the Commissioner of Economic and Community Development and the 
Commissioner of Revenue, which provides 
goods and services on the project site solely 
for the qualified manufacturer. This new tax credit will provide 
integrated suppliers that locate within 
a qualified manufacturer's footprint with a one time super job tax credit 
equal to $5,000 per net new fulltime 
occupational wage job to offset one-third of the 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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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the 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/186/USA 
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Authority Form of Subsidy 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 $15 million 
revolving loan program that provides 
low interest loan s 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% 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 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  
   G/SCM/N/186/USA
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas Economic 
Development 
Refund Comptroller of 
Public Accounts Tax refund Refund of state franchise and sales/use 
taxes paid 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 enterpri se 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 Franchise Tax 
Credits for Research & Development, Job 
Creation and Capital 
Investment Texas Comptroller 
of Public Accounts Tax Credit The R&D credit is available to 
corporations making certain R&D expenditures for research activities 
conducted anywhere in the state.  In addition to the R&D credits, the 
legislation also provides for qualifying 
corporations located in a strategic investment area of the state to receive 
franchise tax credits for job creation 
and capital investment based on particular criteria. The program targets 
expansion of R&D employment. 
Strategic investment areas are designated by the State's Comptroller 
of Public Accounts based on relative 
unemployment rate and per capita 
incomes.  The R&D credit is available to corporations 
making certain research and development expenditures for research activities conducted 
anywhere in the state. Franchise tax credits are 
also available to corporations located in 
strategic investment areas of the state based on 
job creation and capital investment.  Research and Development Credit;  
Job Creation Credit;  Capital 
Investment Credit  Terminated as 
of January 
2008.  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas Freeport Exemption Texas Communities Tax Incentive A community may choose to offer the 
Freeport Exemption for various types 
of goods that are detained in Texas for 
a short period of time.  Freeport 
property qualifies for an exemption from ad valorem taxation only if it has 
been detained in the state for 175 days 
or less for the purpose of assembly, storage, manufacturing, processing or fabricating. New or existing business. 100% of  the taxes that would be due 
are exempted. Ongoing 
Texas HB 1200 Texas legislature Tax Exemption Tax relief for large capital 
investments.   Businesses willing to make a large scale 
investment. The bill works by capping the 
appraised value of capital investments 
that qualify based on a sliding scale 
tied to the total prop erty wealth of the 
school district where the investment is made.  The scale ranges from a cap of 
$100 million for school districts with 
total property value of $10 billion or more to $20 million for school 
districts with property value less than 
$100 million.  A separate sliding scale is used for certain rural counties with 
a population of less than 50,000, and 
those that qualify as Strategic Investment Areas (SIA's).  The investment amount is determined over a two-year period. Ongoing 
Texas Economic 
Development Act 
(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 prop erty 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. Expired 
12/31/07 
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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas Moving Image 
Industry Incentive 
Program Texas Film 
Commission Grant In 2007, the 81st Texas Legislature 
enacted House Bill 1634 establishing 
the Moving Image Industry Incentive 
Program. Under the legislation, grants 
to promote industry growth in Texas can be made to applicant production 
companies. The incentive is available 
in the form of a production grant equal to 5% of in-state spending, including 
wages paid to Texas residents. Grants 
are available upon project completion to features, television programs, 
television commercials and video 
games. Both live action and animated projects are eligible. Specific incentive 
enhancements related to under-used 
areas are provided. Film, TV and video production companies.  
Available for review at the Texas Film 
Commission's website are the specific 
eligibility qualifications for projects including 
investment thresholds, employment 
requirements and content.  The maximum grant amounts 
available after 1 September 2007 are:  
$2 million for features;  $2.5 million 
for television programs (for episodic 
series, $2.5 million per season);  $200,000 for a commercial, series of 
commercials or music videos;  and  
$250,000 for video games.  Ongoing 
Texas Product 
Development Fund & Small Business  
Incubator Fund Office of the 
Governor Loan The Product Development and Small 
Business Incubator Funds have a total of $45 million in bonding authority. 
The program will support, through 
financing, the development of small 
businesses or eligible products with a 
statutory preference to be given in the advanced technology areas of semiconductor, nanotechnology, biotechnology and biomedicine. Small businesses or eligible products with a 
statutory preference to be given in the areas of semiconductor, nanotechnology, 
biotechnology and biomedicine. The Product Development and Small 
Business Incubator Funds have a total 
of $45 million in bonding authority.  Ongoing 
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. Companie located in reinvestment zones 
statewide. Designation of a reinvestment zone 
may be for five-year, renewable 
periods.  Tax abatement agreements 
have a maximum term of 10 years and 
provide for the exemption of real property and tangible personal 
property located on the real property.   
Only the increased value of the 
property may be exempted.  Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas Property Tax Rule 
9.105 Texas Comptroller 
of Public Accounts Tax Incentive The Comptroller of Public Accounts, 
through Property Tax Rule 9.105, 
offers a refund of state franchise and 
sales and use taxes paid 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;  and 3) is not in a tax 
abatement agreement with a school 
district. New or existing business. 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 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 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 s 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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas State Sales & Use 
Tax Exemptions - 
Clean Room Texas Comptroller 
of Public Accounts Tax Incentives Texas businesses are exempt from 
paying state sales and use taxes on 
clean rooms used in the production of 
semiconductor components or in the 
biotechnology industry are exempt as manufacturing equipment.  That 
includes property affixed to or 
incorporated into realty, including integrated systems, fixtures, lighting, 
moveable partitions, piping and all 
property necessary or adapted to reduce contamination or to control 
airflow, temperature and humidity.  
This exemption does not include the structural shell to which these improvements are attached. New or expanding business. 100% of  the taxes that would be due 
are exempted. Exemptions 
expired August 
2007 
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 repairing of tangible personal 
property for ultimate sale, are exempt 
from state and local sales and use tax.  Businesses are exempt from paying 
state sales and use tax on the purchase 
of machinery exclusively used in processing, packing or marketing 
agricultural products by the original 
producer at the location operated by 
the original producer. New or expanding business. 100% 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 178 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas Texas Leverage 
Fund  Office of the 
Governor Loan The Texas Leverage Fund is an added 
source of financing to communities 
that have passed the Economic 
Development Sales Tax.   Funds may 
be 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.  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 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 commercializa tion 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 
Utah EDTIF Tax Credit Governor's Office 
of Economic 
Development;   Tax Credit A post-performance refundable 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.  
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 median wages 
within the urban area and for rural areas 100% 
of county wages must be paid. 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 is set by 
the GOED Board. Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 Motion Picture 
Incentive Fund Governor's Office 
of Economic Development/Utah 
Film Commission Cash Grant/Tax 
Credit To encourage film production within 
state. Film Industry 20% refundable tax credit based on 
Utah spending if Utah spending is greater than $1 million;  15% cash 
grant based on if Utah spending is less 
than $1 million. Subject to 
legislative tax credit and cash 
rebate caps 
Utah Recycling Market 
Development Zone 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 zone assistance, discounted business license fees, etc. Ongoing 
Utah Rural Fast Track 
Program Governor's Office 
of Economic 
Development Grant  A post-performance grant available to 
small companies in rural Utah. The company must be lo cated 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.  Rural 
Utah companies may receive up to $50,000 for an eligible business development expansion.  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 exempt from sales and use tax and all 
sales-related taxes. Ongoing  
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Page 180 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Utah Utah Enterprise 
Zone Program 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 designati on 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, its quality, and 
other considerations based on a variety of 
economic distress factors, local planning, etc. The following tax credits may be 
claimed by eligible businesses 
locating or expanding in enterprise 
zones on state income tax forms:  
(1) A $750 tax credit for each new full-time position filled for at least 
six months during the tax year;  
(2) An additional $500 tax credit if the new position pays at least 125% of the 
county average monthly wage for the 
respective industry (determined by the Utah Dept. of Employment Security). 
(3) An additional $750 tax credit if the 
new position is in a business which adds value to agricultural 
commodities through manufacturing 
or processing;  (4) An additional $200 tax credit, for two consecutive 
years for each new employee insured 
under an employer- sponsored health insurance program, if the employer 
pays at least 50% of the premium;  
(5) A tax credit of 50% of the value of a cash contribution, not to exceed $100,000 to a 501(c)(3) private, 
nonprofit corporation engaged 
primarily in community and economic development, and is accredited by the 
Utah Rural Development Council;  
(6) A tax credit of 25% of the first $200,000 spent on rehabilitating a 
building which has been vacant for at 
least two years and is located within an enterprise zone;  (7) An annual 
investment tax credit of 10% of the 
first $250,000 in investment, G14and 5% of the next $1,000,000 qualifying 
investment in plant, equipment, or 
other depreciable property.     Ongoing 
Vermont Economic 
Advancement Tax 
Incentive 32 VSA Section 
5930b (No new authorizations after 
12/31/06;  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 12/31/06. 
Existing authorizations 
continue until 
expiration (approximately 2010)  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Vermont Income Tax 
Limitation Vermont Film 
Commission Tax limitation To encourag e business and investment 
within state. Film Industry Income tax for performers is limited 
to the amount the performer would 
pay in their home state. Ongoing 
Vermont Industrial 
Development Bonds:  
Agricultural Facility and Debt Stabilization Loans Vermont Economic 
Development 
Authority Loans The Vermont Economic Development 
Authority (VEDA) promotes 
economic prosperity and increases employment for Vermont businesses 
by providing low-cost capital for 
eligible facilities. Eligible facilities. Not available. Ongoing. 
Vermont Industrial 
Development Bonds:  Rural Economic 
Activity Loans Vermont Economic 
Development 
Authority Loans The Vermont Economic Development 
Authority (VEDA) promotes economic prosperity and increases 
employment for Vermont businesses by providing low-cost capital for eligible facilities. Eligible facilities. Not 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 only previously-qualified  
companies finish receiving the credits.Ongoing 
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 film s, 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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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Virginia Governor's 
Opportunity Fund Virginia Economic 
Development 
Partnership Grant The Governor's Opportunity Fund 
supports industrial development 
projects that create new jobs and 
investment in accordance with criteria 
established by state legislation.  Grant requests are made by the locality and 
awarded at the discretion of the 
Governor. Funds can be used for site acquisition and 
development;  transportation access;  training;  
construction or build-out of publicly-owned 
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 Pr ogram 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 VCEDA 
loans, private businesses must be basic employers who will bring new income to the 
area .  Priority will be given to loans requiring 
$10,000 or less per perman ent 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  
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 Page 183State Program Title Program 
Authority Form of Subsidy 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 1/1/95, but  before 1/1/05;  
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 restrictions 
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 than5% 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 percent 
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 
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 or iginal capitalized 
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  
  G/SCM/N/186/USA 
Page 184 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Virginia Sales/Use and 
Property Tax 
Exemptions Department of 
Taxation;  
Localities Tax Exemption Business incentive Sales a nd use tax exemption for purchasers of 
semiconductor clean rooms or equipment and 
other tangible personal pr operty 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 investme nt, job creation, and 
wage level criteria may also be exempt from 
sales and use tax.  Localities may elect to 
impose reduced property tax rates on semiconductor manufacturing machinery and 
tools, equipment for biotechnology R&D and 
production, aircraft. 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 
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 expanding manufacturing of solar photovoltaic 
panels can receive an annual solar photovoltaic manufacturing incentive grant for six years. Ongoing 
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 (per 2000 Census) 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 in Virginia, company that 
creates 200 new full-time jobs with average 
salary at least 50% greater than prevailing wages and capital investment of at least $6,500 per job. Amount as determined by the 
Secretary of Commerce and Trade based on ROI analysis from VA 
Economic Development Partnership, paid in 5 equal annual disbursements 
starting in third year of completion of 
capital investment and job creation 
requirements. Ongoing  
   G/SCM/N/186/USA
 Page 185State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Virginia Virginia Investment 
Partnership Grant 
Fund 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 employme nt opportunities. All companies that have been in business in 
VA for at least 5 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 
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 
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 enviro nmental 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  
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Page 186 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
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 
Exemptions 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 
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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
West Virginia Fee Free Lo cation  West Virginia 
Department of Tax 
and Revenue Location discounts To encour age 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 encour age 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 
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 maximum 
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 Establishes the value of asset 
improvements at salvage value for 
property tax evaluations for 10 years. Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
15 November 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 
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. Recipients must retain 
continuous project operations in 
Wisconsin for not less than Ongoing  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Wisconsin Small Cities 
Community 
Development Block 
Grant Program for 
Blight Elimination & Brownfield Redevelopment Department of 
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 aba ndoned, 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 
Wisconsin Tax Incremental 
Financing Department of 
Revenue Loan Tax Incremental Financing (TIF) can 
help a municipality undertake a public 
project to stimulate beneficial 
development or redevelopment that 
would not otherwise occur.  It is a mechanism for financing local 
economic development projects in 
underdeveloped and blighted areas.  Taxes generated by the increased 
property values pay for land 
acquisition or needed public works. A city or village can designate a specific area 
within its boundaries as a TIF district and 
formulate a plan to develop it.  TIF projects 
must be approved by the municipality's 
planning commission and legislative body.  At 
least 50% 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  
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Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 jobs, 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 Economic 
Development Tax 
Credit Program (ETC) Department of 
Commerce Tax Credit Allocates $121 million in non-
refundable, non-transferrable tax 
credits to businesses that create jobs, 
purchase significant capital assets, 
train employees, or establish/retain a corporate headquarters in Wisconsin. 
 
ETC consolidated 5 former tax credit programs including the Airport 
Development Zone (AZ), the 
Agricultural Development Zone (ADZ), the Community Development 
Zone (CDZ), the Enterprise 
Development Zone (EDZ), and the Technology Zone (TZ). The Act also 
eliminated all former zone boundaries 
under these programs. Individuals, fiduciaries, corporations, and 
insurance companies $121 million 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 
Program Department 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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Authority Form of Subsidy 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 w ith 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 3 years 
in (a) qualified compan(y)(ies). Ongoing  
  G/SCM/N/186/USA 
Page 192 State Program Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Wisconsin 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 incl ude a city, village, town, 
county, individual, partne rship, 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 Discounted 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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