WORLD TRADE  
ORGANIZATION  G/SCM/N/155/USA 
20 May 2009 
 (09-2393) 
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 6 May 2009, 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 2005 and 2006 fiscal years (1 October 2004 through 30  September 2006), except 
with respect to federal agricultural domestic support programs and export assistance programs.  
Information regarding federal domestic agricultu ral support programs covers fiscal years 2003 - 2006 
(1 October 2002 through 30 September 2006) and info rmation regarding federal agricultural export 
assistance programs covers fiscal years 2004 - 2006 (1 October 2003 through September 2006).  
Information on programs granted or maintained at sub-federal levels in the United States is included 
in Attachment I.     As noted in previous US notifications, insofa r as the notification obligation is a transparency-
oriented provision that, pursuant to Article 25.7 of  the Subsidies Agreement, carries no legal weight 
as to the actual identification or measurement of a s ubsidy, its status as an actionable subsidy, or its 
trade effects, the United States has included certain  activities in this notification which arguably are 
not (or are not always) "specific subsidies" within the meaning of the Agreement.   
 G/SCM/N/155/USA 
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  AGRICULTURE 
 
EXPORT ASSISTANCE PROGRAMS 
 
Title: The Export Enhancement Program (EEP) 
 
 Period covered by the notification
 
  The period covered is fiscal year 2004-2006.    
 Policy objective and/or purpose
 
  In June 1991, the US Department of Ag riculture (USDA) published program criteria 
governing the selection of proposed sales initiatives u nder the EEP.  All EEP initiatives are evaluated 
based on five criteria:   
 
• Trade Policy Effect - the expected contri butions of the initiative in furthering the 
US trade policy objectives;   
• Export Effect - the potential to develop, expa nd, or maintain markets for US agricultural 
commodities;   
• Effect on Non-subsidizers - possible effects, if any, on non-subsidizing exporters of 
agricultural products;   
• Subsidy Requirements - the expected benefits  compared with expected costs of the 
initiative;  and 
• Market Development - extent to which initia tive can be used for market development 
purposes.   
  The overall program level for EEP, as well as  bonus awards under individual EEP initiatives, 
will be maintained at the minimum levels necessary to  achieve the expected benefits of the program's 
export expansion objectives, as well as the antic ipated long-term benefits from multilateral 
agricultural trade reform.  Together, these criteria  are considered in the selection of initiatives 
targeting specific commodities and countries that will best meet the program's trade policy and export 
expansion objectives.     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.   
  Background and authority
 
  The EEP has operated under various authoriti es since May 1985.  Terms and conditions 
applicable to all export initiatives are contained in the US Code of Fe deral Regulations at 
7 CFR 1494.     Form
 
  Cash bonuses paid to participating agricultural exporters.   
 
 Amount
 
  Fiscal Year 2004 – None (not used).    Fiscal Year 2005 – None (not used).    G/SCM/N/155/USA 
 Page 3 
 
 
   Fiscal Year 2006 – None (not used).   
  Duration
 
  Section 301 of the Agricultural Trade Act of 1978, as amended, authorizes spending through 
30 September 2007.   
  Trade effects
 
  The EEP program has not been used since fiscal year 2000.  Therefore, there are no trade 
effects.   
 
Title: The Dairy Export Incentive Program (DEIP)  
 
 Period covered by the notification
 
 
 The period covered is fiscal year 2004-2006.     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 US trade 
policy objectives;   
• Export Effect - the potential to develop, expa nd, or maintain markets for US agricultural 
commodities;   
• Effect on Non-subsidizers - the possible effects on non-subsidizing exporters 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 US 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 CCC opera te the DEIP through 31 December 2007.   
 
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 US dair y products for export.  Export sales under the program must be in 
addition to, and, to the extent practicable, not displace, commercial export sales of US dairy products.  Eligible dairy products, in bulk, are butter, butte r oil, anhydrous milk fat, non-fat dry milk, whole 
milk powder, cheddar cheese, mozz arella cheese, cream cheese, fe ta cheese, and Gouda cheese.   
 G/SCM/N/155/USA 
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  Amount
 
  The quantities reported below are on a July-June year basis, while the budgetary outlays are 
on fiscal year basis.    Fiscal Year 2004 
Butter and Butter Oil  Quantity:  0 MT   Budgetary Outlays:  $0 
Skim Milk Powder  Quantity:  68,201 MT   Budgetary Outlays:  $1,750,040 Cheese     Quantity:  3,030 MT    Budgetary Outlays:  $934,500 
 Fiscal Year 2005 
Butter and Butter Oil  None (not used). 
Skim Milk Powder  None (not used). Cheese     None (not used).  Fiscal Year 2006 
Butter and Butter Oil  None (not used). 
Skim Milk Powder  None (not used). Cheese     None (not used).  
Duration
 
 
Section 153 of the Food Security Act of 1985, as amended, authorizes the program through 
31 December 2007.    
Trade effects
 
 
 The CCC bonuses offered are intended to enable  US exporters to compete at commercial 
prices in selected foreign markets.  The effect of the program is to enable exporters to offer prices that 
are competitive with those being offered by othe r countries' exporters in these selected foreign 
markets.   
 
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 (Octobe r - September) 2003 – 2006.  For some programs, 
payments are reported on a marketing year  basis, which differs by commodity. 
 
Policy objectives  
 
• Stabilize, support, and protect farm income and prices.   
• Help ensure adequate supplies of quality food, feed and fiber.   
• 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, and the Farm Security and Rural Investment Act of 2002 (the  G/SCM/N/155/USA 
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  "Act"), Public Law 107-171, enacted 13 May 2002.  Other authorities include the Agricultural 
Assistance Act of 2003 (PL 108-07);  the Agricultura l Reconciliation Act of 2005;   the American Jobs 
Creation Act of 2004, the Fair and Equitable Tobacco Reform Act of 2004 (P.L. 108-357);  the 
Military Construction Appropriation and Emerge ncy Hurricane Supplemental Appropriation Act 
(PL 108-324);  the Emergency Supplemental Appr opriation Act for Defense, Global War on Terror, 
and Hurricane Recovery Act of 2006 (PL 109-234), a nd Section 32 of the Agricultural Adjustment 
Act of 1935.    
Program Descriptions and Actual E xpenditures for Period of Notification
 
 
(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.     Total expenditures by fiscal year:    
 FY2003 – $4,151 million  
  FY2004 – $5,289 million   FY2005 – $5,235 million  FY2006 – $4,962 million   (b) Counter-cyclical Payments Program 
 
 Counter-cyclical payments are available to c overed commodities whenever the effective price 
is less than the target price.  The effective price is equal to the sum of 1) the higher of the national 
average farm price for the marketing year, or the national loan rate for the commodity and 2) the 
direct payment rate for the commodity.  The paym ent amount equals the product of the payment rate, 
the payment acres, and the payment yield.  Cove red commodities include:  barley;  corn;  grain 
sorghum;  oats;  other oilseeds (canola, crambe , flax, mustard, rapeseed, safflower, sesame and 
sunflower);  peanuts, beginning in 2003;  rice, excluding wild rice;  soybeans;  upland cotton; and wheat.  Eligible producers were not confined to  producing crops for which they were receiving 
payments, and could choose not to produce any crop.    
 Total expenditures by fiscal year:   
  FY2003 – $1,743 million    FY2004 – $809 million   FY2005 – $2,722 million 
 FY2006 – $4,356 million  G/SCM/N/155/USA 
Page 6  
 
  (c) Non-recourse Marketing Assistance Loans and Loan Deficiency Payments (LDPs) for Wheat, 
Feed Grains, Upland and ELS Cotton, Rice, P eanuts, Oilseeds, Tobacco, Wool, Mohair, 
Honey, Small Chickpeas, Lentils, and Dry Peas. 
  Since the 2002 Farm Act, there have not been any fundamental changes in the basic system for 
the non-recourse marketing assistance loan program .  The 2002 Farm Act extended marketing loan 
provisions to peanuts, wool, mohair, honey, small ch ickpeas, lentils, and dry peas.  Loan rates were 
fixed in 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 wh ich the loan is made.  For ELS and upland cotton, 
the 2002 Farm Act reduced the previous loan term of ten months to nine months.   
  Total expenditures by fiscal year (combine d marketing loan gains, LDPs, and certificate 
exchange gains):   
 
 FY2003 – $1,881 million    FY2004 – $843 million   FY2005 – $5,694 million  FY2006 – $5,989 million   
(d) Peanuts 
  The 2002 Farm Act eliminated the price suppor t program and marketing quotas for peanuts, 
and made peanuts eligible for direct and count er-cyclical payments, and nonrecourse loans with 
marketing loan provisions.  Expenditures for p eanuts under these three programs are included in the 
figures above.    
 Quota owners were eligible to receive comp ensation for the lost value of their quota in 
5 annual installments during fiscal years 2002-06, although most payments were made over a 3-year period.  An annual payment of $0.11 per pound of quota was made to eligible quota holders based 
on 2001 quota levels.  Quota owners could opt to ta ke the outstanding payment due to them in a lump 
sum.  Payments were not tied to current or future  production or prices of peanuts or any other crop.  
Expenditures for the peanut quota buyout were (a negative value indicates net revenues from the 
program):   
 
  FY2003 – $1,221 million 
  FY2004 – $10 million  FY2005 – $6 million  FY2006 – (-$3 million)  
Price Support for Milk and Sugar
 
 
(e) Dairy Products   The 2002 Farm Act continued the support price of milk at $9.90 per hundredweight (cwt) for 
calendar years 2002 through 2007.  Expenditures by fiscal year:   
 
 FY2003 – $699 million    FY2004 – $328 million   FY2005 – $31 million  FY2006 – $60 million  
  G/SCM/N/155/USA 
 Page 7 
 
 
   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.   
  Total expenditures by fiscal year:     FY2003 – $1,795 million  
  FY2004 – $221 million 
  FY2005 – $9 million  FY2006 – $352 million   (f) Sugar  
 The 2002 Farm Act extended the sugar non-recourse loan program.  Sugar loans were 
unchanged at 18 cents per pound for ra w cane sugar, and 22.90 cents per pound for refined beet sugar.  
The Farm Act eliminated the forfeiture 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. Mark eting allotments were introduced.   
 
 The sugar program operates under a "no-cost" pr ovision.  Net expenditures on this program 
were (negatives indicate net revenues from the program):     FY2003 – (-$84) million    FY2004 – $61 million 
  FY2005 – (-$86) million 
 FY2006 – $10 million   
Other Commodity Products 
 
 (g) Tobacco 
  The tobacco support program was statutorily mandated to operate at no net cost to the 
government, and a no-net-cost assessment was impo sed on every pound of tobacco marketed.  The 
program was formally terminated at the end of the 2004 marketing season (various accounting issues 
continued into 2005 and 2006).  Net expenditures were (a negative value indicates net revenues from 
the program):   
  FY2003 – $179 million  FY2004 – $18 million  FY2005 – (-$411 million) 
 FY2006 – $77 million 
 G/SCM/N/155/USA 
Page 8  
 
   Tobacco Transition Payment Program (Tobacco Quota Buyout), Title VI of the American 
Jobs Creation Act of 2004, the Fair and Equita ble 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 installments in each of the 2005 through 2014 fiscal  years.  Transition payments will be based on 
the Basic Quota Levels determined for each fa rm.  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 US Department of Agriculture's tobacco price and income support 
program at the end of the 2004 marketing season.   
 
 Total expenditures by fiscal year:      FY2005 – $939 million   FY2006 – $955 million 
 
(h) User Marketing (Step 2) Program for Upland Cotton and the Special Competitiveness 
Program for extra long staple (ELS) Cotton 
  Provisions for User Marketing (Step 2) Progr am payments for Upland Cotton and the Special 
Competitiveness Program payments for extra-long stap le (ELS) cotton were c ontinued under the 2002 
Farm Act.  The User Marketing (Step 2) Progra m was terminated on 31 July 2006.  Data include 
payments to domestic users of upland cotton and all ELS payments.     FY2003 – $190 million  FY2004 – $160 million 
 FY2005 – $307 million 
 FY2006 – $105 million  (i) Cottonseed Market Loss Assistance Payments  
 This program made payments available to producers and first-handlers of cottonseed.   
   FY2003 – $50 million  FY2004 – none  FY2005 – none  FY2006 – $10 million 
 
(j) Sheep and Lamb Adjustment Program   This program was established to assist lamb and sheep producers improve their competitiveness.  Payments were authorized under Section 32 of the Agricultural Adjustment Act 
of 1935. Payments were reported on a marketing year basis. 
  MY2002 – $23 million  MY2003 – none  MY2004 – $14 million  MY2005 – none 
  G/SCM/N/155/USA 
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  (k) Trade Adjustment Assistance for Farmers and Fishermen 
  Under the Trade Adjustment Assistance for Fa rmers and Fishermen (TAA), authorized by the 
Trade Act of 2002 (PL 107-210), USDA provided cash be nefits to qualifying producers, when current 
prices declined by 20-per cent compared to a 5-year  average, and imports were determined to have 
contributed significantly to the price decline.  Paym ents were made to producers of avocados, wild 
blueberries, lychees, Concord grapes, and olives.  Payments are on a marketing year basis.     FY2003 – $0   FY2004 – $9.7 million 
 FY2005 – $13.8 million 
 FY2006 – $0.8 million  (l) Bioenergy Program  
 USDA's Bioenergy Program paid US comme rcial bioenergy producers to increase their 
bioenergy production (ethanol and biodiesel) from eligib le commodities in one fiscal year compared to 
a previous period.  Eligible commodities incl uded grains, oilseeds, and animal fats.   
  FY2003 – $150 million  FY2004 – $149 million 
 FY2005 – $100 million 
 FY2006 – $26 million  
Disaster Assistance and Risk Management  Assistance for Agricultural Producers
 
 (m) Disaster payments 
  Programs provided emergency assistance for agricultural producers under multiple legislative authorities relating to weather-related losses.  Elig ible commodities included field crops, fruits and 
vegetables, sugar cane and sugar beets, trees, othe r horticultural products, and specified livestock.  
Authorities included the Agricultural Assistance Act of 2003 (PL 108-07), Military Construction 
Appropriation and Emergency Hurricane Supplemen tal Appropriation Act (PL 108-324), Emergency 
Supplemental Appropriation Act for Defense, the Global War on Terror, and Hurricane Recovery Act 
of 2006 (PL 109-234), and Section 32 of the Agricultural Adjustment Act of 1935.     FY2003 – $2,119 million 
 FY2004 – $936 million 
 FY2005 – $2,469 million  FY2006 – $383 million  (n) 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 bene fits if the Secretary of Agriculture determines 
that producers have suffered a 50 per cent yield loss.     FY2003 – $237 million 
 FY2004 – $124 million 
 FY2005 – $110 million  FY2006 – $66 million G/SCM/N/155/USA 
Page 10  
 
  (o) Crop insurance 
  Various types of yield and revenue insurance ar e available each year.  Insurance premiums are 
subsidized.  Indemnities are paid when yields or re venue fall below the guaranteed level.  Benefits are 
reported as net indemnities (premiums paid by prod ucers minus indemnities received) for all insured 
products on a marketing year basis.   
  MY2002 – $2,889 million  MY2003 – $1,862 million  MY2004 – $1,123 million 
 MY2005 – $756 million 
 
Other Programs
 
 
(p) Grazing Livestock on Federal Land 
 
 Net budget outlays (minus producer fees) fo r livestock grazing on public range land in 
16 Western States.     FY2003 – $47 million  FY2004 – $41 million 
 FY2005 – $47 million 
 FY2006 – $38 million  
Duration
 
 
 The policies described were in  effect for fiscal years 2003-2006.  Not all policies or programs 
were in effect or made payments for all four 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 PROGRAMS
1 
 
Title: Expensing of Certain Capital Outlays Related to Agriculture 
 
Period covered by the notification  
 
 The period covered is fiscal years 2005 and 2006.    
Policy objective and/or purpose
 
 
 To promote soil and water conservation.   
 
Background and authority  
  Section 175 of the Internal Revenue Code (covering soil and water conservation expenses), 
enacted as part of the Revenue Act of 1954, and se ction 180 (covering fertilizer expenses), enacted 
in 1960 as part of Public Law 86-779.   
                                                     
 
1 All the programs in this section are tax-related, authorized under the US Internal Revenue Code.    G/SCM/N/155/USA 
 Page 11 
 
 
  Form  
  Income tax concession.    
To whom and how assistance is provided
 
 
 Farmers, except for certain farm corporations  and partnerships, are allowed to deduct certain 
expenditures for fertilizer and other materials used to enrich or condition farmland, as well as for soil 
and water conservation measures.  Expensing is allowed, even though these expenditures are for 
inventories held beyond the end of the year, or for capital improvements that would otherwise be 
capitalized.  The deduction for conservation expen ses is limited annually to 25 per cent of the 
taxpayer's gross income from farming.    
Amount
 
 
 The revenue loss was $ 110 million in 2005 and $ 130 million in 2006.   
 
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 Multi-period Livestock and Crop Production Costs 
 
Period covered by the notification
 
  The period covered is fiscal years 2005 and 2006.    
Policy objective and/or purpose
 
  To ease record-keeping for small farm businesses.     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 $60 million in  2005 and $70 million in 2006.   G/SCM/N/155/USA 
Page 12  
 
  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 2005 and 2006.    
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 basi s and the amount of forgiveness exceeds his basis on 
the property, the excess forgiveness is taxable.  Howe ver, in the case of insolvent (bankrupt) debtors, 
the amount of loan forgiveness never results in an in come tax liability.  Farmers with forgiven debt 
are considered insolvent for tax purposes, and thus  qualify for income tax forgiveness.  This relief 
applies only if at least 50 per cent of the taxpayer' s gross receipts for the three tax years preceding the 
tax year in which the discharge of indebtedn ess occurs is attributable to farming.   
 
Amount
 
  The revenue loss was $10 million 20 05 and $20 million in 2006.   
 
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/155/USA 
 Page 13 
 
 
  Title: Capital Gains Treatment of Certain Agricultural Income 
 
Period covered by the notification  
  The period covered is fiscal years 2005 and 2006.   
 
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 2005 and 2006.  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 $880 million per year in 2005 and 2006.    
Duration
 
  Indefinite;  this has been a permanent provision since at least 1954.    
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 Tobacco  Products Supplied to their Employees by 
Tobacco Product Producers 
 
Period covered by notification
 
  The period covered is fiscal years 2005 and 2006.    
Policy objective and/or purpose
 
  To permit producers of tobacco products to suppl y their workers with free cigarettes and other 
tobacco products.    G/SCM/N/155/USA 
Page 14  
 
  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.   
ENERGY & FUELS 
(ENERGY DEVELOPMENT, STORAGE AND TRANSPORTATION 
& OTHER RELATED SECTORS)  
 
Title:  Renewable Energy Resources  
 
Periods covered by the notification
 
 
 The periods covered by the notification are fiscal years 2005 and 2006.   
 
Policy objective and/or purpose  
 
To lead the national effort to develop renewable energy technologies, to accelerate acceptance 
and use of renewable energy technologies and to 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:     G/SCM/N/155/USA 
 Page 15 
 
 
   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 Ener gy 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)  
 Form
 
  Grants, cooperative agreements, cooperativ e research and development agreements 
(CRADAs)
2 and other forms of collaboration accomp lished through consortium-based activities 
between government laboratories and private industry.   
 
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 2005 and 2006 annual appropriati ons (approximate dollars in millions).   
                                                     
 
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/155/USA 
Page 16  
 
   
 FY 2005
 FY2006
   
Total, Energy Supply and Conservation  1,234.3 1,174.8
  Applicable Sub-Programs   
Biomass/Biorefinery Systems R&D  87.5 90.7
Wind Energy Systems  40.6 38.9
Solar Energy  84.3 83.1
Geothermal Technology  25.3 23.1
Hydrogen Technology  166.8 155.6
Hydropower  4.9 0.5
International Renewable Energy Program  6.5 3.9
Renewable Energy Production Incentive Program  5.0 5.0
Tribal Energy Activities  5.5 4.0
 
Duration
 
  The Renewable Energy Resources Program is not  subject to any fixed completion date.  Its 
continuation is contingent upon ongoing annual appropriations 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 periods covered by the notification are fiscal years 2005 and 2006.    
Policy objective and/or purpose
 
  To support development and use of advanced  vehicle technologies and fuels which reduce 
demand for petroleum, decrease emissions of cr iteria air pollutants and greenhouse gases, and to 
enable the US transportation industry to sustain a strong, competitive positio n in domestic and world 
markets.   
 
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.93-275, Federal Energy Administration Act of 1974  P.L. 93-577, Federal Non-nuclear Ener gy Research and Development Act of 1974 
 P.L. 94-163, Energy Policy and Conservation Act (1975)  P.L. 94-413, Electric and Hybrid Vehicle Research, Development and Demonstration Act 
of 1976 
 P.L. 95-91, Department of Energy Organization Act (1977)  P.L. 95-238, Title III - Automotive Propulsion Research and Development Act of 1978  G/SCM/N/155/USA 
 Page 17 
 
 
   P.L. 96-512, Methane Transportation Research, Development and Demonstration Act of 1980 
 P.L. 100-494, Alternative Motor Fuels Act of 1988  P.L. 102-486, Energy Policy Act of 1992 
P.L. 109-190, "Energy Policy Act" (2005) 
 
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 2005 and 2006 annual appropriati ons (approximate dollars in millions).   
 
 FY 2005
 FY 2006
  
Total, Energy Conservation and Supply, Vehicle Technologies  161.3 182.1
  
Applicable Sub-Programs   
  
Vehicle Technologies  
 Vehicle Systems 13.0 13.1 Innovative Concepts 0.5 0.5 Hybrid and Electric Propulsion 44.1 44.0 Advanced Combustion Engine R&D 48.5 45.6  
Fuels Technology   
 Advanced Petroleum Based Fuels (APBF) 5.7 6.3 Non-Petroleum Fuels/Lubricants 5.7 7.1 Environmental Impacts 1.0 0  
Materials Technology   
 Propulsion Materials Technology 6.5 6.1 Lightweight Materials Technology 23.7 21.0 High Temperature Materials Laboratory 5.9 7.2  
Technology Introduction  4.9 6.3
Technical/Program Management Support  1.8 2.5
Biennial Peer Reviews  0.0 1.0
 
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.   
                                                      
3 See footnote 2, above.   G/SCM/N/155/USA 
Page 18  
 
  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 periods covered by the notification are fiscal years 2005 and 2006.   
 
Policy Objective and/or purpose
 
  In partnership with industry and government, the Office of Energy Efficiency and Renewable 
Energy, the Office of Building Technologies (BT), the Office of Weatherization and 
Intergovernmental Programs (OWIP), and the O ffice of Federal Energy Management Programs 
(FEMP) develops, promotes, and integrates energy  technologies and practices that make buildings 
more 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. 100-615, Federal Energy Management Improvement Act of 1988 
 P.L. 102-486, Energy Policy Act of 1992 
 P.L. 109-190, "Energy Policy Act" (2005)  
Form
 
 
 Assistance under the programs is provided th rough grants, cooperative agreements, CRADAs4 
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.    
Amount
 
 
 Fiscal years 2005 and 2006 annual appropriati ons (approximate dollars in millions).   
 
                                                      
4 See footnote 2 above.    G/SCM/N/155/USA 
 Page 19 
 
 
   
 FY 2005  FY 2006
  
Total, Building Technologies  65.1 69.3
  Applicable Sub-programs   
  
Residential Buildings Integration  16.8 15.2
Commercial Buildings Integration  5.1 3.1
Emerging Technologies  31.1 33.1
Equipment Standards and Analysis  10.1 10.2
Technical/Program Management Support  1.5 1.5
 
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 periods covered are fiscal years 2005 and 2006.    
Policy objective and/or purpose
 
  To improve the energy efficiency, environmen tal performance, and productivity of energy-
intensive industries by developing and delivering advanced science and technology options.   
 
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 Ener gy Efficiency Technology Competitiveness Act 
of 1989" 
 P.L. 102-486, "Energy Policy Act of 1992" 
 P.L. 109-190, "Energy Policy Act" (2005) G/SCM/N/155/USA 
Page 20  
 
  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 2005 and 2006 annual appropriati ons (approximate dollars in millions).   
 
 FY 2005
 FY 2006
  
Total, Industrial Technologies  73.4 56.9
  
Applicable Sub-programs   
  
Industries of the Future (Specific)   
 Forest and Paper Products 6.1 3.6 Steel Industry 5.5 3.6 Aluminium Industry 5.4 3.1 Metal Casting Industry 3.9 2.4
 Glass Industry 2.5 1.7
 Chemicals Industry 9.9 7.5 Mining Industry 3.4 1.0 Supporting Industries 0.7 0.7  
Industries of the Future (Crosscutting)   
 Industrial Materials of the Future 9.6 11.0
 Combustion 1.5 0 Robotics 2.0 0 Sensors & Automation 1.0 3.1 Industrial Assessment Centers 6.9 6.4
 Best Practices 8.2 7.9
  
Technical/Program Management Support  3.7 3.8
 
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.   
                                                      
5 See footnote 2 above.    G/SCM/N/155/USA 
 Page 21 
 
 
  Title: Fossil Energy Research and Development  
 
Periods covered by the notification  
  The periods covered are fiscal years 2005 and 2006.   
 
Policy objective and/or purpose
 
  The program's goal is to ensure that economic  benefits from moderately priced fossil fuels 
and a strong domestic industry, which creates domestic  jobs, are compatible with the expectation for 
exceptional environmental quality and reduced energy security risks.   
 
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 and the Energy 
Policy Act (2005).    
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 2005 and 2006 Appropriations (approximate dollars in millions).   
  FY 2005
 FY 2006
  
Total, Fossil Energy Research and Development  560.9 592.0
  
Applicable Subprograms   
  
Near-Zero Emissions Coal-Based Electricity and Hydrogen 
Production   
 Clean Coal Power Initiative 47.9 49.5
 FutureGen 17.3 17.8 Fuel and Power Systems 277.3 308.9  
Natural Gas Research  43.6 32.7
Petroleum - Oil Technology  33.0 31.7
Plant and Equipment (e.g., maintenance costs)  6.9 19.8
Fossil Energy Environment Restoration  9.5 9.5
Advanced Metallurgical Research  9.9 7.9
Cooperative Research and Development  8.1 5.9
 
                                                     
 
6 See footnote 2 above.   G/SCM/N/155/USA 
Page 22  
 
  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.   
 
OTHER ENERGY AND FUELS
7 
 
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 2005 and 2006.   
 
Policy objective and/or purpose
 
  To encourage the development of domes tic oil, 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 $390 million in 2005 and $680 million in 2006.   
 
Duration
 
 
 Indefinite.   
                                                      
7  The programs in this section are tax-related, au thorized under the US In ternal Revenue Code.    G/SCM/N/155/USA 
 Page 23 
 
 
  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 2005 and 2006.   
 
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) fuel mineral producer s and royalty owners are generally 
allowed to take percentage depl etion deductions rather than cost depletion on limited quantities of 
output for tax purposes.  Under cost depletion, outl ays are deducted over the productive life of the 
property based on the fraction of the resource extract ed.  Under percentage de pletion 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 limite d to 50 per cent of net income from the property, 
except for oil and gas where the deduction can be 10 0 per cent of net property income.  For domestic 
production from marginal wells, the 100 per cent of  net income limitation has been suspended for 
taxable years ending before 1 January 2008, or in  2009.  Additionally, the percentage depletion 
deduction for all oil and gas properties may not exceed  65 per cent of the taxpayer's overall income 
and is limited to 365,000 barrels per year per taxpayer.  Production from geothermal deposits is 
eligible for percentage depletion up to 65 per 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.    
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 independent (smaller) oil and gas producers and 
10 per cent for coal producers.  The revenue loss was $590 million in 2005 and $760 million in 2006.  G/SCM/N/155/USA 
Page 24  
 
  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 2005 and 2006.    
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.  The credit be gins to phase out if the annual average unregulated 
wellhead price per barrel of domestic crude o il exceeds $23.50 (in 1979 dollars).  The credit is 
authorized under section 29 of the Internal Revenue Code and was instituted as part of the Crude Oil 
Windfall Profit Tax Act of 1980.   
 
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 $2,320 million in 2005 and $2,980 million in 2006.   
 
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 
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.    G/SCM/N/155/USA 
 Page 25 
 
 
  Title:  Capital Gains Treatment of Royalties on Coal 
 
Period covered by the notification  
  The period covered is fiscal years 2005 and 2006.   
 
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 2005 
and 2006.  For individual taxpayers, long-term capit al gains are taxed separately from other income, 
generally at 5 per cent and 15 per cent rates.   
 
Amount  
  The revenue loss was $90 million in 2005 and $160 million in 2006.   
 
Duration
 
 
 Indefinite.    
Trade effects
 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title: Enhanced Oil Recovery (EOR) Credit 
 
Period covered by the notification
 
 
 The period covered is fiscal years 2005 and 2006.    
Policy objective and/or purpose
 
 
 To increase the domestic supply of oil a nd to enhance the energy security of the 
United States.   G/SCM/N/155/USA 
Page 26  
 
  Background and authority
 
  An EOR tax credit is provided equal to 15 per cent of the taxpayer's costs for tertiary oil 
recovery on projects in the United States.  Qualif ying costs include tertiary injectant expenses, 
intangible drilling and development costs on a qualif ied enhanced oil recovery project, and amounts 
incurred for tangible depreciable property.  Thus, th is credit encourages use of tertiary methods in 
situations where it would not be profitable otherwise.  The EOR cr edit may not exceed taxpayer's net 
income tax in excess of 25 per cent of net regul ar tax liability above $25,000 or the tentative 
minimum tax.  The EOR tax credit is authorized under section 43 of the Code and was enacted as part 
of the Omnibus Budget and Reconciliation Act of 1990.   
 
Form
 
  Income tax concession.    
To whom and how assistance is provided
 
  Petroleum producers and royalty holders appl ying approved tertiary petroleum recovery 
methods receive a credit against federal income tax.    
Amount
 
 
 The revenue loss was $300 million in 2005 and less than $50 million in 2006.   
 
Duration  
 
 Indefinite.   
 
Trade effects  
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title:  New Technology Credit:  Solar, Geothermal, Fuel Cell, and Microturbine Property 
 
Period covered by the notification
 
 
 The period covered is fiscal years 2005 and 2006.   
 
Policy objective and/or purpose  
  To reduce US consumption of oil and natural gas by encouraging the commercialization of 
renewable energy technologies and to enhance national security.  
 
Background and authority
 
  For 2005, a tax credit of 10 per cent of the basis of each energy property placed in service 
during any taxable year was available for investment in solar, geothermal, fuel cell, and microturbine 
property.  For 2006 and subsequent years, the tax credit is increased to 30 per cent of basis for 
investments in solar and fuel cell property, but re mains at 10 percent of basis for investments in 
geothermal and microturbine property.  For 2009 an d subsequent years, a tax credit of 30 per cent of 
basis is available for investments in small wind en ergy property and for property that previously 
qualified for the renewable electric energy produc tion tax credit and a tax credit of 10 per cent of  G/SCM/N/155/USA 
 Page 27 
 
 
  basis is available for investments in combined heat and power property and geothermal heat pump 
property.  The tax credit is authorized by sections  46 and 48 of the Internal Revenue Code.  In 
addition, investors may claim a grant in lieu of the credit under section 1603 of the American Recovery and Reinvestment Tax Act of 2009.  Th e tax credit was enacted for solar and geothermal 
property by the Energy Tax Act of 1978 and was expanded or extended by the Energy Policy Act 
of 1992, the Energy Policy Act of 2005, the Energy  Improvement and Extension Act of 2008, and the 
American Recovery and Reinvestment Tax Act of 2009.     Form
 
 
 Income tax concession.   
 
To whom and how assistance is provided  
  The credit reduces income taxes fo r non-utility taxpayers that invest  in qualifying equipment.   
 
Amount
 
  The revenue loss was less than $10 million in  2005 and less than $50 million in 2006.   
 
Duration
 
 
 The credit for solar energy property drops to 10 per cent on 31 December 2016.  The remaining credit and grant programs expire at various times during the period 31 December 2010, 
through 31 December 2016.   
Trade effects
 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title:  Energy Efficient Appliance Credit 
 
Period covered by the notification
 
  The period covered is fiscal years 2005 and 2006.    
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.  The 
Energy Policy Act of 2005 added the credit for energy  efficient appliances.  The credit is authorized 
in section 45M of the Internal Revenue Code.  Th e Energy Improvement and Extension Act of 2008 
renewed the credit for the period 2008-2010 and provided a new $75 million limit.  
 
 Form  
  Income tax concession.    G/SCM/N/155/USA 
Page 28  
 
  To whom and how assistance is provided
 
  The credit reduces income taxes for manufactur ers that produce qualifying appliances.   
 
Amount
 
 
 There was no revenue loss in 2005 and th e revenue loss was $120 million in 2006.   
 
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 2005 and 2006.   
 
Policy objective and/or purpose  
  To encourage the substitution of alcohol fuel s produced from renewable sources for gasoline 
and diesel fuel.   
 
Background and authority
 
  There is a tax credit or payment for alcohol used  as a fuel.  This credit is equal to 51 cents per 
gallon for alcohol (60 cents for methanol) used as a fuel.  In addition, small producers of ethanol are 
eligible for a 10 cent per gallon income tax credit.  The credit is included in a taxpayer's income.   
  The alcohol fuel credits are authorized by sections 38, 40, 6426, a nd 6427 of the Internal 
Revenue Code.  The alcohol fuel credits were en acted as part of the Crude Oil Windfall Profit Tax 
of 1980, at the rate of 40 cents per gallon for alc ohol that was 190 proof or more, and 30 cents per 
gallon for alcohol between 150 and 190 proof.  The credits were increased in 1982 and 1984.  The 
Omnibus Reconciliation Act of 1990 reduced the cred its to 54 cents and 40 cents for ethanol and 
ethanol blends and introduced the 10-cent-per-gallon income tax credit for small ethanol producers.  
In 1998, the Transportation and Equity Act for the 21
st Century reduced the alcohol fuel credit, as 
described above.  The American Jobs Creation Act of 2004 eliminated reduced rates of excise tax for 
most alcohol-blended fuels and substituted the cu rrent rules providing for income and excise tax 
credits or direct payments.  The Heartland, Habitat, Harvest, a nd Horticulture Act of 2008 added a 
$1.01-per-gallon credit for cellulosic biofuels.    
Form
 
 
 Income tax concession, excise tax concession, or di rect payment for fuels containing alcohol.    G/SCM/N/155/USA 
 Page 29 
 
 
  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 $1,540 million in fiscal  year 2005 and $2,620 million in fiscal 
year 2006.  
 
Duration
 
  The credit generally expires at the end of 2010.   The cellulosic biofuels credit expires at the 
end of 2012.   
 
Trade effects
 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    Title: Biodiesel Credit  
Period covered by the notification
 
  The period covered is fiscal years 2005 and 2006.   
 
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 or payment for biodiesel or  renewable diesel used as a fuel.  This credit is 
equal to $1.00 per gallon for biodiesel produced from virgin vegetable oils or animal fats and for 
renewable diesel and is $0.50 per ga llon for other biodiesel.  In addition, small producers of biodiesel 
are eligible for a 10 cent per gallon income tax credit.   The credit is included in a taxpayer's income.   
 
 The biodiesel and renewable diesel credits are authorized by sections 38, 40A, 6426, and 6427 of the Internal Revenue Code.  The biodiesel 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.    
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.   G/SCM/N/155/USA 
Page 30  
 
  Amount
 
  The revenue loss was $30 million in fiscal year 2005 and $90 in fiscal year 2006.    
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 : Credits for Electricity Production from Renewable Resources and for Refined and 
Indian Coal 
 
Period covered by the notification
 
  The period covered is fiscal years 2005 and 2006.    
Policy objective and/or purpose
 
 
 To encourage the development and utilizati on of electric generating technologies that use 
specified renewable energy resources, as opposed to  conventional fossil fuels and to encourage the 
production of low-emission and Indian coal.    
Background and authority
 
  Taxpayers are allowed a 1.5 cents credit (a djusted for inflation) per kilowatt hour for 
electricity produced from wind, closed-loop biomass, open loop biomass, solar energy, small irrigation power, municipal solid waste, qualifie d hydropower, marine a nd hydrokinetic renewable 
energy, and poultry waste.  The credit is indexed for inflation after 1992.  The electricity must be 
produced from a facility owned (or, in the case of bi omass, operated) by the taxpayer and it must be 
sold to an unrelated third party.  The credit is allowed for the first ten years of production from a new 
facility.  The credit was adopted as part of the Energy Policy Act of 1992 and was expanded or extended by the Tax Relief Extension Act of 1999, the American Jobs Creation Act of 2004, the 
Energy Policy Act of 2005, the Tax Relief and Hea lth Care Act of 2006, the Energy Improvement and 
Extension Act of 2008, and the American Recove ry and Reinvestment Tax Act of 2009.  This 
provision is authorized in section 45 of the Internal Revenue Code.   
  Taxpayers are allowed a $4.375 per ton credit for refined coal and a $1.50 per ton credit for 
Indian coal.  Both credits provide for inflation adju stments.  The refined coal credit is allowed for the 
first ten years of production from a new facility an d the Indian coal credit is allowed for production 
during the seven year period beginning on 1 January 2006.  The refined coal credit applies to 
production at facilities placed in service after 22 Octo ber 2004 and before 1 Janua ry 2010.  The Indian 
coal credit applies to production at  facilities placed in service before 1 January 2009.  The provision 
was adopted as part of the American Jobs Creation Act of 2004.  This provision is authorized in 
section 45 of the Internal Revenue Code.   
 
Form
 
  Income tax concession.     G/SCM/N/155/USA 
 Page 31 
 
 
  To whom and how assistance is provided  
  The credit reduces federal income taxes for taxpaye rs producing qualifying electricity or coal.   
 
Amount
 
 
 The amount of the credit in 2005 was $0.019 for electricity, $5.481 for refined coal, and $1.50 for Indian coal.  The amount of the credit in 2006 was $0.019 for electricity, $5.679 for refined coal, 
and $1.50 for Indian coal.  The revenue loss w as $230 million in 2005 and $460 million in 2006.   
 
Duration
 
  The tax credit applies to wind facilities placed in service before 2013, other renewable facilities placed in service before 2014, refined coal facilities placed in service before 2010, and 
Indian coal facilities placed in service before 2009.   
 
Trade effects
 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.    
Title : Credit for Clean Renewable Energy Bonds 
 
Period covered by the notification
 
  The period covered is fiscal years 2005 and 2006.   
 
Policy objective and/or purpose
 
  To encourage the development and utilizati on of electric generating technologies that use 
specified renewable energy resources, as opposed to  conventional fossil fuels and to encourage the 
production of low-emission and Indian coal.   
 
Background and authority
 
  Taxpayers are allowed a credit in lieu of inter est on bonds issued by municipalities or electric 
cooperatives to finance facilities producing electri city produced from wind, closed-loop biomass, 
open loop biomass, solar energy, small irrigati on power, municipal solid waste, and qualified 
hydropower.  The credit is also available for refined co al and Indian coal facilities.  The credit is set at 
a level that permits the issuance of the bonds withou t interest or discount.  The face amount of bonds 
qualifying for the credit are subject to a national li mitation of $1.2 billion to be allocated by the 
Treasury Department.  The credit applies to bonds issued after 8 August 2005 and before 
1 January 2009.  The provision was adopted as part of the Energy Policy Act of 2005.  This provision 
is authorized in section 54 of the Internal Revenue Code.   
 
Form
 
  Income tax concession.   
 
To whom and how assistance is provided
 
  The credit reduces federal income taxes for taxpayers lending funds to finance the construction of facilities producing qualifying electricity or coal.   G/SCM/N/155/USA 
Page 32  
 
  Amount
 
  The revenue loss was less than $10 milli on in 2005 and $20 million in 2006.   
 
Duration
 
 
 The tax credit applies to bonds issued before 2009.    
Trade effects
 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
 
Title : Credits for Electricity Production fr om Advanced Nuclear Power Facilities 
 
Period covered by the notification  
  The period covered is fiscal years 2005 and 2006.    
Policy objective and/or purpose
 
 
 To encourage the development of advanced nuclear power facilities.   
 
Background and authority  
  Taxpayers are allowed a credit of up to 1.5 cen ts per kilowatt hour for electricity produced at 
an advanced nuclear power facility.  The credit is subject to a national capacity limitation of 
6,000 megawatts to be allocated by the Treasury Depa rtment.  The credit is allowed for the first eight 
years of production from a new facility.  The credit a pplies to electricity produced at facilities placed 
in service after 8 August 2005 and before 1 January  2021.  The credit was adopted as part of the 
Energy Policy Act of 2005.  This provision is author ized in section 45J of the Internal Revenue Code.  
 
Form
 
  Income tax concession.    
To whom and how assistance is provided
 
 
 The credit reduces federal income taxes for taxpayers producing qualifying electricity.   
 
Amount  
  There was no revenue loss in 2005 and 2006.   
Duration
 
  The tax credit applies to new facilities placed in service before 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/155/USA 
 Page 33 
 
 
  Title : Credits for Investment in Advanced Coal Fa cilities and Advanced Gasification Facilities 
 
Period covered by the notification  
  The period covered is fiscal years 2005 and 2006.   
 
Policy objective and/or purpose
 
  To encourage the development of advanced technology facilities for generating electricity 
from coal and synthesis gas.   
 
Background and authority
 
  Taxpayers are allowed investment credits of  20 per cent for investments in integrated 
gasification combined cycle (IGCC) facilities an d gasification facilities and 15 per cent for 
investments in other advanced coal facilities.  The credit is subject to a national limitation of 
$800 million for the IGCC credit, $500 million for othe r advanced coal facilities, and $350 million for 
gasification facilities.  A 30-per cent credit is allo wed for advanced coal facilities and gasification 
facilities placed in service after 2008, subject to a national limitation of $1.25 billion for advanced 
coal facilities and $250 million for gasification fac ilities.  The credit was adopted as part of the 
Energy Policy Act of 2005 and expanded by the Energy Improvement and Extension 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
 
 
 There was no revenue loss in 2005 and 2006.    
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 2005 and 2006.   G/SCM/N/155/USA 
Page 34  
 
  Policy objective and/or purpose
 
  To assist refiners in complying with EPA 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.   
 
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 $10 million per year in 2005 and 2006.   
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 2005 and 2006.    
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.    G/SCM/N/155/USA 
 Page 35 
 
 
  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 $10 m illion in 2005 and $10 million in 2006.  
 
Duration  
 
 The tax credit applies to costs incurred afte r 8 August 2005 for property placed in service 
before 1 January 2014.    
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 2005 and 2006.    
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 and for taxpayer other than major oil companies, amortization is permitted over two 
years.  For major oil company costs incurred after 2006 and before 20 December 2007, amortization 
was permitted over five years.  For major oil company costs incurred after 19 December 2007, 
amortization is permitted over seven years.  The amortization deduction was adopted as part of the 
Energy Policy Act of 2005.  The amortization pe riod for major oil companies was extended by the 
Tax Increase Prevention and Reconciliation Act of 2005  and the Energy 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.    G/SCM/N/155/USA 
Page 36  
 
  Amount
 
  The revenue loss was less than $10 milli on in 2005 and $10 million in 2006.   
 
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.  
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 2005 and 2006.    
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 guarantees to the US commercial fishing 
sector for the construction, reconstruction, replaceme nt 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 project that could be  construed to lead to overcapitalization of any 
fishery.  In 1996, the program's regulations were  amended to reflect this change in policy.   
  In 1996, the FOG Program began providing direct  loans, and the name of the program was 
changed to the Fisheries Finance Program.  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 statutory authority for the FOG Program and FFP is the 
Merchant Marine Act of 1936, as amended.  This  program is administered by the National Marine 
Fisheries Service (NMFS).    
Form
 
  The FFP program provides direct loans to the fi shing industry.  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.    G/SCM/N/155/USA 
 Page 37 
 
 
  To whom and how assistance is provided  
  Under the FFP, loans are provided directly to fishermen to finance any of the activities listed 
above.    
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. In other 
words, the program historically has not resu lted in a net outflow of government funds.   
  Below is a table showing the total amount of loans  that have been authorized since 1998.  (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'03 FY 04 FY05 FY 06 
Traditional $59 $59 $59 $59 
Halibut/Sablefish IFQ $5 $5 $5 $5 
Community Development Quota $0 $0 $0 $0 
NE Multispecies  $0 $0 $0 $0 
Pollock Buyback $0 $0 $0 $0 
Crab Buyback $100 $0 $0 $0 
Pacific Groundfish  Buyback $36 $0 $0 $0 
NE Multispecies  Buyback $45 $0 $0 $0 
Non-Pollock Groundfish Buyback 
(Bering Sea and Aleutian Islands) $0 $0 $35 $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.   
 
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.   
 G/SCM/N/155/USA 
Page 38  
 
  Title: Saltonstall-Kennedy Grant Progr am:  Fisheries Research and Development 
 
Period covered by the notification
 
  The period covered is fiscal year 2005 and 2006.   
 
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 US 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 established by the American Fisheries Promotion Act of 1980, which amended the Saltonstall-Kennedy Ac t (15 U.S.C. 713c-3(c)).  The National Marine 
Fisheries Service administers the program.    
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 US;  citizens of the Northern Mariana 
Islands (NMI), Republic of the Marshall Islands, Republic of Pala u, or the Federated States of 
Micronesia, corporations, partnerships, associa tions, 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 un it for a diverse R&D grant program.  In the 
years 2005 and 2006 there were no competitive grants  as in years past.  However, in 2005 and 2006, 
$2.5 million and $5 million, respectively, was distributed through the national program to the states for research, seafood safety, marketing, etc.    
Duration
 
 
 Indefinite.   
 
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 Saltonstall- Kennedy funds are in the public domain.    G/SCM/N/155/USA 
 Page 39 
 
 
  Title:   Sea Grant 
 
Period covered by the notification  
  The period covered by this notification is fiscal year 2005 and 2006.   
 
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 and management of US 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
 
  The grant is 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 do not directly provide 
economic benefits to the fishing industry.  Theref ore, it is difficult to determine the value of any 
subsidy that may be provided under this program .  Total program expenditures (fisheries and non-
fisheries) were $62 million for fiscal year 2005.  (This total represents both federal government funds – approximately 66 per cent – and matching funds from  state partners – approximately 34 per cent).  
Of this amount, approximately $6.7 million were commercial fisheries expenditures and $4.3 million 
were aquaculture expenditures.  Total expenditur es for 2006 totalled $54.7 million.  Of this amount, 
approximately $5.5 million were commercial fi sheries expenditures and $2.1 million were for 
aquaculture.    
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.    G/SCM/N/155/USA 
Page 40  
 
  Trade effects
 
  The Sea Grant Program is not an industry or trade promotion program.  Very little of the funds provided directly impact the US fishing industr y.  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 2005 and 2006.    
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 salmon stocks (captive breed) and supplementing their 
recovery.  With the application of the Endangere d Species Act throughout the Columbia River Basin, 
substantial changes have been, a nd will continue to be, required of the Mitchell Act Program.   
 
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 US Government provides operating grants  to Columbia River Fisheries Development 
Program salmon hatcheries run by the Oregon Depart ment of Fish and Wildlife, the Washington 
Department of Fish and Wildlife, the Confederat ed Tribes and Bands of the Yakama Nation and the 
US Fish and Wildlife Service, Department of Interior.    
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 US Fish and Wildlife Service 
through an intergovernmental transfer.   
 
Amount  
  In fiscal year 2005, the appropriation under the Mitchell Act Program was approximately 
$12.968 million to fund the operations and maintena nce of the hatchery program in Oregon and  G/SCM/N/155/USA 
 Page 41 
 
 
  Washington.  In fiscal year 2006, the appropriatio n was approximately $16.78894 million 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, and to restore depleted salmon resources, especially certain runs 
of chinook and coho salmon.  It is not possible to determine precisely the contribution of Columbia 
hatchery-reared fish to the commercial harvests in either waters off Washington, Oregon, and 
California or off Alaska, but it is generally accepte d that they have no discernible trade effect.   
 
LUMBER & TIMBER 
 Title: Capital Gains Treatment of Certain Timber Income  
Period covered by the notification
 
 
 The period covered is fiscal years 2005 and 2006.   
 
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.    
To whom and how assistance is provided
 
 
 Certain timber sold under a royalty contract  can be treated as capital gains for income tax 
purposes.  Income tax rates for individuals on ordi nary income ranged from 10 per cent to 35 per cent 
in 2005 and 2006.  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 $90 million in 2005 and $160 million in 2006.   
 
Duration
 
 
 Indefinite.   G/SCM/N/155/USA 
Page 42  
 
  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 2005 and 2006.   
 
Policy objective and/or purpose
 
  The original ability to expense indirect costs of timber growing was apparently part of a general perception that these costs were maintenance co sts, and thus deductible as ordinary costs of a 
trade or business.  Following a series of revenue ru lings and court cases over the years distinguishing 
between what expenses might be deductible and wh at expenses might be capitalized, the Tax Reform 
Act of 1986 included uniform capitalization rules whic h required indirect expenses to be capitalized 
in most cases.  Where the application of these rule s was deemed to be unduly 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 capita lize, certain deductions from taxable income.   
 
Amount
 
 
 The revenue loss was $350 million in 2005 and $290 million in 2006.   
 
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/155/USA 
 Page 43 
 
 
  Title: Investment Credit and Seven-Year Amortization for Reforestation Expenditures 
 
Period covered by the notification  
  The period covered is fiscal years 2005 and 2006.   
 
Policy objective and/or purpose
 
  To promote reforestation on private timberlands.    
Background and authority
 
  A special 10 per cent investment tax credit is allowed for up to $10,000 invested annually in clearing land and planting trees for the ultimate production of timber.  The same amount of forestation investment may also be amortized over a seven-y ear period.  Without this preference, the amount 
would have to be capitalized and could be recovered (d educted) only when the trees were sold or 
harvested years later.  Moreover, the amount of for estation investment that is amortizable is reduced 
by one-half of the investment credit that is allowe d.  These provisions are authorized by sections 48(b) 
and 194 of the Internal Revenue Code.  They were  originally enacted in the Recreational Boating 
Safety and Facilities Improvement Act of 1980.    
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 less than $10 m illion per year in 2005 and 2006.   
 
Duration  
  Indefinite.   
 
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 2005 and 2006.   G/SCM/N/155/USA 
Page 44  
 
  Policy objective and/or purpose
 
  To encourage research on drugs for rare diseases or conditions.    
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 US sales of the drug.  The credit 
originally was enacted as a temporary provision in 1983 under the Orphan Drug Act, and was extended on several occasions.  The credit expired after 31 December 1994, and later was reinstated 
for the period 1 July 1996, through 31 May 1997.  The Taxpayer Relief Act of 1997 made the credit 
permanent.  The orphan drug credit is authorized under section 45C of the Internal Revenue Code.   
 
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 $210 million in 2005 and $230 million in 2006.   
 
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 2005 and 2006.   
 
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.    G/SCM/N/155/USA 
 Page 45 
 
 
  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 Development Appropriations.  If the 
production and sale of an isotope becomes commercially  viable, DOE is statutorily obligated to cease 
production of that isotope.     
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 a nd 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 2005, the appropriated amount was $34.5 million, and in 
fiscal year 2006, the amount was $14.3 million.    
Duration
 
  The activity is of indefinite duration; th e program operates with a revolving fund and 
maintains financial viability through its revenues from sales.   
 
Trade effects
 
 
It is doubtful that this particular program h as led to any meaningful trade effects.  The 
isotopes made available have been sold througho ut the world 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 2005 and 2006.    
Policy objective and/or purpose
 
  To encourage the development of the domestic non-fuel mineral industry.   G/SCM/N/155/USA 
Page 46  
 
  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 
Code.  Percentage depletion simila r to its current form was provided in 1932 at 23 per cent for sulphur 
and 15 per cent for metal mines.  From 1932 to 1950,  percentage depletion was extended to most 
other minerals.  The Revenue Act of  1951 granted it to more minerals .  In 1954, still more minerals 
were granted the allowance.  In 1969, the top de pletion rates were reduced.  The Tax Equity and 
Fiscal Responsibility Act of 1982 reduced the allowa nce for corporations that mined iron ore by 
15 per cent.  The Tax Reform Act of 1986 raised th e cutback in corporate allowances of iron ore from 
15 to 20 per cent.    
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 $270 million in 2005 and $450 million in 2006.   
 
 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 2005 and 2006.    
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, and to encourage, mini ng.  The provision for mine exploration was added  G/SCM/N/155/USA 
 Page 47 
 
 
  in 1966.  The Tax Equity and Fiscal Responsibility Act of 1982 limited expensing for corporations 
to 85 per cent; the remaining 15 per cent must be depreciated.    
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 les than $10 million in 2005 and $680 million in 2006.   
 
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 2005 and 2006.    
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 63 1 of the Code.  As 
with coal, percentage depletion is not allowed when  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 2005 and 2006.  For individual taxpaye rs, long-term capital gains are taxed separately 
from other income, generally at 5 per cent and 15 per cent rates.    G/SCM/N/155/USA 
Page 48  
 
  Amount
 
  The revenue loss was less than $10 m illion per year in 2005 and 2006.   
 
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 2005 and 2006.    
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 2005 and 2006.   
 
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/155/USA 
 Page 49 
 
 
  Title: Emergency Steel Loan Guarantee Program 
 
Period covered by the notification  
  This period covered is fi scal years 2005 and 2006.   
 
Policy objective and/or purpose
 
 
The overall purpose of this program was to assist  steel companies injured by the import crisis 
in 1998-2002.   
 
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 had the 
authority to guarantee loans until 31 December 2007    
Form
 
 
The program guaranteed 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 guaranteed 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 had 
the authority to make commitments for guarantees of loans up to $1 billion.  The amount guaranteed 
to any single qualified steel company could not exceed $250 million.    
Amount
 
 
 The Board last received an application for guarantee of a $250 million loan in 
September 2002 that was approved for guarantee in March 2003.  The guaranteed loan was issued in 
August 2003.  This was the third and final loan guarantee issued under the program.    
Duration
 
 
The Board's authority to issue guarantees expi red on 31 December 2007.  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 2005 and 2006.    G/SCM/N/155/USA 
Page 50  
 
  Policy objective and/or purpose
 
  The Textile/Clothing Technology Corporati on is a non-profit membership organization 
designed to stimulate economic growth in the US 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 US Department of Commerce (DOC).  The b asic research is performed internally by the 
organization and, in part, by external entities on a cont ractual basis.  The results  of the basic research 
are made available throughout the textile and a pparel sector of the United States.  No production 
subsidies are provided under this program.   
 
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.   
 
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).   
  2005 - $2.9   2006 - $3.4 
 
Duration
 
  Grants were first distributed under the program in 1981.  Funding must be reauthorized by the US 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 resu lt from this program.  While it is anticipated that 
successful research projects may lead to the de velopment of technologies that would enable 
companies in the textile and apparel sector to improve their productivity, TC2 assistance does not 
directly benefit the production or export of particular companies or products.   
 
TIMEPIECES AND JEWELRY 
 Title: The Insular Possessions Watch and Jewelry Programs  
 
 Period covered by the notification
 
 
The period covered is calendar year 2005 and 2006.   
  G/SCM/N/155/USA 
 Page 51 
 
 
   Policy objective and/or purpose  
 
The insular watch and jewelry programs are designed to encourage watch and jewelry 
production in the US insular possessions and thereby st imulate development of the insular economies.   
 
 Background and authority  
 
The US Department of Commerce and the US Depa rtment of the Interior jointly administer 
the Insular Possessions watch program under Public  Law 97-446, as amende d by Public Law 103-
465, Public Law 106-36 and Public Law 108-429.  The watch program provides for duty exemptions 
and duty refunds in the form of negotiable production incentive certificates.   
 
The US Department of Commerce and the US 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 
US notes to chapter 71 of the Harmonized Tariff Sche dule of the United States ("HTSUS") to provide 
a duty-refund benefit for any article of jewelry within  heading 7113 that is a product of the US Virgin 
Islands, American Samoa, Guam and the Northern Mariana Islands in accordance with the provisions 
of the note in chapter 71 and additional US Note 5 to chapter 91.  The jewelry program is also 
administered by the US Department of Commerce and the US Department of the Interior.  The 
jewelry program, like the watch program, provid es for duty refunds in the form of negotiable 
production incentive certificates, but does not provide for duty exemptions.   
 
To whom and how assistance is provided  
 
The assistance is provided to watch and jewelry producers located in the US Virgin Islands, 
American Samoa, Guam and the Northern Mariana Islands.  At present, there are producers only in 
the US Virgin Islands.   
The watch program establishes an annual allocation for watches and watch movements 
assembled in these areas to enter th e United States free of duty.  Both the watch and jewelry programs 
provide production incentive certificates that au thorize a duty refund from Customs and Border 
Protection ("CBP") on (HTSUS non-column 2) articles that have entered the United States duty-paid.  
The subsidy amount is based on the duty foregone on  the finished watches and watch movements, as 
well as the value of the production certificates issu ed to watch and jewelry companies.  Since the 
watches, the watch movements and jewelry prod uced under the programs already receive duty-free 
entry into the Customs territory of the United States, the certificate is negotiable and may be 
transferred to another company having a record of duty-paid imports.  The value of the certificate is 
based on the producers average cred itable wages per unit shipped free of duty into the United States 
multiplied by a factor of 90 per cent for the first 300,000 units and by declining percentages in additional increments up to a maximum of 750,00 0 units for watches and watch movements and 
10,000,000 units for jewelry.   G/SCM/N/155/USA 
Page 52  
 
   Amount
 
 
Production Incentive Certificate (APIC @) 
 
Year (1)  Product  Total Amount (2) 
 
2005  Watches  $2,026,684 2005  Jewelry  $2,127,050 2006  Watches  $2,087,228 2006  Jewelry  $2,600,924 
 
(1) The PIC is based on the wages and shipments made during the above mentioned calendar years.   
(2) One per cent is deducted from the total amount of the duty refund shown above to cover the 
administrative costs of processing by CBP.   
 
Duty Exemption Amount (3) 
 
2005   $305,779 2006   $319,533 
 
(3) The amount of the duty paid was calculated by using an approximate total trade ad valorem  equivalent 
rate of 6 per cent multiplied by the total yearly amount of the invoices b illed to customers.   
 
 Duration  
 
The watch program annual allocation for watc hes and watch movements assembled in the 
eligible areas to enter the United States free of duty is authorized through 2015 as is the production 
incentive duty refund certificate for watch and jewelry program participants.   
 
Trade Effects  
 
Although the precise trade effects cannot be determined, the benefits from these programs 
account for less than one percent of US annual personal domestic consumption of watches and 
jewelry.  Also, the watches and jewelry cove red by the program are only shipped into the 
United States market. 
 
OTHER 
 
Title: The Export Credit Programs of the Export-Import Bank of the United States 
 
Period covered by the notification  
  The period covered is fiscal year 2005 and 2006.    
Policy objective and/or purpose; background and authority
 
  The Export-Import Bank of the United States (Ex-Im Bank) is authorized by the Export-Import Bank Act of 1945 to pr ovide credits, guarantees and insura nce, including commercial and 
political risks, to support exports of US goods and servi ces.  The financial support is to be at rates and 
on terms that are competitive with government-s upported rates and terms available from other 
countries whose exporters compete with US exports.  All Ex-Im Bank programs are in full conformity 
with the OECD guidelines on export credit practices and, concomitantly, th e Agreement on Subsidies  G/SCM/N/155/USA 
 Page 53 
 
 
  and Countervailing Measures.  Inasmuch as other o fficial authorities offer official financing in 
support of exports from their countries, Ex-Im  Bank has offered similar financing.   
 
Form;  amount  
 
 The United States Federal Credit Reform Ac t of 1990 (Credit Reform) made fundamental 
changes in the budgetary treatment of direct loans,  loan guarantees and insurance.  Credit Reform, 
which became effective in fiscal year 1992, shifte d the accounting basis for federally provided or 
guaranteed credit from the amount of cash flowing into or out of the Treasury for a credit program, to the estimated net financial costs of the loans, gua rantees and insurance.  Credit Reform requires an 
annual appropriation that is used to set aside a loan -loss reserve to cover any expected financial losses 
in recognition of the cost to the US government of running an official export credit program.     Under the accounting procedures required by Credit Reform, the cost of Ex-Im Bank 
programs is calculated as the difference between the amount committed and the present value of the 
expected cash inflows, each discounted by the inte rest rate on marketable Treasury securities of like 
maturity.  This includes the cash flows specified in  the contract financed by Ex-Im Bank, as well as 
"expected" deviations from contract terms, includi ng delinquencies, defaults, prepayments, and other 
factors.  This calculation is performed on a tran saction-specific basis, and for those transactions 
showing a positive cash flow on a net present value b asis, the transaction cash flow is zero-ed out for 
Credit Reform purposes.   
 
 For direct loans, cash outflows include loan disbursements, and cash inflows include exposure 
fees and repayment of principal and interest net of expected defaults.  For loan guarantees and 
insurance, cash outflows include payments to cover default claims and intere st supplements, and cash 
inflows include fees and recoveries.  The expected  costs are calculated using a model developed by 
the Office of Management and Budget.   
  The following tables show the US government  budget authority value for Ex-Im Bank direct 
loan, loan guarantee and insuran ce programs.  Due to the unique nature of US credit reform 
calculations, the numbers presented in the tables are not comparable with short-term cash-flow data 
presented by other government export credit agencies.   
 
Table I
 
 
Direct Loan Budget Authority 
($ Millions) 
 
Fiscal Year Direct Loan 
Levels Budget 
Authority % 
2001 871.2 93.8 10.8% 
2002 295.6 48.6 16.4% 
2003 58.3 0.9 1.5% 
2004 227.1 21.5 9.5% 
2005 0.0 0.0 0.0% 
2006 56.5 0.7 1.2% 
 G/SCM/N/155/USA 
Page 54  
 
  Table II
 
 
Loan Guarantee and Insurance Budget Authority 
($ millions) 
 
Fiscal Year Guarantee & Insurance
Levels Budget 
Authority % 
2001 9,370.3 729.7 7.8% 
2002 9,823.6 677.9 6.9% 
2003 10,448.9 329.3 3.2% 
2004 13,093.9 248.4 1.9% 
2005 13,936.2 226.9 1.6% 
2006 12,094.0 185.5 1.5% 
 
Duration  
 
 Ex-Im Bank activities are subject to periodic renewal under US law.  Congress reauthorized 
Ex-Im Bank until the end of September 2011.    
Trade Effects
 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of this 
program.   
 
Title: Empowerment Zones, Enterprise  Communities and Renewal Communities 
 
Period covered by the notification  
  The period covered is fiscal years 2005 and 2006.    
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) and 95 enterprise communities (30 rural and 65 urban).  
The Taxpayer Relief Act of 1997 added 22 empowe rment zones (5 rural and 17 urban), and the 
District of Columbia Enterprise Zone (DC Zone).   The Community Renewa l 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 lo cal governments jointly nominated distressed areas 
and proposed strategic plans aimed at economic and social revitalization.  Rural enterprise 
communities and empowerment zones were designat ed by the Secretary of the Department of 
Agriculture, while urban enterprise communities,  urban empowerment zones and all renewal 
communities were designated by the Secretary of the Department of Housing and Urban  G/SCM/N/155/USA 
 Page 55 
 
 
  Development.  The tax provisions for enterp rise communities, empowerment zones, renewal 
communities, and the DC Zone are found in secti ons 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 bus inesses.  Businesses located in enterprise 
communities are only eligible for the new category of tax-exempt bonds.     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.    
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 m eet other criteria, such as having at least 35 per 
cent of employees who reside in the zone or community.  Businesses lo cated in enterprise 
communities and empowerment zones are eligible fo r the new category of tax-exempt bonds.  Up 
to $3 million per business per zone in bond funding  and $20 million per business for all zones is 
available.  The exclusion of capital gains from qua lified DC Zone assets held more than 5 years does 
not apply to gains earned before 1998 or after 2010.  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.   G/SCM/N/155/USA 
Page 56  
 
  Amount
 
  The revenue loss was $1,120 million in 2005 and $1,210 million in 2006.   
 
Duration
 
 
 Tax incentives have been available since the first zones and communities were designated on 
21 December 1994.  Empowerment zone and renewal community tax benefits are due to expire on 
31 December 2009.  The DC Zone tax benefits e xpired on 31 December 2007.  Enterprise community 
tax benefits expired on 31 December 2004.   
 
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 2005 and 2006.   
 
Policy objective and/or purpose
 
  To encourage capital investment in businesses located in economically distressed areas.   
 
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 $15 billion from 2001 to 2007.   
  Amount
 
  The revenue loss was $430 million in 2005 and $590 million in 2006.   
 
Duration
 
  This credit first became effec tive in 2001, and credit allocations to qualified CDEs will be 
made through 2007.    G/SCM/N/155/USA 
 Page 57 
 
 
  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 2005 and 2006.   
 
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.    
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 $1,040 million in 2005 and $1,260 million in 2006.   
 
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 expires 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.   G/SCM/N/155/USA 
Page 58  
 
  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 2005 and 2006.   
 
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.    
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 structures 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 $4 billion in 2006.    
Duration
 
  The expensing incentives generally expire  on 31 December 2007.  The bond provisions 
generally expire 31 December 2010.   
 
Trade effects
 
  It is not possible to estimate what, if any,  trade effects may result from the use of this 
provision.   
  
   G/SCM/N/155/USA
 Page 59 
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 -  Industry Groups 5142 and 5415  
-  Industries 54138 and 54171 
-  Industry 514191 -  or any process or treatment facility which recycles, reclaims, or converts materials, which 
include solids, liquids, or gases, to a reusable 
product.  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 five percent of the 
total capital costs of the qualifying project and the credit 
begins in the year the qualifying 
project is 'placed in service'. Ongoing 
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-dolla r credit against 
state premium taxes). Small technology and/or manufacturing 
businesses $200 million is allocated among 
12 CAPCO funds; each CAPCO fund may loan up to 15% of its 
allocation to a single project and 
multiple CAPCOs may invest in the same single project. Ongoing 
Alabama Community Facility 
Loan and Grant Program USDA Rural 
Development Mixed 
Financing To promote development in rural 
communities. Rural communities with a population of 20,000 
or less.  Priority is given to applicants in rural communities with populations of 5,000 or less 
and areas with the lowest median household 
income. Interest rates for direct loans are 
based on current market yields for municipal obligations.  The 
maximum term for all loans is 40 
years.  However, the repayment period is limited to the useful life 
of the facility or equipment or 
any statutory limitation on the applicant's borrowing ability. Ongoing 
  
  G/SCM/N/155/USA 
Page 60  
State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Alabama Delta Regional 
Authority (DRA) Alabama Department of 
Economic and 
Community Affairs Grant Led by a federal co-chairman 
appointed by the president and the 
governors of the eight states, the 
DRA fosters partnerships throughout the region as it attempts 
to improve the Delta economy. 
DRA funds can be used to leverage other federal and state programs. 
Under federal law, at least 75 % of 
DRA funds must be invested in economically distressed counties 
and parishes. Half of the funds are 
earmarked for transportation and basic infrastructure improvements. The Delta Regional Authority (DRA) works to 
improve life for the residents of 252 counties 
and parishes in parts of eight states.  Areas of emphasis for funding 
are: 
Basic public infrastructure in 
distressed counties.  Transportation infrastructure for 
the purpose of facilitating 
economic development.  Business development with an 
emphasis on entrepreneurship.  
Job training with an emphasis on using existing public education 
institutions.  Ongoing 
Alabama Enterprise Zone Tax 
Credit Alabama Department of 
Revenue Tax Credit The Enterprise Zone Act is a job 
creation program.  It is a 
performance driven program and 
provides credits for specific accomplishments of the company. Companies locating in the 28 designated 
enterprise zones.  Enterprise zone residents 
especially those unemployed for at least 90 
days prior to employment. Maximum credit of $2500 per 
new permanent employee.  
Credits are to be used in the year 
earned with any remainder available to be applied against income or business privilege tax 
liabilities for the succeeding two 
years. Ongoing 
Alabama Intermediary 
Relending Program USDA Rural 
Development Loan A loan program funded by the Rural 
Economic and Community Development (REDC) to strengthen 
the economy of rural communities. Priority scoring is given to applications located 
in areas of high unemployment, areas experiencing trauma, and areas where the 
population has declined.  All territory of a state 
that is not within the outer boundary of any city having a population of 25,000 or more, 
according to the latest decennial census. Loans to intermediaries are 
scheduled for repayment over a period of up to 30 years with an 
interest rate of one percent per 
annum.  The intermediary sets the term of the loans and sets the 
interest rate that they will charge 
to ultimate recipients.  The maximum loan to an 
intermediary is $750,000.00. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama Property Tax Abatements 
for Industrial Projects Alabama Department 
of  Revenue Tax Abatement/ 
Reduction Both real property and personal 
property are subject to ad valorem  
property taxation based on an assessment of 20% of fair market 
value.  To encourage the 
development of new industry in the state as well as to encourage the 
expansion of existing industry, an 
abatement of non-educational property taxation is provided for 
qualifying projects.   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 propert y, or $2 Million. Industrial projects may be exempted 
from ad valorem  (property) taxes for 
up to 10 years (except school taxes) with fixed assessment ratio 
established at 20 percent 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 propert y, or $2 Million. Industrial projects may be exempted 
from non-educational sales and use taxes on project-related expenditures 
for construction materials, furniture 
and fixtures, and equipment.  Approval is granted locally.  Ongoing 
  
  G/SCM/N/155/USA 
Page 62  
State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 
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 percent of the total gro ss 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 percent of 
the employees reside in a RC; no more than 5 percent 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 percent 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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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. Priority communities--those 
experiencing trauma due to natural disasters or are undertaking 
fundamental structural changes, have 
remained persistently poor or have experienced long-term population 
decline or job deterioration. $50,000 limit on unearmarked funds 
per applicant per state. Ongoing 
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 
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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 c ity or town.   Ongoing 
Alabama Film Promotion Act 2001-975, 2001 3rd 
Sp. Sess., p. 908, §1 Tax 
abatement of 
sales and lodging tax To promote commercial film 
production. Film Industry NA Ongoing 
  
   G/SCM/N/155/USA
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alabama  ThyssenKrupp Steel Plant 
Project Alabama Port Authority Incentive 
Package To win site selection for 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 
and Alaska 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 percent above 
the prime rate, not to exceed 10.5 
percent.   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 Rural Development 
Assistance Grants Department of 
Community and Regional 
Affairs Grant Competitive grants to communities. Communities with fewer than 900 
people or a lack of centralized water 
and sewer systems serving the majority of residents, a lack of 
organized police of fire protection, 
or a lack of medical and dental service other than those provided by 
the Indian Health Service. Each grant can provide a maximum 
of $50,000 per community. Ongoing 
Alaska Rural Development 
Assistance Mini-grant 
Program Department of 
Community and Regional 
Affairs Grant Grants for economic development 
projects for planning or 
implementation of business start-up 
or expansion, manufacturing, tourism development or other 
economic enterprises that increase 
jobs, income or services in rural Alaska communities. Communities with fewer than 10,000 
people.  Grants are provided to 
native village councils, and regional 
or local nonprofit corporations which serve eligible communities.  With 
Department's approval, a community 
may submit an application with a public or private fo r-profit entity if 
the community will receive a 
specified benefit. Maximum $30,000 per community 
per fiscal year. 
 
Funding level during FY 98 were approximately $200,000. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 
percent above the prime rate. A loan 
commitment fee of 1 percent 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 in surance will also 
be required. Ongoing 
Alaska Small Business Economic 
Development Revolving 
Loan Fund Department of Commerce, 
Community, and 
Economic Development and Alaska 
Division of Investments 
(ADI) Financing To create significant long-term 
employment and diversify the 
economy by providing startup and expansion capital for small 
businesses. Emphasis is placed on 
projects, which promise the greatest long-range positive economic impact 
on a community. Applicants will be required to obtain 
additional private, non-public 
financing in an amount not less than twice the amount requested under 
the application. Loans may be made 
to companies, which are "small businesses" as defined by the U. S. 
Small Business Administration, and 
are located within rural areas as defined by the program guidelines. Financing of either industrial or 
commercial ventures will be 
considered. The Loan Administration Board will determine 
interest rates and terms on loans; 
they can be expected to be at a fixed rate and below the prevailing market 
rate for loans of similar size, 
maturity and purpose in the project area. The maximum loan amount is 
$300,000, and the minimum 
$10,000. Ongoing 
Alaska State Underground 
Storage Tank Revolving Loan Fund Department of 
Environmental Conservation (DEC), 
Division of Spill 
Prevention and Response Financing To assist owners or operators of 
underground storage tanks to clean up underground storage tanks. Owners of regulated underground 
storage tanks, including municipalities and businesses, but 
excluding state and federal 
government. To be eligible tanks must be registered with DEC and 
comply with state and federal 
regulations.  Not applicable. Program 
currently inactive 
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 
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  
   G/SCM/N/155/USA
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alaska Community Quota Entity 
Revolving Loan Fund Department of Commerce, 
Community, and 
Economic Development and Alaska 
Division of Investments 
(ADI) Finance Financing for certified Community 
Quota Entities to purchase Quota 
Shares and reimbursement of Quota Shares purchased. Community Quota Entities that are 
certified and in good standing with 
the State and Federal Government and are not eligible for other 
financing. Maximum is $2,000,000.  Interest 
rate is 2 percent above the prime 
rate, not to exceed 10.5%. 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 Minerals Development Office of Economic and 
Development Financial 
support. Works with industry and regions 
involved in mineral development to develop mineral business opportunities. Mineral businesses Not available. Ongoing 
Alaska Forestry Development Office of Economic and 
Development Financial 
support. To develop 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 revolving loan fund is to 
assist communities, utilities, or fuel retailers in small rural sites to 
purchase bulk fuel on a semi-annual, 
annual or emergency basis. Eligible companies located in rural 
Alaska. 2008 the program AEA funded 
51 loans for $8.1 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 Not available. Ongoing 
Alaska Native Plant  
Commercialization 
Program Department of Natural 
Resources 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 
Alaska Alaska Foundation and 
Breeder Seed Program Department of Natural 
Resources 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 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 
  
  G/SCM/N/155/USA 
Page 68 State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Alaska Forest Stewardship 
Program Department of Natural 
Resources Financing To promote forestry development. 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 Natural 
Resources 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. Amount not available.  Twenty-four 
projects assisted since 2004 (12 wells). 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, educational 
outreach and technical project 
assistance to public and private landowners. Not available. Ongoing 
Alaska Small Business Economic 
Development Loan 
Program Department of Commerce, 
Community, and 
Economic Development 
and Alaska Division of Investments 
(ADI) Loan To encourage investment and growth 
within the state. Loans are provided to start-ups and 
expansion of small businesses 
located within an eligible area to 
provide private sector employment. Not available. Ongoing 
Alaska Rural Development Fund Department of Commerce, 
Community, and 
Economic Development and Alaska 
Division of Investments 
(ADI) Loan To improve the potential for 
economic growth in rural areas. Eligible businesses that create new 
jobs or retain jobs in a community 
with a population of 5,000 or less that is not connected by road or rail 
to Anchorage or Fairbanks, or with a 
population of 2,000 or less that is connected by road or rail to 
Anchorage or Fairbanks. Offers long term, low interest rates 
loans for working capital, 
equipment, construction and other commercial purposes. Ongoing 
  
   G/SCM/N/155/USA
 Page 69 
State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arizona Defense Restructuring 
Program Department of Commerce  Tax 
Credit/Tax 
Incentive To assist defense contractors in the 
state in maintaining and attracting 
contracts with the Department of Defense (DOD); and to encourage 
defense contractors to diversify into 
commercial markets, adopt new manufacturing processes and 
technologies, and consolidate 
facilities into this state. Defense contractors (manufacturer, 
assembler or fabricator).  No new 
certifications to the Department of Revenue after 30 June 2001. A credit allowed against corporate 
income taxes for up to 40 % of the 
real and personal property taxes paid based on jobs retained and created; 
corporate and individual income tax 
credits for increases in net employment above an established 
baseline.  The credit is a dollar 
amount allowed for each new employee equalling $7,500 over five 
years; and depreciation or 
amortization costs of capital investments may be subtracted from 
Arizona gross income equal to one-
half of the time period allowed under the U.S. Internal Revenue Code. Ongoing 
Arizona Enterprise Zone Program Arizona Department of 
Commerce Tax Credit To improve the economies of areas 
in the state with high poverty or unemployment rates by enhancing 
opportunities for private investment 
in certain areas called enterprise zones. Benefits apply to businesses located 
in disadvantage areas designated as state enterprise zone creating new 
full-time jobs that pay at least a 
designated "county wage" and provide health insurance coverage 
for which the company pays at least 
50 percent. Thirty-five percent of the jobs for which the tax credits are 
claimed must be filled by zone 
residents.   Provides an income tax credit for net 
increases in qualified employment positions.  These credits may be up 
to $3,000 per qualified employment 
position over three years.  In addition, qualified manufacturing 
businesses locating or expanding 
within these zones can apply for a class six property tax classification 
(5 percent of full-cash value) for a 
period of 5 years.  (Primary portion of property tax is reclassified). Ongoing 
Arizona Military Reuse Zone 
Program Arizona Department of 
Commerce Tax Credit Eases the restrictions on the 
designation and renewal of a closed 
military facility as a military reuse 
zone by allowing the Governor to designate the zone upon either the 
execution of a long-term lease or 
title transfer. Manufacturers, assemblers, or 
fabricators of aviation or aerospace 
products, as well as providers of 
aviation or aerospace services, located within a Military Reuse 
Zone.  Companies will have their real and 
personal property classified as class 
six property with an associated 
assessment ratio of 5 ^% (normally rate is 25 %) for a period of five 
years.  In addition, tax credits are 
based upon net new employees.  The credit is a dollar amount allowed for 
each new employee up to $7,500 (up 
to five years).  There is also an exemption of the Transaction Privilege Tax available for a prime 
contractor having a contract with a 
qualified MRUZ business for work in the zone. Ongoing 
  
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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, telefeatures, music videos, documentaries, 
episodic television series and other 
television production must meet the $1 million expenditure threshold of 
qualified spending over any 
consecutive 12-month period for one or more productions or portions 
thereof shot in Arizona to be 
eligible.  Commercial advertising production must meet the $250,000 
expenditure threshold in qualified 
spending with the same time parameters as features. A 50 % transaction privilege (sales) 
tax refund to qualifying production 
companies for projects filmed in Arizona.  Specific Department of 
Revenue (DOR) rules must be 
followed to both apply and qualify for this rebate against the 5.6 percent 
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 activities conducted in 
whole or part within the state. Computes the tax credit as follows: 
1)  If the total amount of the actual investment made and spent by the 
certified production in Arizona as a 
production-related cost is more than $100,000 but less than or equal to 
$5 million, the credit is 10 % of the 
actual investment made by the taxpayer.  2)  If the total amount of 
the actual investment made and 
spent by the certified production in Arizona as a production-related cost 
is more than $5 million but less than 
or equal to $10 million, the credit is 15 %t 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 
  
   G/SCM/N/155/USA
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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  ArkPlus Arkansas Department of 
Economic Development State Income 
Tax Credit This program is a discretionary 
incentive used in competitive 
situations that provides a state income tax credit based upon a 
percentage of the total project 
investment.  The eligible business meet the investment and payroll 
thresholds for the tier in which it 
locates. Companies established at least two 
years that expend $5 million or more 
in plant or equipment for new construction, expansion or 
modernization.  Credit equals the percentage of 
investment in new construction and 
equipment equal to half percent 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 & Development Arkansas Department of 
Economic Development State Income 
Tax Credit The Research and Development 
incentives are intended to provide 
incentives for uni versity-based 
research, in-house research and 
research and development in start-
up, technology based enterprises. Businesses that contract with 
Arkansas universities for research 
and development; existing, mature firms conducting in-house research;  
and new "targeted" businesses 
engaged in research and development  The amount of the income tax credits 
earned is based upon a percentage of 
eligible research and development expenditures.   Ongoing 
Arkansas  Targeted Business Payroll 
Credit Arkansas Department of 
Economic Development 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.  The qualifying threshold is determined 
by the tier in which the company 
locates. "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 percent 
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 
  
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Page 72  
State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arkansas  Motion Picture Incentive 
Act Arkansas Department of 
Economic Development 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 Department of 
Economic Development 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 c onsidered blighted, 
deteriorated or underdeveloped. Not available. Ongoing 
Arkansas  Advantage Arkansas Arkansas Department of 
Economic Development 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 production, 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 percent of income tax liability 
each year.  Credit may be carried forward for nine years. Ongoing 
Arkansas  Create Rebate Arkansas Department of 
Economic Development 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 production, 
distribution centers or scientific and 
technical services. I
ncome 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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Arkansas  InvestArk Arkansas Department of 
Economic Development 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 construction, expansion or 
modernization.  Credit equals the percentage of 
investment in new construction and 
equipment equal to half percent 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 Department of 
Economic Development Income tax 
credit To encourage investment in research 
and development. Qualified research expenditures and 
approval determined by ASTA board 
of directors. Income tax credit equal to 33 % of 
qualified research expenditures.  
Agreement term is five years and 
credit claimed limited to $50,000 per tax year.  May be carried forward for 
nine years. Ongoing 
California Enterprise Zones Housing and Community 
Development Department Tax Credit California's Enterprise Zone program 
is an innovative partnership 
comprised of state government, local government and private businesses.  The Enterprise Zone program spurs 
business development in 
42 designated areas through special zone incentives.  Companies already 
located or that loca te in Enterprise 
Zones can take advantage of state and local incentives and programs 
not available to businesses outside 
the Enterprise Zone.  California tax law allows businesses that 
experience a loss for the year to 
carry this loss forward to the next year in order to o ffset income in the 
following years.  Businesses within 
LAMBRA and EZs can carry over for 15 years.  California tax law 
allows businesses that experience a 
loss for the year to  carry this loss 
forward to the next year in order to 
offset income in the following years. 
Businesses within LAMBRA and EZs can carry over for 15 years There are 42 designated areas.  
Designations are made based on 
proposals from cities and counties containing areas meeting these criteria.  These areas are then 
evaluated competitively on the basis 
of local economic development incentives designed to complement 
state incentives. Tax credits and benefits available to 
companies locating in Enterprise 
Zones include:  (1) tax credits for sales or use taxes paid on up to $20 million of qualified machinery 
purchased per year;  (2) a hiring 
credit for wages paid to qualified employees during the employees' 
first 60 months on the job;  (3) a 
15 year carryover of up to 100 % of net operating losses;  (4) expensing 
up to $40,000 of certain depreciable 
property;  (5) lender interest income deductions for loans made to zone 
businesses;  and (6) preference 
points on state contracts.  In addition, local incentives may be 
available that include reduction or 
elimination of local permit and construction-related fees, 
expeditious processing of plans and 
permits, reduced utility rates, reduced land costs, assistance in 
employee hiring, low-cost financing 
and low-interest revolving loans.  For LAMBRA, new businesses can 
carryover 100 % of their losses over 
eight years if the loss is in their first year of operation, 100 % over seven years if in their second year of 
operation and 100 % over six years 
if in their third year of operation.   Ongoing  
  G/SCM/N/155/USA 
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
California Local Agency Military 
Base Recovery Area Housing and Community 
Development Department Tax Credit Local Agency Military Base 
Recovery Area (LAMBRA) 
legislation (AB 693) was drafted to 
stimulate job creation in areas experiencing military base 
downsizing and closure.  It was 
signed into law in 1993 in response to severe job loss among California 
military and civilian personnel as a 
result of base closures.  Per legislation, the state has been 
geographically divided into five 
regions.  Communities competed for the LAMBRA Zone designation 
which is limited to one per region.  
A LAMBRA may consist of only the former base or a specified portion of 
it.  A LAMBRA designation is 
binding for eight years. LAMBRA designations are similar 
to Enterprise Zones. In 1995 the first three military site 
designations under the state's 
LAMBRA program included Mare 
Island Naval Shipyard in Vallejo, Castle Air Force Base in Merced and 
George Air Force Base in 
Victorville.  In 1997, Alameda Naval Air Station in Alameda and the 
Tastin Marine Corps Air Station 
received their designations The designations allow 
communities to extend California 
Enterprise Zone tax credits to 
companies locating in a LAMBRA Zone.  As with 
Enterprise Zone communities, 
LAMBRA communities also have community incentives as a 
part of the business attraction 
package. Ongoing 
California Old Growth 
Diversification Revolving 
Loan Fund California Trade and 
Commerce Agency Loan With funding from the U.S. Forest 
Service, the Old Growth 
Diversification program provides 
low cost capital to businesses to create and retain jobs in areas of 
Northern California affected by 
timber harvest reductions and sawmill and related plant closures. 
Emphasis will be placed on value-
added wood products and other resource-related manufacturing, and 
on business ventures which diversify 
the local economy.  Where possible, preference will be given to those 
projects which employ displaced 
timber workers. Expanding businesses as well as start-up 
ventures will be considered. Statewide Businesses may borrow from 
$25,000 to $100,000.  Loan 
terms may go up to 10 years for 
real estate or equipment, and up to five years for working capital. 
Lines of credit with a one-year 
maturity are also available.  The interest rate may be fixed or 
variable, and will be set at the 
time of loan approval, depending on the borrower's individual 
circumstances. Discontinued 
as of 
30/06/2003 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
California Recycling Market 
Development Zone 
Program California Integrated 
Waste Management Board 
(part of CalEPA) Mixed 
Financing The Recycling Market Development 
Zone Program was developed by the 
California Environmental Protection Agency, Integrated Waste 
Management Board.  Businesses 
locating within the 40 designated zones can take advantage of low 
interest loan packaging, local permit 
streamlining, technical assistance and information sharing.  In 
addition, RMDZ loans are available 
for recycling projects. Any business or local government 
agency located in a recycling Zone 
utilizing post-consumer or secondary waste material in their production 
process may apply for a recycling 
loan.  Private businesses and not-for-profit organizations may borrow 
funds for real property, equipment, 
working capital, or refinancing of onerous debts. Each eligible business or local 
government agency may borrow up 
to 50 percent of the cost of any project with a maximum of 
$1 million. Ongoing 
California The STAR Partnership Commerce and Economic 
Development Program Tax 
Incentives To encourage film production within 
the State. Filmmakers No state hotel tax on occupancy, no 
sales or use tax on production or postproduction services on motion 
pictures or TV films, five percent 
sales tax exemption on purchase or lease of postproduction equipment. Ongoing  
California Community Development 
Block Grant Program Housing and Community 
Development Department Grant Create or retain jobs for low-income 
workers in rural communities Businesses that locate in counties 
with fewer than 200,000 residents in unincorporated areas and cities with 
fewer than 50,000 and are not 
participants in the U.S. Department of Housing and Urban Development 
(HUD) Community Development 
Block Grant (CDBG) program. Grants of up to $500,000 Ongoing  
California Tax exemption: STAR 
Program;  Film California First California Film 
Commission Sale tax 
exemption;  free/nominal 
fee surplus 
state-owned assets;  
reimbursemen
ts for filming on public 
property To encourage film production within 
the State. Purchasers or lessors of film 
equipment. Five percent sale tax exemption for 
purchasers/lessors of equipment;  unused sate properties for free or 
nominal fee;  reimburse fees 
involving production on public property up to $300,000 Ongoing 
California  New Markets Tax Credit California Department of 
Financial Institutions 
(CDFI) Tax Credit To provide investments in low 
income communities. Companies with qualified equity 
investments in designated 
Community Development Entities 
(CDEs). The credit provided to the investor 
totals 39 % of the cost of the 
investment and is claimed over a 
seven year period. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
California  Research and 
Development Tax Credit California Department of 
Financial Institutions 
(CDFI) Tax Credit To encourage comp anies to increase 
their basic research and development 
activities in California. To qualify, research must be done in 
California and include basic or 
applied research of scientific inquiry, original investigation for the 
advancement of scientific or 
engineering knowledge or improved effectiveness of commercial 
products. Tax credit allows companies to 
receive a 15 % credit against their 
bank or 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 percent or more 
than the state average. Total exemption is capped at 
$5 million per year. Ended in 
31/12/2005 
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 percent of 
the loan amount, not to exceed $500,000, with the guarantee not to exceed seven years. Ongoing 
Colorado Enterprise Zone Office of Econ. Dev & 
Int'l Trade Tax Credit Tax credits granted for investment 
and employment which takes place 
within 16 designated enterprise zones.  Companies must invest in 
equipment used exclusively in the 
zone;  or they must hire new full-time employees;  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.   There are currently 16 zones in the 
state, 8 are in rural areas.  
Legislation provides for a maximum of 16 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.  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  
   G/SCM/N/155/USA
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Colorado Biotech Sales Tax Refund Department of Reve nue Tax Refund To promote business within the state. "Qualified taxpayer" means a C 
corporation, as defined in section 39-
22-103 (2.5), a partnership, as defined in section 39-22-103 (5.6), a 
limited liability company that is not 
a C corporation, an S corporation, as defined in section 39-22-103 (10.5), 
or a sole proprietorship that 
purchases, stores, uses, or consumes tangible personal property to be used 
in Colorado directly and 
predominately in research and development of biotechnology. For the calendar year commencing 
1 January 1999, and for each 
calendar year thereafter, each qualified taxpayer shall be allowed 
to claim a refund of all state sales 
and use tax paid by the qualified taxpayer, pursuant to parts 1 and 2 of 
this article, on the sale, storage, use, 
or consumption of tangible personal property to be used in Colorado 
directly and predominately in 
research and development of biotechnology during that calendar 
year.  To claim the refund a qualified 
taxpayer shall submit a refund application to the department of 
revenue on a form provided by the 
department. Such application shall be submitted no earlier than 
January 1 and no later than April 1 
of the calendar year following the calendar year for which the refund is claimed.  The application shall be 
accompanied by proof of payment of 
state sales and use taxes paid by the qualified taxpayer in the 
immediately preceding calendar 
year. Ongoing 
Colorado Colorado Film Incentive House Bill 06-1362 Rebate 
(effective as of 5/06/2006) 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 Econ Dev and 
Int Trade Cash 
incentives for 
new jobs 
paying above average wages To increase employment in 
Colorado. Qualified new businesses or those 
expanding in Colorado. From $1,500 up to $4,500 per 
position depending on average wage 
rate and business location. Ongoing 
Colorado  Ad hoc incentive package Colorado Economic 
Development Commission Cash 
incentives;  
job training 
funds To increase employment in Colorado Lockheed Martin $1.4 million Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Colorado  Ad hoc incentive package Colorado Economic 
Development Commission Cash 
incentives;  
job training funds To increase employment in Colorado Raytheon $700,000  Ongoing 
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:  Urban Connecticut Development 
Authority Loan Access to bank lending through use 
of portfolio loan insurance.  Loss 
reserves up to 29.5 % used to induce 
bank lending in targeted areas.  Up to 9.5 % cash reserve deposited for 
other small business loans.  Direct 
loans up to $250,000 for buildings, equipment and working capital for 
specialized projects. Businesses located in New London 
or Windham counties or one of 
25 designated municipalities are 
eligible for targeted  business loans.  
Special emphasis on minority and 
women-owned businesses.  Small 
business Assistance loans available for businesses with 100 pr fewer 
full-time employees. No prior CDA approval is  required 
for new bank loans up to $250,000. 
Maximum loan $500,000.  
Maximum 15 year term. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Connecticut Growth Fund Connecticut Development 
Authority Loan The purpose of the program is to 
provide financing for small 
contractors and minority businesses that might have difficulty obtaining 
commercial financing.  Direct state 
loans and equity investments administered by the Connecticut 
Development Authority to small 
businesses for fixed asset financing, working capital, and start-up capital 
for those businesses vital to the 
economic base of the state.  Special purpose financing loans available for 
certain businesses unable to obtain 
conventional financing, including small contractors, minority 
businesses, water facilities, 
enterprise zone businesses or other impacted businesses.  Working 
capital requirements are determined 
by examining a prospective borrower's short-term  obligations such as wages, taxes and accounts 
payable.  Loans are not made to 
"loss-making" enterprises.   Any for-profit small business whose 
gross sales including those of 
affiliates did not exceed $25 million in the most recent fiscal year. Loans are made in amounts 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 percent 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 percent.  The structure of the 
investment terms depends upon the 
risk assessment made by Connecticut Innovations' staff, and the needs of the business. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Electronic Data 
Processing Equipment 
Property Tax Credit Department of Revenue 
Services Tax Credit The  purpose of this program is to 
promote economic development and 
job creation by encouraging investment in data processing 
equipment in a variety of industries 
(e.g., insurance co mpanies, hospital 
and medical services corporations, 
health care centers, air carriers, 
railroads, cable companies and utilities). Connecticut Businesses  Property tax credit that provides a 
100 percent credit for property tax 
paid on electronic data processing equipment.  Unused credits may be 
carried forward for five income 
years. Ongoing 
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 therefore not 
eligible to extend urban job benefits. In the case of an Enterprise Corridor 
Zone, for the purposes of obtaining 
the enhanced 50 % level of corporate 
credits, the hiring level for new full time positions remains at 30 % of 
those positions being filled by 
residents of the community in which the project takes place, who are JTPA eligible. Ongoing 
Connecticut Enterprise Zone or 
Entertainment District Tax Credit State of Connecticut 
Department of Economic And Community 
Development Tax Credit Tax credit for relocating or 
expanding a facility within a designated enterprise zone or 
entertainment district. Enterprise zones or entertainment 
districts.  Manufacturers, R&D, warehousing and certain services and 
entertainment related business as 
defined by regulations. Allows a business 25 percent or 
50 percent of their allocable State Corporate business tax as a credit.  
Corporations may claim this credit 
for 10 years beginning with the first year following certification. Ongoing 
  
   G/SCM/N/155/USA
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Enterprise Zone Program State of Connecticut 
Department of Economic 
and Community Development 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 certain qualifying 
service sectors firms in the targeted 
investment communities.  Program geared toward manufacturing and 
certain service sector businesses as 
well as research and development related to manufacturing and 
distributors 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.  
Also, facilities must have a standard industrial code 2000 to 3999. 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 on both state real estate conveyance taxes and sales 
taxes on machinery replacement 
parts. Both commercial businesses and residential facilities (where 
tenants satisfy maximum income 
level criteria) are eligible for a seven-year gradua ted tax deferral on 
increased assessments for 
improvements to property, 
exemptions on state real estate conveyance tax, and local incentives.  Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Manufacturing Assistance 
Act State of Connecticut 
Department of Economic 
and Community Development Loan The most comprehensive of the 
Department's financing programs, 
this act allows for the provision of financing for a variety of projects. Statewide -- Any 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 percent of total project 
costs; up to 75 percent for joint 
ventures between two or more municipalities, up to 90 percent in 
targeted investment communities, 
and up to 100 % 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 rates 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. Statewide 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 tax credit for businesses 
relocating to or expanding in one of 
Connecticut's Targeted Investment Communities. Targeted Investment Communities - 
Eligible activities include 
investments in manufacturing facilities or in research and 
development activities related to 
manufacturing. 25 % corporate tax credit for 
10 years. Ongoing 
  
   G/SCM/N/155/USA
 Page 83State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut Tax Increment Financing Connecticut Development 
Authority Bond Tax-exempt and taxable bonds for 
special economic development 
projects using incremental state tax 
revenues as partial security for the bonds. Large-scale economic development 
projects approved by the Authority 
prior to 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 
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.  Facilities must have a standard industrial code 
2000 to 3999. Businesses located within the 
targeted areas are eligible for the following assistance:  1) An 80 % 
local property tax abatement for five 
years for both real and personal property;  2) A corporate business 
tax reduction of 25 % for ten years;  
3) Working capital loans for small business;  4) A 0.5 % reduction in 
charges for state industrial 
mortgages guarantees.  Facility owners are entitled to the property tax incentives; all other incentives 
are reserved for facility occupants. Ongoing 
Connecticut MetroHartford Growth 
Fund Department of Economic 
and Community 
Development Loan To enhance employment 
opportunities by easing the burden of 
expanding, building or relocating businesses within MetroHartford. 1) Businesses which plan to create 
new jobs within the next three years 
in the MetroHartford area.  2) Businesses in the following "growth 
clusters":  manufacturing, financial 
services, health care, information technology, distribution, 
tourism/entertainment, and 
environmental technologies. Maximum loan amount is $350,000 
per project.  Most loans amount to 
$20,000 per new, full-time, permanent job to be created over the 
next three years. Ongoing  
Connecticut Information Technology 
Project Grants Connecticut Development 
Authority Grant To encourage developers and 
companies to utilize brownfields or industrial sites within urban 
communities. Developers and companies that 
engage in information technology projects and must be located 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  
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 small business growth 
in designated industry clusters locate 
in the following communities:  Waterbury, Hartford, New Britain, 
Bridgeport and New Haven. Small Businesses Loan amounts from $50,000 to 
$250,000, discounted fixed interest 
rates and 1percent application fee. Ongoing  
Connecticut Digital Animation Tax 
Credit - §12-217ll Connecticut Commission 
on Culture and Tourism Tax credit To encourage film production within 
the State. Film Industry For income years beginning on or 
after 1 January 2007, any state-
certified animation production company incurring production expenses or costs in excess of 
$50,000 shall be eligible for a tax 
credit equal to 30% of such production expenses or costs.  
Credits are assignable (salable). Ongoing 
Connecticut Film Production 
Infrastructure Tax Credit - 
§12-217kk and §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 
  
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State 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, reha bilitation 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 environmental contamination located in any 
Connecticut municipality. Not available. Ongoing 
  
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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 private-sector lenders meet 
their client's financing requirements. Economic base businesses. Guarantees 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 tax liability 
against the tax imposed under Chapter 208 of the Connecticut 
General statutes (Corporate Business 
tax). A tax credit is available equal to 
25% of the tax allocable to a manufacturing facility located within 
a Targeted Investment Community 
or an Enterprise Zone (or other area having Enterprise Zone level 
benefits). Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Connecticut 50% Manufacturing 
Facility Tax Credit for 
Facilities Located in an Enterprise Zone (or Other 
Area Having Enterprise 
Zone Level Benefits)  -  §12-217e  State of Connecticut 
Department of Economic 
And Community Development Tax credit To encourage manufacturers and 
certain other businesses to locate in 
an enterprise zone or other area having enterprise zone level benefits. Manufacturers with a tax liability 
against the tax imposed under 
Chapter 208 of the Connecticut General statutes (Corporate Business 
tax) and businesses engaged in 
biotechnology, pharmaceutical or photonics research, development, or 
production, with not more than 
300 employees, located in a municipality with a major research 
university with programs in 
biotechnology, pharmaceuticals, or photonics, and an Enterprise Zone. A tax credit equal to 50% allocable 
to a manufacturing facility located 
within a designated Enterprise Zone (or other area designated as having 
Enterprise Zone level benefits) is 
available to a manufacturing facility that meets certain employment 
criteria.  Other Areas include: 
Enterprise Zones, Targeted Investment Communities, 
Entertainment Districts, Qualified 
Manufacturing Plants, Railroad Depot Zones Contiguous 
Municipality Zones, Enterprise 
Corridor Zones, Defense Plant Zones and Manufacturing Plant Zones. Ongoing 
Connecticut Enterprise Zone Tax 
Credit for Qualifying Corporations §12-217v State of Connecticut 
Department of Economic And Community 
Development Tax credit To encourage businesses to located 
within one of Connecticut's Enterprise Zones or other area 
having enterprise zone level benefits. Qualifying corporations established 
in an area designated for enterprise zone level benefits and that meets 
certain employment levels and have 
tax liability against the tax imposed under Chapter 208 of the 
Connecticut General statutes 
(Corporate Business tax). Corporations may claim this credit 
for 10 years beginning with the first year following certification.  100% 
of the corporations business tax 
liability in years 1 through 3 and 50% of the corporations business tax 
liability for years 4 through 10.   Ongoing 
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 on 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 
  
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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 
five new positions.  Total credits in any taxable year cannot exceed 50 % 
of the pre-tax liability.  Unused 
credits can be carried forward during the ten-year Program. Selected 
commercial and retail businesses 
which locate in one of the 30 targeted census tracts and meet 
the minimum 
investment/employment criteria, qualify for credits of $400/new employee and $400/$100,000 
investment. Ongoing 
Delaware Delaware Access Program Delaware Economic  
Development Authority Loans To provide a source of financing to 
companies that for various reasons 
(i.e.. creditworthiness) cannot access loan funding sources. To companies that need financing 
but have found that traditional 
funding sources are not available to them. Amount are negotiated between the 
bank and the borrower.  The 
Delaware Access Program is designed to give banks a flexible and 
extremely non-bureaucratic tool to 
make business loans that are somewhat riskier than a conventional 
bank loan, in a manner consistent 
with safety and soundness. Outgoing. 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Delaware Strategic Fund Delaware Economic 
Development Authority Loan, Grants, 
and Equity 
Incentives The Delaware Strategic Fund 
represents the primary funding 
source used by The Delaware Economic Development Authority to 
provide customized financial 
assistance for job retention, creation or other economic development 
projects within the state.  Assistance 
usually includes recapture provisions.  Some specific uses of 
the fund are listed below:  a) 
Economic Development Loans or Grants b) Green Industries Loans c) 
Governmental UnitsDevelopment 
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 
Delaware Technology-Based Seed 
Fund Delaware Economic  
Development Authority Equity The Fund's intent is to foster high-
wage, fast-growing small businesses in technology fields such as 
biotechnology, advanced materials, 
clean energy, information technology, and new chemical 
applications. Delaware entrepreneurs and start-up 
ventures with less than 2 years of sustained operating history. $50,000  Ongoing 
  
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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 
five new positions.  Total credits in any taxable year cannot exceed 50 % 
of the pre-tax liability.  Unused 
credits can be carried forward during the ten-year Program.  Selected 
commercial and retail businesses 
which locate in one of the 30 targeted census tracts and meet 
the minimum 
investment/employment criteria, qualify for credits of $400/new employee and $400/$100,000 
investment. Ongoing 
Delaware Gross Receipt Tax 
Reductions for targeted 
industries locating within a targeted area. Department of Finance Tax 
reductions This is an enhancement to Corporate 
Income Tax Credits.  When the 
targeted industry locates in a Targeted area, Gross Receipt 
reductions further increase the 
incentive by providing a fifteen year reduction of Gross Receipts;  100 % 
the first five years, 90 % in the sixth 
year decreasing by 10 % each year until 5 % in the final (fifteenth) year.  Targeted industries locating in a 
targeted area. 100 % reduction the first five years. 
90 % reduction beginning in the 
sixth year. 80 % the seventh year until the 
fifteenth and final year with a 5 % 
reduction. Ongoing 
Delaware Gross Receipt Tax 
Reductions for targeted industries. Department of Finance Tax 
Reductions This is an enhancement to Corporate 
Income Tax Credits.  Gross receipt reductions further increase the 
incentive by also providing a ten 
year reduction of Gross Receipts;  90 % beginning in the first year, 
80 % the second year until 5 % in 
the last (tenth) year.  Targeted industries eligible for 
Corporate Income Tax credits. 90 percent reduction the first year. 
80 percent the second year. 70 percent the third year until 
5 percent the last (tenth) year. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 percent 
reduction in taxes owed for each new 
Delaware employee.  HMCs must pay a minimum $5,000 tax. Ongoing 
Delaware Neighborhood Assistance 
Act Department of Finance Tax Credits To encourage businesses paying 
Delaware corporate taxes to invest in 
impoverished neighborhoods. Participating Delaware businesses. The credit is equal to 50 % 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 Industry that meet the 
recycler definition receive a tax 
credit to $650 per employee and per 
$100,000 of investment.  During the ten-year life of credits, credits may 
not exceed 50 percent of the 
company's pre-credit tax liability in any one year. Ongoing 
Delaware Non-targeted industry 
locating in a targeted area. Department of Finance Tax Credits & 
Gross Receipt 
Tax 
Reductions To encourage certain commercial 
and retail activities to locate in 
targeted areas. Designated commercial & retail 
businesses. A Corporate Income Tax credit of 
$400 for each $100,000 of 
investment and $400 for each 
qualified employee. Ongoing 
Delaware Gross Receipt reductions 
for non-targeted industry locating in a targeted area. Department of Finance Tax 
Reductions To encourage certain commercial 
and retail activities to locate in targeted areas. Designated commercial & retail 
businesses. Ten year program with a 90 % 
reduction the first year, 80 % the second until 5 % in the final (tenth) 
year. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Delaware Corporate Income Tax 
Credits (Targeted Industry 
& Targeted Areas ) Department of Finance Tax Credit Delaware has identified targeted 
industries and targeted areas for 
economic development purposes and provides tax credits for qualifying 
new and expanded facilities for up to 
ten years.  This program has a requirement of job creation 
associated with it.   Targeted areas are defined as:  a) 
real property that is owned by any 
level of government or any of their agencies;  b) real property owned by 
a non-profit organization which is 
organized and operated solely for the purpose of fostering economic 
development;  c) real property which 
has been approved as a Delaware Foreign Trade Zone;  and d) 30 low 
income Census Tracts throughout the 
State. Firms within targeted industries 
qualify for corporate income tax 
credits of $400 for each new employee and $400 for each new 
$100,000 investment.  Firms within 
targeted industries who also locate in a targeted area qualify for $650 for 
each new employee and $650 for 
each new $100,000 investment.  Firms must invest a minimum of 
$200,000 and create a minimum of 
five new positions.  Total credits in any taxable year cannot exceed 50 % 
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 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 percent 
(50 percent) of the Public Utilities 
Tax imposed on new or increased 
consumption of gas and electricity for five years. Ongoing 
Delaware Film Promotion Program Delaware Film 
Commission State sales tax 
exemption To promote film production within 
the state. Film Industry No state sales tax. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 Reimbursement for expenses related 
to production of nationally 
distributed film and television projects with a minimum spend of 
$500,000 in Washington, DC in 
period of five days or more.  Grant is not exceed the lesser of 10 % of the 
qualified expenses or 100 % of the 
taxes paid to DC on the qualified expenses. Ongoing 
Florida Entertainment Industry 
Financial Incentive Office of the Film and 
Entertainment Cash 
reimbursement To promote film production within 
the state. Film Industry 15 % on total Florida budget of a 
filmed entertainment program which 
spends at least $850,000 with a 
maximum reimbursement of $2 million. Ongoing 
Florida Florida Entertainment 
Sales Tax Exemption Office of the Film and 
Entertainment Tax exemption To promote film production within 
the state. Film Industry Tax exemption from sales and use 
tax on purchases or lease of certain items used exclusively as an integral 
part of the production activities in 
Florida. Ongoing 
Florida Incentive for Digital 
Media Effects Companies and Relocation Projects Office of the Film and 
Entertainment Cash rebate To promote film production within 
the state. Film Industry Rebate of 5 % of its annual gross 
revenues, not to exceed $100,000;  qualified relocation project eligible 
for a rebate of 5 % of its first 
12 months of gross revenues in Florida, not to exceed $200,000. Ongoing 
Florida Brownfield 
Redevelopment Bonus 
Refund  Florida Department of 
Environmental Protection Tax Refund Encourage brownfield 
redevelopment and job creation. Offers incentives to businesses that 
locate in brownfield sites which are 
underutilized industrial or 
commercial sites due to actual or perceived environmental 
contamination. Applicants receive tax refunds of up 
to $2,500 for each job created. Ongoing 
Florida Rural Economic 
Development Catalyst 
Project Office of Tourism, Trade 
and Economic 
Development Various types 
of funding Development of Florida's rural areas. Projects within the three designated 
rural areas which have been affected 
by extraordinary economic events or natural disasters. Varies on an individua l project basis Ongoing 
Florida Ad hoc agreement Jacksonville Economic 
Development Commission Tax Incentives To upgrade the Gerdau Ameristeel 
Baldwin steel plant. Gerdau Ameristeel Three million dollars in tax 
incentives  2005 
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  
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Capital Investment Tax 
Credit Office of Tourism, Trade 
and Economic 
Development Tax Credit The Capital Investment Tax Credit is 
an annual credit against the 
corporate income tax for up to 20 years. In order to qualify for 
consideration under the 
program, an applicant must be in a designated high impact 
sector (currently biomedical 
technology, financial services, silicon technology, and 
transportation equipment 
manufacturing) SICs 372, 376 and 3711; or information 
technology—SICs 357, 366, 
367, 481, 482 and 737). Other industries are expected to be 
designated in the future. The amount of the annual credit is up to 
5 % of the eligible capital costs generated 
by a qualifying project and no more than or a specified percentage of the annual 
corporate income tax liability generated 
by the project, whichever is lower.  Those percentages are:  One hundred %, for a 
project with a cumulative capital 
investment of at least $100 million;  75 %, for a project with a cumulative 
capital investment of at least $50 million 
but less than $100 million;  and 50 %, for a project with a cumulative capital 
investment of at least $25 million but less 
than $50 million. Ongoing 
Florida  Enterprise Zone Jobs Tax 
Credit (Corporate Income 
Tax) Office of Tourism, Trade 
and Economic 
Development Tax Credit Business located in a state-
designated Enterprise Zone, who pay 
corporate income tax and create a new full-time job, are eligible to 
receive a corporate income tax credit 
for wages paid to new employees who have been employed by the 
business for at least three months 
and are residents of a Florida Enterprise Zone. State-designated enterprise 
zones.  Firms must earn more 
than $5,000 to take advantage of the credit. The credit amounts to 20 % of wages paid 
to new employees who are residents of a 
Florida enterprise zone.  If 20 % or more of the permanent, full-time employees are 
residents of a Florida enterprise zone, the 
credit is 30 %.  The credit is available for up to two years per new employee.  In 
"Rural Enterprise Zones" businesses will 
receive a credit of 30 % paid to new eligible employees in a full-time job who 
are residents of a "Rural County".  If 
20 % or more of the permanent, full-time employees are residents of a zone, the 
credit is 45 %. Ongoing 
Florida  Enterprise Zone Jobs Tax 
Credit (Sales and Use 
Tax) Florida Department of 
Revenue Tax Credit Business located in a state-
designated Enterprise Zone, who 
collect or pay Florida sales and use tax and create a new full-time job, 
are eligible to receive a monthly 
credit against their tax due on wages paid to new employees who have been employed by the business for at 
least three months in a full-time job 
and are residents of a Florida Enterprise Zone. State-designated enterprise 
zones. The credit amounts to 20 % of wages paid 
to new employees who are residents of a 
Florida enterprise zone.  If 20 % or more of the permanent, full-time employees are 
residents of a Florida enterprise zone, the 
credit is 30 %.  The credit is available for up to two years per new employee.  In "Rural Enterprise Zones" businesses will 
receive a credit of 30 % paid to new 
eligible employees in a full-time job who are residents of a "Rural County".  If 
20 % or more of the permanent, full-time 
employees are resident of a zone, the credit is 45 %. 31/12/2015 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Enterprise Zone Property 
Tax Credit Florida Department of 
Revenue Tax Credit New or expanded businesses located 
in a state -designated enterprise zone 
are eligible for a corporate income tax credit equal to 96 % of ad 
valorem taxes paid on the new or 
improved property. State-designated enterprise 
zones.  Firms must earn more 
than $5,000 to take advantage of the credit. The corporate income tax credit is 
available for a period up to five years, up 
to a maximum of $25,000 annually, and may be carried forward for five years.  If 
20 % of the permanent employees of the 
business are residents of the zone, the maximum amount of the credit is 
increased to $50,000 annually.  New or 
expanded businesses must create at least five new jobs. 31/12/2015 
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. 31/12/2015 
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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Florida  Qualified Defense 
Contractor Tax Refund 
Program Office of Tourism, Trade 
and Economic 
Development 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 per cent increase in Florida employment, or a 
minimum of 80 jobs. All- In order to qualify for 
consideration under the 
program an applicant must:  pay an average annual wage that is 
at least 115 % of the state or 
local average wages;  have in the last year derived at least 
60 % of its Florida gross 
receipts from Department of Defense contracts and not less 
that 80 % over the preceding 
five years;  create at least a 25 % increase in Florida 
employment or 80 new jobs if a 
consolidation project; show that the jobs make a significant 
economic contribution to the 
area economy;  demonstrate that the tax refund is necessary 
for the business to compete for 
the new contract or make the consolidation; and provide a resolution from the city or 
county commission 
recommending the applicant for the incentive. Once certified by the OTTED, the 
applicant may receive funds up to the 
project cap on the taxes it pays including corporate income, sales and excise, ad 
valorem, and documentary stamp taxes, 
subject to the following:  1) up to 25 % of the total refund may be taken per year as 
long as the business in maintaining 
project employment a nd 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 percent of the refund 
for which they would otherwise qualify. Ongoing 
Florida  Quick Response Training 
Program Workforce Florida, Inc. Grant Quick Response's customer-driven 
training programs provide rapid, 
effective training which is 
specifically tailored and designed to meet the needs of Florida business. Special consideration will be 
given to applicants located in a 
distressed urban or rural area or 
Enterprise Zone.  Funding priority given to business 
creating high skill/high wage 
jobs, in qualified targeted industries·jobs located in a 
distressed Urban Inner City 
Area or Rural Area, jobs located in an Enterprise Zone or Brownfield Area, whose grant 
proposals have the greatest 
potential for economic impact, that contribute in-kind and cash 
matches. Once approved, a grant agreement is 
signed and the applicant is eligible for 
reimbursement of direct training costs I.e. 
instructors' salaries, curriculum development and manuals.  Payments are 
made monthly on a reimbursement and 
performance basis as per terms of the grant agreement.  The maximum grant 
term is 24 months. Ongoing 
  
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State Program Title Program 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, Customer Service 
Centers. New businesses must create at least 10 
new jobs. Existing businesses must increase its employment base by 20 %, if 
the business has fewer than 50 
employees.  Existing businesses with 50 or more employees must create at least 10 
new jobs. A total of $5 million of tax 
credits are available per calendar year. Ongoing 
Florida  Sales and Use Tax 
Exemption on Machinery and Equipment Florida Department of 
Revenue Tax 
Exemption The Sales and Use Tax Exemption 
on Machinery and Equipment is an incentive made available to new and 
expanding businesses who use such 
equipment at a fixed location to manufacture, process, compound, or 
produce tangible personal property 
for sale, or for exclusive use in spaceport activities.  Manufacturing machinery and 
equipment (MME) bought or used for manufacturing, 
compounding, or producing 
items of tangible personal property.   New manufacturing operations are fully 
exempt. Expanding businesses pay sales or use tax of $50,000 for each calendar 
year of the expansion project before the 
exemption or refund is available.  Ongoing 
Florida  Sales Tax Exemption for 
Electrical Energy Used in an Enterprise Zone Florida Department of 
Revenue Tax 
Exemption Businesses located 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 percent of the 
municipal utility tax. These exemptions are available for up to 
five years. 31/12/2015  
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State Program Title Program 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 pr operty located in 
the zone. Enterprise Zones The maximum refund per application will 
be no more than $5,000 or 97 % of the tax 
paid.  If 20 percent or more of the permanent, full-time employees of the 
business are residents of a Florida 
enterprise zone, the refund will be no more than the lesser of $10,000 or 97 % 
of the tax paid. 31/12/2015 
Florida  Sales Tax Refund for 
Business Machinery and 
Equipment Used in an Enterprise Zone Office of Tourism, Trade 
and Economic 
Development Tax Refund Businesses located in an enterprise 
zone may receive a sales tax refund 
on sales taxes paid to purchase new and used business property (e.g. 
tangible personal property such as 
office equipment, warehouse equipment, and some industrial 
machinery and equipment) which is 
used exclusively in  an enterprise 
zone for at least three years. 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. 31/12/2015 
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 
  
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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 Phontonics 
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  
Georgia Appalachian Region 
Business Development 
Revolving Loan Fund 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 percent of total 
project cost.  Loans are usually made "below market rate". Ongoing 
Georgia Enterprise Zone Program Georgia Department of 
Industry, Trade and 
Tourism Tax Credit State legislation was enacted in 
1983, pertaining to Atlanta only.  It 
was later extended to provide for 
statewide enterprise zone designations in 1997.  Companies 
locating within the zones receive 
100 percent exemption on inventory for 25 years.  Legislation allows 
other communities to create 
"development districts" which are similar to Atlanta's Enterprise Zones. 'Areas of poverty, 
unemployment, and general 
distress.  Zone areas can not be 
less than:  Industrial-25 acres; commercial-8 acres; housing-5 
acres. Industrial:  Ad valorem tax reductions on 
property taxes on Freeport-eligible 
inventory for 25 years, with a 100 % 
property tax reduction in the first five years and 80, 60, 40, and 20 % reductions 
in subsequent five year periods;  a 100 % 
exemption exists for inventory for 25 years.  Housing and Commercial:  
Zone created for ten years with 
exemptions for real property being 100 % for 5 years;  80 % 6 and 7 years; 60 % for 
8 years; 40 % for 9 years;  20 % for 10 
years.  Non-exempt real property is taxed by the City. Ongoing 
  
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State Program 
Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Georgia Foreign Trade 
Zones Georgia Department 
of Industry, Trade 
and Tourism Mixed Tax Three FTZs (and several sub-zones) 
provides 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 five years beginning with the year 
in which jobs are placed in  service. The credit may 
be taken against Georgia income tax liability and a company's withholding taxes.  Credits may be 
carried forward for 10 years. Ongoing 
Georgia Investment 
Tax Credit Georgia Department 
of Industry, Trade and Tourism Tax Credit Part of Georgia's Business 
Expansion and Support Act of 1994 which allows manufacturers and/or 
support facilities in operation for 
3 years a tax credit. Counties (census tracts) ranked by 
unemployment rate, income, wage, and poverty level. Eligible use can be 
investment, recycling, pollution control, and 
defense conversion activities.  All manufacturing and telecommunications 
companies are eligible to receive the tax 
credit. Based on the same tiers as the Job Tax Credit 
program.  Allows a taxpayer that has operated an existing manufacturing or telecommunications 
facility or manufacturing or telecommunications 
support facility in the state for the previous five years to obtain a credit ag ainst income tax liability. 
Companies expanding in Tier 1 counties must invest 
$50,000 to receive a 5 % credit.  That credit increases to 8 % for recycling, pollution control, and 
defense conversion activities.  Companies expanding 
in tier 2 counties must invest $50,000 to receive a 3 % tax credit.  That credit increases to 5 % for recycling, pollution contro l, and defense conversion 
activities. Companies expanding in Tier 3 or Tier 4 
counties must invest $50,000 to receive a 1 % credit.  That credit increases to 3 % for recycling, pollution 
control, and defense conversion activities. Ongoing 
  
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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 Industry, Trade 
and Tourism 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.  Also, Job 
Tax Credit for Joint Development Authorities provides for an 
additional $500 job tax credit for a 
business locating within the jurisdiction of a joint authority of 
two or more contiguous counties. Counties (census tracts) are ranked 
according to the rate of unemployment, 
income, wages, and poverty level.  Industries include manufacturing, warehousing and 
distribution, processing, tourism, and 
research and development industries. The four Tiers are as follows:  Tier 1 counties that 
are ranked 1st through 71st 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;  Tier 2 countie s are ranked 72nd through 
106th.  Companies creating 10 or more jobs in a Tier 2 county may receive a $2,500 tax credit;  Tier 3 
counties are ranked 107th through 141st.  Companies 
creating 15 or more new jobs in a Tier 3 county may receive a $1,250 tax credit;  Tier 4 counties are 
ranked 142nd through 159th.  Companies creating 25 
or more new jobs in a Tier 4 county may receive a $750 tax credit.  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 Industry, Trade and Tourism Tax Credit Businesses or the headquarters of 
any such businesses engaged in manufacturing, warehousing and 
distribution, processing, 
telecommunications, tourism, or research and development that 
increase their port traffic tonnage 
through Georgia ports by more than 10 % over their 1997 base year port 
traffic, or by more than 10 % over 
75 net tons, 5 containers or 10 20-foot equivalent units (TEU's) during 
the previous 12 month period are 
qualified for increased job tax credits or investment tax credits. Businesses or the headquarters of any such 
businesses engaged in manufacturing, warehousing and distribution, processing, 
telecommunications, tourism, or research 
and development that increase their port traffic tonnage through Georgia ports by 
more than 10 per cent over their 1997 base 
year port traffic, or by more than 10 % over 75 net tons, five containers or 10 20-foot 
equivalent units (TEU's) during the previous 
12 month period are qualified for increased job tax credits or investment tax credits. Companies that increase th eir port traffic tonnage 
through Georgia ports by more than 10 % over the 1997 port traffic base year, or 75 net tons, five 
containers, or ten 20-foot  equivalent units (TEU) 
during the previous 12-month period, and meet Business Expansion and Support Act criteria for the 
county in which they are located, are qualified for 
increased job tax credits or investments tax credits. Base year port traffic must  be at least 75 net tons, 
five containers or 10 TEUs. 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 port traffic 
base year may take both job tax credits and investment tax credits. Job Tax Credits-Companies 
may qualify for tax credits based on the tier level of 
the county in which they locate.  Ongoing 
Georgia Georgia 
Entertainment 
Industry Investment 
Act   Tax credit 
and tax 
exemptions To promote commercial film, video 
and music productions in the state. Film/Video/Broadcast/Music Industries Base investment tax cred it of 9 % with minimum 
expenditure of $500,000;  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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 Downtown 
Development 
Revolving Loan Fund (DD RLF) Georgia Department 
of Community 
Affairs Loans  To assist small and middle sized communities 
in implementing quality downtown 
development projects.  Non-entitlement cities and counties that 
have downtown areas that generally have 
the following characteristics:  A significant number of commercial 
structures 50 years or older.  High 
percentage of empty storefronts.  Up to $200,000 per project.  Loans are 
made to local governments, but eligible 
sub-recipients include development authorities and private businesses.  Loans 
terms are usually no longer than 15 years 
and interest rates are normally fixed at below market values. Ongoing 
Georgia  Sales Tax 
Exemption Georgia Department 
of Industry, Trade 
and Tourism Tax 
Exemption Tax exemption provided by Georgia law for 
new machinery and equipment.  Other 
exemptions: purchase for resale; machinery 
used directly in making a product for sale;  Raw materials that will become a component of a finished product, i.e., paint on 
automobiles;  machinery and equipment used 
for pollution control.  Manufacturing, remanufactures of aircraft 
engines, parts, and components, and 
government contractors for DOD or 
NASA. Not available. Ongoing 
Hawaii Enterprise Zone 
Program Department of 
Business, Economic Development and 
Tourism Mixed Tax Businesses within a designated enterprise zone 
and qualifying under the Program (manufacturing, wholesaling, maintenance or 
repair) are eligible for General Excise Tax 
exemptions and are eligible for two different types of income tax credits.  Each county 
designates areas as special enterprise zones, 
such as agricultural en terprise zones, to 
provide tax breaks, incentives, and other 
advantages to businesses in the area. Enterprise Zones - Qualifying businesses 
include manufacturing, wholesaling, aviation and maritime repair, 
telecommunications, medical research, 
data systems and international executive training. Income tax credits include a seven-year 
exemption from general excise taxes on gross proceeds;  an 80 % first-year 
income tax abatement (decreasing 10 % 
each year thereafter during the next six years), and an income tax credit equal to 
80 % of unemployment taxes paid during 
the first year (decreasing 10 % during the next six years).  Counties also contribute 
one or more incentives for each zone 
designated under its jurisdiction.   Ongoing 
Hawaii High Tech 
Business Investment Tax 
Credit Department of 
Taxation Tax Credit The high-technology business investment tax 
credit provides a nonrefundable income tax credit to encourage Hawaii taxpayers to invest 
in "qualified high technology businesses 
(QHTBs)".  The tax credit is up to a maximum credit of $2 million per single-year's investment, per business, claimed over a 5-year 
period. The credit can be taken against the 
income tax for tax years 2000 through 2005.  If the tax credit exceeds the taxpayer's liability, 
the excess of the tax credit may be carried over 
to subsequent years until exhausted. High technology businesses. (1) From 2001 to 2003, a QHTB can sell 
a maximum of $500,000 of its net operating loss per year for any net 
operating loss occurring in the two 
previous taxable years.  The sale price must be 75 % or more of the tax benefit sold, and the amount received by the 
seller is not taxed as income.  (2) A 
maximum of $2 million per year per business non-refundable income tax 
credit with carryover in a qualified high 
technology business. (3) Capital loss can be carried forward by a QHTB.  Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Hawaii Motion Picture 
and Film 
Production Income Tax 
Credit Department of 
Business, Economic 
Development and Tourism Tax Credit Each taxpayer subject to Hawaii's net income tax, who 
incurs production costs and transient accommodations 
costs in Hawaii while producing a motion picture or television film that benefits Hawaii's economy, may 
claim a motion picture 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 percent of the costs 
incurred in Hawaii in the production of motion picture or televi sion films.  (2). An 
amount up to 7.25 % of the costs incurred in 
Hawaii in the production of motion picture or television films for act ual 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 
innovation businesses are given priority. Corporation has committed $14 million, 
pooled with private capital, into seven venture capital funds. Ongoing 
Hawaii Royalties Tax 
Exemption Department of 
Taxation Tax 
Exemption Effective 1 January 2000, amounts received by an 
individual or a qualified high technology business as 
royalties and other income derived from patents and 
copyrights owned by the i ndividual or qualified high 
technology business, and deve loped and arising out of a 
qualified high technology busin ess, 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, designing , 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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
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. 31/12/2010 
Idaho New Jobs Income 
Tax Credit Dept. of Revenue 
and Taxation Income Tax 
Credit New job creation Business that produce, assemble, fabricate, 
manufacture, or process natural resource products. $500 per new employee.  May not 
be combined with $1000 new job 
tax credit Ongoing 
Idaho 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 currently em ployed 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 
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.   Ongoing  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
Idaho Sales Tax 
Production 
Exemption Dept. of Revenue 
and Taxation Tax Credit Increase investment in Idaho Any qualifying business 100 % Idaho Sales and use tax exemptions 
are available for equipment and materials 
used directly in manufacturing, processing, mining, fabrication, or logging 
operations;  and for clean rooms used in 
semiconductor and semiconductor equipment manufacturing. 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 Capital Access 
Program Illinois Department 
of Commerce and 
Economic Opportunity Incentive to 
lenders Provides portfolio insurance to 
lenders on loan defaults. Higher match is available to lenders who provide 
financing to businesses located in a Federally 
designated Empowerment Zone or Enterprise 
Community (200 % match);  or minority-, women-, and disabled-owned companies. The lender sets the rate and terms for loans 
to businesses.  Reserve premiums range to 
150 percent of the bank's non-refundable fee of 3-7 %. Ongoing 
Illinois Coal 
Demonstration 
Program Illinois Department 
of Commerce and 
Economic 
Opportunity Mixed 
Financing Finances state-of-the-art development 
and demonstration projects for 
advanced coal systems with utility and 
industrial applications. Coal mining companies and electric power 
producers. Program provides partial funding; nearly 
all demonstration proj ects have leveraged 
other public or private funds.  Grants 
typically range from $1-30 million. Ongoing 
Illinois Coal 
Development Program Illinois Department 
of Commerce and Economic 
Opportunity Grant Provides funds to advance promising 
new coal research technologies through the proof of concept state to 
the commercial demonstration stage.  
Includes technology maturation, technology transfer and related 
studies. Companies employing clean coal tec hnologies. 50/50 cost share. Ongoing 
Illinois Enterprise Zone 
Financing 
Program Department of 
Commerce and 
Community Affairs Loan Program is designed to promote 
growth and development within the 
enterprise zone. Any for-profit entity  with less than 
500 employees locating in an Illinois Enterprise 
Zone. DCCA may participate in an eligible loan 
for no less than $10,000, nor more than 
$75,000.  In no case shall the amount of DCCA's subordinated participation exceed 
25 percent of the total project.  DCAA's 
rate will be 200 basis points below the Wall Street Journal Prime rate, but in no event will the rate be less than 3 percent. Ongoing 
Illinois Coal 
Infrastructure 
Program  Illinois Department 
of Commerce and 
Economic 
Opportunity Grant Encourages communities and 
businesses to improve the coal 
extraction, preparation, and 
transportation systems in order to remedy barriers to the economic 
employment of coal. Coal mining companies, transportation 
companies, local communities. Grants typically range from $50,000 to 
$900,000. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
Illinois Coal Revival 
Program  Illinois Department 
of Commerce and 
Economic Opportunity Grant Provides incentives for the construction of base 
load coal-fired electr icity generation plants. Electric power producers. Grants to be based on sales taxes paid on 
Illinois coal purchases up to a maximum 
of $100 million over 25 years.  Ongoing 
Illinois High Impact 
Business Program Illinois Department 
of Commerce and 
Economic 
Opportunity Corporate 
Income and 
Sales Tax 
Credits Provides investment tax credits, sales tax 
exemptions for building materials and items 
consumed in a manufacturing or assembly 
process, and a utility tax exemption. To be designated a business must 
intend to invest $12 million and create 
500 jobs or invest $30 million and 
retain 1,500 jobs. A high impact designation is made for 
20 years, but the sales tax and utility tax 
exemptions are granted for five years with 
provision for renewal. Ongoing 
Illinois Enterprise Zone 
Program Illinois Department 
of Commerce and Economic 
Opportunity Corporate 
Income and Sales Tax 
Credits Provides investment tax credits, a jobs tax credit, 
dividend deduction, interest income deduction to financial institutions, contribution deduction to a 
qualified zone organi zation, a sales tax 
exemption on building materials, utility tax exemptions, telecommunication excise tax 
exemptions, and sales tax exemptions for items 
consumed during a manufacturing or assembling process.  Local governments within a zone may abate local utility taxes and property taxes. Hired workers must be either 
dislocated or disadvantaged to qualify the employer for the jobs tax credit. Enterprise zones are designated by the 
state for a term of 30 years.  The sales tax or consumed items and utility and 
telecommunications excise tax exemptions 
are granted for five years with renewal provisions but cannot exceed termination 
date of zone. Ongoing 
Illinois Illinois Film 
Office Technical 
Assistance Illinois Department 
of Commerce and 
Economic 
Opportunity Business 
Assistance Provides technical assist ance to film television 
and commercial production companies to 
encourage development of the film industry in 
Illinois.  Services include location scouting, pre-production and production coordination, liaison 
assistance, and information hotlines. Film industry N.A. - in-kind assistance. Ongoing 
Illinois Film Wage Credit   Illinois Department 
of Revenue Corporate 
Income Tax 
Credit Provides corporate income tax incentive to 
motion picture, televi sion, and production 
companies, based on wages paid, to promote filmmaking in Illinois. Film industry 25 % of wages paid to Illinois residents 
(non-refundable). 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 grants and loans to projects that produce 
marketable materials from used tires and projects that use tire-derived materials in product manufacture or energy production. Manufacturing/processing and 
research/development projects. Grants and loans are available for 
manufacturing/processing projects up to $500,000, grants for procurement or demonstration projects and 
research/development up to $200,000, and 
grants for marketing up to $75,000. Ongoing 
Illinois Property Tax 
Incentives Illinois Department 
of Commerce and Economic 
Opportunity Tax 
exemptions abatements Only realty is subject to property taxes.  Taxing 
districts may abate partial abatements to commercial or industrial development  Enterprise 
zones may offer total property tax abatement. Enterprise zone abatement are limited 
to Illinois' 93 enterprise zones. Property tax abatement are limited to $4 
million over 10 years, except in Illinois' 93 enterprise zones. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
Illinois Sales Tax 
Incentives Department of 
Commerce and 
Community Affairs Tax 
Exemption Sales tax exemptions are provided for farm 
machinery, farm chemi cals, pollution controls, 
manufacturing machinery, replacement parts for manufacturing machinery, computers used to 
control manufacturing machinery, and enterprise 
zone purchases.  Purchasers of manufacturing machinery receive a credit equal to 50 % of what 
the sales tax would have been if manufacturing 
machinery was taxed, making it possible for manufacturers to use these credits to offset any 
other sales tax liability they incur. The enterprise z one incentives are 
limited to Illinois' 93 enterprise zones. Credit equal to 50 percent 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 percent 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 percent of 
the project costs up to $150,000 at a set fixed rate of 6 percent. Ongoing 
Illinois Rural Micro-
Business 
Participation Loan 
Program Illinois Department 
of Commerce and 
Economic 
Opportunity Loan To encourage investment in rural areas of the 
state. A rural business that employs five or 
fewer full time employees, and is 
based on the production, processing, 
marketing of agricultural products, forest products, cottage and craft 
products. Provides loans of up to 50 percent of the 
project. Ongoing 
Illinois Employer 
Training 
Investment 
Program Illinois Department 
of Commerce and 
Economic 
Opportunity Grants Workforce training program Sterling Steel $68,000  2006 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
Indiana Community 
Revitalization 
Enhancement Districts (CRED) Department of State 
Revenue Tax Credit Provides tax credits to 
encourage business 
development in economically distressed areas of certain 
Indiana counties. The area must have an aggregate of at least 
50,000 square feet of vacant floor space. 
Significant obstacles to redevelopment must exist.  There must be significantly fewer employees in the 
area than there were 10 years earlier. The county's annual rate of unemployment must 
have been above the average statewide rate 
during at least three of the preceding five years;  - the county's median income must either have 
declined over the precedi ng 10 years of grown at 
a lower rate that the statewide average during at least three of the preceding five years;  - The 
population of the county must have declined over 
the preceding 10 years;  and - Certain other criteria (size of empty buildings, job loss and 
specified obstacles to redevelopment) must be 
met.  Amounts:  The tax credit is similar to, but more restrictive than, the Industrial Recovery 
Site Credit/Dinosaur Program.  It is based on 
25 % of the qualified investment. Ongoing 
Indiana Venture Capital 
Investment Tax 
Credit Indiana Department 
of Commerce, 
Economic Development Tax Credit To encourage venture capital 
investments to be made in 
Indiana. Qualified businesses must meet the following 
criteria a) headquarters in Indiana b) primary focus 
on commercialization of research and development, technology transfers, or the application of new 
technology c) annual revenue of less than ten 
million in two years proceeding the year in which the qualified investment is made c) has at least 
50 % of its employees reside in Indiana d) is not 
engaged in real estate related business, insurance, accountant, physician or lawyer, or oil or gas 
related exploration. The credit equals 20 percent of the amount of the 
taxpayer's qualified investment capital. Ongoing  
Indiana Enterprise Zone Indiana Department 
of Commerce, 
Community Development Tax Credits To improve the cash-flow 
position of business and 
improve its access to capital. Businesses who operate or will operate in the 
enterprise zone, lenders who make qualified loans 
within the enterprise zone and qualified employees of businesses within the enterprise zone.  
Participating businesses must reinvest 100 % of 
their tax savings. Amounts vary. Ongoing  
Indiana The TECH Fund Indiana Department 
of Commerce, Economic Development Grant To create and maintain jobs. Companies or non-profits who employee Indiana 
residents in advanced in formation technology jobs. Funds are available on a reimbursement basis. 
Up to 50 % of eligible tr aining costs.  Awards for 
training have the maximum of $50,000 or $2,500 per employee or whichever is less. Ongoing  
Indiana Ad hoc incentive 
package Spencer County Tax 
Abatement The purpose of this program 
was to aid in the construction 
of a new $285 million 
structural mill in Whitley County.  Spencer County tax 
abatements. Steel Dynamics Up to $59 million in tax abatements. 10 years. 
Indiana 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  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
Indiana Hotel Lodging 
Tax Exemption Indiana Code 6-3.1-
32 Tax 
exemption To encourage film production within the 
State. Film Industry 6 percent lodging tax exemption for 
production companies staying longer 
than 30 days.  Ongoing 
Indiana Certified 
Technology Park Designation 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 hi gh-tech/high-growth 
companies, agribusiness and some manufacturing 
companies.   If security is real property, guaranty up 
to 90 percent of loan balance or 90 
percent of appraised fair market value, 
whichever is less. - If security is personal property, guaranty up to 75 
percent of loan balance or 75 percent of 
fair market value, 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 
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. 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
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 percent of the qualified 
investment. Ongoing  
Indiana  The Tech Fund IDOC Grant Training activities eligible for 
reimbursement must result in a full-time 
employee receiving a portable certification 
in systems administration, systems engineering or software development; a 
professional certification or other 
advanced e-business enabling applications. Indiana companies or nonprofit 
corporations that employ Indiana 
residents (US citizens only) in 
advanced information technology occupations.  Non-resident, 
contractual or part-time employees are 
not eligible.  Companies must have been in operation for at least one year 
prior to the application date and be in 
good standing with the State of Indiana. Funds are available on a reimbursement 
basis.  The business must submit quarterly 
reports on the status of the employees' 
training.  Amounts:  up to 50 % of eligible training costs.  Awards for training have a 
maximum of $50,000.  30 or fewer 
employees - up to 50 % of eligible training costs;  30 to 100 - up to 40 % eligible 
training costs; 100 to 200 up to 30 % 
eligible training costs; 200 and up - to 10 % of eligible training costs. Ongoing 
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 percent 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 
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, wh ich 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 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 
Kansas Lodging Tax 
Exemption Iowa Department 
of Economic 
Development Tax 
exemption To encourage motion picture production. Film Industry Tax exemption for hotel rooms for 
production companies after 28 days. Ongoing 
Kansas Sales Tax 
Exemptions Department of 
Commerce & 
Housing Tax 
Exemption To encourage business and job 
development in the state Electricity, gas, and water consumed during 
manufacturing is exempt from the Kansas sales tax.  
Sales tax paid on the purchase of machinery, equipment and certain other tangible property may 
be exempted if the appli cant's business qualifies for 
Job and Investment Tax Credits and is located within a state designated Enterprise Zone.  
Companies that qualify fo r the High Performance 
Business Incentive Program are eligible to receive this exemption without being tied to the job 
creation requirement.  This exemption extends to 
manufacturing machinery and equipment as well as to any quality control and pollution control equipment installed.  All sales of manufacturing 
machinery and equipment are exempt from sales 
taxes.  This exemption extends to machinery and equipment purchased primarily for use in the 
assembly, processing, finishing, storing, 
warehousing, or distribution of tangible personal property intended for resale. Not available. Ongoing 
Kansas  Enterprise Zone Department of 
Commerce & 
Housing Mixed Tax 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 requirement s;  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 percent of the tax liability 
in qualified business facility investment. Ongoing  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Kentucky Coal Income Tax 
Credit Kentucky 
Revenue Cabinet Tax Credit A credit is allowed for up to 4.5 percent of 
the purchase price of Kentucky coal 
(excluding transportation costs) used for industrial heating or processing. For purposes of the Coal Income Tax Credit, 
"qualifying coal" is coal that is subject to the Coal 
Severance tax, which is levied on every taxpayer in Kentucky engaged in processing coal. The credit is allowed for 10 years 
following either the installation or 
conversion to coal burning units.  The credit in any year cannot exceed the 
corporation's tax liability, minus other 
credits.  Unused credits cannot be carried forward. Ongoing 
Kentucky Enterprise Zone Kentucky 
Economic 
Development 
Cabinet, Department of 
Financial 
Incentives Tax 
incentives Encourages new or renewed development 
to targeted areas of the state by offering 
special tax incentives and eased 
regulations to businesses locating in a zone. To qualify, businesses must meet the following 
criteria, 50 % of their employees must perform 
substantially all of thei r services within the 
enterprise zone- and to apply as a new business (companies which began operations in the 
enterprise zone after the date the zone was 
designated), 25 % of the company's total full-time workforce must meet the targeted criteria as long as 
the business is enterprise z one certified.  To apply 
as an existing business (companies which were in operation in the enterprise zone prior to the designation of the zone) the company has the 
option of (a) 20 % increase in capital investment, or 
(b) 20 % increase in total workforce 25 % of these new employees must meet the targeted workforce 
criteria.  Targeted workforce criteria are Kentucky 
residents who (a) reside w ithin the enterprise zone, 
or (b) were unemployed 90 days prior to being 
hired by the enterprise zone business, or (c) were 
receiving public assistance benefits for at least 90 days prior to employment with a qualified business. State and local tax incentives are 
offered to businesses located or 
locating in zones, and some 
regulations are eased to make development in the area more 
attractive.  A zone remains in effect 
for 20 years after the date of designation. All 
enterprise 
zones 
expire by 31/12/07 
Kentucky High-tech 
construction & 
investment pool Kentucky Cabinet 
for Economic 
Development 
Department of Commercializatio
n and Innovation Loans and 
grants The high-tech construction pool shall be 
used for projects with special emphasis on 
the creation of high-tech jobs and 
knowledge-based companies. The high-tech investment pool shall be used to build 
and promote networks to technology-
driven industries and research-intensive industries with the goal of creating clusters 
of innovation-driven industries in 
Kentucky.  Technology-driven, research-intensive, and 
knowledge-based companies, clusters, or networks. The commissioner shall recommend 
funding of companies to KEDFA for 
approval. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
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 percent of annual debt service costs for up to 15 years on land, 
buildings, site developmen t, 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 
percent 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. Ongoing 
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 unemployment and poverty levels. An approved company may receive up to one 
hundred (100) percent 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 31/12/07 
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 percent 
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 assess ment fee of 3 percent 
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. Ongoing 
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 percent sales and use tax rebate eligible for 
motion picture and television production 
companies on expenditures made in connection 
with the production. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Kentucky Commonwealth 
Seed Capital LLC Kentucky Cabinet for 
Economic Development 
Department of 
Commercialization and Innovation Loans To facilitate the 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 Kentucky 
Economic 
Development 
Finance Authority (KEDFA) Kentucky Cabinet for 
Economic Development Loans KEDFA encourages economic 
development, business expansion, 
and job creation by providing 
business loans to supplement other financing. The loans are available for fixed asset 
financing (land, buildings, and equipment) 
for business startup, locations, and 
expansions that create new jobs in Kentucky or have a significant impact on the economic 
growth of a community. The loans must be 
used to finance projects in agribusiness, tourism, industrial ventures, or the service 
industry. No retail projects are eligible. KEDFA may participate in the financing 
of qualified projects with a secured loan 
based on a percent of a project's fixed 
asset cost. The maximum loan amount is $500,000 and the minimum is $25,000. Ongoing 
Kentucky Kentucky 
Enterprise 
Initiative Act Kentucky Economic 
Development Finance 
Authority Tax 
incentives The Kentucky Enterprise Initiative 
Act is a means to attract new or 
encourage expansion of businesses involved in technology, manufacturing or tourism activities. KEDFA may grant a refund of the sales and 
use tax paid for construction material, 
building fixtures and R & D equipment purchased for the use in approved projects. Approved companies must make a minimum 
investment of $100,000 in a preference zone 
(former enterprise zone) or $500,000 in other areas in the Commonwealth.   The total funds available per year for all 
the approved projects are $20,000,000 
for building and construction materials and $5,000,000 for research and development equipment. All preference 
zones expire 
December 31, 2007. 
Kentucky Kentucky 
Industrial 
Revitalization Act 
(KIRA) Kentucky Economic 
Development Finance 
Authority Tax 
incentives Investments in the rehabilitation of 
manufacturing or coal mining and 
processing operations that are in 
imminent danger of permanently closing or that have closed 
temporarily may qualify for tax 
credits.   Eligible entities include manufacturing 
companies that save or create 25 jobs and 
coal mining and processing companies that 
intend to employ a minimum of 500 persons and intend on having a raw production of at 
least three million tons from the economic 
revitalization project facility. An eligible company shall also include one that has 
closed but resumes operations. Projects approved under KIRA, may 
receive state income tax credits, and job 
development assessment fees for up to 
10 years, limited to 75 percent of the costs of the rehabilitation or 
construction of buildings and upgraded 
machinery and equipment.  The approved company can receive a job 
assessment fee of up to five (5) percent 
of the gross wages of each employee subject to Kentucky individual income 
tax whose job is preserved or created by 
the approved project. 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 percent 
of the federal minimum wage;  and 3) Has plant and equipment with a total cost of over 
$500,000,000.  In each taxable year, the amount of 
credits claimed for all major recycling projects is limited to 1) 50 percent of the excess of the total of each tax liability 
over the baseline tax liability of the 
taxpayer;  or 2) $2,500,000, whichever is less.  Ongoing 
  
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State 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 (excluding secondary and demolition wastes) and for machinery 
used exclusively to manufacture products 
composed substantially of postconsumer waste materials. For the year the equipment is  purchased, the credit is 
limited to 10 % of total credit allowed and 25 % of the 
taxpayer's state income tax liability.  The unused 
portion of the total allowabl e 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 This program matches federal Small 
Business Innovation Research (SBIR) and 
Small Business Technology Transfer 
Research (STTR) grants to high-tech small businesses.  Kentucky-based SBIR and STTR grant recipients can 
apply for matching funds of up to $100,000 to support 
Phase 1 exploration of the technical merit or feasibility 
of an idea or technology.  Phase 2 federal awards, which support full-scale research and development, 
would be matched by the commonwealth up to 
$500,000 in each year of the award.  Phase 0 and Phase 00 funds are available to assist with preparing proposals 
for Phase 1 and Phase 2 grants, respectively.  Ongoing 
Kentucky  Kentucky Jobs 
Retention Act 
(KJRA)  Kentucky Economic 
Development 
Finance Authority Tax 
incentive
s Encourage existing 
automotive manufacturers to 
modernize their facilities and 
retain existing jobs.  Existing automotive manufacturers in 
Kentucky Up to 50 % of new investment can be recovered 
through a reduction in payroll taxes over time if the 
company makes an investment of at least $100 million.  
In addition, the investment recovery could be increased 
up to 75 % if investments are made at multiple sites. 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 5 years.  KRA recipients are eligible to receive up to a 100 % 
credit against the Kentucky income tax liability 
generated by the project. Ongoing 
Kentucky  Ad hoc incentive 
package State of Kentucky Tax 
incentive Modernization Project AK Steel Ashland plant Not available 2004 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Louisiana Louisiana Motion 
Picture Incentive 
Program The Governor's 
Office of Film & 
Television 
Development Tax 
incentives To encourage film and video production in 
Louisiana, advocate the hiring of 
Louisiana technical crew and talent and 
support and encourage the use of Louisiana equipment and services related 
to film and video production.   Motion picture 
production 
companies  Labor tax credit.  The credit is  equal to 10 % of the total 
aggregate payroll for residents employed in connection with 
such production when total production costs in Louisiana equal 
or exceed $300,000 but less than  $1 million during the taxable 
year.  The credit shall be equal to 20 % when total production 
costs in Louisiana equal or exceed $1 million.  Sales and use tax 
exclusion An exclusion from state sales and use tax (4 %) until 1 January 2007 when the production company reports 
anticipated expenditures of $250,000 or more in connection with 
filming or production of one or  more nationally distributed 
motion pictures, videos, television series, or commercials in the 
state of Louisiana within an y consecutive 12-month period. 
Investor tax credit If the total ba se investment is greater than 
three-hundred thousand dollars ($300,000), each investor shall 
be allowed a tax credit of twenty-f ive percent (25 %) of the base 
investment made in the state of Louisiana.  The Sales & 
Use Tax 
Exclusion 
expired 1/01/2006.  
Louisiana Biomedical 
Research and 
Development Park (NORMC) 
Incentives Department of 
Economic 
Development Mixed Tax Qualified medical concerns may be 
granted exemptions for state corporation 
income and franchise taxes.  The total amount of state tax rebates and/or 
exemptions granted for any fiscal year 
shall not exceed thirty (30) percent of the corporate income, franchise and state 
sales/use tax liability of the medical 
concern during the fiscal year preceding the fiscal year for which the exemptions 
are granted, unless another amount is 
established by contract. Qualified medical concerns may also be 
granted tax credits against state corporate 
income and franchise tax liabilities.  Such credits, which may be carried forward up 
to five years, shall not exceed the cost of 
purchase by the concern of machinery and scientific equipment used on premises of a 
medical concern located in the park 
district, which is the area known as the New Orleans Regional Medical Center 
(NORMC). New Orleans 
Regional Medical 
Center Annual tax exemptions, rebates and/ or credits are subject to the 
following limitations:  The total amount of state tax exemptions 
and/or rebates granted for any fis cal year shall not exceed thirty 
percent of the corporate income, franchise, and state sales/use 
tax liability of the medical concern during the fiscal year 
preceding the fiscal year for which the exemptions and/or rebates are granted, unless anot her amount is established by 
contract.  The total amount of re bates of local sales/use taxes 
granted for any fiscal year sh all not exceed one hundred percent 
of the local sales/use taxes liability  due to that authority from the 
medical concern during the fiscal year preceding the fiscal year 
for which the rebates are gran ted, 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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 percent sales tax rate will 
decrease 1 percent per year until it reaches 
0 percent 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 percent 
for projects located in parishes with per 
capital income below the median for all parishes;  75 percent for projects in 
parishes with unemployment rates above 
the statewide average;  or 50 percent for all other projects. Ongoing 
Louisiana Enterprise Zone 
Program Department of 
Economic Development Tax Credit The Enterprise Zone (EZ) Program is a 
JOBS incentive program that provides Louisiana Income and Franchise tax 
credits to a business hiring a minimum 
number of net new employees.  The Enterprise Zone program also provides 
rebates on applicable state and local 
sales/use taxes (except where local sales taxes are encumbered toward payment 
of bond indebtedness or are school 
taxes), on purchases of building construction materials, machinery, and 
equipment by businesses that build or 
renovate facilities in Louisiana Enterprise Zones. EZs are areas with high unemployment, 
low income or a high percentage of residents receiving some form of public 
assistance.  There are 1,670 enterprise 
zones statewide, in both urban and rural parishes.  Job credits are $5,000 for SIC 
Code Numbers 3721, 3724, 3728, 3761, 
3764, and 3769. The program provides one-time tax credit 
of $2,500 for each net new permanent job created for businesses that locate or 
expand in designated enterprise zones.  
Credits may be applied against a company's Louisiana state income or 
corporation franchise tax liability.  Sales 
tax benefits (rebates) are only in effect for the duration of the initial construction 
period (2 year maximum).  The Enterprise 
Zone program offers double the usual $2,500 tax credits to automotive and 
airplane manufacturers.  Ongoing 
Louisiana Restoration Tax 
Abatement Department of 
Economic Development Tax 
Abatement/Reduction The Restoration Tax Abatement 
Program was created for municipalities and local governments to offer as an 
incentive to encourage the expansion, 
restoration, improvement and development of existing commercial 
structures and owner-occupied 
residences in Downtown Development Districts, Economic Development 
Districts, or Historic Districts. Buildings must be 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 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 pur chase by the concern 
of machinery and scientific equipment 
used on the firm's premises. University research and development 
parks. The total amount of state tax rebates 
and/or exemptions granted for any fiscal 
year shall not exceed thirty (30) percent of 
the corporate income, franchise and state sales/use tax liability of the firm during the 
fiscal year preceding the fiscal year for 
which the exemptions are granted, unless another amount is estab lished by contract.  Ongoing 
Louisiana University 
Research and 
Development Parks Sales and 
Use Tax Rebates Department of 
Economic 
Development Tax Refund Qualified firms locat ed in University 
Research and Developments Parks may be 
granted rebates for state and/or local sales/use taxes on machinery and 
equipment to be used by the applicant, on 
materials and building supplies to be used in the repair, reconstruction, modification, or construction of facilities and on 
materials and supplies necessary for or 
used in the production of the applicant's production of the applicant's product.  
Additionally, sales/use tax rebates may be 
granted on any other goods and services used or consumed by the applicant. University research and development 
parks. Annual tax exemptions , rebates and/or 
credits are subject to the following 
limitations:  The total amount of state tax exemptions and/or rebates granted for any 
fiscal year shall not exceed thirty percent 
of the corporate income, franchise, and state sales/use tax liability of the medical concern during the fiscal year preceding 
the fiscal year for which the exemptions 
and/or rebates are granted, unless another amount is established by contract. 
The total amount of rebates of local 
sales/use taxes granted for any fiscal year shall not exceed one hundred percent of 
the local sales/use taxes liability due to 
that authority from the medical concern during the fiscal year preceding the fiscal 
year for which the rebates are granted, 
unless another amount is established by contract. Ongoing 
Louisiana 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 percent of the eligible 
training costs, not to exceed $500,000.  
The Workplace-based Retraining award may cover up to 50 percent of the eligible training costs, not to exceed $500,000.   Ongoing  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 ac tivities in either a 
Biomedical or University Research and Development Park. The Biomedical Research and 
Development Park program provides 
exemptions and credits for state corporate 
income and franchise taxes for up to five years to medical concerns who locate on 
this New Orleans site.  The exemptions or credits can equal the 
cost of machinery and scientific equipment 
used on the premises. Ongoing 
Louisiana Digital Media Tax 
Incentive Program Louisiana 
Department of 
Economic Development Tax Credit Support digital media production in 
Louisiana. Video game developers For projects certified prior to 2010, 
income tax credits shall be earned at the 
rate of 20 percent of Louisiana investment for the first 2 years; Income tax credits 
shall be earned at the rate of 15 percent of 
the Louisiana investment for the following 2 years of the project; Income tax credits 
shall be earned at the rate of 10 percent for 
a final 2 years of the project. Ongoing 
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 percent tax credit of total costs 
associated with the product development for up to eight years. Ongoing 
Maine Jobs and Investment 
Tax Credit Maine Revenue 
Services Tax Credit This program provides a 10 percent credit 
against Maine income taxes for investment 
in most types of personal property that generates at least 100 new jobs within two 
years of the date the investment is placed 
in service, as long as the investment is at least $5 million for the taxable year. Available statewide.  This tax credit is 
available to any bu siness (other than 
regulated utilities) making a personal property investment of at least $5 million 
and creating at least 100 qualifying jobs, 
regardless of industry sector, location, market, raw materials source or product 
content.   The amount of the credit is tied to the 
federal investment tax credit and is limited 
to $500,000 per year with carry forwards available for seven years.  Thus, the credit 
can be up to $3.5 million, based upon 
taxable income.  Businesses are prohibited from receiving the Maine Jobs and 
Investment Tax Credit and Employment 
Tax Increment Financing concurrently. 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 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maine High Technology 
Investment Tax 
Credit Department of 
Economic and 
Community 
Development Tax credit Tax credit for businesses 
engaged in high-tech activities. Business primarily engaged in high-tech 
activities;  high-tech activities include 
the design, creation, and production of 
computer software, computer equipment, supporting communications 
components and other accessories that 
are directly associated with computer software equipment;  it also includes the 
provision of Internet or advanced 
telecommunications services. The credit amount is equal to the adjusted basis of 
eligible equipment placed in service in Maine less 
any lease payments received during the taxable year; 
the credit cannot reduce the ta x liability to less than 
the preceding tax year's lia bility after the allowance 
of any credits, and it cannot reduce the tax liability in 
the current year below zero;  unused portions of the credit may be carried forward five years;  the credit 
cannot exceed $100,000 in any one year;  income 
must be increased by any credit base amount claimed 
as a business expense.  This credit cannot be used in 
tandem with the Business Equipment Tax 
Reimbursement. Ongoing 
Maine Sales Tax 
Exemptions - Biotechnology Department of 
Economic and Community 
Development Tax Incentives To encourage the development 
of biotechnology Businesses engaged in a biotechnology 
application. Not available. Ongoing 
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 Income Tax 
Rebate Department of 
Economic and 
Community Development Tax 
reimbursement To attract businesses to state. Film Industry Offers an income tax credit equal to the amount paid 
on profits made by the production company, but must 
spend at least $250,000 on production expenses in Maine. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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_m
aine/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: 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) acce ss to other state and local 
incentive programs.  31/12/2018 
Maryland Businesses that 
Create New Jobs Tax Credit State Department 
of Assessments and Taxation Tax Credit Businesses located in Maryland 
that create new positions and establish or expand business 
facilities in the state may be 
entitled to a tax credit. The business must create at least 25 
new positions as part of the new or expanded business facility in 
Maryland (5,000 square feet or more). 
Businesses located in smaller counties (population of 30,000 or less) must 
create at least ten new positions. The credits are calculated as a percentage of the 
property tax liability on the new or expanded portion of the facility. Those percentages are as follows: 
Property Tax Credit: 
• 1st and 2nd tax years:  52 percent • 3rd and 4th tax years:  39 percent 
• 5th and 6th tax years:  26 percent 
• Remaining tax years:  0 percent Credit against the personal or corporate income tax, or 
the insurance premiums tax: 
• 1st and 2nd tax years:  28 percent 
• 3rd and 4th tax years:  21 percent • 5th and 6th tax years:  14 percent 
• Remaining tax years:  0 percent Ongoing 
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 from $25,000 to $500,000 are provided 
to small businesses at below market interest rates. 
Loans and grants are made to non-profit organizations whose activities contribute to a broader revitalization 
effort. Ongoing 
Maryland  Sales Tax 
Exemption to 
Film/Video Producers Maryland Film 
Office Tax 
exemption To encourage to production of 
films in the state. Qualified feature, television, cable, 
commercial, documentary, music 
video, etc, projects. Exemption from 5 percent state sales tax to property 
and services used in connec tion with filming activity. Ongoing 
Maryland  Wage Rebate 
Program Maryland Film 
Office Wage 
rebate To encourage to production of 
films in the state. Film/Television Industry Rebates on 50 % of up to $25,000 in earnings per 
employee on any production spending more than 
$500,000 in the State of Maryland.  Wages for 
employees earning more than $1million will not be eligible. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maryland  Maryland Small 
Business 
Development 
Financing Authority 
(MSBDFA) Department of 
Business and 
Economic 
Development (DBED) Mixed 
Financing Provides financing for small 
businesses and those owned by 
socially and economically 
disadvantaged persons. Small Businesses • Contract Financing Program - lo an 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 acqui sition of profitable businesses.  
• Long-Term Guaranty Program - provides loan guarantees and 
interest rate subsidies.  • Surety Bonding Program - assist s small contractors in obtaining 
bonding for primarily funded government or public utility 
contracts that require bid, performance, and payment bonds.  Ongoing 
Maryland  Challenge 
Investment Program Department of 
Business and Economic 
Development 
(DBED) Equity This program provides financing 
for seed-stage companies to cover a portion of the initial costs 
associated with bringing new 
products to market. Requirements include: 
• The business must have no more than 25 employees and 
annual sales of less than 
$1 million. • A minimum 1:1 co-investor match is required.  
• Applicants are limited to 
high tech companies whose principal place of business is 
located in Maryland.  
• The company must remain in Maryland for at least three 
years.  Initial investments are made up to $50,000, with incremental 
investments to a maximum of $150,000.  These incremental investments are awarded based upon the client's performance and 
the client's ability to achieve milestones set by the Investment 
Financing Group staff at the time of  the initial closing.  Investment 
decisions are based on the project's  potential return on investment, 
market potential, experience and credibility of the management 
team, and impact on the Maryland economy.  Investment decisions 
are also based on the strength of  the technology (e.g., patents, 
highly proprietary developments preferred).  Companies receiving 
a Challenge investment must pa y a 2 percent royalty on revenues 
in excess of $500,000 for a period of ten years.  The firm must also pay a 1percent 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 equipm ent, tax exempt bond financing 
and job training resources. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maryland  Enterprise 
Investment Fund Maryland 
Department of 
Business and 
Economic Development 
(DBED) Equity This program makes direct equity 
investments in emerging 
technology companies with 
patented or proprietary products or manufacturing processes and a 
marketing strategy in place.  The 
Enterprise Investment Fund works with emerging companies 
to move them into their next stage 
of development as a viable business. Requirements include: 
• Applicants must be in a technology industry.  
Areas of technology include biotechnology, 
telecommunications, information technology, life sciences and advanced materials. 
• The applicant must ag ree to maintain its 
principal place of business n Maryland for five years. 
• A minimum 3:1 match by a sophisticated 
investor is required.  A sophisticated investor may be a venture capital firm, a corporate 
strategic investor, or other individuals seen as 
knowledgeable about the industry segment. The amount of investment ranges from $150,000 
to $500,000.  Enterprise investments are 
generally in the form of equity, but it may be 
another type, e.g. debt issues, as initiated by the lead investor.  To be considered for either 
program, a company must submit a full business 
plan and meet the criteria listed.  Ongoing 
Maryland  Enterprise Zone 
Tax Credits Maryland 
Department of Business and 
Economic 
Development (DBED) Tax Credit Enterprise zones in the state offer 
an attractive 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.  
Thirty enterprise zones and two focus areas are located throughout 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 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 
revitalization area if the facility generates a 
minimum of 1,000 new full-time equivalent filled positions in a 2-year period. In most cases, the credit is 2.5 percent of annual 
wages for all newly created, full-time jobs, subject to a limit of $1,000 per new job.  In a 
state enterprise zone, a federal empowerment 
zone, or a Maryland Department of Housing and Community Development designated 
neighborhood, the credit is increased to five 
percent of annual wages for all newly created full-time jobs, subject to a limit of $1,500 per 
new job.  The credit earned by a qualified 
business entity may not exceed $1 million per credit year. The Job 
Creation Tax Credit remains 
in effect until 
January 1, 2010, subject 
to extension by 
the General Assembly. 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
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 financi ng 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 financia l 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 a nd 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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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Maryland  One 
Maryland 
Economic 
Development Tax Credits Department of 
Business and 
Economic 
Development (DBED) Tax Credit To encourage economic development 
projects in distressed counties of the state. The business project must be 
located in a "qualified distressed 
county":  Baltimore City or 
Allegany, Caroline, Dorchester, Garrett, Somerset or Worcester 
County.  The business entity must 
be primarily engaged at the facility in one or more eligible industries:  
manufacturing, 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 administrative 
offices, central real estate services, warehousing, filmmaking and 
resort/recreational business. 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, installati on, 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 Maryla nd.  (50 qualified new 
positions are required to qualify for the full 
$500,000 credit.)  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 businesses become 
eligible for the state's enhanced 5 % Investment Tax Credit and, where applicable, the state's 10 % 
Abandoned Building Tax Deduc tion.  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 
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 percent 
investment credit is available. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 fi xed 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 floa ting 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 percent for the initial lending period.  Under the terms of the 
grant, business must be located in 
Barnstable, Bristol, Nantucket, Norfolk, Plymouth or Suffolk counties.  Start-up ventures are not eligible. Ongoing 
Massachusetts Urban 
Initiative 
Fund Community 
Development 
Finance 
Corporation Loan To help support minority owned businesses. Minority owned businesses with 
less than $500,000 in annual sales 
in targeted urban communities. Loans up to $200,000. Ongoing 
Massachusetts Venture 
Capital Fund Community 
Development Finance 
Corporation Loans/ 
Equity Financing To help create and support employment in low 
income communities. Firms in low income communities 
which have a community development corporation, to enable 
them to expand or retain 
employment for local residents. $100,000 to $300,000 per project, up to 
1/3 of total financing. Ongoing 
Massachusetts Emerging 
Technology Fund Massachusetts 
Development Finance Agency 
(Mass 
Development) Loan The Emerging Technology Fund provides loan 
guarantees to leverage pr ivate debt financing for 
specialized research and development or 
manufacturing facilities. 
Two types of projects are e ligible for financing:  1) 
The fund can be used to leverage private financing 
for the construction of state of the art 
manufacturing, research a nd development facilities.  
2) The fund can be used to provide matching grants to universities and private institutions for advanced 
research and development of new and emerging 
technologies in the Commonwealth. Technology Companies The maximum guarantee amount is 
$1,500,000 or 50 percent participation of the aggregate debt, whichever is less.  The 
maximum loan amount for facilities is 
$2,500,000 or 33 1/3 percent participation of the aggregate debt, whichever is less.  
The maximum loan amount for equipment 
is $500,000 or 33 1/3 percent participation of the aggregate debt, whichever is less. Ongoing 
  
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State 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 percent of the eligible job's 
salary multiplied by the applicable Massachusetts income tax rate of the newly 
hired persons.  The jobs incentive payment 
will be paid in three equal installments in each of the following three years. 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 percent tax credit based on total payroll in 
state- 25 percent tax credit based on 
production expenses in state, as long as half shot in MA or half expenses spend in state.  
Tax credits carry forward 5 years or be sold.  
In state production spending over $250,000 is sales tax exempt.  Total tax credits per production capped at $ 7million. Ongoing 
Michigan Single Business 
Tax Incentives Michigan 
Economic 
Growth 
Authority (MEGA) Tax credit The state of Michigan provides Single 
Business Tax (SBT) credits to help with 
the expense of demolition, 
environmental cleanup and other remedial actions needed to facilitate 
reuse of undesirable properties. Credits are provided on  a case-by-case 
basis. Credits are available for up to 10 percent of 
eligible investments to a limit of $30 million. Ongoing 
Michigan Angel 
Investment 
Incentive The Michigan 
Strategic Fund 
Board Tax 
incentives This program is designed to stimulate 
the creation and growth of early stage 
technology companies To be qualified, a company must be 
certified by the Michigan Strategic Fund 
Board at the time of an investment. The Angel Investment Incentive provides a 
tax deduction for individual investors when 
the basis plus all or some portion of the profits from an initial qualified investment 
are rolled over into a subsequent investment 
in a qualified technology company. Ongoing 
Michigan Charter One Job 
Creation Loan Program Michigan 
Economic Development 
Corporation Loans This lending program is a partnership 
between the State of Michigan and Charter One Bank to help Michigan's 
businesses access affordable financing. Companies either currently doing business 
in, or contemplating a significant investment in, Michigan.  Public or 
privately-held businesses in a broad array 
of industry sectors, including manufacturing, distribution centers, emerging sectors, and the 21st Century 
Jobs Fund competitive-edge technologies 
(life sciences, alternative energy, homeland security/defense and advanced 
automotive, manufacturing and materials). Up to $200 million is av ailable for Michigan 
businesses to invest in equipment, machinery, building acquisition or 
remodeling.  Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Michigan Industrial 
Facility Tax 
Exemption 
(IFTE) Certificates Michigan 
Economic 
Development 
Corporation Tax 
incentives Industrial property tax 
exemption certificates are used 
to spur renovation and 
expansion of aging manufacturing plants and new 
plant construction. High-tech companies Exemptions are approved by local units of government 
and issued by the state, reducing property tax on 
buildings, machinery and equipment by roughly 
50 percent for new facilities and 100 percent for renovation projects.  They are available for up to 
12 years.   Ongoing 
Michigan Industrial 
Property Tax 
Abatement (P.A. 198 of 
1974)   Michigan 
Economic 
Development Corporation Property 
tax 
abatement Property tax incentives are 
available to eligible businesses 
to renovate or expand aging manufacturing plants or to 
build new plants. Eligible businesses This program can reduce property taxes (real and 
personal) for up to 12 years.  For an obsolete plant or 
machinery that is being replaced  or restored this results 
in a 100 percent exemption from the property tax on the 
value of the improvement.  The Industrial Facilities Tax 
(IFT) on a new plant and/or machinery and equipment is computed at half the local property tax millage rate, 
plus the 6-mill statewide education tax.  This amounts 
to a reduction in property taxes of approximately 50 percent.  Ongoing 
Michigan Michigan 
Incentive Pass Michigan 
Film Office Tax rebate  To encourage film production 
within the State. Film Industry Graduated scale for rebate based on spending in state. 
$200,000-$1million (12 %); $1million-$5million (16 
%); $5million-$10million ( 20 %); > $10million (20 
%on first $10 million spent) Effective 
1/01/2007 
Michigan Michigan 
Smart Zones Michigan 
Economic 
Development Corporation Various To stimulate the growth of 
technology-based businesses 
and jobs by aiding in the creation of recognized clusters 
of new and emerging 
businesses, those primarily focused on commercializing 
ideas, patents, and other 
opportunities surrounding university or private research 
institute R&D efforts. The SmartZone program has identified 11 
locations throughout the State of Michigan 
with necessary resources to nurture technology business growth ranging from 
research and development with universities 
to entrepreneurial training.  The Smart Zones are in:  Ann Arbor/Ypsilanti (University of 
Michigan), Battle Creek  (Western Michigan 
University), Detroit (Wayne State University), Grand Rapids (Grand Valley 
State University/Van Andel Institute), 
Houghton/Hancock (Michigan Technological University), Kalamazoo 
(Western Michigan Univ ersity), Lansing/E. 
Lansing (Michigan State University), Mt. Pleasant (Central Mich igan University), 
Muskegon (Grand Valley State University), 
Oakland County (Oakland University), and Pinnacle Aeropark. Business accelerator services include, but are not 
limited to: 
Business development mentoring Networking events 
Business feasibility studies 
Business planning Entrepreneurial training 
Grant writing 
Incubator and wet lab space Management recruitment 
Market analysis 
Product development Small Business Innovation Research (SBIR) assistance 
Small Business Technology Transfer (STTR) assistance
Technology assessments Technology mining 
Venture capital preparation and introductions Ongoing 
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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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Michigan The Michigan 
NextEnergy 
Authority 
(MNEA)  Michigan 
Department 
of Treasury Tax 
incentives To promote the development of 
alternative energy technologies and to 
provide tax incentives for business 
activities and property related to the research, development, and 
manufacturing of those technologies. Taxpayers engaged in research, 
development, or manufacturing of 
alternative energy technology and 
certified as eligible by the MNEA Taxpayers engaged in research, development, or 
manufacturing of alternative energy technology and 
certified as eligible by the MNEA may claim a 
nonrefundable credit against their single business tax liability.  Personal property that is certified by the 
MNEA as "Alternative Energy Personal Property" 
(AEPP) is exempt from the collection of personal property taxes.  An Alternative Energy Zone (AEZ) has 
been created within  Wayne State University's Research 
and Technology Park in Detroit to promote the research, development, and manufacturing of 
Alternative Energy Technologi es.  Businesses engaged 
in one of those qualifying activities and located within 
the AEZ will enjoy the full ra nge 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 
December 31, 2002, and 
before January 
1, 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 percent of the 
annual average state unemployment 
rate; a growth in local population that is less than 75 percent of the state's 
population growth rate;  or a change 
in local state equalized value that is less than 50 percent of the state's five-
year average. Determined on a case-by-case basis. Ongoing 
Michigan Anchor 
District 
Credit Michigan 
Economic 
Development Corporation Tax Credit Designed to diversify Michigan's 
economy while creating significant 
value chain jobs. Qualified taxpayer that was 
designated by MEGA as an anchor 
company within the last five years and that has influenced one or more 
qualified suppliers or customers to 
open, locate, or expand their business and conduct business activity within a 
10-mile radius of the anchor company 
at a site-specific facility. Qualified taxpayer can claim a credit against the MBT 
equal to the sum of up to 5% of the taxable value of 
each qualified supplier's or customer's taxable property that was located within th e 10-mile radius of the 
qualified taxpayer and that was subject to collection 
under the General Property Tax Act, for up to five years, as determined by MEGA. Ongoing 
Michigan MEGA 
Defense 
Contracting Michigan 
Business Tax 
Credit Michigan 
Economic 
Development Corporation Tax Credit Defense Contracting MBT Tax 
Credits are designed to diversify 
Michigan's economy and to create significant value chain jobs.  This 
credit will assist companies in closing 
the gap with out-of-state bidders as well as assist firms with their first bid 
efforts to increase the number of 
companies involved in government contracting Michigan Businesses which have 
successfully won a federal contract 
from either the Department of Defense, Department of Energy, or 
Department of Homeland Security. Defense MBT Credits are available for up to 7 years 
and the credit is taken against the MBT for jobs created 
by the company and federal procurement contract. Ongoing  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Michigan MEGA 
Retention 
Credit Michigan 
Economic 
Development 
Corporation Tax Credit Assist Michigan companies that 
are considering a business 
closure. Companies retaining at least 50 new 
full-time jobs at 150% of Federal 
minimum wage and investing at least 
$50,000 per retained employee to receive the credit as determined by the 
Michigan Economic Growth 
Authority.    Depending on the overall investment, each credit may be 
awarded for up to 20 years and up to 100 percent of the 
wages and employer-paid health care benefits multiplied by 
the personal income tax rate. Th e percentage is determined 
on the amount of the investment per job with a minimum 
investment per retained job of $50,000. Ongoing 
Michigan Michigan 
Film Production 
Credit Michigan 
Film Office Tax Credit To encourage film production 
within the State. Film Industry The film production credit is a refundable, assignable tax 
credit of up to 42% of the amount of a production company's expenditures (depending upon type) that are 
incurred in producing a film or other media entertainment 
project in Michigan. Ongoing 
Michigan Technology 
Collaboration Credit Michigan 
Economic Development 
Corporation Tax Credit Develop strategic partnerships 
between emerging technology companies and larger, established 
businesses by providing an 
incentive for the larger companies to invest in the smaller companies, while helping to 
diversify Michigan's economy. The larger, established company 
assumes the role of a qualified taxpayer proposing to fund, support 
and collaborate in the research and 
development and technology innovation with an eligible business located in Michigan . Only one credit 
per year may be granted to a qualified 
taxpayer. The TCC credit is available for a three-year period.  Thirty 
percent of the value of the contribution from the qualified 
taxpayer to the eligible busine ss is eligible with a maximum 
credit of up to $300,000. Through 2010 
Michigan Economic 
Development Job Training Michigan 
Economic Development 
Corporation Grant Provide job training assistance to 
employers Advanced Manufacturing, 
Information Technology, and Life Science/Bio Technology. Michigan's Economic Development Job Training (EDJT) 
Program provides approximately $7 million in competitive grants to companies that need to train or retrain workers to 
meet marketplace needs.  Grants average $500 per 
employee. The employer must match 25 percent 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 percent of the incremental SBT liability and/or personal 
income tax attributable to the project.  Beginning March, 
2000, the application fee was increased to $5,000 for companies applying for MEGA tax credits.  This fee is 
collected at the time the company submits its final 
application for a credit.  In addition, a one-time only 
administrative fee of 1/2 of one percent of the estimated 
value of the incentive will be co llected.  This fee is payable 
at the time the company is cer tifying its eligibility to receive 
awards and is limited to no more than $100,000. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
Minnesota Border-Cities 
Enterprise 
Zone 
Program  Department 
of 
Employment 
& Economic Development Tax Credit The Zone program provides 
business tax credits (income, 
property, sales) to qualifying 
businesses, which create investment, development, job 
creation or retention in the 
Enterprise Zone.   The Cities of Breckenridge, Dilworth, East 
Grand Forks, Moorhead, Ortonville Tax credits include: property ta x credits, debt financing 
credit on new construction, sales tax credit on 
construction equipment materials and new or existing 
employee credits. Ongoing 
Minnesota Rural 
Challenge Grant 
Program Department 
of Employment 
& Economic 
Development Loan The Office of Regional 
Initiatives has a partnership with each of the six Minnesota 
Initiative Funds to provide low-
interest loans to new or expanding businesses in rural 
Minnesota.   Eligible applicants include businesses 
located, or intending to  locate, in rural 
Minnesota. "Rural" is defined as the 
80 counties of Minnesota other than the 
Twin Cities metropolitan area. Maximum loan available is $200,000 up to 50 percent 
of start-up or expansion co sts. Most loans will be 
smaller due to the high demand for funds compared 
with the funds available.  The interest rate is between 
3 percent and 10 percent, and the terms will be consistent with other sources of project financing.  Each 
Initiative Fund will determine th e specific interest rate 
and collateral requirements.  Each dollar of challenge Grant funds must be matched by at least one dollar of 
non-public funds, usually owners' equity and/or private 
financing. Ongoing 
Minnesota Urban 
Initiative Program Department 
of Employment & Economic 
Development Loans The Urban Initiative Loan 
Program primarily assists minority-owned and -operated businesses and others that will 
create jobs in low-income areas 
of the Twin Cities.  Eligible applicants include minority 
businesses and others creating jobs for low income people in Minneapolis, St. Paul, Hopkins, Columbia Heights, Hilltop, South 
St. Paul, West St. Paul, St. Anthony, 
Mendota and Lauderdale. The Urban Initiative Board has entered into 
partnerships with several local nonprofit organizations, 
which then provide loans and technical assistance to start-up and expanding businesses.  Each dollar of state 
funds must be matched by at  least an equal amount of 
private funds.  Generally, this match is provided in loan through the participating nonprofit partner.  The 
maximum total loan available through the program is 
$300,000. The state may contribute 50 percent of the loan up to $150,000. Interest rate is between 2 percent 
and 10 percent.  Terms are generally consistent with 
other sources of project financing. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of the 
Program 
Minnesota Minnesota 
Investment 
Fund Department 
of 
Employment 
& Economic Development Grant The Minnesota Investment 
Fund provides grants to 
help add new workers and 
retain high-quality jobs on a statewide basis.  The 
focus is on industrial, 
manufacturing, and technology-related 
industries to increase the 
local and state tax base and improve the economic 
vitality for all Minnesota 
citizens. Grants are awarded to local units of 
government who provide loans to assist 
expanding businesses. Cities, counties, 
townships and recognized Indian tribal governments are eligible for this fund. All 
projects must meet minimum criteria for 
private investment, number of jobs created or retained, and wages paid. There is a maximum of $500,000 per grant. Only 
one grant per state fiscal year can be awarded to 
a government unit.  Ongoing 
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 percent, whichever is greater, within th e first full year of 
operations in the Zone. A reimbursement of 15 to 20 percent of 
production costs incurred in Minnesota to producers of feature films, national TV series, 
documentaries, music videos, internet programs 
and commercials shot on fi lm, video or digitally, 
that directly create new production jobs in Minnesota. Snowbate funds are 
available until 30/06/2009 or until 
the appropriation is 
spent, whichever comes first.  Funds may be available in 
FY 2010‐2011. 
Minnesota Production 
Rebate 
(Snowbate) Minnesota 
Film and TV 
Board Tax incentives To create new production 
jobs in Minnesota Film/Television Industry A reimbursement of up to 15 percent of 
production costs incurred in Minnesota to 
producers of feature films, national TV series, documentaries, music videos and commercials, 
shot on film or video, that directly create new 
production jobs in Minnesota. Snowbate funds are 
available until 
30/06/2007 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 Mississippi 
Motion 
Picture 
Incentive Program Mississippi 
Film Office/ 
Mississippi 
Development Authority Tax Incentives Designed to encourage 
motion picture production 
in the state.  This incentive 
program is designed to provide a rebate on eligible 
expenditures of the 
company and to provide sales and use tax 
exemptions or reductions 
on eligible purchases. This program is available for motion 
pictures, television programs, 
documentaries, short films, and nationally 
distributed commercials. Mississippi Investment Rebate, Non-Resident 
Payroll Rebate, Sales and Use Tax Exemptions, 
Sales and Use Tax Reduced Rates.  There is a 
$5 million per project maximum on the production rebate. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration 
of the 
Program 
Mississippi Jobs Tax 
Credit Mississippi 
Development 
Authority Tax Credit Provides a five-year tax credit 
to the company's state income 
tax bill for each new job created by a new or expanding 
business, effective for years 
two through six after the creation of the job. Eligible businesses include manufacturers, 
processors, distributors, wholesalers, warehouses, 
research and development facilities, air transportation and mainte nance facilities, final 
destination or resort hotels having a minimum of 
150 rooms and movie industry studios. The amount of credit depends on the development status 
of the county in which the business is located: (1) $2,000 
per new job for less devel oped counties, (2) $ 1,000 per 
new job for moderately deve loped counties, and (3) $500 
per new job for developed counties.  A minimum number 
of new jobs must be created to be eligible for this credit.  
In less developed counties, bus inesses must create at least 
10 new jobs to be eligible for the credit; in moderately 
developed counties, 15 new jobs; and in developed 
counties, 20 new jobs.  The county status will be re-
assessed annually by the Mississippi State Tax 
Commission, according to each county's unemployment rate and per capita income av erages over the prior three 
years.  Limited to an amount not greater than 50 percent 
of the taxpayer's state income tax liability for the year in which the credits are taken.  Any excess credit may be 
carried forward for five successive years. 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 milli on by the private sector or 
the U.S. Government. Ongoing 
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 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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. Allowable Credit: the following ar e charges which a taxpayer 
may claim as a credit; receiving into a port, handling to a vessel, 
wharfage. Amount of Credit: cr edit may not exceed 50 percent 
of the tax imposed upon the taxpayer for the taxable year reduced by the sum of all credits  allowable to the taxpayer.; any 
unused portion of the credit may be carried forward for the 
succeeding five years; the maximum cumulative credit which may be claimed by the taxpayer is limited to $1million dollars 
for the period January 1, 1994 through December 31, 1998. Ongoing 
Mississippi Sales and 
Use Tax 
Exemption Mississippi 
Development 
Authority Tax 
Exemption Manufacturers pay a 1.5 percent 
sales tax on machinery and parts 
used directly in manufacturing and port operations (purchase or rental) 
and industrial electricity, natural 
gas, and fuels.  Manufacturers pay a 3.5 percent contractor's fee for all costs (exceeding $10,000) included 
in a contractor's construction 
contract, including the costs of construction labor and the 
purchases of construction 
component materials made by the contractor on behalf of the 
manufacturer. New or expanding manufactures 
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 m achinery or equipment associated 
with a location or expansion, if the building materials or 
equipment are purchased directly from a supplier (purchases of 
construction materials made th rough a contractor incur the 
3.5 percent contractor's fee).  New or expanding manufacturers 
located in either moderately developed or developed counties 
pay a:  (1) 3.5 percent sales tax for purchases of building 
construction materials and new ma chinery or equipment not used 
directly in the manufacturing process, and (2) 0.75 percent sales 
tax on purchases of all machinery and equipment that is used 
directly in the manufacturing process. Ongoing 
Mississippi Incentives 
to 
SteelCorr House Bill 
1668 Grants and 
Loans Assist SteelCorr SteelCorr Package includes $110 million in loans and grants to land the 
SteelCorr plant in Columbus. Incentives 
were provided 
in March 2002 
Mississippi Reduced 
Sales Tax Rate for 
Technology 
Intensive Enterprises Mississippi 
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 percent of its 
workforce as scientists, engineers or computer specialists.  Eligible 
enterprises include a manufacturer 
of plastics, chemicals, automobiles, aircraft, computer or electronics; a research and development facility, a 
computer design or related facility, 
or a software publishing facility or other technology intensive facility 
or enterprise as determined by the 
Mississippi Development Authority (MDA). A reduced rate of 1.5 percent for sales of machinery and parts 
for plant use only when the m achinery 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 percent on electricity, current, power, steam, coal, natural 
gas, liquefied petroleum gas or ot her fuel sold to or used by a 
technology intensive enterprise. Ongoing  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 ten (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 
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 pr ovide 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 processi ng 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 ten years. Ongoing 
Missouri Land Assemblage 
Tax Credit 
Program Department 
of Economic 
Development Tax Credit To support redevelopment 
of blighted areas into 
productive use. Must have incurred acquisition cost for at least 50 acres of 
eligible parcels, have been a ppointed the redeveloper of the 
area by a city or county, have entered into a redevelopment agreement, and have been approved for redevelopment 
incentives for the area. State tax credits are provided to the 
redeveloper based on 50% of the 
acquisition costs and 100% of the interest costs incurred for a period of five years 
after the acquisition of an eligible parcel. 
Maintenance costs (boarding up and securing vacant structures, costs of 
removing trash, and costs of cutting grass 
and weeds) may also be included as acquisition costs. Expires 
8/28/13 
Missouri Quality Jobs 
Program (For Technology) Department 
of Economic Development Tax Credit Facilitate the creation of 
quality jobs by targeted business projects.  Must create a minimum number of new jobs at the project 
facility prior to the deadline, based on the type of project:  
 
Technology businesses (classified by NAICS codes): 10 or 
more new jobs within two years of the date of DED's approval.  For technology businesses, the benefits of 
the program are (a) the retention of the state withholding tax of the new jobs; and 
(b) state tax credits, which are refundable, 
transferable and/or saleable.  The program benefits are based on a percentage of the 
payroll of the new jobs.  The program 
benefits are not provided until the minimum new job threshold is met and the 
company meets the average wage and 
health insurance requirements.   Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Missouri Missouri "Build" 
Program Department of 
Economic 
Development/ 
Missouri Development 
Finance Board Tax 
Credit Missouri Business Use Incentives for Large-
Scale Development (BUILD) provides a 
financial incentive for the location or 
expansion of larger business projects.  The program provides Missouri state income tax 
credits to the business in the amount of debt 
service payments for industrial revenue bonds related to a portion of project costs. 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 elig ible if the capital 
improvements exceed $10 million and at least 
500 new jobs are created within three years.  Retail, health or professi onal 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. Ongoing 
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.  It is 
helpful to small communities in order to finance the construction of necessary public 
improvements such as sewers and roads as 
an incentive for investment in areas to be redeveloped, rehabilitated or revitalized. To 
encourage such development, real property 
tax revenues and 50 percent of tax revenues are diverted into a special allocation fund 
which can be used to defray redevelopment 
costs.  The tax revenues diverted to the fund are attributed to the increased valuation of 
improvements made to real property within 
the designated areas. Upon the implementation of TIF fo r a particular area, 
up to 100 percent of the increased amount of 
real property taxes and 50 percent of other taxes generated by new development in the area (primarily sales tax) are set aside in a 
Special Allocation Fund. These funds may 
be used by the municipality or a private developer for Redevelo pment 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 January 1, 1998, certain 
blighted areas of municipalities 
with approved plans and projects to receive appropriate d amounts, from 
the newly created Missouri 
supplemental tax increment financing fund, of up to 50 percent 
of "new state revenues," defined as 
either 1) state sales taxes, except those which are constitutionally 
dictated, School District Trust Fund 
taxes, sales and use taxes on motor vehicles, trailers, boats and 
outboard motors, and future sales 
taxes earmarked by law, or 2) state income tax withholding.  An 
aggregate annual appropriation of 
new state revenues for super redevelopment areas is limited to $15 million.  The duration of 
redevelopment projects shall not 
exceed 23 years. 2005 Legislative Session increased program cap to 
$32M Ongoing 
  
   G/SCM/N/155/USA
 Page 137State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Missouri Wine and Grape 
Production Tax Credit Program Department of 
Economic Development Tax 
Credits To attract business into the state of 
Missouri. Vineyards and wine producers. State income tax credit to an 
individual, partnership or corporation in an amount equal to 
25 percent of the purchase price of 
all new equipment and materials used directly in the growing of 
grapes or the production of wine in 
Missouri. 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 percent of the contribution.   Ongoing 
Missouri Enhanced 
Enterprise Zones Department of 
Economic 
Development Tax 
Credit The Enhanced Enterprise Zone Program 
is a discretionary program offering state 
tax credits and local real property tax abatement to Enhanced Business Enterprises.  The purpose is to provide 
tax credits to new or expanding 
businesses in a Missouri Enhanced Enterprise Zone. An eligible project must be located in a Missouri 
Enhanced Enterprise Zone.  Enhanced Enterprise 
Zones are specified geographic areas designated by local governments and certified by the Department of Economic Development (DED).  Zone designation is 
based on certain demographic criteria, the potential to 
create sustainable jobs in a targeted industry and a demonstrated impact on local industry cluster 
development.  Individual business eligibility will be 
determined by the zone based on creation of sustainable jobs in a targeted industry or 
demonstrated impact on local industry cluster 
development.  Gambling establishments, retail trade, and food and drinking places are prohibited from 
receiving the state tax credits.  Service industries can 
be eligible if a majority of their annual revenues will be derived from services provided out of the state.  State tax credits will be an amount 
authorized by DED based on the 
number of new jobs/payroll and new capital investment that the project creates, limited to the lesser 
of the sum of $400 per new job and 
2 percent of new capital investment or the state economic benefit.  The 
real property tax abatement is 
determined by the sponsoring community and may be between 50 
percent and 100 percent of the real 
property improvements for up to 25 years.   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 
50 percent of the amount expended 
in Missouri for production or 
production-related activities. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Missouri Missouri 
Downtown 
Economic 
Stimulus Act (MoDESA) Department of 
Economic 
Development, 
Missouri Development 
Finance Board  Loan A portion of the new state and local 
taxes created by a project can be 
diverted to fund eligible public 
infrastructure and related costs for a period of up to 25 years. The local 
match must be, at a minimum, 
50 percent of the amount of the new local sales tax (and earnings tax in St. 
Louis and Kansas City) and 100 percent 
of the amount of the new real property tax created by the project each year;  or 
a comparable amount of local funds 
from the city/county or a non-profit organization. Municipalities with an annual median 
household income of $62,000 or less. 
"Central business districts" that are either 
"blighted" or a "conservation area." At least 50 percent of the buildings must be 35 years 
old or older. Other restrictions apply. 
Projects can be "community 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 increment. 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 $150,000,000, 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 a pproved disbursements, 
projects will receive a pro-rata share of 
increment.  Ongoing 
Missouri Missouri Rural 
Economic 
Stimulus Act Missouri 
Department of 
Economic Development, 
Department of 
Agriculture Loan A portion of the new state and local 
taxes created by the production facility 
project may be diverted to fund construction of eligible public 
infrastructure and related costs for a 
period of up to 25 years. The local funding must be, at a minimum, 
50 percent of the amount of the new 
local Economic Activity Tax (sales and utility tax, etc.), and 100 percent of the 
amount of the new real property tax 
created by the project each year, or a comparable amount of local funds from 
the municipality or a private non-profit 
organization.  Any incorporated Mi ssouri city, town, 
village or county established on or prior to 
1 January 2001, having a population of 99,999 or less.  A contiguous and "blighted" 
Development Area, not encompassing more 
than 10 percent of the area of an eligible municipality.  Projects must be for the 
creation of a renewable fuel production 
facility or other eligible new generation processing facility, with a cost of at least 
$3 million, and projected to create at least 30 
new jobs.  A project must produce a positive tax 
increment before funds can be received.  A 
project may receive up to half of the increased amount of state sales and/or 
income tax it generates.  The program is 
limited in any year to the amount appropriated by the General Assembly. 
Current law provides a maximum 
$12 million per year.  If appropriations are not adequate to cover disbursements, 
projects receive a pro-rata share of 
increment.  Ongoing 
Missouri Rebuilding 
Communities Department of 
Economic Development Tax 
Credit To stimulate business activity in 
Missouri's "distressed communities" by providing tax credits to eligible 
businesses that locate, relocate or 
expand their business within a distressed community.  Must have more than 75 percent of its 
employees at the facility in the distressed community; have fewer than 100 employees 
total at all facilities nationwide;  and 
primarily engage in manufacturing, biomedical, medical devices, scientific research, animal research, computer software 
design or development, computer 
programming, telecommunications or a professional firm. Eligible new or relocating businesses may 
choose either a 40 percent equipment tax credit or 40 percent income tax liability tax 
credit and the employees may receive a 
1.5 percent employee tax credit.  Eligible business already located in a distressed community may be eligible for a 25 percent 
equipment tax credit.   Ongoing 
Missouri Film Production 
Tax Credit Sections 
135.750, RSMo Tax 
credit Provides tax incentives to facilitate film 
production in the state. Film Industry Up to 50 percent state income tax credit on 
company expenditures in state for company's 
spending over $300,000 in state.  Up to 
$1million available per project. Ongoing 
  
   G/SCM/N/155/USA
 Page 139 
State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
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 fede ral 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 percent Test." 
To meet the test, at least 30 percent 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 ne w 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 in come attributed to the 
new or expanded portion of  the facility, and a 
possible investment tax credit equal to 10 percent 
of the first $10,000 of new investment, 5 percent 
on the next $90,000 of new investment and 2 percent 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 percent for ten years if 
the facility 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 
Montana Big Sky on the 
Big Screen Act Montana Film 
Office Refundable 
Tax Credit To promote business within the 
state. Film Industry 14% refundable tax credit on hired Montana 
labor(applies to first $50,000 of wages);  
9 percent rebate based on qualified expenditures (includes hotel and l odging expenses, production 
equipment rental, fuel costs, expendables, 
lumber/construction materi als/vehicle rentals, 
food expenditures). Ongoing 
Montana No State Sales 
Tax Montana Film 
Office Tax 
exemption To encourage film production 
within the State. Film Industry No state sales tax. Ongoing 
Montana Lodging Tax 
Exemption Montana Film 
Office 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 
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  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  
  G/SCM/N/155/USA 
Page 140  
State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Montana Local Option 
Property Tax 
Exemptions Department 
of Revenue Tax 
Exemption Exemption for Business Incubators (Local Option) If 
approved by the local governing body, a business 
incubator owned or leased and operated by a local 
economic development organiza tion is eligible for an 
exemption from property taxes.  (MCA 15-24-18) 
Industrial Parks (Local Option) If approved by the 
local governing body, an industrial park owned and operated by a local economic development 
organization or port authority is eligible for an 
exemption from property taxes. (MCA 15-24-19) Suspension, Cancellation of Delinquent Taxes (Local 
Option).  If approved by the local governing body, 
delinquent property taxes on commercial property 
may be suspended to facilitate the purchase and 
continued operation of a business utilizing the 
commercial property (MCA 15-24-17) .   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.  Canola Seed Oil Processing Equipment 
(State Determined).  Expanding "Value-Added" Machinery and 
Equipment Machinery used in canola seed 
oil processing is eligible for a 
taxable valuation rate of 2 percent in tax year 2001, 
1 percent in tax year 2002, and 
0.0 percent thereafter. Ongoing 
Nebraska Community 
Improvement Financing Department 
of Economic Development Loan Community Improvement Financing is Nebraska's 
version of Tax Increment Financing (TIF).  This is a method of financing public improvements associated 
with a private development project in a blighted area 
by using the projected increase in the property tax revenue which will result from the private 
development. Revenue bonds can be issued to finance all or 
part of a site's public pre-construction improvements.  Public improvements include 
land purchase, clearance and sale, construction of 
streets, sidewalks, utilities, parks or other similar public spaces necessary in site preparation.  CIF, 
in effect, can reduce developer capitalization to a 
level that makes investment feasible. Not available. Ongoing 
Nebraska Employment 
and Investment Growth Act Department 
of Revenue Mixed Tax 
Credits and Refunds The goal of Nebraska's Em ployment 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 investment and employment are not met 
within or maintained for a period of seven years, all or part of the incentiv es shall be disallowed or 
recaptured.   Three levels of incentives are 
available to qualifying businesses. Terminated for 
new applications on 
or after 
1/1/2006 
  
   G/SCM/N/155/USA
 Page 141 
State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Nebraska Ethanol Tax Credit Department 
of Revenue Tax Credits Support of ethanol producers. Tax credit available to ethanol 
producers. $0.18 per gallon. Expired, plants 
must have 
been 
producing by 6/30/2004 
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 
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 j obs and $100 million in 
new investment, and pay for the new jobs that is at 
least 110 percent 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 three percent; if it is between $30,000 and 
$40,000, it is four percent; and if it is over $40,000, it is five percent. 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 five or fewer 
employees Businesses with five or fewer 
employees located in economically 
distressed areas of the state. Beneficiaries receive a refundable tax credit equal 
to twenty percent of the increased investment or 
employment, not to exceed $10,000 per taxpayer or $2 million total per year. Ongoing 
through 2010. 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Nebraska Nebraska 
Redevelopment 
Act Department 
of Economic 
Development Loan The program allows cities to declare land 
within ten miles of their city limits blighted, 
thus property taxes on the subsequently 
improved property can then be used to reimburse companies for land purchase and 
project development.  This legislation 
authorizes Community Improvement Financing, also known as Tax Increment 
Financing, for real estate and equipment in a 
project that adds at least 500 new jobs and $50 million of new investment. The location would apply to designated 
blighted and substandard areas, if 
located within the fo llowing ranges:  up 
to ten miles outside a metropolitan or primary class city; up to six miles 
outside a first class city; and up to three 
miles outside of cities of second class or a village or villages. This type of financing allows new property taxes 
from the new investment to go back to the project 
to help finance rehabilitation, acquisition and 
redevelopment costs through bonds.  Such financing would apply for 15 years.  Existing 
property taxes continue to  go for local general fund 
purposes. Terminated for 
application 
filed on or 
after 2/1/2000 
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. 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 pr ime 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 
Nevada NRS 374.322 Department 
of Taxation Tax 
Exemption Certain aircraft, ai rcraft engines and 
component parts used in transportation are exempted from gross receipts from the sale, 
storage or other consumption Manufacturing/remanufacturing of 
aircraft engines Current state sales tax rate (rates fluctuate by 
county) Ongoing 
  
   G/SCM/N/155/USA
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Jersey 20 percent 
Tax Credit 
Program New Jersey 
Economic 
Development 
Authority Tax credit To encourage commercial film production. Film Industry 20 percent tax credit for qualified production expenses 
with certain criteria:  1) at least 60 percent of total 
expenses, exclusive of post-production costs, will be 
incurred for services performed and goods used or 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 Brownsfields 
and Contaminated 
Site 
Remediation Program New Jersey 
Economic Development 
Authority Grant Redevelopment of vacan t 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 percent to 80 percent 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 percent of a business' withholdings unless approved 
by the Treasurer. Ongoing 
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 percent of the original ta x 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 percent 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 di rect 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 percent. Ongoing  
  G/SCM/N/155/USA 
Page 144  
State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Jersey Edison Innovation 
Clean Energy 
Manufacturing Fund New Jersey Economic 
Development 
Authority/Board of 
Public Utilities Mixed 
Financing To encourage comp anies 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 of concept. Ongoing 
New Jersey Edison Innovation R 
& D Fund New Jersey Economic 
Development 
Authority & 
Commission on Science and 
Technology Mixed 
Financing Grants and Loans to support R & D 
related activities. Technology companies Up to $500,000. Ongoing 
New Jersey Energy Sales Tax 
Exemption Program 
in Urban Enterprise Zones and Certain 
Counties (Salem 
County) New Jersey Economic 
Development 
Authority Tax 
Exemption Extends the eligibility for the sales and 
use tax exemption of energy and utility 
service purchases by certain manufacturing-intensive businesses in 
Urban Enterprise Zones and certain 
counties with reduced sales tax. Manufacturers in UEZs and 
certain counties, currently 
limited to Salem County, that employ, respectively, at least 
250 and 50 people, of whom 
at least half are directly employed in the 
manufacturing process. 50 percent 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 percent 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 percent tax credit for qualified production 
expenses with certain criteria: 1) at least 60 
percent of total expenses, exclusive of post-production costs, will be incurred for services performed and goods consumed in state and 2) 
principal photography of a project commences 
within 150 days after the approval of the application for the credit. Ongoing 
  
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 Page 145 
State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 investig ation 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 percent.  
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. January 1, 
2011 
New Jersey Local Development 
Financing Fund 
(LDFF) New Jersey Economic 
Development 
Authority Loan Loans ranging from $25,000 to $2 
million may be made for commercial 
and industrial projects in targeted 
communities.  Financing is in the form of a permanent subordinated mortgage 
loan made at a below market rate of 
interest.  The municipality in which the business is located must sponsor the 
request for financial assistance. Projects must be located in state 
designated Urban Aid communities 
and have municipal support. There is a required minimum 1:1 
public/private dollar match but generally 
the financing is limited to no more than 
25 percent 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 percent of the value of the tax 
benefits. They can then use the money raised for working capital to buy 
equipment or facilities or for other 
business expenses.  Technology or biotechnology 
businesses must have 224 employees 
or less, of whom at least 75 percent 
must be based in New Jersey, and meet certain other criteria. Up to $60 million allocated each year. Ongoing - 
Program 
available June 
30 of each year 
  
  G/SCM/N/155/USA 
Page 146 State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 percent 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 percent of eligible costs.  
Loans cannot exceed $1 million per facility.  The interest rate is determined 
by EDA and may range from 2 percent 
to the Prime Rate.  Loan term may not exceed 10 years. Ongoing 
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 
percent 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 percent of investment in the Zone by an 
approved "in lieu" agreement for certain 
eligible firms; and pr iority 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 
  
   G/SCM/N/155/USA
 Page 147 
State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Jersey Urban Transit Hub 
Tax Credit Program New Jersey 
Economic 
Development 
Authority Tax Credit Qualified businesses located in Urban 
Transit Hubs may qualify for tax 
credits equal to 100% of the qualified 
capital investment that may be applied against corporation business tax, 
insurance premiums tax or gross 
income tax liability. Qualified businesses located in Urban 
Transit Hubs - Camden, East Orange, 
Elizabeth, Hoboken, Je rsey City, Newark, 
New Brunswick, Paterson and Trenton $1.5 billion over the lifespan of the program, 
or $150 million per year for 10 years. 
The tax credit program is for businesses 
making at least $50 million in qualified capital investments in a single business 
facility in an urban transit hub and 
employing at least 200 persons at that facility.   Ongoing for 
10 years 
New Mexico Aerospace Research 
and Development 
Deduction New Mexico 
Taxation and 
Revenue 
Department Tax 
Abatement/ 
Reduction The Aerospace Research and 
Development tax deduction was 
implemented to stimulate economic 
development by providing an incentive for research and 
development service providers to 
operate in New Mexico. Aerospace Industry Maximum Program Benefits: A portion of 
gross receipts tax is deductible increasing 
over four years to 100 percent by 1999. Ongoing 
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. Maximum 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 percent 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 tran saction certificates 
with its suppliers for tangible personal property or services.  The suppliers may then 
deduct their receipts from the gross receipts 
tax. Ongoing 
  
  G/SCM/N/155/USA 
Page 148  
State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New Mexico Industrial 
Development 
Training Program NM Economic 
Development 
Department Grant The Industrial Development Training 
Program pays up to 50 percent (or 65 percent 
rural) of employee training costs and wages 
for an expanding or relocating business for up to a six month period.  Training may be 
provided by a state edu cational 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 cooperative effort of the Economic Development Department, 
the Department of Public Education, the 
Department of Labor, the Commission on Higher Education and private industry. In rural areas, wages are 
reimbursed at a higher rate 
(60 percent). Maximum Program Benefits: Trainee wages are 
reimbursed to the company at 50 percent 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. Trainer costs, 
excluding business employees, are reimbursed to the 
business at 50 percent of the trainer's travel and per diem. Instructional costs i nvolving classroom training 
will be reimbursed to the educational institution at 
100 percent of all costs outlined in the training contract.  Costs may include instructional salaries, 
fringe benefits, supplies and materials, textbooks, 
expendable tools and other costs associated with 
conducting the training.  All costs must be necessary 
and reasonable. 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 eligible project to 
promote economic development. Maximum Program Benefits:  Land, buildings and 
equipment associated with an eligible project are 
exempt from ad valorem tax, generally to promote 
economic development. Term:  Up to 30 years. 
Rate:  Varies by community. Ongoing 
New 
Mexico Preferential Tax 
Rate for Small 
Wineries and Breweries New Mexico 
Taxation and 
Revenue Department Tax 
Abatement/ 
Reduction Preferential tax rate for small wineries and 
breweries. Winery/brewery Maximum Program Benefits:  Wine produced by a 
small winery carries a tax of 10 cents per liter on the 
first 80,000 liters; 20 cents on production over that level.  The basic tax rate for wine is 45 cents per liter.  
Beer produced by a microbrewery is taxed at 25 cents 
per gallon.  The basic tax rate for beer is 41 cents per gallon. Ongoing 
New 
Mexico Rural Development 
Direct Business and 
Industry Loan 
Program Rural 
Development Loan Loans to priv ate 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 percent 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 ar e 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 percent Film 
Production Rebate 
Program New Mexico 
Film Office Tax refund To attract business and i nvestment to state. Film Industry 25 percent 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  
   G/SCM/N/155/USA
 Page 149 
State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
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 percent of 
the budget) for qualifying feature films or television projects. Terms are negotiated and budget must be at 
least $1million. 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 Wage 
reimbursement To attract business and investment 
to state. Film Industry 50 percent 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 NM crew in 
advanced positions for this program. Ongoing 
New York Empire State Film 
Production Credit Office of 
Motion Picture 
and TV Development Tax credit Tax credit provided to encourage 
the film industry within the state of 
New York. Film Industry Fully refundable tax credit equal to 30% of qualified 
production expenditures Expires 
12/31/14 
New York Commercial 
Production Tax Credit Office of 
Motion Picture and TV 
Development Tax credit Tax credit provided to encourage 
the film industry within the state of New York. Film Industry Fully refundable tax credits to qualified commercial 
production companies shooting commercials within the state.  Three component credit program:  an Upstate 
program, Downstate program, and a Growth program. 
For Upstate and Downstate programs a company can earn 5 percent on qualified expenditures on qualified 
commercials.  In the Growth program a company can 
earn 20 percent on any incremental increase in qualified costs from one year to the next. Expires 
12/31/11 
New York  Sales Tax 
Exemption -- Film 
Production Office of 
Motion Picture 
and TV 
Development Tax exemption Tax exemption provided to 
encourage the film industry within 
the state of New York. Film Industry Comprehensive sales and use tax exemption for 
machinery, equipment, and services used in production 
and post-production. Ongoing 
New York Sales Tax 
Exemption -- Manufacturing, 
R&D Department of 
Taxation and Finance Tax Exemption Tax exemption provided to 
encourage the manufacturing and research and development within 
the state of New York. Manufacturers;  qualified 
research and development. Comprehensive sales and use tax exemption for 
machinery, equipment, and utilities used in manufacturing, processing, research and development. Ongoing 
  
  G/SCM/N/155/USA 
Page 150  
State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
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 Lo cal Development Corporations 
(LDCs) and other Federal and State agencies.  Financing 
may be used for the acquisition of land, structures, 
machinery and equipment; constr uction, 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;  Fixe d 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 percent private or 
public participating co-lender, 40 percent JDA, and 10 percent equity 
contribution of loan recipient.  Loans 
are secured by a second lien on the commercial property (but subordinate 
to no more than 50 percent 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 percent of total eligible 
project cost (up to 60 percent in some 
cases, including projects in economically distressed areas) Ongoing 
New York Empire Zone Real 
Property Tax 
Exemption (RPTL 
485-e) New York State Tax 
Exemption If allowed by local option, real property that (1) is located in 
a designated empire zone (f ormerly known as an economic 
development zone) and (2) is constructed or improved after 
the zone is designated is par tially exempt from taxation and 
special ad valorem levies for up to 10 years, but is liable for 
special assessments.  The amount of exemption is limited to 
a percentage of the increase in assessed value attributable to 
the construction or improvement as determined in the first 
year of exemption.  The in crease in assessed value ("base 
amount") used to calculate the amount of exemption remains constant throughout the term of exemption, except 
(1) where there is subsequent construction or improvement 
during the term of exemption or (2) where there occurs in the assessing unit an overall change in the level of 
assessment of 15 percent or more;  in either case the base 
amount must be adjusted. 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). The amount and duration of the 
exemption depends upon whether the 
taxing jurisdiction has adopted a fixed 
10-year term for the exemption (see Local Option below). If the taxing 
jurisdiction has adopted a fixed 10-
year term, then 100 percent of the base amount is exempt during the first 
7 years of the exemption, 75 percent 
is exempt in the 8th year, 50 percent is exempt in the 9th year, and 25 percent 
is exempt in the 10 th year.  If the 
taxing jurisdiction has not adopted a fixed 10-year term, then the 
exemption will end in the 10th year of 
the zone's life, and the exemption percentages will likewise be tied to 
the zone's life. Ongoing 
  
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State 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 Empire Zones (EZs) of one to two square 
miles each have been designated in 
56 distressed communities around the state.  Each of these zones has tax credits 
available to businesses for the duration of 
the zone designation.  Zone Equivalent 
Areas are defined by the census tract as 
locations with high poverty and high 
unemployment that have not been designated as Empire Zones.  Businesses 
locating in these areas have special 
benefits.  Businesses that expand or locate in Empire Zones or Zone Equivalent Areas 
of New York State ma y be eligible to 
receive substantial financial incentives for investment and/or job creation. 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 percent to 60 percent for new load.  Telephone rate 
reductions of 5 percent 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 percent are also available to certified 
businesses from NYNEX and Citizens Telecom.  Within Zone Equivalent Areas, financial incentives 
which may extend to 31 December 2004, include the 
wage tax credit. Program 
expires 
30/06/2011. 
New York Empowerment Zone 
Program New York 
Empowerment 
Zone Corporation 
(NYEZC) Mixed 
Financing Established by the Revenue Reconciliation 
Act (1993), this is a Federal initiative to 
stimulate economic growth in severely distressed areas through tax incentives and 
incentive financing. The New York State 
Empowerment Zone (EZ) consists of East, Central and West Harlem, portions of 
Washington Heights, and the South Bronx. 
New York State and New York City each have committed $100 million over the 
next 10 years to match the Federal 
commitment for a total of $300 million. Financing is available for the purchase of 
qualified zone property and land used for 
related purposes in the zones. Qualified businesses are generally 
any trade except those consisting 
primarily of the development or holding of intangibles for sale or 
license, golf courses, country 
clubs, massage parlors, hot tub or suntan facilities, 
racetrack/gambling facilities, 
liquor stores, or farms with assets greater than $500,000 at close of 
tax year. Triple tax exempt enterprise zone facility bond 
financing at lower than market interest rates;  Total 
outstanding EZ facility bonds allocated to any person cannot exceed $3 million per zone or $20 million for 
all zones nationwide;  At least 95 percent of the net 
proceeds of the bond issue must be used to finance qualified zone property. Ongoing 
  
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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 percent co-funding.  Project funding is budgeted in 
advance by program topic and specific in each "Program Opportunity Notice".  The program money 
is allocated among the chosen projects.  New York 
State lenders provide loans with an interest rate of 4.5 percent.  The average cost of a project being 
funded is up to $200,000.   Ongoing 
New York Enterprise 
Communities Empire State 
Development Corporation Mixed 
Financing Sixty-five Federal Enterprise Communities 
("ECs") 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.  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 EC. Qualified businesses must be located 
within an Enterprise Community.  Sixty-five Federal Enterprise Communities 
("ECs") were designated by the U.S. 
Department of Housing and Urban Development (HUD) at the end of 1994, 
through the Revenue Reconciliation Act 
(1993).  Four ECs are located in New York State:  Buffalo, Rochester, Albany-
Schenectady-Troy, Kingston-Newburgh.  Financing is also available for the purchase of 
qualified enterprise zone property through qualified 
Enterprise Zone Facility Bonds:  Triple tax-exempt 
enterprise zone facility bond financing at lower than 
market interest rates;  At  least 95 percent of the net 
proceeds of the bond issue must be used to finance 
qualified EC property;  Total outstanding Enterprise 
Zone Facility Bonds allocated to any business cannot exceed $3 million per EC or $20 million for all ECs. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
New York General 
Development 
Financing Job 
Development 
Authority Loan Assistance 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 percent of total project cost at interest rates no 
lower than 3 percent and terms up to 20 years for 
real property and up to 7 years for machinery and equipment.  Interest rates on loans will be set at 
the time of Directors' approval of project 
application; rates will reflect market conditions, applicant's ability to repay, and requirements 
necessary to make the project feasible, but will 
not generally be lower than 3 percent.  Loan guarantees of $75,000 to $2,000,000 or up to 
60 percent of the total cr edit facility, whichever 
is less.  Interest subsidy grants of $75,000 to $500,000 for up to 5 years; grants may not 
reduce the effective interest  rate below 3 percent.  
Capital Grants may also be available for hard costs and related soft costs, as well as for 
working capital.  Work ing 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 percent of total project cost, whichever is less, 
for acquisition or improvement of land and/or buildings, construction and renovation, and for 
machinery and equipment purchases.  A 
minimum of 10 percent borrower equity required.  Interest rates will be determined by market 
conditions, applicant's ability to repay, and 
project requirements, and set at the time of ESD Directors' approval.  Terms for project loans will 
not exceed 20 years for real estate and 7 years (or 
useful life of collatera l) for machinery and 
equipment. Ongoing 
  
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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 pi ctures, television, 
commercial, video and related projects. Film Industry Various free services offered (eg, 
location services).   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 locat ed in New York State 
that has total annual produc t 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 a ll 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 compar able 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. 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. 
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 enha nced 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.   EZ program 
expires 
30/06/2011. 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
North Carolina Jobs Creation 
Tax Credit Department 
of Commerce Tax Credit North Carolina provides a Tax Credit 
for creating jobs in all 100 counties.  
Counties are arranged by Enterprise 
Tier Areas, and the credit is valued according to the area tier factor.  
Eligible companies must maintain a 
threshold of at least 5 jobs before any firm begins counting jobs for credit.  
Credit is taken in equal installments 
over the four years following the taxable year in which a job is created. The jobs tax credit is available to firms 
in the NAICS categories of  
manufacturing and processing (31-33), 
warehousing (493110), wholesale trade and distribution (42), data processing 
(54151), air courier service (492110), 
electronic mail order (454110), customer service center (561422) and 
central administrative office (551114).  
NAICS codes are designated by the Employment Security Commission. The size of the tax credit is based on the location of the 
firm.  Enterprise Tier Areas are designated each 
December by the Secretary of Commerce based on the 
rankings of all areas by unemp loyment, per capita income 
and population growth.  The credit for Tier 1 counties (23 
most distressed counties) is $12,500;  Tier 2 counties 
(next 15 counties) is $4,000;  Tier 3 counties (next 25 counties) is $3,000;  Tier 4 counties (next 17 counties) is 
$1,000 and Tier 5 counties (next 20 counties) is $500.  
There is a 5 year carry forward available for any unused credits.  The Jobs Tax Credit (including carry forwards) 
may not exceed 50 percent 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 Machinery 
and 
Equipment Investment 
Tax Credit Department 
of Commerce Tax Credit This tax credit is available to eligible 
companies that invest in machinery 
and equipment.  The tax credit is equal to the investment amount of 
machinery and equipment minus the 
applicable threshold, multiplied by 7 percent.  The credit is taken in 7 equal 
installments following the taxable 
year in which the machinery and equipment is placed in service. 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. The size of the tax credit is based on the location of the 
firm.  The threshold for Tier 1 counties is $0;  Tier 2 
counties is $100,000;  Tier 3 counties is $200,000;  Tier 4 counties is $500,000 and Tier 5 counties is $1,000,000.  A 
five-year carry forwards is available for any unused 
credits.  The credit (including carry forwards) may not exceed 50 percent 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.  If the machinery and equipment are moved out 
of the state during the seven year period, future credits are forfeited.  If the machinery and equipment are moved to a 
different tier during the seve n year period, remaining 
installments allowed to exte nt which would have been 
allowed if initially placed in service in the new tier. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
North Carolina North 
Carolina 
Biotechnology 
Center North Carolina 
Biotechnology 
Center Grant The NC Biotechnology Center promotes biotechnology 
research, development, job tr aining and commercialization 
for statewide economic benefit.  The Center has four grant 
programs that support basic research, information sharing, educational enhancement and j ob training and infrastructure 
development at the state's universities.  Academic Research 
Initiation Grants provide seed funding for biotechnology-related research projects that promise practical benefits. The 
Center has two loan programs that encourage technology 
transfer and research and development efforts in the state's biotechnology companies.  The Economic Development 
Finance Program provides financial assistance to companies 
to promote the initiation and expansion of commercial applications of biotechnology.  The Small Business 
Innovation Research (SBIR) Matching Fund Program 
provides financial assistan ce to small biotechnology 
companies that have successf ully competed for funding 
under the federal SBIR program. Awards are made to North Carolina 
academic institutions, nonprofit 
organizations, or businesses.  In the 
case of awards to businesses, the awardee must agree to maintain a 
significant presence in North 
Carolina for five years from the effective date of the award or to 
repay the Center in full. Economic Development Finance 
Program loans are available for up to 
$250,000 for 18 months of support.  
The SBIR Matching Fund Program provides up to $50,000 for research 
and development activities that refine 
Phase I research and initiate work on Phase II project objectives. Ongoing 
North 
Carolina One North 
Carolina Fund Commerce 
Finance Center Grant Provides "financial assistance to those businesses or 
industries deemed by the Governor to be vital to a healthy 
and growing State economy a nd that are making significant 
efforts to expand in North Carolina".  The fund currently consists of nonrecurring appropriations made by the General 
Assembly, intended to be immediately available for 
companies seeking to undertake new expansion or locate new operations in the state. The immediacy of the fund 
allows the Governor to distribute grants on an "as-needed" 
basis, which ensures the Fund's flexible application and speedy distribution. For a company to be considered for 
a grant from the Fund, the company 
must agree to meet the weighted 
hourly average wage test as required for the William Lee Act 
(Senate Bill 115 § 105-129.4) and 
local units of government (city or county) must have agreed to 
provide matching financial 
assistance to the company.  Companies receive money from the 
Fund for the purposes of installation 
or purchase of equipment;  structural 
repairs, improvements, or renovations of existing buildings  to be used for 
expansion; construction of or 
improvements to new or existing water, sewer, gas or electric utility 
distribution lines, or equipment for 
existing buildings.  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 
percent (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 percent 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 percent of the s state 
personal income withholding taxes derived from the creation of new jobs.  Over the next 
15-20 years  
   G/SCM/N/155/USA
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
North Carolina 15 percent 
Tax Credit Department 
of Commerce Tax credit To encourage business development within 
the State. Film Industry 15 percent 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 percent "privilege" tax on sales and use 
tax purchases or rentals of times used in the 
making of films. 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, equ ity and partnerships. This fund is allocated equally among the 
state's eight economic regions for projects located more than five miles outside the 
limits of a city with a population less 
than 8,000. Maximum investment $300,000.  Debt and 
equity investments are priced based upon the appropriate risk/return. Debt averages:  working 
capital 3-5 years, machinery/equipment 5-
7 years, commercial real estate 10-25 years.  Equity averages:  5-10 years.  Internal rate of 
return negotiated on case by case basis. 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 commodity processing 
facility in North Dakota that is certified by 
the Commerce Department's Division of 
Economic Development and Finance.  In the case of a pass-through entity, such as a 
partnership or S corporation, the credit is 
passed through to the entity's owners based on their respective ownership 
interests. The credit is equal to 30 percent of the 
investment, up to a maximum credit of $50,000 
per year.  A taxpayer is allowed no more than $250,000 in credits for all tax years.  Not more than 50 percent of the cr edit is allowed in any 
year.  The credit in any year may not exceed 
50 percent of the tax liab ility.  An unused credit 
may be carried forward up to five years. Ongoing 
North 
Dakota Sales & Use 
Tax 
Exemptions for 
Agricultural 
Processing Plant 
Construction 
Materials Tax 
Department Tax 
Exemption North Dakota offers business a favorable tax 
climate that promotes growth and 
opportunity through traditional tax incentives and innovative new opportunities. Construction materials used to construct 
an agricultural pro cessing facility are 
exempt from sales and use taxes.  The processor must apply to the State Tax 
Commissioner for a refund of the tax paid 
by a contractor.  As defined by the sales tax exemption, a qualifying agricultural 
commodity processing facility means a 
processing facility fo r the processing or 
production of marketable products from 
agricultural commodities. The sales tax exemption, if applicable, will 
provide a five percent sa les tax exemption based 
on the cost of construction materials for a qualifying agricultural commodity processing 
facility. Ongoing 
Ohio Clean Ohio 
Assistance 
Fund Ohio 
Department 
of 
Development  Grant Dedicated to the redevelopment of 
brownfield areas. Eligible applicants must show the property 
is located in a brownfield, show economic 
betterment, environmental improvement 
and improved financial condition of the community. $10 million annual dedicated to the 
redevelopment of brownfield areas. Ongoing 
Ohio Community 
Reinvestment 
Areas Department 
of 
Development Real 
Property 
Tax 
Exemption Local tax incentives for businesses that 
expand or locate in designated areas of Ohio.  
Program highlights include substantial real 
estate property tax reduction. Residences or commercial/industrial 
development projects within the certified 
area. Up to 100 percent exemption of the improved 
real estate property tax valuation for up to 
15 years.  In some instances, local school board 
approval may be required. Ongoing 
  
  G/SCM/N/155/USA 
Page 158 State Program 
Title Program 
Authority Form of Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 percent 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. GOA receives approximately $4 million 
annually from the Appalachian Regional Commission (ARC) to administer the state 
ARC program and fund special project 
development. 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 percent of a 
project's qualifying costs through loans in 
the range of $500,000 to $3 million. Ongoing.  
Ohio Job Retention 
Tax Credit (JRTC) Department 
of Development Non-refundable tax 
credit that can be taken against the 
Commercial 
Activity Tax (CAT), corporation 
franchise tax, or 
Ohio personal income tax. The JRTC was designed to assist large 
Ohio employers retain full-time employment positions at specific project 
locations. The JRTC was primarily designed to aid 
large firms that will commit to the retention of at least 1,000 jobs and a 
capital investment of at least $200 million 
at a given project site. Entities are awarded exemptions based 
upon the number of jobs that will retained, the wages of those jobs, and the capital 
investment amount.  The Department of 
Development's Office of Tax Incentives delivers recommendations to the Ohio Tax 
Credit Authority who ultimately 
determines the percentage and term of the tax credit. 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 percent 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 
  
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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, renovati on 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 percent of the total fixed-asset costs. The annual interest rate for the Pioneer 
Rural Loan financing will be fixed 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 financing 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 developing 
new or improved products, processes techniques formulas or inventions. The R&D Fund can finance up to 50 
percent 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 percent of total eligible 
costs. Ongoing 
Ohio Scrap Tire 
Loan and 
Grant Program Ohio 
Department 
of Natural Resources Grant Loans and grants are available to scrap tire 
recyclers who locate or expand in Ohio 
and who demonstrate that they will create new/reuse scrap tire products. Companies locating or expanding in 
designated "distressed" areas. ODOD has $2 million available for 
qualifying loans and grants, with 
additional funds earmarked to continue the program through the year 2000.  Loans 
and grants are distributed to qualifying 
companies on a first-come, first-served basis.  Financing is designated as "take-
out" financing wherein a business must 
complete its project utilizing interim financing from a conventional lender as its equity.  Upon completion of the project, 
the state funds will be disbursed.  
Preferential interest rates and terms are provided for qualifying companies 
locating or expanding in "distressed" 
areas. Ongoing 
  
  G/SCM/N/155/USA 
Page 160 State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Ohio Steel Development 
Initiative:  166 Direct Loan or Loan 
Guarantee & Ohio 
Enterprise Bond Fund Dept. of 
Development Loan Support the steel industry. Steel makers, processors, and foundries 
(SIC 3300 & 3400) making new capital investments;  eligible  investments include 
fixed asset investment in building, 
machinery, and equipment.  To date, ten companies have benefited from this 
program. Up to $30 million available (up to $10 million per company) 
under two programs:  1) Direct Loan or Loan Guarantee-provides up to 30-40 percent of eligible project costs, $15,000 
of state money loaned per j ob retained or created in non-
distressed areas;  $35,000 of state money loaned per job retained or created in distressed areas;  10 percent equity 
requirement; interest rate fixed at 3 percent;  term of 5-15 
years based on life of fixed assets;  2) Ohio Enterprise Bond Fund- provides up to 90 percent of fixed rate financing of 
eligible project costs; $75,000 of bond money loaned per job 
retained or created; 15-20 year term based on life of fixed assets.  Up to $60 million in tax-exempt financing is available 
for eligible pollution control equipment.  Ongoing 
Ohio Steel Development 
Initiative:  
Infrastructure Grants Dept. of 
Development Grant To develop infrastructure.  
Infrastructure grants are 
allocated for public infrastructure 
improvements necessary to 
move a project forward or make key equipment acquisitions.   Steel makers, processors, and foundries 
(SIC 3300 & 3400) making new capital 
investments.  Conditions for receiving a grant are job creation and retention.  Up to $5 million over three years.  The total amount granted 
since 2001 is $600,120 Ongoing 
Ohio Steel Development 
Initiative: Targeted 
Industries Training 
Grant Program Ohio Board 
of Regents Grant To support the steel 
industry. Steel makers, processors, and foundries. Up to 75 percent of the instru ctional and related costs of a 
training program.  Maximum of $50,000 in benefits to a single 
company during a fiscal year-cost per trainee per training 
project cannot exceed $650. 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 percent 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 
  
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State 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 professionally 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 
Oklahoma Former 
Indian Lands 
Tax Credit Emergency 
Economic 
Stabilization 
Act Tax credit 
and 
accelerated 
capital depreciation Program allows for businesses located on qualifying 
Former Indian Lands in Oklahoma to have the 
opportunity for accelerated depreciation on capitalized 
items and also an income tax credit on wages paid to Native Americans or their spouses.  Businesses located on qualifying Former Indian 
Lands. Amount of tax savings from 
accelerated depreciation on 
capitalized items. Started in 
1994.  
Extended 
through 31/12/2009 
Oklahoma Ad Valorem 
Tax Exemptions Oklahoma 
Tax Commission Tax 
exemption To encourage investment in the state. Manufacturers, research and development 
companies, certain computer services and data processing companies, aircraft repair companies, 
oil refineries, and certain windpower generators 
and certain distribution centers.  Threshold requirements are an investment of at least 
$250,000 and an addition of $250,000 in annual 
payroll in counties with a population of 75,000 or less.  If the company is located in a larger county, 
an additional annualized payroll of at least 
$1,000,000 is required.  However, if a $7 million investment is made in the new facilities for 
certain computer service companies, no new 
payroll is needed.  Windpower generators are exempt from the payroll requirement.  Eligible 
property, which may be exempt from the ad 
valorem tax, may include land, buildings, improvements, machinery, fixtures and 
equipment used directly and exclusively in the 
primary activity or process of the company located on the facility site .  Construction of the 
establishment must begin on or after 1 November 
2007 and be completed within 3 years from the start date.  A minimum investment of five million dollars is required at least 100 FTE paid 
at least 175 % of the federal minimum wage. Ad valorem tax exemption 
for up to five years. Ongoing since 
15/03/2005 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Oklahoma Sales Tax 
Exemptions 
and Refunds Oklahoma 
Tax 
Commission Sales tax 
exemptions 
and refunds Encourage the development of 
industry within the state. Manufacturers who obtain a Manufacturer's Sales Tax Exemption 
Permit are exempt from sales ta x on purchases of machinery and 
equipment, energy, tangible personal property used in design, 
development, and manufacturing. Amount of tax savings on 
permitted purchases. Ongoing since 
1981. 
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, a nd 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 ai rcraft maintenance and overhaul 
facilities that create 250 or more j obs, with construction totaling at 
least $5 million.  Amount of refund on eligible 
costs. Ongoing since 
1981. 
Oklahoma Oklahoma 
Film 
Enhancement 
Rebate Oklahoma 
Film and 
Music Office Rebate To encourage the development of 
commercial film industry within the 
state. Film Industry 15 percent rebate of 
Oklahoma production 
expenditures to companies 
filming in the state capped at $5 million per year. Ongoing 
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 percent on a minimum 
$500,000 construction 
project to 25 percent 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 percent 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 Lodging Tax 
Exclusion Oklahoma 
Film and Music Office 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  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Oklahoma Enterprise 
Zones Department 
of Commerce Mixed 
Financing The state has designated Enterprise Zones which can be either depressed counties or 
inner cities.  These zones provide three ma jor 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 percent of 
the estimated cost of 
the building and equipment. Ongoing 
Oklahoma Investment 
New Jobs 
Income Tax Credit Oklahoma 
Tax 
Commission Tax Credit The Investment New Jobs Income Tax Credit allows manufacturers or qualified 
aircraft maintenance facilities the greater credit of one percent per year of the 
investment in qualified depreciable prope rty the year the property is placed in 
service, or a credit of $500 per year pe r additional new jobs engaged only in 
manufacturing or processing.  To qualify, th e 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. 
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 provi des 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 percent 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 locat ed, 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 add itional tax credits and exemptions. Fast growing businesses 
within the SIC Codes 20-39. Payments are 
generally limited to 5 percent of payroll 
and for most 
businesses will be in the 4 percent to 5 
percent range. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Oklahoma Sales Tax 
Refunds for 
Computer-
related Products Oklahoma 
Tax 
Commission Tax Refund Oklahoma offers a sales tax refund 
on computers, data processing 
equipment, related peripherals, 
telegraph or telecommunications services or equipment. Qualifying companies include: 
a.  New or expanded aircraft maintenance and 
manufacturing facilities that create 250 or more jobs, with 
construction investment of $5 million and purchases of at 
least $2 million worth of computers and other listed items.
b.  Research and development or computer services 
companies (SIC 7372-7375, 8731-8734).  (SIC 7374 must attain minimum of $100,000 purchases), when at least 
50 percent of the annual gross revenue of the business is 
generated by sales of product or service to an out-of-state 
buyer or consumer (includes the federal government);  
75 percent of annual gross income results from computer 
services/data processing or research and development activities; and the business employs at least 10 new 
workers at an average salary of $35,000 for at least 
three years. Not available. Ongoing 
Oregon Business 
Development 
Fund Oregon 
Economic 
Development Department Loan The Oregon Business Development 
Fund is a revolving loan fund 
administered by the Department.  The program provides loans to 
businesses for the acquisition of 
property, building, equipment, and working capital. The goal of the program is to create and retain jobs for 
Oregon companies that are in the "traded sector" or 
manufacturing companies.  Preferred projects are businesses with fewer than 50 employees located in rural 
areas and enterprise zones and/or businesses located in 
"distressed" areas. Maximum of 40 percent OBDF 
participation.  Maximum loan size is 
$500,000.  The term of the loan cannot exceed the useful life of the collateral or 
20 years, whichever is less.  The interest 
rate is one point above the current yield of U.S. Treasury securities of a 
comparable term.  The commission's 
security interest may be subordinated to a senior lender; however, all loans must 
be secured by good and sufficient 
collateral except for projects located in economically distressed areas. Ongoing 
  
   G/SCM/N/155/USA
 Page 165 
State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Oregon Business 
Retention 
Services Oregon 
Economic 
Development 
Department Business 
assistance The Oregon Business Retention Service is a statewide 
management consulting service that contracts with Oregon 
businesses that have a national or  international customer base.  
The program assists 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 pa rtial funding for feasibility 
studies of potential employee buyouts, and partial funding for 
studies that examine the feasibility of reopening closed 
industrial facilities.  The techni cal assistance to transitional 
companies is provided by private sector consultants who have 
been screened and selected by the Oregon Economic 
Development Department.  The consultant's function is to analyze the  company including management, operations, 
marketing, and the financial s ituation of the firm, and make 
specific recommendations and work with owners/managers to implement improvements.  The O BRS is financed with lottery 
proceeds. The goal of the program is to retain 
industrial jobs in Oregon's 
communities. Only companies 
involved in a traded sector industry, primarily manufacturing or 
processing, can qualify for technical 
assistance or employee buy out feasibility studies.  Preference will be 
given to firms in forestry, fishing, and 
agriculture, although strategically placed firms in rural areas will be 
considered. The consultant's fees are paid by 
the department, but the company 
is obligated to re pay the 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 f easibility study of 
a closed industrial facility must 
provide 25 percent of the cost of the study in a cash match.  The 
department's contribution, which 
is in grant form, cannot exceed $30,000. Ongoing 
Oregon Enhanced 
Enterprise 
Zones Oregon 
Economic & 
Community 
Development Dept. Tax 
Abatement/ 
Reduction The Oregon Legislature created this incentive in 1997 to spur 
major industrial investments in rural areas of the state with 
highest rates of unemployment.  The incentive provides 7-
15 consecutive years of full relief from assessment of all local property taxes at the investment site.   Rural areas of the state with high 
unemployment. Credit equal to 62.5 percent of 
gross payroll is applied against 
state corporate income tax 
liabilities relating to the facility, over and above the first 
$41 million in annual income 
taxes.  Ongoing 
Oregon Enterprise 
Zone Program Oregon 
Economic Development 
Department Tax 
Abatement/ Reduction The Oregon Enterprise Zone Program was created by the 
Legislature in 1985 as a business incentive to create new jobs by encouraging business invest ment in economically lagging 
areas of the state. Oregon has 44 enterprise zones with at least 
one in virtually every region of the state.  Current statutory authority allows for up to 48 zones to exist at one time. Forty-four areas in Oregon have been 
designated as enterprise zones.  Eligible business firms provide goods, 
products or services to other business 
operations.  This includes not only conventional manufacturing and 
industrial activities, but also 
processing plants, distribution centers, maintenance facilities, warehouses, 
corporate headquarters and most call 
centers. Construction of new facilities in 
an enterprise zone entitles a business to a 100 percent property 
tax abatement for three years on 
new plant and most of the equipment installed in the plant. Ongoing 
  
  G/SCM/N/155/USA 
Page 166  
State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Oregon Industrial 
Development 
Revenue 
Bonds Oregon 
Economic 
Development 
Department Bond The Economic Development Commission 
issues industrial development revenue bonds 
for manufacturing, processing, and tourism 
related facilities in Oregon. Proceeds of bond issues may be used to purchase land, 
construct new buildings, purchase existing buildings, 
purchase new or used equipment, and expand or 
improve existing plants, as well as to cover architectural fees, bond counsel, underwriti ng, and administration of 
bond issues.  Only manufacturing projects, certain 
facilities such as docks or solid waste facilities, and 
bonds for nonprofit organizations are federally tax 
exempt.  Specifically excluded are retail businesses, 
shopping centers, office buildings, and recreational facilities, as well as project s in which ground breaking, 
construction, or purchase of equipment has started 
before the granting of  project eligibility. Industrial development bonds can 
be used for up to 100 percent of 
the estimated cost of the project.  
The company will enter a lease, loan, or conditional sale 
agreement with the Economic 
Development Commission.  Bonds may be sold publicly or 
privately.  Interest rates are 
subject to negotiation between the company and bond purchasers. Ongoing 
Oregon Port 
Revolving Loan Fund Oregon 
Economic Development 
Department Loan The Oregon Port Revolving Fund provides 
long-term loans to ports at below market costs.  The fund provides loans to port 
districts for improvements to port facilities 
or to assist private firms located on port industrial properties.  Loans may match grants from federal, state, and local agencies. Legally formed Oregon port districts are the only 
entities eligible for Port Revolving Fund loans. The term of loans may not exceed 
20 years or the useful life of the project, whichever is less.  
Interest rates on PRF loans are set 
at market rate each calendar quarter and not less than 1 percent less than the current 
yield on US Treasury securities of 
a similar maturity.  All loans must be backed by collateral.  
Maximum outstanding balance 
per port is $3 million. Ongoing 
Oregon Strategic 
Investment Program Oregon 
Economic Development 
Department Bond For approved projects that benefit Oregon's 
key industries, the Department can issue industrial development revenue bonds.  
Properties developed under the program are 
exempt during the term of the bond from property taxes on assessed value in excess of 
a cap that begins at $100 million and is 
adjusted annually.  A project does not need to be fully bonded to be eligible for the tax 
exemption.  Participating companies make a 
payment directly to local governments to support community costs of meeting 
additional service requirements.  Local 
jurisdictions have broad discretion to negotiate conditions that offset the impact a project may have on a region or community. Oregon key industries This payment is equal to 
25 percent of exempted property taxes but not more than $2 
million per year.  Ongoing 
  
   G/SCM/N/155/USA
 Page 167 
State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the 
Program 
Oregon Strategic 
Reserve Fund Oregon Economic 
Development 
Department Loan The Department and Governor allocate monies from the 
Strategic Reserve Fund to leve rage other available public, 
industry, or business resources for projects which have positive long-term regional or statewide economic impact.  
Where possible, funding has been targeted toward projects 
related to key industries, distressed timber-dependent 
communities, economies affected by salmon-related 
environmental restrictions, or inner city areas. Oregon key industries. Not available. Ongoing 
Oregon Oregon 
Production 
Investment Fund The Governor's 
Office of Film & 
Television Development Cash rebate To encourage business develo pment within the state. Film Industry Rebates 10 percent of Oregon 
based production expenses 
(including labor). Ongoing 
Oregon Greenlight 
Labor Rebate The Governor's 
Office of Film & 
Television 
Development Cash rebate To encourage business develo pment within the state. Film Industry Offers qualifying productions 
and additional cash payments 
of up to 6.2 percent of wages 
paid to production personnel. Ongoing 
Pennsylvania Film 
Production 
Grant (replaced 
"Production 
Tax Incentive") Department of 
Community & 
Economic Development Grant To promote film production within the state. Film Industry 20 percent of qualified 
production expenditures, 
provided 60 percent of total production expenditures that 
occur in state.  Terminated 
Pennsylvania Ben Franklin 
Technology 
Development 
Authority (BFTDA) 
Technology 
Company Investment 
Program  Department of 
Community and 
Economic 
Development Loan Designed to address the fina ncing needs of technology-
oriented businesses by providi ng fund to fund 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 
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 Zones.   Tax credits equal 20 percent of 
amount invested.  Up to 
$250,000 per project. Ongoing 
  
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Page 168  
State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Pennsylvania Film 
Production 
Tax Credit Department of 
Community and 
Economic 
Development Tax Credit Promote the production of feature films, television 
series 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 percent of the total 
production expenses associated with a qualifying production must be 
incurred in Pennsylvania during the 
taxable year. Tax credit of up to 20 percent for 
qualifying film or television 
production expenses. 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. In determinant Ongoing 
Pennsylvania Keystone 
Opportunity Zone (KOZ) Department of 
Community and Economic 
Development Tax 
Abatement/Reduction Provides state and local tax abatement to businesses, 
property owners and resident s 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 Pennsylvania 
Community Development 
Bank Loan 
Program Department of 
Community and Economic 
Development Loan Provides debt financing for Community Development 
Financial Institutions (CDFIs);  Public funds (25 percent) matched with private sector funds (75 
percent) to create a loan pool to promote economic 
development and job creation. 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 
Pennsylvania PTIA 
(Pennsylvania Technology 
Investment 
Authority) - Investment Department of 
Community and Economic 
Development Equity Financing available as direct investment to or on behalf 
of technology-oriented businesses located in or maintaining a substantial operating presence in 
Pennsylvania. For-profit businesses that must fall 
within certain SIC or NAICS codes. Investment amounts vary. 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 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 percent 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 
19/07/2006. 
  
   G/SCM/N/155/USA
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
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 Partners Department of 
Community and 
Economic 
Development Loan/Grant To promote technology development and 
research and development Start-up or existing companies 
which are technology oriented or 
involved in research and 
development. Range from $5,000 to $250,000 
(varies between centers and 
projects). Ongoing 
Pennsylvania Building PA-Real estate 
development fund Community 
Financing Authority Loan To select an investment firm that will utilize 
these funds as mezzan ine capital to close on 
projects that that have been historically 
underserved small to mid-sized 
communities. Candidates will be based on a 
variety of criteria which includes: 1) demonstrated capacity or clearly 
definable strategy for those specific 
geographic areas; 2) expertise in real estate sector; 3) expertise in 
rang of investments that they are 
proposing and 4) ability to attract additional investment. $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 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 percent of project cost; 
Building acquisition/remodeling 
loans limited to 75 percent of appraised value.  Ongoing, but 
likely will be eliminated in 
the 2009 state 
budget cycle. 
Pennsylvania PNC Working Capital 
Growth Fund Department of 
Community and 
Economic 
Development Loan Low-interest rate financing to businesses 
inside Pennsylvania so they can continue to 
grow. Businesses in designated key 
growth industry, including 
advanced technology, food 
processing. Line of credit from $10,000 to $2 
million, at below standard interest 
rate. Ongoing 
Rhode Island Corporate Income Tax 
Rate Reduction Rhode Island 
Economic Development 
Corporation Tax 
Abatement/Reduction 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. Statewide The incremental income tax 
reduces a company's corporate income tax rate (currently 
9 percent) 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 percent allowing the present state income tax to be reduced to 
as low as 3 percent. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Rhode Island Enterprise Zones Rhode Island 
Economic 
Development 
Corporation Tax Credit A 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 qualify for all 
benefits afforded state enterprise zones as of 1 July 1998. Incentives to employ enterprise zone 
residents: A tax credit is allowed for 
qualified enterprise zone businesses for 
employing persons domiciled in an enterprise zone.  Firms qualifying for 
enterprise zone tax credits by increasing 
total company employment by 5 percent within an R.I. enterprise zone may take 
a credit equal to 75 percent of the total 
wages paid to enterprise job employees living in an enterprise zone.  The 
maximum credit is $15,000 per 
employee.  Ongoing 
Rhode Island Rhode Island Employer's 
Apprenticeship Tax Credit Rhode Island 
Economic Development 
Corporation Tax Credit To promote growth in the 
metal and plastic industries. The credit applies to the following trades 
in the metal and plastic industries:  machinist, toolmaker, modelmaker, gage 
maker, patternmaker, plastic process 
technician, tool & machine setter, diesinker, moldmaker, tool & die maker, machine tool repair. The annual credit allowed is 50 percent 
of the actual wages paid to the qualifying apprentice or $4,800, 
whichever is less. Ongoing 
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 percent 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 Accommodations Tax 
Exemptions South Carolina 
Department of Parks, Recreation & 
Tourism - Film 
Commission Tax exemption Promote the production of 
feature length films in South Carolina. Film Industry State accommodations taxes are 
exempted provided the production's in-state expenditures meet or exceed 
$250,000. Ongoing 
South 
Carolina Corporate Income Tax 
Moratorium in Distressed Counties South Carolina 
Department of Revenue Corporate 
Income Tax Moratorium To encourage growth in 
economically distressed counties. Companies located in South Carolina's 
most economically distressed counties. Corporate income tax moratorium.  
Length of moratorium dependent upon number of new jobs created:  100 new jobs over 5 years results in a 10 year 
moratorium;  200 new jobs results in a 
15 year moratorium. 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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 percent and 5 
percent 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 20% cash rebate on employee wages 
and up to a 30% cash rebate on supplier expenditures if they spend at least 
$1,000,000 in the state. Ongoing 
South 
Carolina Fee-in-lieu of Local 
Property Taxes Local Governments Property Tax 
Abatement/Reduction A company can negotiate a Fee-in-
Lieu of property taxes agreement with a county if certain investment criteria 
are met.  The advantages to a 
company include:  (1) savings, as payments to local government are reduced significantly through 
negotiation of a lower assessment 
ratio and negotiation of an applicable millage rate;  (2) planning, as 
payments to local government are 
stabilized for the term of the agreement (generally up to twenty 
years);  and (3) scheduling, as the 
payment stream can be negotiated to meet the financing needs of the 
company.  A company can qualify to 
negotiate a FILOT with an investment as low as $2.5 million. Qualifying investments of 
$2.5 million or more Savings will occur by reducing the 
assessment ratio from 10.5% to a minimum of 6.0% (4.0% for very large 
investments) and potentially locking in 
the millage rate fo r the life of the 
agreement generally up to 20 years (30 years for very large investments).  
All terms are negotiated with counties. Ongoing 
South 
Carolina Jobs Development Credit SC Coordinating 
Council for 
Economic 
Development Discretionary 
Tax Credit To create high-paying quality jobs 
with an emphasis on rural areas. Companies in the state which 
operate manufacturing, tourism, 
processing, warehousing, 
distribution, research and development, corporate office, 
qualifying service-related, 
extraordinary retail, qualifying technology intensive and bank facilities, and which create new 
jobs and bring in new capital 
investment. Support is in the form of a refundable 
credit against employee withholding 
taxes.  Amount varies depending on 
wage rates and the county in which the project locates.  It can be  up to 5% of 
wages, if compensation levels are high 
enough.   Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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. Credits for Least Developed 
counties are $4,500;  Under 
Developed counties are $3,500;  
Moderately Developed counties are $2,500;  and Developed 
Counties are $1,500. 
Companies in the state which operate manufacturing, 
tourism, processing, 
warehousing, distribution, research and development, 
corporate office, qualifying 
service-related, extraordinary retail, qualifying technology 
intensive and bank facilities 
and which create new jobs in the state The credit is available for a five-year period 
beginning with Year 2 of the Project.  (Year 
1 is used to establish the created job levels).  
The number of new jobs is calculated as the increase in the average monthly employment 
from one year to the next.  Generally, a 
monthly average of 10 new jobs must be created, but the required number may vary 
depending on the type of business.  The 
credit can be applied against corporate income tax or premium tax, not to exceed 
50% of the year's tax liability.  Unused 
credits may be carried forward for 15 years from the year earned.  Credit value ranges 
from $1,500 to as high as $9,000 per job for 
5 years, depending on the location of the facility.G15 Ongoing 
South 
Carolina Motion Picture 
Production Facility Credit South Carolina 
Department of Parks, Recreation & 
Tourism - Film 
Commission Tax Credit Promote the production of feature 
length films in South Carolina. Film Industry Income tax credit equal to 20% of the 
investment in a company that constructs, converts or equips a motion picture 
production or post-production facility.  For a 
production facility, the company must spend at least $2 million, excluding land costs, and 
for a post-production facility, the company 
must spend at least $1 million, excluding land costs.  Limited to 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% or 100 days 
of filming must be done in SC.  Limited to 
$100,000 or 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 fi lming or production of 
a motion picture when spending at least $250,000. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 
South 
Carolina Tax Increment Financing 
for Redevelopment 
Projects Local Governments Loan Incorporated municipalities are 
authorized to issue obligations 
for the purpose of 
redevelopment within their boundaries.   Areas eligible for redevelopment 
projects include vacant or improved 
areas that, according to specifications, 
are classified as blighted areas or conservation areas.  Areas that are 
deteriorating and declining and 
threatening to become blighted areas if such decline is  not checked are 
eligible.  Eligible projects can be 
buildings, improvements (e.g., street, water, or sewer), parking facility, or 
recreational facilities owned by the 
municipality. Total aggregate area within any one 
municipality may not exceed 5% of the total 
acreage of the municipality.  The area 
designated for redevelopment may not be less than a total of 1.5 acres.  The debt 
service for such obligations is to be funded 
from the added increments of tax revenues resulting from the projects.  Obligations 
must mature within 30 years, and interest 
rates are determined by the governing body of the municipality. Ongoing 
South Dakota Agricultural Processing 
Facilities Tax Refund Chapters 10-46A, 
10-45, 10-46 (what 
state statute?) Tax Refund Refund for contractor's excise 
taxes imposed and paid under 
the provisions of chapter 10-46A for the construction of a 
new agricultural processing 
facility, and for sales or use taxes imposed and paid under 
the provisions of chapters 10-
45 and 10-46 for the purchase or use of agricultural 
processing equipment. Agriculture processing facilities 
building construction or equipment 
purchase projects with total minimum cost of $4.5 million.  Applicable only 
to project costs incurred and paid after 
1 April 1997.  Refund permits are valid for thirty-six (36) months, 
during which time all project costs are 
cumulative. 100 percent of the taxes attributable to the 
project. Ongoing 
South Dakota South Dakota Filming 
Tax Refund South Dakota Film 
Office Tax refund 
(eff. 
1 July 2006) To promote film production 
within the state. Film Industry 100 percent of South Dakota's contractor's 
excise tax and 100 percent of sales and use 
tax. 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 Sales and Use Tax 
Exemption CHAPTER NO. 916 Tax 
exemption To promote film production 
within the state. Film Industry Refund for out of state motion picture 
companies for goods and services purchased in state if the company spends $500,000 
within a 12 month period. Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Tennessee Economic Development 
Loan Fund Tennessee Valley 
Authority Loan TVA Economic Development 
Investment Funds are designed 
to provide capital to finance 
companies in the Tennessee Valley, generate high-value 
jobs, and make new capital 
investment.  The TVA Economic Development Loan 
Fund is a $100 million 
revolving loan program that provides low interest loans to 
established companies 
relocating or expanding their operations in the Tennessee 
Valley. Businesses must be located in the 
TVA power service area.  
Manufacturing and distribution 
businesses are the primary targets.  Specifically targeted are automotives, 
plastics, metals and metal fabrication, 
and electronics.  To be eligible, the loan must be used for buildings, plant 
equipment, infrastructure, or property, 
based on the capital investment leveraged, the number of jobs created, 
power generated and geographic 
diversity. The maximum loan investment is $2 million 
for a single project. Loans are generally 
awarded for five 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.   Ongoing 
Tennessee 13 / 15 / 17% Film and 
Television Production 
Incentive Tennessee 
Department of 
Revenue & 
Tennessee Film, Entertainment and 
Music Commission Cash Refund To promote film production 
within the state. Film Industry Receive 13% of total qualified production 
expenditures for a feature film or television 
program in the State of Tennessee.  At the 
present time concerts, award shows, music talk shows and music videos do not qualify 
for the incentive.  Plus 2% more if at least 
25% of the cast and/or crew are Tennessee residents. (Day players and extras are not 
included in determining the 25%).  Plus 2% 
more (maximum cash rebate of $100,000) if the Production Company spends at least 
$20,000 per production/per episode for 
music created by Tennessee residents or for recording music in Tennessee. 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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Tennessee Carbon Charge Tax 
Credit Tennessee 
Department of 
Revenue  Tax Credit To promote "green 
energy" job creation and 
capital investment within 
the state. Certified green energy supply chain 
manufacturers.  Any manufacturer that has 
made during the investment period a 
required capital investment in excess of $250 million in constr ucting, 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 franchise and 
excise tax liability, equal to any carbon tax levied by TVA 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 
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:  
Manufacturing operations, call centers, 
warehouse and distribution facilities, headquarter operations, data centers Credit is $4,500 per new full time job for Tier 
2 & 3 economically distressed counties.  The 
credit is applied against the total of both franchise and excise tax liability.  The offset 
amount is 100 percent.  Credit is taken 
annually for 3 years for a Tier 2 community and taken for 5 years for a Tier 3 community.  There is no carry forward provision. Ongoing 
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 constr ucting, 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 
Tennessee Integrated Supplier 
Credit Tennessee 
Department of Revenue  Tax Credit To encourage 
manufacturers to invest in and locate their 
facilities in Tennessee 
and to facilitate the co-location of integrated suppliers on or near a 
manufacturer's facility. An integrated supplier is a supplier located 
within the footprint of a project site, as determined by the Commissioner of Economic and Community Development 
and the Commissioner of Revenue, which 
provides goods and services on the project site solely for the qualified manufacturer. This new tax credit will provide integrated 
suppliers that locate within a qualified manufacturer's footprint with a one time super job tax credit equal to $5,000 per net new 
fulltime occupational wage job to offset one-
third of the integrated supplier's total franchise 
and excise tax liability with a fifteen (15) year 
carry-forward plus an additional $5,000 per job 
annual credit each year for six (6) years to offset 100% of the integrated supplier's total 
franchise and excise tax liability with no carry 
forward. Ongoing 
  
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State Program Title Program 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; 
manufacturing operations, call 
centers, warehouse and distribution 
facilities, headquarter operations, data centers Credit is $2,000 per new full time job for companies 
locating in a non-economical ly distressed county, 
$4,500 per new full time job for economically 
distressed counties and $5, 000 per qualified job for 
companies that qualify for the Super Job Tax Credit.  
The credit is applied against the total of both 
franchise and excise tax liability.  The offset amount ranges from 33-1/3 to 100 percent based on 
unemployment levels.  Credit may be carried forward 
for up to 15 years or until used. 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;  
Manufacturing operations, call centers, warehouse and distribution 
facilities, headquarter operations, 
data centers Tennessee has enacted legisl ation that provides 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 leve l 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 
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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 percent and the local option sales 
tax ranges from 1 percent to 
2.75 percent. Statewide 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 percent 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 
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 loans 
targeted to companies expanding or relocating in the Tennessee Valley's 
most economically distressed 
communities. Only the 50 counties in the Valley 
with the lowest per capita income ranked by the percent 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 
Texas Product Development 
and Small Business 
Incubator Funds Office of Small 
Business 
Development Loan To promote the development of 
small businesses or eligible 
products with a statutory preference 
to be given in the areas of semiconductor, nanotechnology, 
biotechnology and biomedicine. The program will support, through 
financing, the development of 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 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 franchise 
tax credit for job creation and 
capital investment as well as state sales and use tax refund on 
qualified expenditures.  A 
community must nominate and receive designation as a Defense 
Economic Readjustment Zone and 
provide specific local incentives in the zone. Franchise credits are for job creation based 
upon the total amount of salaries and 
wages as well as on capital investment 
made by the project.  Also the projects are eligible for a sales and use tax refund paid 
on qualifying items and the number of jobs 
created/retained at the site.  The project would be eligible for a refund based upon 
$2,500 per new job created with a 
maximum of $1,250,000.  The number of jobs eligible for a refund cannot to exceed 
500 or a number equal to 110 percent of 
the projected jobs, whichever is less. Ongoing 
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 
property wealth of the school district 
where the investment is made.  The scale ranges from a cap of $100 million for school districts with tax bases exceeding 
$10 billion to a cap of $1 million for 
school districts with tax bases under $100 thousand. Expires 
12/31/07 
Texas Enterprise Zone Program Office of the 
Governor Tax Refund The Enterprise Zone program 
provides communities with an 
economic development tool in 
partnerships with the state that can offer state and local incentives.  The 
program priority is to new or 
expanding businesses bringing new jobs and capital investment into the 
community. An area is designated 
an enterprise zone if the Census Block Group has at least 20 percent 
of the population in poverty 
according to the most recent decennial U.S. Census. A business making at least $40,000 
capital investment into a 
community may be nominated by 
the local governmental jurisdiction to the state for enterprise project 
status.  In return for hiring a 
percentage of new employees that are economically disadvantaged, or 
enterprise zone residents, the 
businesses become eligible for a refund of state sales and use taxes 
paid on certain items purchased. Enterprise projects are eligible for a refund 
of state sales or use taxes paid on 
qualifying items such as machinery and 
equipment, building materials, labor for the rehabilitation of existing buildings, and 
electricity and natural gas purchased for 
use in the enterprise zone.  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 numb er of jobs eligible 
for a refund cannot exceed 500.  Ongoing 
  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 par ticular 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  Ongoing 
Texas Freeport Exemption Texas Communities Tax Incentive A community may choose to offer the Freeport 
Exemption for various types of goods that are 
detained in Texas for a short period of time.  
Freeport property qualifies for an exemption from ad valorem taxation only if it has been detained in the state for 175 days or less for the 
purpose of assembly, storage, manufacturing, 
processing or fabricating. New or existing 
business. 100 percent of the taxes that would be 
due are exempted. Ongoing 
Texas 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 
property 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 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  
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State Program Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas Property Tax Abatement Texas Comptroller 
of Public Accounts Tax 
Abatement / 
Reduction 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. Statewide Designation of a rei nvestment zone may 
be for five-year, renewable periods.  Tax 
abatement agreements have a maximum 
term of 10 years and provide for the exemption of real property and tangible 
personal property located on the real 
property.  Only the increased value of the property may be exempted.  Ongoing 
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 ta xes 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 Texas 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 Ongoing 
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 sy stems, 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 percent of the taxes that would be 
due are exempted. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas State Sales & Use 
Tax Exemptions - 
Manufacturing 
Machinery and Equipment Texas 
Comptroller 
of Public 
Accounts Tax 
Incentives 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 tangi ble personal property for ultimate 
sale, are exempt from state and local sales and use tax.  Businesses are exempt from payi ng state sales and use tax on the 
purchase of machinery exclusivel y used in processing, packing 
or marketing agricultural products by the original producer at the location operated by the original producer. New or expanding 
business. 100 percent of the taxes that would be 
due are exempted. Ongoing 
Texas Tax Increment 
Financing Office of 
Attorney 
General Loan The Tax Increment Financing Act gives authority to 
municipalities to designate reinve stment zones for the purpose of 
providing for tax increment financ ing 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 
Texas Texas Capital Fund 
Real Estate Development 
Program Texas 
Department of Agriculture Grant The Texas Capital Fund Real Estate Development Program is 
designed to provide financia l resources to non-entitlement 
communities.  Funds must be used for real estate development to 
assist a business which commits to create and/or retain 
permanent jobs, primarily for low and moderate income persons. Non-entitlement communities are generally rural and/or smaller 
communities. Non-entitlement city 
or county government entitlement 
cities/counties that do 
not receive direct funding from Housing 
& Urban Development 
and typically include population of less than 
50,000 and counties of 
less than 200,000. Texas Capital Fund has four program 
areas:  1) Main Street Improvements with minimum awards of $50,000 and 
maximum awards $150,000, and 
matching funds must be provided.  2) Real Estate Development with minimum 
awards of $50,000 and maximum 
awards $750,000 inclusive of administration costs.  The award may 
not exceed fifty percent of the total 
project costs.  Require minimum equity injection for the total project costs by 
the business.  3) Infrastructure 
Development with minimum awards of $50,000 and maximum awards $750,000 
inclusive of administration costs.  The 
award may not exceed fifty percent for the total project costs.  A minimum equity injection of 10% of the total 
project cost by the business is required.  
4) Downtown Revitalization Program with minimum awards of $50,000 and 
maximum awards $150,000 and 
matching funds must be provided. Ongoing  
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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 reve nues 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 3 - 4 times 
the amount of the city's tax revenues 
during the term of the loan, up to a 
maximum of $5 million. Ongoing 
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 
Texas Lodging and Fuel 
Tax Exemption Texas film 
Commission Tax 
exemption To promote commercial film production. Film Industry On hotel rooms occupied for more than 
30 consecutive days, Texas's 6 % state 
occupancy tax is waived; fuel tax that 
was paid for fuel used in off-road (as in generators or boats) may be refunded. Ongoing 
Texas 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 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, se llers, 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 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Texas Moving Image 
Industry 
Incentive 
Program Texas Film 
Commission Grant In 2007, the 81st Texas Legislature enacted 
House Bill 1634 establishing the Moving 
Image Industry Incentive Program.  Under the 
legislation, grants to promote industry growth in Texas can be made to applicant production 
companies.  The incentiv e 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 September 1, 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 
Utah Corporate Loan 
Program Department 
of 
Community 
and Economic Development Grant This program is reserved for extraordinary 
expansions which involve heavy capital 
investment, large numb ers of new jobs, and 
high average salary.  Most of these applicants are expanding on the Wasatch Front. Medium to large businesses. Set by Division of Business and 
Economic Development Board 
based on Fiscal Impact analysis. Ongoing 
Utah Economic 
Development 
Zone Increment 
Financing Governor's 
Office of 
Economic 
Development Tax incentives To encourage i nvestment within the state. For companies seeking to relocate and 
expand operations to the State of Utah. Only 
to be used towards projects in specific 
targeted industries in urban areas of the state. Maximum rebate of up to 
30 percent over the life of the 
project on a post performance basis;  
No more than 50 percent rebate in one year;  New jobs created must 
pay at least 125 percent above the 
county median wages within the urban area and for rural areas 
100 percent of county wages must 
be paid. Typical length 
of incentive is 
for 10 years. 
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.  
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 provi de a local incentive. 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 
Utah Industrial 
Assistance Fund Governor's 
Office of 
Economic Development Grant  A post-performance gran t 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 provi de a local incentive. The range of this incentive is 
determined by the GOED Board. Subject to 
legislative 
appropriations  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Utah Industrial 
Assistance Fund Department 
of 
Community 
and Economic 
Development Grant or Loans To foster and develop industry to assure 
the welfare of citizens, economic growth 
and employment. Companies that establish, relocate or develop 
industry in an economically disadvantaged 
rural area.  Companies must fall within a 
Targeted Market or a Corporate Expansion, which must have $10,000,000 in Utah 
expenditure and spend $5.7 to every dollar 
awarded. The ranges of incentive awards vary 
from company to company depending 
on the type of incentive being applied 
for how many jobs are being created, financial history, and what a company is 
requesting.  Typically, awards range 
from $100,000 to $1,000,000. Ongoing 
Utah Motion Picture 
Incentive Fund Utah Film 
Commission Rebate Rebate to encourage film production 
within state. Film Industry Rebate up to 15% on Utah expenditures, 
with a cap of $500,000 per project and a minimum spend amount of $1 million in 
the state. Ongoing 
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 percent state tax credit on machinery 
and equipment; 20 percent state credit 
on the first $10,000 of expenditures (up to $2,000) on eligible operating costs;  
technical assistance from economic 
development specialists;  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 percent of the county's average 
annual wage;  $1,250 for each new job paying 115 percent of the county's 
average annual wage;  $1,500 for each 
new incremental job paying 125 percent of the county's average annual wage. 
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 Utah Film 
Commission Tax exemption To attract business and investment to 
state. Film Industry Allows film, tele vision 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 Targeted 
Industry Loan Program Department 
of Community 
and 
Economic Development Grant The term "targeted industry" refers to 
the industry identified each year as a target for growth in the state of Utah.  
Applicants must conduct business 
within the targeted industry definition and usually meet criteria similar to the 
Corporate Loan Program. Information technology, biomedical and 
aerospace industries are targeted Set by Division of Business and 
Economic Development Board based on Fiscal Impact analysis. Ongoing 
Utah Transient Room 
Tax Rebate 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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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 designation must 
be made by a city with 10,000 or 
less population located in a 
county with 50,000 or less population or an Indian Tribe for 
tribal lands.  Applications will be 
reviewed and approved on the basis of economic development 
need, 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 enterp rise 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 wa ge 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 agri cultural 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 deve lopment, and is accredited by 
the Utah Rural Development Counc il;  (6) A tax credit of 25% of 
the first $200,000 spent on rehabilitating a building which has 
been vacant for at least two y ears 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) 
Vermont Income Tax 
Limitation Vermont Film 
Commission Tax limitation To encourage business and 
investment within state. Film Industry Income tax for performers is limited to the amount the performer 
would pay in their home state. Ongoing 
Vermont Industrial 
Development 
Bonds:  Agricultural 
Facility and 
Debt Stabilization 
Loans Vermont 
Economic 
Development Authority Loans The Vermont Economic 
Development Authority 
(VEDA) promotes economic prosperity and increases 
employment for Vermont 
businesses by providing low-cost capital for eligible 
facilities. Eligible facilities. Not available. Ongoing. 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 R&D and 
Sustainable 
Technology Tax Credits Vermont 
Economic 
Progress Council Tax Credits The Vermont Economic Progress 
Council (VEPC) administers a 
performance-based tax incentive program for both businesses and 
municipalities for economic 
development activity.   Eligible facilities. A credit of up to 10 percent of 
qualified research and development 
expenditures (up to 30 percent for companies eligible for the 
Sustainable Technology Credits). 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 Tax Increment 
Financing Districts 24 VSA 
Section1891-1901;  VSA 
32 Section 
5404a(h) Incremental 
municipal and state property 
tax may be 
utilized by municipality to 
subsidize 
infrastructure required for 
economic 
development Divert incremental state property 
taxes, generated by new economic activity, to help finance infrastructure 
required for that economic activity to 
occur. A municipality and the business(as) involved may 
apply to VEPC for authorization to pledge and appropriate any incremental valuation of property 
within a TIF district generated by growth in the state 
education grant list located in the TIF district, for a period of ten years.  The taxes generated on the 
incremental property valua tion must be pledged and 
appropriated for interest  and repayment on bonded 
debt or refunded future TIF district debt to the extent 
authorized by VEPC.  Applicant businesses benefit 
through the development of infrastructure required to expand. Municipalities bene fit through the use of 
incremental state property taxes to finance the 
infrastructure.  Eligibility cr iteria are the same for the 
EATI program.  Plus there must be incremental value 
added to the property. Amount of benefit depends on the 
amount of incremental value being added to the property within the TIF 
District.  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 percent of local spending, 
capped at $1 million annually. Ongoing 
  
   G/SCM/N/155/USA
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Virginia Clean Fuel 
Vehicle Job 
Creation Tax 
Credit Virginia 
Department of 
Taxation Tax Credit Businesses manufacturing or  converting vehicles 
to operate on clean fuel and manufacturers of 
components for use in clean fuel vehicles are 
eligible to receive an income tax credit for each new full-time job created, over and above the 
previous year's employment level. Clean fuel manufacturing 
businesses. The credit is equal to $700 in the year the 
job is created, and in each of two succeeding 
years if the job is continued, for a maximum 
of $2,100 per job.  Unused credits may be carried forward for five years.  The credit is 
available for taxable years beginning on or 
after 1 January 1996 through 31 December 2006.  Businesses receiving 
this tax credit are not e ligible to receive the 
Major Business Facility Job Tax Credit. Ongoing 
Virginia Economic 
Development Access Program Virginia 
Department of Transportation Grant The program that assists localities in providing 
adequate road access to new and expanding manufacturing and processing companies, 
research and development facilities, distribution 
centers, regional service centers, corporate headquarters or other basic employers.  The 
program may be used to improve existing 
secondary highway system roads and city streets to handle additional or type of traffic generated by an eligible economic development site or to 
construct a new road from a publicly maintained 
road to the new eligible establishment's primary entrance when no road exists. Participating Virginia businesses The maximum award for an economic 
development access road is $300,000.  However, the state will fund an additional 
$150,000 if the amount is matched on a 
dollar-for-dollar basis from sources other than the Department of Transportation. Ongoing 
Virginia Enterprise Zone 
Program Virginia 
Department of 
Housing and 
Community Development Tax Credit Virginia's Enterprise Zone Program is designed 
to stimulate business development in distressed 
urban and rural areas.  Fifty-six out of a possible 
60 Zones have been designated statewide.  Virginia's Enterprise Zone program offers several 
special state incentive 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.   Ongoing 
Virginia Governor's 
Motion Picture Opportunity 
Fund Virginia 
Tourism Corporation Cash rebate This fund is to be used, in the sole discretion of 
the Governor, to support the film and video industries in Virginia by providing the means for 
attracting production companies and producers 
who make their projects in the Commonwealth using Virginia employees, goods and services. The types of projects eligible for 
consideration will be feature films, children's programs, 
documentaries, television series 
or other television programs designed to fit a thirty-minute or 
longer format slot.  Projects not 
eligible are industrial, corporate or commercial projects, education programs not intended for 
rebroadcast, adult films, music 
videos and news shows or reports. The fund shall be used by the Governor to 
assist production companies or producers that meet the eligibility requirements set 
forth in the guidelines.  The Authority shall 
assist the Governor in the development of guidelines for the use of the Fund.  The 
guidelines should include provisions for 
geographic diversity and a cap on the amount of money available for a certain project. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Virginia Governor's 
Opportunity 
Fund Virginia 
Economic 
Development 
Partnership Grant The Governor's Opportunity Fund 
supports industrial development 
projects that create new jobs and 
investment in accordance with criteria established by state legislation.  Grant 
requests are made by the locality and 
awarded at the discretion of the Governor. Funds can be used for site acquisition and development; 
transportation access;  traini ng;  construction or build-
out of publicly-owned buildings ;  or grants or loans to 
Industrial Development Author ities.  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 partic ipation is required on 
a dollar for dollar basis. Ongoing 
Virginia Loan/Grant 
Program Virginia 
Coalfield Economic 
Development 
Authority Mixed The Virginia Coalfield Economic 
Development Authority (VCEDA) is designed to enhance the economic 
base of the seven counties and one 
city of far southwestern Virginia (Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise counties 
and the City of Norton).  The loans may be used fo r real estate purchases, 
construction or expansion of buildings, and the purchase of machinery and equipment.  To be eligible 
for the VCEDA loans, private businesses must be basic 
employers who will bring new income to the area .  Priority will be given to loans requiring $10,000 or less 
per permanent job created, and the average minimum 
hourly wage should equal or exceed 1.5 times the 
current federal minimum wage  rate at the end of one 
year of employment.  Any pr oject providing at least 25 
jobs within 12 months of st art-up will be gi ven 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 
Zones Localities Mixed Virginia cities, counties and towns 
have the ability to establish by 
ordinance, one or more technology 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. Technology Industries Once a local technology zone has been 
established, incentives may be provided 
for up to ten years.  Each locality designs and administers its own program. Ongoing 
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. 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  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Virginia New Markets 
Tax Credit Virginia 
Small 
Business 
Financing Authority 
(VSBFA) Tax Credit 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 borro wers must comply with the 
Community; Reinvestment Fund's guidelines for the use 
of loan proceeds. Certain geogr aphic and other restrictions 
apply.  All borrowers must meet the 3 criteria of a "qualified active low-income community business." 1.  
minimum 50 percent of borrower's tangible property must 
be located in a low-income community.  2. minimum 50 percent 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 percent 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 percent 
over $500,000). 2.  Purchase and install machinery 
and/or equipment 
(maximum 70 percent of new equipment, 50 percent 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 percent of the total original 
capitalized cost of the equipment. In 
any taxable year, the amount of credit allowed cannot exceed 40 percent 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 percent of the 
company's Virginia income tax liability 
before the credit. Ongoing 
Virginia Sales/Use and 
Property Tax 
Exemptions Department 
of Taxation;  
Localities Tax 
Exemption Business incentive Sales and use tax exemption for purchasers of 
semiconductor clean rooms or equipment and other 
tangible personal property used primarily in the integrated process of designing, deve loping, manufacturing or 
testing a semiconductor product.  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 percent combining state 
(4 percent) and local (1 percent) taxes.  Unspecified reductions in property tax. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Virginia Solar 
Photovoltaic 
Manufacturin
g Grants Department 
of Mines, 
Minerals and 
Energy Grant The Solar Photovoltaic Manufacturing 
Grant 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 of 
seventy-five cents per watt of the rated 
capacity of panels sold. Manufactures of high-technology and renewable 
energy sources. After 1 January 2002, new companies 
beginning or expandi ng 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) Department 
of Commerce and Trade; 
Governor 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 FT jobs with average salaries at least 50 percent 
greater than prevailing wages and capital 
investment of at least $5 million or $6,500 per job, whichever is greater.  Elsewhere in VA, 
company that creates 200 new FT jobs with 
average salary at least 50 percent 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  five equal annual 
disbursements starting in 3d year of capital investment. Ongoing 
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 Virgin ia and promote stable 
or growing employm ent opportunities. All companies that have been in business in VA 
for at least five years. Companies must have operated in Virginia 
for at least five years and propose projects 
that fall into one of the following two 
categories:  Tier one - Virginia manufacturers that make a capitalized 
investment of at least $25 million to increase 
the productivity of a Virginia manufacturing facility or to utilize a more advanced 
technology while at least maintaining stable 
employment levels.  Tier two - Virginia basic employers that make a capitalized 
investment of at least $100 million and 
create at least 1,000 new jobs. Ongoing 
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 percent-7 percent of the loan amount. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Washington Coastal Loan 
Program Washington 
State Office 
of Trade and 
Economic Development Loan This fund provides business and technical 
assistance loans to create economic 
opportunities in Jefferson, Clallam, Grays 
Harbor, Pacific, and Wahkiakum counties.  Business borrowers must demonstrate job 
creation and private investment to qualify for 
loans.  Technical assistance loans for public agencies businesses are available for feasibility 
studies and planning projects that benefit the 
community and create jobs, especially for dislocated workers. Jefferson, Clallam, Gray s Harbor, Pacific, and 
Wahkiakum counties Variable.  Loans up to $150,000.  
Technical assistance loans up to 
$50,000 for public agencies and 
$20,000 for businesses for feasibility studies. Ongoing 
Washington Distressed 
Area 
Business and 
Occupational Tax Credit Washington 
State Office 
of Trade and 
Economic Development Tax Credit; 
Tax 
Exemption Under the Revised Code of Washington 
(RCW) 82.62.030 and RCW and 82.62.045 
certain areas in the state are eligible for a credit 
against the B&O tax liability at the rate of $2,000 or $4,000 per new job created by 
manufacturing, research and development or 
computer software firms. This tax break applies to 1) Counties: Adams, 
Asotin, Benton, Chelan, Clallam, Columbia, 
Cowlitz, Ferry, Franklin, Grant, Grays Harbor, 
Kittitas, Klickitat, Lewi s, Mason, Okanogan, 
Pacific, Pend Oreille, Skagit, Skamania, 
Steven, Whitman and Yakima;  2) 
Metropolitan Statistical Area:  Whatcom; and 3) Community Empowerment Zones: Bremerton, Tacoma, White Center, Yakima, 
Marysville, Snohomish, Sultan, Acme, 
Deming, Everson, Maple Falls, Sumas, Clearwater, Queets and Quilcene. Credit against the B&O tax liability at 
the rate of $2,000 or $4,000 per new 
job created.  Ongoing 
Washington Distressed 
Area Sales 
and Use Tax 
Deferral/Exemption 
Program Department 
of Revenue Tax 
Exemption Program falls under RCW 82.60.040 and 
82.60.049 and is available for new or 
remodeled building and/or equipment used in 
manufacturing or research and development activities in rural countries or economically 
distressed areas.   This tax break applies to 1) Counties:  Adams, 
Asotin, Benton, Chelan, Clallam, Columbia, 
Cowlitz, Ferry, Franklin, Grant, Grays Harbor, 
Kittitas, Klickitat, Lewi s, Mason, Okanogan, 
Pacific, Pend Oreille, Skagit, Skamania, 
Steven, Whitman and Yakima;  2) 
Metropolitan Statistical Area:  Whatcom;  and 3) Community Empowerment Zones: 
Bremerton, Tacoma, White Center, Yakima, 
Marysville, Snohomish, Sultan, Acme, Deming, Everson, Maple Falls, Sumas, 
Clearwater, Queets and Quilcene. Not available. Ongoing 
Washington Fishing Boat 
Fuel Department 
of Revenue Tax 
Exemption  Diesel fuel used by vessels engaged in 
commercial deep sea fishing or in the operation 
of commercial charter fishing boats is exempt 
from retail sales & use tax, if such vessels regularly operate outside of state territorial 
waters and if the gross income from such 
fishing activities is more than $5,000 per year.  Vessels engaged in commercial deep sea 
fishing or in the operation of commercial 
charter fishing boats. Not available. Ongoing 
  
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State Program 
Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Washington High 
Technology 
Business and 
Occupation Tax Credit 
Program Department 
of Revenue Tax Credit The High Technology Business and 
Occupation Tax Credit Program 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 percent for nonprofit corporations 
and associations and 2.5 percent for profit businesses. Ongoing 
Washington High 
Technology 
Sales and Use 
Tax Deferral/Exe
mption 
Program Department 
of Revenue Tax 
Exemption The High Technology Sales and Use Tax 
Deferral/Exemption Program was enacted in 
1994 to stimulate growth in certain high 
technology industries. A sales and use tax deferral/exemption is 
allowed for research and development pilot 
scale manufacturing in the areas of advanced 
computing, advanced materials, biotechnology, electronic device technology and 
environmental technology. If the project is used for qualifying 
purposes for eight years, deferred 
taxes will be forgiven.  If the project 
is used for non-qualifying purposes during the eight year period, taxes 
plus interest are due on a pro-rated 
basis.  Even if the deferral is disallowed, no sales and use tax will be due on exempt manufacturing and 
equipment (i.e. Manufacturing Tax 
Incentive Program). Ongoing 
Washington Prototype of 
Aircraft Parts Department 
of Revenue Tax 
Exemption (retail sales & 
use tax 
exemption) Purchases of materials used to develop 
prototypes of aircraft parts are exempt from sales/use tax, if the firm that develops the 
prototype has taxable sales of less than $20 
million annually.  Further, the statute limits the maximum amount of sales tax exemption to 
$100,000 per firm.  Small manufactures of aircraft parts. The statute limits the maximum 
amount of sales tax exemption to $100,000 per firm.  Ongoing 
Washington Rural 
Washington 
Loan Fund Washington 
State Office 
of Trade and Economic 
Development Loan The Development Loan Fund provides gap 
financing for businesses that will create new 
jobs or retain existing jobs, particularly for lower-income persons, in non-entitlement areas 
of the state experiencing high unemployment. 
Priority is given to distressed area projects.  Primarily for distressed and timber impacted 
areas. RWLF may lend up to $350,000, in 
participation with private lenders, and 
in special cases up to $700,000. Ongoing 
Washington Ships and 
Vessels Under Construction Department 
of Revenue Tax 
Exemption (property tax) To improve competitive position of the 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. Sm all 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  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Washington  Washington 
State 
Competitiveness 
Program Department of 
Community, Trade 
and Economic 
Development Rebate To support film industry by providing 
rebate to qualified companies. Film Industry Rebate of up to 20 percent of in state film 
related expenditures with a $1 million cap 
per production. *Administered by a not-for-
profit group, Washington Film Works. Ongoing 
Washington  Sales Tax 
Exemptions Department of 
Community, Trade and Economic 
Development Sales and use 
tax exemption To support 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 film industry by providing tax 
exemptions to qualified companies. Film Industry Purchases and rentals in state of tangible 
personal property directly used in an 
"entertainment production project" and purchases in state of se rvice directly used in 
an "entertainment production project" are 
exempt from this 6 percent Consumers Sales and Service Tax. Ongoing 
West 
Virginia Lodging 
Exemptions West Virginia 
Department of Tax and Revenue Tax 
exemptions To support film industry by providing tax 
exemptions to qualified companies. Film Industry Exemption from the state Consumers Sales 
and Service Tax and exemption from the local Hotel/Motel Tax on lodging stays in 
excess of 30 consecutive days per person at 
the same facility. Ongoing 
West 
Virginia Fee Free 
Location  West Virginia 
Department of Tax and Revenue Location 
discounts To encourage film production within the 
State. Film Industry Most state owned property is fee free, fee 
may occur in certain circumstances, including cost recovery. Ongoing 
West 
Virginia Miscellaneous 
Enhancements West Virginia 
Department of Tax 
and Revenue Discounted 
services To encourage film production within the 
State. Film Industry Depending on the scope of an Entertainment 
Production project, the WVFO may assist 
with negotiations of "s oft"  incentives (e.g. 
discounted location fees, office space rental, lodging, vehicle rentals etc.). Ongoing 
West 
Virginia Consumer 
Ready Tax 
Credit West Virginia 
Development Office Tax Credit A tax credit for wood product 
manufacturers that create jobs after 
30 June 1997.  A consumer-ready wood 
product includes any value-added wood product that does not require further 
manufacturing before it may be used 
and/or purchased. Wood products industry. A $250 credit for each new job created 
between June 1997 and June 2002.  Credit is 
taken against business franchise and 
corporate net income tax or personal tax. 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 percent of adjusted qualified investment.  If the corporate headquarters relocation results in 50 or more 
new jobs, the allowable credit is 50 percent 
(or such other allowable new jobs percentage) of adjusted qualified investment. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
West Virginia Economic 
Infrastructure 
Bond Fund West Virginia 
Development Office Bond The West Virginia Economic 
Infrastructure Bond Fund, a 
financial assistance program, 
provides funding for projects likely to foster and enhance economic 
growth and development.  
Emphasis will be placed on Business and/or Industrial Parks. Statewide with an 
emphasis on business / 
industrial parks. Repayment of a loan in full or in part may be made at any time 
without penalty.  Credit decisions will be based on the 
applicant's ability to repay the loan and collateral offered to 
secure the loan. Interest Rates for a for-profit sponsor is a minimum of the prime 
rate minus 3 percent (to be fixed at closing).  Interest rates for 
public or not-for-profit sponsor  will not exceed prime minus 
3 percent.  The length of th e loan will be negotiated on each 
project and will not exceed the useful life of the assets being 
financed or 20 years, whichever is less.  The West Virginia Infrastructure and Jobs Development Council may defer the 
repayment of principal and interest up to 5 years.  The 
maximum loan amount for a private or public sector project is $3 million.  The maximum participation rate for each project is 
70 percent for private sector projects and 90 percent for public 
sector projects. Ongoing 
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 im provements at salvage value for 
property tax evaluations for 10 years. Ongoing 
West 
Virginia Industrial 
Revenue Bonds West Virginia 
Economic 
Development 
Authority Bond $55,039,950 of the state's industrial 
bond allocation is reserved for 
small manufacturing projects.  This 
provides for customized financing through federal tax exempt 
industrial revenue bonds.  
Available January through November 15 of each year, 
50 percent of the unused revenues 
are distributed to qualified businesses locating in an enterprise 
community/enterprise zone and 
50 percent is available for other eligible projects. Statewide Determined by market.  Ca pital expenditure limit of 
$10 million. Ongoing 
West 
Virginia New Steel 
Manufacturing Operations Tax 
Credit (Value-
Added Steel Products) West Virginia 
Department of Tax and Revenue Tax Credit To encourage job creation in the 
manufacture of "Value-added steel product"- any product that adds to, 
increases or enhances the value of 
any raw, bare or unimproved steel product. Manufacturer of "value 
added steel products". The maximum amount of the one-time credit is $250 for each 
new job filled by a full time employee at such a facility during the tax year.  Full-time jobs created by a taxpayer in a short tax 
year during the taxpayer's first year  of operation, or filled in the 
year in which this credit expires, are prorated. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
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 the 
development of project-
specific plans for industrial 
parks, for downtown business districts or for public 
infrastructure projects that 
focus on water, sewer and/or transportation.  Funds may 
also be used to implement 
training programs for local economic development 
professionals;  and to develop 
implementation plans that support local economic 
development projects. Awards are made as grants, with a maximum grant amount 
of $30,000 per recipient.  Recipients must provide a 
25 percent match of total project costs, except in cases of 
extreme hardship. Ongoing 
Wisconsin Dairy 2020 
Early Grant 
Program Department of 
Commerce Loan To provide support to dairy 
producers in designated areas. Existing and start-up dairy 
producers whose farms are, 
or will be, located in a city, 
town or village with a population of less then 6,000. Up to 75 percent of eligible project costs up to a maximum 
of $3,000.  Actual amount of  funds awarded is based on 
viability of the project, the project's economic impact, and fund availability. Ongoing 
Wisconsin Small Cities 
Community 
Development 
Block Grant Program-Blight 
Elimination and 
Brownfield Redevelopment 
Program Department of 
Commerce Grant Small Cities Community 
Development Block Grant Program-
Blight Elimination and Brownfield 
Redevelopment Program provides financial assistance to communities 
in assessing or remediating 
environmental contamination on abandoned, idle or underused, and 
blighted commercial or industrial 
sites to promote development of those sites. Most cities, villages and 
towns with populations under 
50,000 and all counties 
except Waukesha, Dane and Milwaukee Counties. 
Entitlement municipalities 
are not eligible. Awards are made as grants to eligible local governments. 
The local government may loan or grant the funds to local 
businesses or non-profit organizations to conduct an 
environmental audit or environmental remediation.  The maximum award is $100,000 for environmental audits and 
$500,000 for environmental remediation projects.  The local 
government must contribute at least 25 percent of the total project cost from other sources.  Municipalities that receive 
grants must make a commitment to pursue recovery of 
environmental remediation costs from parties causing the contamination and to reim burse the Department a 
proportional share of CDBG funds.   In addition, all program 
income received in connection with loans to businesses or 
nonprofit corporations must be paid to the Department 
within 30 days. Ongoing 
  
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State Program 
Title Program Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Wisconsin Small Cities 
Community 
Development 
Block Grant Program-
Economic 
Development Program Department of 
Commerce Grant Small Cities Community 
Development Block Grant Program-
Economic Development Program 
provides grants to local governments that assist businesses 
in investing private funds to create 
or retain jobs in the state. Eligible applicants for grants under the 
economic development and public 
facilities components include most cities, 
villages and towns with populations under 50,000 and all counties except Dane, 
Waukesha and Milwaukee counties. 
Municipalities ineligible for program funding are termed "entitlement 
communities" (general ly, cities with 
populations of at least 50,000 and urban counties).  Entitlement communities are 
eligible to receive CDBG funds directly 
from the federal government through the block grant entitlement program.  Funds are granted to local governments that 
provide loans to companies to supplement 
other financing for pr ojects that involve 
business startups, expansions or retentions.  The maximum grant that a community may 
receive is $1 million per year.  The maximum 
amount of economic development assistance a business may receive from one or more local 
governments is $1.0 million in a five-year 
period.  To be eligible, 50 percent of the total project cost must be provided privately. 
Economic development awards from CDBG 
funds are made on a continuous basis during the year.  Ongoing 
Wisconsin Small Cities 
Community 
Development 
Block Grant Program-Public 
Facilities for 
Economic Development 
Program Department of 
Commerce Grant Small Cities Community 
Development Block Grant Program-
Public Facilities for Economic 
Development Program provides funding for the expansion or improvement of public facility 
systems which directly benefit 
individual businesses that will create or retain jobs and expand the 
tax base. Most cities, villages and towns with 
populations under 50,000 and all counties 
except Waukesha, Dane and Milwaukee 
Counties.  Entitlement municipalities are not eligible. This program provides grants to communities. 
The total amount received by a local 
government may not exceed $1,000,000 in a 
calendar year. Funding to benefit a single business is limited to $750,000.  Funding for this program includes funds provided through a 
revolving loan fund that consists of monies 
generated by earlier CDBG economic development awards.  The business investment 
must be equal to the CDBG funding provided. 
Applications are accepted year-round, subject to the availability of funding. 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 percent of the 
TIF district's property area must be blighted, in need of  rehabilitation or be 
suitable as an industrial site. 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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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Wisconsin The Wisconsin 
Development Fund-
Technology 
Development Grants and Loans and 
Technology 
Development Commercialization 
Loans Department 
of Commerce Mixed 
Financing The Wisconsin Development Fund-
Technology Development Grants 
and Loans and Technology 
Development Commercialization Loans is a program designed to 
encourage cooperation between 
businesses and universities in the research and development of new 
products.  The Fund offers 
matching grants for technology, research and development leading 
to new businesses or consortiums to 
assist infrastructure development and commercialization of new 
products or processes. Awards are made to consortia of 
businesses and institutions of higher 
education.  Consortia may be composed of 
a company and an institution in the University of Wisconsin system or another 
in-state institution of fering post-B.A. or 
professional degrees.   Awards are in the form of grants or loans.  
Recipients must contribute at least 25 percent 
of project costs as a match.  Loans for 
successful ventures must  be repaid, including a 
reasonable return on the initial investment as 
determined on a case-by-case basis.   Ongoing 
Wisconsin Wisconsin 
Development Zone 
Program Department 
of Commerce Tax Credit The Department of Commerce 
funds Development Zones for the 
purpose of attracting and retaining 
businesses to the state, and to promote economic growth and 
development through job creation 
and investment in economically distressed areas.  Areas are 
designated development zones by 
the Department of Commerce, and are effective for up to 20 years.  The 
Department allocates the total 
statewide authorization of development zone credits, and 
businesses which locate, expand, 
invest and conduct certain economic activities in the zones are 
eligible to claim these credits. Businesses locating in distressed areas. Eligible businesses which conduct economic 
activity in development or enterprise 
development zones may claim the development 
zone tax credit.  The credit is based on amounts spent on environmental remediation 
and the number of full-time jobs created or 
retained.  In 2001, $38.155 million in tax credits were authorized statewide. Ongoing 
Wisconsin Wisconsin 
Technology 
Development Zones Department 
of Commerce Tax Credit The technology zone program will 
address several areas of need to 
ensure Wisconsin's short- and long-term economic vitality and success, including: Combating the state's 
'brain drain' by increasing high tech 
jobs; Linking Wisconsin's research expertise with Wisconsin firms to 
grow clusters of high-tech jobs.; 
Linking economic strategies across regions for power through 
collaboration. High-technology businesses Eight zones across the state will be designated, 
and will remain in effect for up to 10 years.  
Each zone will receive a total of $5,000,000 in tax credits for the duration of their designation. Ongoing 
  
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State Program Title Program 
Authority Form of 
Subsidy Policy Objective To Whom Amounts Duration of 
the Program 
Wisconsin Investment Tax 
Credit Department of 
Revenue Tax credit To attract business and investment 
to state. Film Industry An investment credit of 25 percent that can be 
claimed for investing in state productions. Ongoing 
Wisconsin Sales and Use 
Tax Exemption Department of 
Revenue Tax 
exemption To promote commercial film 
productions in state. Film Industry A comprehensive sales and use tax exemption 
for machinery, equipment and services used in 
production and post-production.  A zero 
percent tax for all film and television services contracted by out of state production 
companies. Ongoing 
Wisconsin Production Tax 
Credit Department of 
Revenue Tax credit To attract business and investment 
to state. Film Industry A refundable tax credit of 25 percent of direct 
production expenditures for feature films, 
television movies, episodic and mini-series television, video games and broadcast 
advertising production. Ongoing 
Wisconsin Capital Income 
Tax Credit Department of 
Revenue Income tax 
credit Tax credit provided to production 
companies to encourage film 
production in the state. Film Industry A 15 percent state income tax credit for film, 
television and electronic game production 
businesses who make a capital investment by starting a business in state. Ongoing 
Wisconsin Flexible 
Incentives Wisconsin 
Department of Commerce Discounted 
services To attract business and investment 
to state. Film Industry Use of state owned buildings and locations free 
of charge as available, no fees for permits, industry rates for hotel rooms. 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 per 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 percent discount on production 
related services including hotels, catering, restaurants, etc. Ongoing 
 
 
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