Successful incentive programs also require regular evaluation and personnel training. Where impacts are poorly measured and evaluated, a jurisdiction deserves the wrath of the public and the media when it comes time for reelection, incentives budget requests or public acceptance of a package in support of a major new business coming to town. Since incentives are complex, and crafting development agreements are critical to the success of each package, routine staff and public official training is essential. Get its own fiscal house in order. Over and above incentives, smart states and localities know that a strong governmental balance sheet is a prerequisite to creating a competitive business climate.
Businesses make location decisions for the long haul.
They want to know they are locating in areas where fiscal problems and unfunded liabilities will not create future tax surprises. With increasing global choice for mobile investments, this applies as much to nations as to states and localities. By example, reduce corporate welfare in the federal tax code. Like the states, federal tax policy has become de facto industrial policy. Tax codes are replete with exemptions, allowances, credits, rate reliefs and tax deferrals that target particular types of firms or industries for special treatment.