Tax breaks come in the form of exemptions, deductions, credits, preferential calculations or reduced rates which lower the amount owed in taxes. Most states have dozens of differentprograms through which corporations can receive tax breaks, including deductions in sales and use taxes, credits on insurance premium taxes and others. Many businesses or industries also receive property tax relief through rate reductions. Tax breaks are a particularly invidious type of corporate welfare, because they rarely carry with them any accountability mechanism for how they are used and what public benefit is provided. As a result, they are largely invisible, and seldom noticed.
Most development raises the value of the land that is developed.
This increase in value would normally result in an increase in property taxes. Tax Increment Financing allows a percentage of these increased taxes to be kept to cover a portion of the developer's costs. Tax Increment Financing has been used by many cities to subsidize development projects. State Grants and Loans are also prevalent sources of corporate subsidies. Some of these programs may include language regarding job creation and even job targeting to low income communities.