Sometimes certain incentives are more important than others, from community to community. Areas with high property tax rates have found abatement for this is more important than anything else while areas which have low property taxes find abatement insignificant. It is our goal to discover if there is a common theme in the United States as to which incentives are the most or least beneficial from the viewpoint of the economic development professional. Typically paid by a homebuilder or developer at the time of issuing a permit, fees are theoretically based upon the cost to the government for providing certain services as a result of the new development. In some communities, impact fees are levied for new roads, schools, water and sewer systems, fire protection, police and sheriff patrol, public buildings, and park and recreation facilities.
Money is loaned to a company at an interest rate below that of a typical lender.
In lieu of a direct loan, sometimes the funds are used to discount the rate of commercial loan. Additionally, sometimes the loans are made when the company cannot get a commercial loan for a particular expenditure, such as moving equipment from one community to another. However, the source of funding for a incentive can be from outside the area. Many areas receive entitlements and grants from the Federal and state government for economic and community development. After the grant is awarded, the community then decides on the actual distribution.