Presenters: Sarah Gutschow, AICP State Business Incentives Overview C2ER State Economic Researchers Roundtable

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1 Presenters: Sarah Gutschow, AICP State Business Incentives Overview C2ER State Economic Researchers Roundtable Portland, Oregon June 10, 2015

2 Presentation Agenda State Business Incentives Database overview Current state of state business incentives Trends in incentive program creation Key takeaways on state of state incentives 2

3 State Business Incentives Database Web Address: 3

4 Database Overview Originally established in 1999; new user site for ,900 active state programs, including all U.S. states and territories All programs updated by staff twice a year, but can be updated at any time 4

5 Number of State Business Incentives (2015) Source: C2ER State Business Incentives Database 5

6 Database Structure Programs designed to influence business investment behaviors Affect individual an business bottom line through: Direct financial assistance Tax incentives Indirect financial assistance Community-directed Financing 6

7 Incentive Program Policy Goals Capital Facilities & Location Business Management Infrastructure Professional Network Program Policy Goals To Meet Business Needs Regulatory Climate Workforce Prep & Development Tech & Product Development Product & Process Improvement Marketing & Sales

8 State Business Incentives by Category (2015) Note: Programs may appear more than once if they fall into multiple incentive categories. Source: C2ER State Business Incentives Database 8

9 State Business Incentives by Type (2015) Note: Programs may appear more than once if they provide multiple incentive types. Source: C2ER State Business Incentives Database 9

10 State Business Incentives by Business Need (2015) Note: Programs may appear more than once if they fulfill multiple business needs. Source: C2ER State Business Incentives Database 10

11 Incentives Programs by State (2015) Source: C2ER State Business Incentives Database 11

12 State Business Incentives by Industry (2015) Note: Programs may appear more than once if they fall into multiple industry categories. Source: C2ER State Business Incentives Database 12

13 Number of Programs Created State Programs Created Annually ( ) Early 1990's Recession Early 2000's Recession Great Recession Source: C2ER State Business Incentives Database 13

14 Trends in Program Creation, by Type ( ) Note: Programs may appear more than once if they provide multiple incentive types. Source: C2ER State Business Incentives Database 14

15 Notable Trends: Types of Programs Created ( ) Increase in new types of state lending programs: Collateral Support, Loan Guarantee, Loan participation Influence of U.S. Treasury State Small Business Credit Initiative Prominent Examples: Michigan Collateral Support Program (MCSP) California Small Business Loan Guarantee Program Increase in new equity investment programs Prominent Examples: Innovate New York Fund TN INCITE Fund Drop in number of new tax incentive programs 22% drop in new tax credit creation between and

16 Trends in Program Creation, by Business Need ( ) Note: Programs may appear more than once if they provide multiple incentive types. Source: C2ER State Business Incentives Database 16

17 Notable Trends: Purpose of Programs Created ( ) Increase in programs providing access to capital Slight increase in workforce preparation and development programs Decrease in programs decreasing tax burden Decrease in programs providing business assistance 17

18 Key Takeaways The number of state business incentive programs available has over doubled since 1999 But program creation is slowing Tax incentive programs represent almost half of all programs But focus is shifting to new capital and equity access programs Majority of programs target business needs other than capital and tax burden reduction But growth in business assistance slowed in recent years 18

19 To learn more: Visit the State Business Incentives Database ( Contact us: Sarah Gutschow, AICP Manager of Research and Planning Phone: x

Incentives and Economic Development Policy ELLEN HARPEL NACCTFO COURSE WASHINGTON, DC MARCH 2018

Incentives and Economic Development Policy ELLEN HARPEL NACCTFO COURSE WASHINGTON, DC MARCH 2018 Agenda QUESTIONS ENCOURAGED: Exploring incentives in real life WHY we use incentives HOW we use incentives