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Economic Development Incentives
Economic development incentives are a component of economic development policy which seeks to encourage growth in traditionally impoverished or underdeveloped areas in the United States. Incentives come in the various policy forms, but traditionally focus on tax incentives and infrastructure improvements. Development Incentives come from various levels of government on the local, state and national level.
==Overview of economic development incentives==
Economic development incentives are defined as “cash or near-cash assistance provided on a discretionary basis to attract or retain business operations owned by large businesses”.〔Bartik, Timothy J. 2005. "Solving the Problems of Economic Development Incentives." Growth and Change 36 (Spring):p.140.〕 Additional non-monetary incentives included promised exemption or relief from local and state regulations as well expedited investment and completion of public infrastructure projects. A large list of incentive practice and strategies is provided in the next section. The characteristic of incentive practices are varied in terms of expense and which level of government (federal, state or local) ultimately bears the cost of the incentives.
The goal of economic development incentives ultimately is to induce growth in targeted areas, providing new jobs and construction in stagnant areas while generating long term positive tax revenue for state and local governments. Theoretically tax breaks and government investments will lead to job growth and investment in blighted communities, eventually shifting centers of urban poverty into revitalized segments of the city.
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