ED Programs

Short-Term Outcomes

Long-Term Outcomes
Elements for Success
SUBSIDIES AND INCENTIVES (see WHAT WORKS)
Property Tax Abatement Lower businesses' operating costs. Stimulate construction of new facilities.Stimulate renovation and expansion of older facilities. Tie incentives to performance. Provide abatement for new facilities and companies that are part of the region's competitive industries (clusters). Provide abatement to businesses that build on existing strengths.
Employee Training Tax Credit Offset company's costs associated with training their employees. Improve local work force skills resulting in a more competitive industry and build a local asset that would attract new businesses. Target credits to competitive companies. Target credits to companies in competitive or growing industries.Target credits for training in skills with high local demand.
Job Creation Tax Credit Create new jobs. Encourage relocation, expansion and start-ups. Could be used to target specific industries and/or specific communities. Target credits to companies that are part of a local cluster.Cost to public sector smaller than expected future public sector revenues.
Research and Development Tax Credit Lower business cost of R&D. More resources may be devoted to R&D, leading to new or improved products and processes. Have local academic institutions engaged in research.Have local small and large companies engaged in R&D.
Freeport Laws Reduce costs for businesses involved in interstate commerce. Local companies may expand their markets outside their state.  
Sales Tax Credit Reduce purchasing costs of new machinery and equipment. With new and upgraded equipment companies may retain or increase their competitive advantage.  
Utility Discounts Reduce utility costs for local businesses. Provide the region with competitive edge in attracting or retaining companies with high electric utilization rates. Important for companies with high intensity of electric utilization. Could make a difference for such companies that are at risk or relocation, closing or downsizing.
Foreign Trade/Free Trade Zones Reduce duty payments and streamline supply chains. Expand international trade.  
Enterprise Zones Provide businesses located with a designated area with several incentives and subsidies. Revitalization of neighborhood businesses.  
BUSINESS ASSISTANCE (see WHAT WORKS)
Small Business Development Improve entrepreneur's knowledge on how to start, operate and grow a business. Develop an entrepreneurial environment and culture. Strong nonprofits engaged; Small Business Development Centers are beneficial. Partnerships, including the state, US Small Business Administration, higher education and local economic development organizations and chambers of commerce.
Incubators Provide young companies with space and assistance in marketing, management, legal and financial services. Nurture young companies and increase their probability to remain in business and grow. Incubator as a part of a supportive environment for entrepreneurs, local support and financial backing.
Technology Transfer Programs Facilitate transfer of knowledge from research activities to industry. Transfer ideas and technologies from the research lab to the market place. Institutions of higher education need to create incentives and mechanisms for faculty and research staff to get engaged in technology transfer.
Product or Process Innovation Develop local training for manufacturing and other technology-based companies with training on product development and design. Maintain competitive advantage in established industries.Attract start-ups. Need an entrepreneurial culture focused on innovations.
Export/Trade Development Assist small and medium- sized companies to develop an export-marketing plan. Provide information on exports process, agents and distributors, and financing programs. Enable firms to expand their market area. Increase sales volume for local companies.Create new jobs. Multiple export-related services available in one place.
Site Location/ Relocation Assistance Market available business sites. Gain an edge in the competition for new business.