Call Us: (563) 583-2115
Call Us: (563) 583-2115

Understanding State Tax Incentive Programs

The Importance of Corporate Incentive Programs

It is common for local, state and federal government entities to offer tax incentive programs to recruit businesses to designated enterprise zones (also called empowerment zones) to stimulate growth. Additionally, in many states, employers are provided opportunities to participate in programs that support the economic development within their community in exchange for specific tax credits.

Qualifying activities such as job creation, research development, manufacturing, and other growth endeavors are included in these tax incentive programs to help support the state’s economic objectives. Each state has unique strategies in place to stimulate and diversify their economies.

Businesses can benefit from their state’s tax programs by promoting new capital investments and other desirable economic activities within a company. There are a wide range of employer tax incentive programs available for businesses in 2023. Here are a few specific objectives that states consider when offering their corporate tax incentive programs.

Job Creation

Hiring is something that most companies do often. Job creation and hiring tax credits are widely available. As far as employer tax credits are concerned, the job creation silo is certainly one of the most favorable, as it provides the push needed to grow and diversify a company and strive for revenue building growth.

Enterprise Zoning

Enterprise zone credit programs are incentives designed to help stimulate growth in depressed areas of a state. Areas of underemployment are targeted to help revive these somewhat struggling areas so they can attract more development and opportunity. Many qualifying locations benefit from the added jobs, market growth, and community awareness.


The opportunity for manufacturing credit is often offered with the intention of bringing manufacturing activity to the state. This can significantly increase the number of available jobs and an promotes an atmosphere that inspires other manufacturing opportunities. Bringing in new businesses and increasing operating margins translates to new products, jobs, and industry advancements.

Research & Development

Research and development credit is used to motivate companies to engage in activities related to developing knowledge. This credit provides additional funds to stimulate innovation and development and is typically available to businesses of all sizes.

Work with a Tax Credit Consultant

Companies that analyze credits that exist in their state will benefit by taking steps to qualify for these programs proactively. Here at Tax Credit Group, we help your business by screening your company for employer tax incentives to ensure you get the credits that are owed to you. Call us today at (563)583-2115 to learn which benefits could be available to your company.

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