Towards a Taxonomy of Incentives


Book a call with an incentives expert to learn more.

As part of our effort to digitize all local, state, and federal programs we’ve needed to develop a taxonomy of incentives that categorizes these programs into understandable buckets.

While it might not help simplify things to see a giant list, it has been helpful to us to think about how any of these programs are triggered:

  1. Hiring human beings
    1. The better paying these jobs, the more representative the workforce is of the community in which it is located, and the clearer the path from entry-level work to higher seniority, the better.
  2. Purchasing equipment to be used in manufacturing or R&D
    1. The higher the spend, and the more advanced the machinery, the better.
  3. Investment in real estate or tangible assets
    1. The exact location, area median income, and narrative for how this benefits the community all matter.

The threat to move jobs, purchases, or capital spend to other states or countries can trigger the same effect.

I. TAX CREDITS

  • Tax credit
  • Tax deduction
  • Tax abatement
  • Excise tax
  • Tax exemption
  • Tax deferral
  • Sales tax abatement

II. FINANCING (LOAN)

  • Revolving loan
  • Infrastructure loan
  • 501c3 bonds
  • Loan guarantee
  • Tax increment financing (TIF)
  • Utility financing
  • Energy efficiency equipment financing
  • Industrial development financing
  • Disaster relief loan guarantee
    • Physical damage
    • Mitigation assistance
    • Economic injury (EIDL)
    • Military reservist loan

III. GRANT

  • Cash grant
  • Microgrant
  • Stipend
  • Performance based grants
  • Forgivable grants
  • Job training grants
  • Energy efficiency utility program

IV. FEE WAIVER

  • Permit waivers
  • Impact assessment waivers
  • Utility connection permit waiver
  • Reduced infrastructure fees
  • Fee exemptions
  • License fee waiver
  • Sewer and traffic fee deferral
  • Admin and processing fee waivers
  • Public facilities fees
    • City Office Space
    • Water Supply System
    • Fire Station
    • Library
    • Police
    • Street Improvements
    • Water Utility Connection
    • Wastewater Connection
    • Agricultural and Air Quality Mitigation Fees

V. DISCOUNTS

  • Rebates
  • Reimbursements
  • Vouchers

VII. BUSINESS ASSISTANCE

  • Mentoring
  • Research
  • Expedited permitting process
  • One stop permitting
  • Certification of status (disabled, MWOB, etc)
  • Energy audit
  • Project facilitation
  • Recruitment assistance
  • Site availability selection
  • Procurement and bid opportunities
  • Public library resources

VIII. Real Estate

  • Government real estate / city owned land lease
  • Utility real estate agreements
  • Rent abatement
  • Property tax abatement
  • Personal property tax abatement

Book a call with an incentives expert to learn more.