States offer many types of tax incentives for businesses. This table summarizes tax incentives in states that somewhat follow the Nebraska model of granting tax incentives. For example, qualification for tax incentives is not dependent upon the location of a project in an enterprise zone or other limited geographic area. Thus, states that offer jobs or investment credits to businesses, but only to those who locate in a limited area, are not counted. States that offer tax incentives, but have different qualification levels depending upon geography, are counted provided that a project could qualify, at some level, in every part of the state.
States may also limit qualification for incentives to targeted industries. Nebraska does this, and the table counts those states where incentives are limited only to targeted activities. Finally, Nebraska refunds the sales and use tax on qualified investments, but some states refund only a portion of the tax. These states are counted as having a refund. Some states have broader sales and use tax exemptions than Nebraska, but do not provide a refund of any taxes paid. Tax exemptions are outside the scope of this report, and states are not counted if they do not provide at least a partial refund of sales and use taxes paid on qualified investment.
State (click on state name to view website) |
Job Credit (yes/no) |
Investment Credit for Qualified Investment (yes/no) |
Sales/Use Tax Refund or Tax Abatement (yes/no) |
Personal Property Exempt (yes/no) |
Job Credit Requirements |
Investment Credit Requirements ($ Millions) |
| Alabama | yes |
yes |
yes |
yes |
5, 15, 20, 50 (by favored industry / geographic area) |
$100 (utilities), $5 (hydropower), $2 (facility expansion), $1 (small business) |
| Alaska | no |
no |
no |
yes |
N/A |
N/A |
| Arizona | no |
no |
yes |
yes |
N/A |
N/A |
| Arkansas | yes |
yes |
yes |
yes1 |
Based on payroll of the new employees hired. |
$2 / 3 / 3.75 / 5 |
| California | yes |
no |
yes |
no |
$3,000 per hire for firms with less than 20 employees |
N/A |
| Colorado | yes |
no2 |
yes3 |
yes |
5 (zone),10 (non-zone) |
N/A |
| Connecticut | yes |
no |
no |
yes |
Depends on jobs created in IT industry |
N/A |
| Delaware | yes |
yes |
no |
no |
5 |
$0.20 |
| Florida | yes |
yes |
no |
no |
100, 75 if Research & Development |
$25 4, $755, $1005 |
| Georgia | yes |
yes |
no |
yes1 |
5,10,15,25 |
$0 |
| Hawaii | no |
yes |
yes |
no |
N/A |
Investment in Qualified High Tech Business |
| Idaho | yes |
yes |
yes6 |
yes |
10 |
$0.05 |
| Illinois | yes |
yes |
no |
no |
500 / 1,500, or 150 (coal / wind industry) |
$12 / $30 (high impact business) |
| Indiana | yes |
yes |
no |
no |
Positive benefit analysis |
Positive benefit analysis |
| Iowa | yes |
yes |
yes |
yes |
0-101+ |
<$0.01 - $10 + million |
| Kansas | yes |
yes |
no7 |
yes |
2 (manufacturing)
5 (nonmanufacturing)
10 (Headquarters) 100 (high-impact) |
$0.05 (high-impact) |
| Kentucky | yes |
yes |
yes |
no |
10 |
$0.01, 2.58 |
| Louisiana | yes |
no |
yes9 |
yes10 |
1 |
N/A |
| Maine | yes |
yes |
no |
no |
100 |
$5 |
| Maryland | yes |
yes11 |
no |
yes12 |
60, 25 in priority areas |
$0.025 12 |
| Massachusetts | yes |
yes |
no |
no |
10 |
New Investment in manufacturing, research & development, agriculture or commercial fishing |
| Michigan | yes |
yes |
no |
yes |
20 (entrepreneurial credit) |
$1.25 (entrepreneurial credit) |
| Minnesota | no |
no13 |
no |
no |
N/A |
N/A13 |
| Mississippi | yes |
yes |
yes |
yes |
20 / 10 / 5 |
$10 (tourism), $2 (Headquarters), 3:1 private/public match14 |
| Missouri | yes |
yes |
yes15 |
yes16 |
10, 20, 40, 100 (Quality MO Jobs) |
$10, $15 (BUILD program) |
State (click on state name to view website) |
Job Credit (yes/no) |
Investment Credit for Qualified Investment (yes/no) |
Sales/Use Tax Refund or Tax Abatement (yes/no) |
Personal Property (yes/no) |
Job Credit Requirements |
Investment Credit Requirements ($ Millions) |
| Montana | yes |
yes |
no17 |
yes |
Increase employment by 30% |
Must be a manufacturer |
| Nevada | yes |
yes |
yes |
yes |
15 rural, 75 urban |
$0.25 rural, $1 urban |
| New Hampshire | no18 |
no |
no |
no |
N/A |
N/A |
| New Jersey | yes |
yes |
no |
yes |
10, 25 |
$0.5, $1 |
| New Mexico | yes |
yes |
no |
no |
1 |
$0.5, $1 |
| New York | yes |
yes |
yes |
yes |
1 |
0, $350 |
| North Carolina | yes |
yes |
no |
no |
200 19 |
$10 19 |
| North Dakota | no |
no |
yes |
yes |
N/A |
N/A |
| Ohio | yes |
yes |
yes20 |
yes21 |
25 |
Must exceed business' county average for filing year |
| Oklahoma | yes |
yes |
yes |
yes |
New payroll of $2.5 million within 3 years / 10 FT at lesser of 94K or 300% county average |
$0.05 |
| Oregon | no |
no |
no |
yes |
N/A |
N/A |
| Pennsylvania | yes |
no |
no |
no |
25 or increase by 20% within 3 years |
N/A |
| Rhode Island | no |
yes22 |
yes |
yes |
N/A |
Maintain 125% wage level, 2% investment in worker training |
| South Carolina | yes |
yes |
no23 |
yes |
1+ (corporate tax credit) 75 (property tax abatement & Headquarters) |
$0.05 (property tax abatement & Headquarters) |
| South Dakota | no |
yes |
yes |
yes |
N/A |
$10 |
| Tennessee | yes |
yes |
yes24 |
no |
25 / 100 / 250 / 500(Job Tax Credit), 25 (Data Center) 100 / 250 / 50025 |
$0.5 (Job Tax Credit) $250 (Data Center) $100-$1,00025 |
| Texas | no |
no |
no |
yes |
N/A |
N/A |
| Utah | yes |
no |
no |
no |
Create new jobs (at least 50 in urban areas) 125% wage urban 100% wage rural |
N/A |
| Vermont | yes26 |
yes26 |
no |
yes27 |
Increased wage & salaries |
Increased economic impact |
| Virginia | yes |
no |
no |
yes |
50 in zone, 100 otherwise |
N/A |
| Washington | no |
yes |
no |
yes |
N/A |
Specific industries |
| West Virginia | yes |
yes |
no |
no |
20 |
Must be a manufacturer |
| Wisconsin | yes |
yes |
no |
no |
Pay more than $10.88/hr |
None listed |
| Wyoming | no |
no |
no |
no |
N/A |
N/A |
| 1Warehouse inventories are exempt when being shipped out of state. | 15Chapter 100 sales tax exemption | |
| 2Available in designated Enterprise and sub-zones only. | 16Chapter 353 | |
| 3Biotechnology research and development property only. | 17No sales tax | |
| 4Capital Investment Tax Credit | 18Job training credit only. | |
| 5High Impact Performance Incentive Grant | 19Article 3J Tax Credits | |
| 6Tied to jobs/investment credits. | 20For approved Research & Development projects. | |
| 7Provides for exemption for facility remodels (equipment and labor only). | 21Warehouse inventory | |
| 8House Bill 3 provides a program for existing manufacturers. | 22Manufacturing and non-manufacturing investment credit | |
| 9Tied to quality jobs. | 23Statutory exemptions only | |
| 10Restoration project | 24Data Center | |
| 11Biotechnology Investment Tax Credit | 25Super Jobs Tax Credit | |
| 12Brownfields Revitalization Incentive Program | 26Vermont Employment Growth Incentive | |
| 13Small business investment tax credit bill currently in MN House. | 27Stabilization agreement | |
| 14Mississippi Business Investment Act |