economic-research-review source

Evaluating State and Local Business Tax Incentives

The review finds some direct employment gains from attracting a firm but no strong evidence that firm-specific incentives increase broader state or local growth; spillover and productivity evidence is mixed.

Reviewed July 24, 2026

Slattery and Zidar, Evaluating State and Local Business Tax Incentives, Journal of Economic Perspectives 34(2), 2020; NBER Working Paper 26603.

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What this source supports

The review finds some direct employment gains from attracting a firm but no strong evidence that firm-specific incentives increase broader state or local growth; spillover and productivity evidence is mixed.

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Topic reviews: Trade, Travel, & Economic Development

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