Tax Incentives and Business Climate

G. Jason Jolley, Mandee Foushee Lancaster and Jiang Gao

Economic Development Quarterly, 2015, vol. 29, issue 2, 180-186

Abstract: Executive surveys ranking business climate factors have become commonplace in site selection publications. However, these rankings rarely examine if the surveyed firms are receiving economic development incentives and whether or not these incentives influence business climate perceptions. This research note examines the differences in business climate perceptions in North Carolina between executives in companies receiving tax credits for business investment and job creation activities and executives in companies not receiving tax credits. Both groups rank the availability of skilled labor as the primary factor influencing business climate. In addition, executives in both groups prefer overall tax reductions rather than select tax incentives to improve the state’s economy. Contrary to the belief among many economic development practitioners that tax credits are a motivating factor for firms to engage in economic development, only 30% of executives in incented companies were aware that their company had received a state economic development tax credit.

Keywords: business climate; tax incentives; economic development; Lee Act; North Carolina (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0891242415571127 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:29:y:2015:i:2:p:180-186

DOI: 10.1177/0891242415571127

Access Statistics for this article

More articles in Economic Development Quarterly
Bibliographic data for series maintained by SAGE Publications ().