Learn more about the use of local economic development incentives through our Local Economic Development Training Course. Although critics may view the use of economic development incentives as corporate welfare, local governments can improve the social welfare by supporting private economic activity. It is important that economic development organizations implement a consistent, objective process to [...]
Step 1: Should an incentive be offered to this firm?
It goes without saying that incentives should only be offered to businesses that would not otherwise locate in the in absence of the incentive. Understanding the difficulties of this requirement we present additional criteria that economic development organizations (EDOs) use to screen potential projects. Target Industries: Incentives should be used to to advance the strategic [...]
Step 2: What is the appropriate value of the incentive?
Step 2: What is the appropriate value of the incentive? Once an economic development organization has determined that the business or project is worthy of an incentive offer, the organization must determine the appropriate value of the incentive. An appropriate incentive can only be determined once the economic and fiscal impact of the business or [...]
Choosing a Discount Rate
Our clients often ask for guidance in choosing a discount rate for present value calculations. This post presents some background on present value and considerations to bear in mind when choosing a discount rate. A fiscal impact analysis will identify costs and benefits over a period of time accruing to a city or county from [...]
