This report outlines a new database that contains better information on state and local business taxes and economic development incentives. It includes an explanation of how the database is constructed, and it subjects the database to some preliminary analyses to begin to answer questions about how incentives vary.

The report begins with a section providing context, including reviews of previous research. It then outlines the methodology and data sources for the database. The bulk of the report uses the database to describe incentives and how they vary by industry and state, over time, and by type of incentive. The report also considers how different policies alter net taxes after incentives, and it describes some simple correlations between taxes, incentives, and state economic characteristics and trends.

The accompanying appendices provide additional details on methodology and data, comparisons with other studies, time patterns of incentives and taxes for each state in the database, and much more.