We’re sort of torn on the concept of startups choosing a location based on its startup tax incentives. We did hear from one business that moved from the Ohio side of Cincinnati to the Kentucky side of Cincinnati because Kentucky had better tax breaks. But outside of the Kentucky-Ohio border, we’re not sure it’s happening all that much. After all, there are myriad other factors that go into a decision like starting a business. One thing we are certain of? All sorts of startup tax incentives exist all over the South and you’d be smart to make sure you’re taking full advantage of what your state offers. In the following list, we provide some highlights of startup tax incentives in each state and links to the state government pages that outline their tax incentive programs in whole.
Alabama
- Hiring credits, including for veterans and full-time employees
- Tax credits for starting a business in “new markets” or economically disadvantaged communities.
http://www.edpa.org/location-assistance/taxes-incentives/
http://revenue.alabama.gov/taxincentives/incentivesum.pdf
Arkansas
- Job creation incentives
- R&D tax credit for research done in conjunction with Arkansas universities
- Capital Investment credits for projects valued at $250,000 or more
- Equity investment tax credit to encourage outside investment
- Targeted business incentives for high-wage, knowledge-based industries
http://www.arkansasedc.com/incentives/incentives
Florida
- Targeted business incentives for high value-added industries
- Incentives for starting or growing a business in a rural community
- Incentives for starting or growing a business in an urban area
https://www.enterpriseflorida.com/why-florida/business-climate/incentives/
Georgia
- Multiple jobs tax credits, including one for high-wage jobs
- Digital media tax credit (film, television, interactive games and animation)
http://www.georgia.org/competitive-advantages/tax-credits/
Kentucky
- Incentives for expansion and business creation, including enhanced incentives for business activity in certain zones
- Direct loan program
- SBIR funds matching
- Incentives for high-tech, environmental and energy independence
- Tax credit for angel investors
http://thinkkentucky.com/Locating_Expanding/kybizince.aspx
Louisiana
- Digital interactive media and software development tax credit (link to startup southerner article)
- Angel investor tax credit
- R&D tax credits
- Enterprise zone tax credits
- Louisiana Technology Park for high-tech startups
http://www.opportunitylouisiana.com/incentives
Mississippi
- Jobs tax credits
- Growth and Prosperity Program for economically disadvantaged areas
https://www.mississippi.org/home-page/our-advantages/incentives/complete-incentives-list/
North Carolina
- Tier designations encourage development in less prosperous areas of the state
- Job development investment grant’
- Inventory tax exemption
- Interactive digital media tax credit
http://edpnc.com/relocate-or-expand/incentives/
South Carolina
- Research and development credit
- Corporate headquarters credit
- Job tax credit
http://sccommerce.com/node/2315
Tennessee
- Job tax credits for at 25 new hires
- Sales and Use tax exemptions
http://www.tnecd.com/advantages/incentives-grants/
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