Hickey Institute 2025 Report

The U.S. incentives landscape is entering a new phase marked by tighter federal budgets, rising compliance expectations, and aggressive state and local competition. As the historic funding from programs like the Inflation Reduction Act and CHIPS Act tapers off, states and municipalities are stepping forward with creative, layered packages to capture investment and jobs. At the same time, new federal legislation such as the One Big Beautiful Bill Act (OBBBA) is reshaping priorities toward national security, advanced manufacturing, and supply-chain resilience.

Businesses must now navigate a more fragmented environment where state and local incentives, not federal dollars, often determine project viability. Governors, legislatures, and utilities are using tax credits, infrastructure partnerships, and workforce programs to secure high-impact projects, while demanding greater transparency and measurable community benefits. Companies that understand these regional dynamics can maximize opportunities and mitigate risk.

Accountability is at the forefront. Heightened reporting requirements, standardized data collection, and frequent audits mean that compliance is no longer a back-office function but a strategic capability. Firms that fail to meet job creation, wage, or capital investment commitments face clawbacks, reputational damage, and lost eligibility for future incentives. Proactive compliance management and cross-departmental coordination are now essential for protecting incentive value.

Hickey Global advises corporate decision-makers and economic development organizations to track federal funding shifts, benchmark state and local programs, and engage policymakers early. By understanding evolving incentives, industry priorities, and compliance trends, stakeholders can stay ahead in a highly competitive market.

Learn more about all these trends and shifts by downloading a copy of the Hickey Institute United States Credits & Incentives Update - Fall 2025 Report today!

Key report highlights:

• How OBBBA and other federal changes are redirecting funding priorities

• State and local strategies to attract advanced manufacturing, life sciences, and clean-energy projects

• The growing influence of utilities and creative financing mechanisms

• Rising compliance standards and best practices for managing ROI and avoiding clawbacks

• Detailed updates from all 50 states, Washington, D.C., and Puerto Rico