The U.S. credits and incentives landscape is undergoing significant transformation due to shifting federal funding priorities, stricter compliance requirements, and heightened state and local competition. As federal programs phase out or evolve, state and local governments are taking on a more critical role in economic development. At the same time, new tariffs are reinforcing the importance of incentives in investment decisions.

​

With states now driving incentives policy, businesses must navigate a fragmented and shifting environment. Each state tailors its approach based on industry demands, budget constraints, and political factors. Hickey advises corporate decision-makers to stay informed on state and local programs to maximize opportunities and mitigate risks.

​

Additionally, a stronger focus on return on investment (ROI) is reshaping incentives. Governments are emphasizing measurable economic benefits, requiring stricter compliance, and enforcing performance benchmarks. Failure to meet these obligations—such as job creation or capital investment—can result in clawbacks, renegotiations, or reputational risks. Effective compliance management is essential to long-term incentive strategies.

​

As the landscape evolves, Hickey Global advises economic development organizations to proactively monitor changes, benchmark programs and intitiatives, engage policymakers, and adapt strategies to remain competitive. Understanding federal funding shifts, state priorities, and compliance trends will be key to navigating this new incentives era.

​

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

​

Key report highlights:

​

• Key trends and political shifts with incentives across the United States

• Understanding the dynamic future of federal funding

• How states are supporting energy investments despite federal shortfalls

• What states and communities can do to finance critical infrastructure

• Explore the evolving world of data center incentives

• Dive into the key trends across incentive compliance trends

• Updates from all 50 states, Washington, DC, and Puerto Rico

​

​