The United States is an entrepreneur’s land of opportunity, with cities nationwide offering incentives to attract new businesses to their midst. Tax breaks, grants, and cheap real estate can be the difference between making it or not for any startup or small business. Technology, manufacturing, and creative industries are programs in every one of these areas looking to foster the business’s growth. In this paper, we shall discuss 15 American cities that offer the best new business incentives, along with examples to show the benefits of the particular system.
| S.No. | American Cities Offering the Best Incentives for New Businesses |
| Austin, Texas | |
| Nashville, Tennessee | |
| Denver, Colorado | |
| Miami, Florida | |
| Raleigh, NC | |
| Seattle, Washington | |
| Indianapolis, Indiana | |
| San Antonio, Texas | |
| Salt Lake City, Utah | |
| Cincinnati, Ohio | |
| Phoenix, Arizona | |
| Las Vegas, Nevada | |
| Portland, Oregon | |
| Chicago, Illinois | |
| Detroit, MI | |
| Conclusion |
- Austin, Texas
Austin, particularly, has earned a reputation of being a technological hub and being quoted as “Silicon Hills” due to the rapid growth of its technology sector. The city also offers incentives to businesses for specific startups and other companies. The Texas Enterprise Fund provides grants for employers that increase jobs or create an investment in the local economy. Besides this, Austin offers property tax abatements, fee waivers, and fast-tracked permitting to companies constructing new facilities.
Example: Oracle Corporation relocated its headquarters from Silicon Valley to Austin recently and has benefited from greater tax savings and the city’s very friendly business environment.
Source: Move to Austin
- Nashville, Tennessee
Nashville is now a strong option for business for healthcare and music entrepreneurs, too. It has its incentives, such as abatement programs for property taxes and job creation grants. For example, businesspeople can benefit from rebates computed for investment, amount of employment, and real estate taxes.
Example: Giant healthcare operator HCA Healthcare has seen a significant expansion of its operations in Nashville, enticed by the city’s incentives and its preeminence in the health-care industry.
Source: Tennesse Real Estate
- Denver, Colorado
The quality of life in Denver is high, and the business incentives tend to attract startups with such combinations. The city offers cash incentives through its Colorado Enterprise Zone Program that offers tax credits for firms locating in enterprise zones earmarked for designation. Additionally, the Denver’s Office of Economic Development offers job creation as well as training taxes.
For instance, the popular cashback shopping application development tech startup Ibotta is taking advantage of the good business environment in Denver and is expanding fast in that city.
Source: Colorado Office of Economic Development & International Trade
- Miami, Florida
Miami has emerged as an international business and trade hub, hub for startups and tech companies. In addition to this, state-level exemptions to sales and corporate tax for certain businesses like manufacturing and distribution are accessible. Additionally, Miami uses an Economic Development Incentive Program, which gives grants in cash based on job creation and capital investment.
Example: SoftBank just announced a $100 million fund focused on Miami-based startups, a milestone for the city becoming a hot tech and business hub.
5. Raleigh, NC
Raleigh is one of the cities incorporated into the Research Triangle and is a bioscience and research-oriented economic leader. The state of North Carolina provides the Job Development Investment Grant (JDIG) which it gives some of the companies new tax revenues of their projects. The city offers property tax abatements, and workforce training grants, trying to attract businesses.
Example: A choice to expand IBM’s operations and create hundreds of jobs was helped along by Raleigh and incentives offered by the state.
Source: www.winstonsalem.com
6. Seattle, Washington
Seattle is now the synonym for tech, in a large part due to Amazon and Microsoft. Still, there are various incentives for new businesses in the city, such as B&O tax exemptions for small businesses and job creation credits for companies that increase their employees. Moreover, no personal nor corporate income tax can be found in Washington State, which makes it even more appealing for startups.
Example: The economic incentives for expansion drove Amazon into the Seattle area, and subsequently other smaller technology companies followed its example and took advantage of the same inducements.
Source: The Seattle Times
7. Indianapolis, Indiana
Indianapolis is an appealing city for logistics and manufacturing companies as well as tech companies. It provides a Venture Capital Investment Tax Credit, which encourages investments in early-stage ventures. Additionally, the ERA program offers property tax abatements on capital investments from businesses.
Example: Salesforce has dramatically increased its presence within Indianapolis, which has brought tax credits and investment in workforce development to the city.
Source: AWS
8. San Antonio, Texas
San Antonio is easy on the wallet and pro-business. Its low cost of living, especially in cybersecurity and health tech, ensures high productivity. The TEF and SAEDF offer cash grants for job creation and investment in the local economy. Property tax abatements and workforce training grants make the city attractive to expansion plans.
Example: Cybersecurity companies such as Jungle Disk have thrived in San Antonio with help from local support initiatives to spur growth in tech.
Source: The Business Journals
9. Salt Lake City, Utah
This has made Salt Lake City turn out to be a new hub for tech startups; with the climate being business-friendly, incentives are match and well set. Tax credits in Salt Lake City have been offered through the Utah Enterprise Zone Program. Among these is the benefit of job creation and capital investment. The city also provides grants on small businesses. Workforce training programs ensure that the startups leave the ground running.
Case in point: Fintech company Divvy selected Salt Lake City as its headquarters, leveraging the benefits and burgeoning tech ecosystem of the city.
Source: Nucamp Coding Bootcamp
10. Cincinnati, Ohio
Various incentives for businesses, especially manufacturing and logistics, consumer goods, are offered by the city of Cincinnati. Among these is the city’s job creation tax credit and property tax abatement programs, through which financial aid is provided to businesses, their investment in infrastructure in the local community, developing companies, and employing people. Ohio State provides research and development tax credits for the benefit of a startup related to innovation fields.
For instance, Procter & Gamble has headquartered in Cincinnati and expanded its operations in the city, including increasing its employment in Ohio, assisted by long-term business incentives, resulting in job growth and innovation.
Source: RebelLink
11. Phoenix, Arizona
Phoenix is one of the cities growing at the fastest rates in the US because of its good business climate and various incentives to new companies. The Arizona Commerce Authority has outlined a range of incentives, which include the Quality Jobs Tax Credit programme that benefits companies that generate high wage generating jobs by providing income tax credits on income accrued from such work fields. Besides these incentives, the city also offers property tax reductions and exempts sales tax on equipment purchases.
For example, the Nikola Motor Company inaugurated its production site for hydrogen-electric trucks in Phoenix, attracted by incentives offered by the state.
Source: The Business Journals
12. Las Vegas, Nevada
While not necessarily a destination for travel or leisure, Las Vegas is fast and strongly becoming a home for startups and small businesses. From the tax-incentive perspective, the city’s lack of corporate or personal income tax may be very attractive for businesses. In addition to this, the Governor’s Office of Economic Development (GOED) also offers incentives, such as Catalyst Fund, that bring grants directly to companies that fill high-paying jobs in Nevada.
For example, Switch, the global technology infrastructure firm, has built data centers in Las Vegas; it took advantage of this state’s tax benefits and cash grants.
Source: https://goed.nv.gov/
13. Portland, Oregon
This city offers a mix of its urban culture and business-friendly policies to make it very attractive for entrepreneurs. Among Portland’s incentives is tax credits offered by the Oregon Enterprise Zone Program, which includes property tax abatements for new investments. Green businesses also enjoy incentives in Portland-for instance, energy tax credits for companies investing in sustainability.
Example: Portland offered ideal incentives-attractive business incentive programs and a commitment to sustainability-when outdoor apparel maker Columbia Sportswear expanded its headquarters.
Source: www.portlandrealestate.com
14. Chicago, Illinois
Chicago is the ideal location of a diversified economy to establish new businesses, especially in logistics, manufacturing, and finance. The city also offers the Chicago Business Incentive Program: tax credits are given to businesses that invest in job creation and improve the economies of underserved areas. The state of Illinois also has available the EDGE Tax Credit, which includes granting a corporate income tax credit based on the creation of jobs.
Example: Google opened a massive office in Chicago, exploiting local and state tax incentives in an effort to spur tech job growth.
Source: www.marketwatch.com
YouTube Link: https://www.youtube.com/watch?v=Fc2c6vnwD3c
15. Detroit, MI
Detroit is bouncing back; increasing numbers of startups and smaller companies now choose to place themselves within city limits. The Detroit Economic Growth Corporation (DEGC) manages various incentives, such as tax abatements, grant programs, and low-interest loans for companies willing to invest in the city. Additionally, under the Motor City Match program, grants are available to entrepreneurs who wish to renovate and occupy commercial spaces in Detroit.
For instance, electric vehicle startup Rivian has established manufacturing in neighboring Plymouth, Mich., and other local incentives targeting the auto industry renaissance.
Source: Rising Max
Conclusion
These 15 American cities are offering some of the best incentives for new businesses-from tax credits and cash grants to workforce development programs. Each city has packaged its programs to attract specific industries-from tech to manufacturing. Start-ups and small businesses find the resources they need, whether you want to launch a software venture out of Seattle or build a logistics hub in Cincinnati.
