Periods of economic crisis are the worst of times and the best of times for state and local business location tax incentives. These tax expenditures, like all expenditures, face an uphill battle when revenues have collapsed and the number of needy residents requiring assistance has increased. At the same time, economic stringency and lack of revenue sharpen government appreciation for business development and job creation. If a crisis combines danger and opportunity, the current downturn could offer an opportunity to improve these incentive programs.

The Kansas Dept. of Commerce in October said it wants to offer healthcare IT firm and Kansas City mainstay Cerner Corp. $85 million in tax and other incentives for a new office complex, and toss in another $144.5 million from state sales tax revenue to pay for bonds used to build a new soccer stadium next door. If the Unified Government of Wyandotte County accepts the proposal, Cerner says it will create 4,500 new jobs in Kansas at an average salary of $65,000. A youth soccer complex and hotel, with no incentives aid, also would be built as part of the $414-million project.

Students of industry clusters will find in North Carolina’s new aerospace industry a case study in how a sector takes root in a given area. Several companies, including Federal Express, Spirit AeroSystems and Honda Aircraft among others have begun operations in the state, adding thousands of jobs and justification for a closer look from aviation-related corporate site selectors.