by Kelley Rendziperis, on Apr 17, 2025 7:00:00 AM
Federal funding initiatives continued to bolster the significant increase in announced economic incentive awards in 2024 with the aim of stimulating the economy. Approximately $59.2 billion of economic incentives were awarded in 2024 across all industries and project types. Companies committed to investing over $432 billion and creating over 497,000 new jobs last year, resulting in an average return on investment of 13% and $119,000 per job.
To help develop an economic incentive strategy, Site Selection Group summarizes economic incentive trends, as well as market conditions by state, in the 2025 Economic Incentives U.S. Market Report. The information contained in this report is typically reflective of publicly available state-level awards and attempts to exclude federal incentives. All data used for the current year report and prior year comparisons reflect data reported at the time of publication.
Economic incentive market trends
In 2024, the number of reported economic incentive awards increased slightly from the prior year; however, the total value of economic incentives awarded, $59.2 billion, was significantly higher than in 2023. More than 80% of the total announced were related to federal incentives under programs such as the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS and Science Act.
Total Economic Incentives Awarded
(2017 - 2024)
Source: IncentivesFlow, a Service from FDI Intelligence
Economic incentives by states
The following table identifies the top 20 states with the greatest amount of reported economic incentive awards in 2024. In total, these awards account for over 91% of all announced state economic incentive awards.
No. |
State |
Total Economic Incentives Value |
Deals |
Capex ($M) |
Sum of
|
Award Per Job |
|
1
|
Illinois
|
$1,760.23
|
67
|
$4,220.85
|
6,241
|
$153,303.43
|
|
2
|
Indiana
|
$1,115.75
|
142
|
$24,391.95
|
18,301
|
$32,680.47
|
|
3
|
Michigan
|
$600.76
|
850
|
$7,989.02
|
19,629
|
$55,246.09
|
|
4
|
Florida
|
$499.05
|
15
|
$1,448.97
|
2,316
|
$89,053.34
|
|
5
|
Louisiana
|
$304.89
|
70
|
$17,693.89
|
3,766
|
$103,580.32
|
|
6
|
Iowa
|
$297.76
|
14
|
$2,248.71
|
633
|
$6,896.68
|
|
7
|
Ohio
|
$284.14
|
272
|
$6,558.42
|
13,395
|
$47,520.26
|
|
8
|
Mississippi
|
$283.58
|
12
|
$10,403.15
|
1,983
|
$393,862.43
|
|
9
|
California
|
$237.31
|
42
|
$16,773.70
|
3,504
|
$143,005.55
|
|
10
|
North Carolina
|
$229.19
|
107
|
$12,223.60
|
13,959
|
$68,030.47
|
|
11
|
Virginia
|
$191.01
|
35
|
$24,686.47
|
5,318
|
$2,809.98
|
|
12
|
Texas
|
$185.56
|
26
|
$2,826.94
|
5,451
|
$49,509.58
|
|
13
|
New York
|
$183.40
|
55
|
$1,479.95
|
6,987
|
$32,662.45
|
|
14
|
Utah
|
$178.14
|
18
|
$3,369.19
|
4,489
|
$23,200.51
|
|
15
|
Kentucky
|
$171.04
|
210
|
$6,722.76
|
10,946
|
$2,241.06
|
|
16
|
Missouri
|
$168.83
|
16
|
$3,229.12
|
3,695
|
$5,930.86
|
|
17
|
Nevada
|
$129.69
|
12
|
$1,616.96
|
1,287
|
$73,928.94
|
|
18
|
Minnesota
|
$115.24
|
26
|
$1,333.56
|
2,242
|
$40,210.54
|
|
19
|
Alabama
|
$110.23
|
22
|
$1,840.62
|
2,152
|
$100,769.23
|
|
20
|
West Virginia
|
$87.50
|
6
|
$891.50
|
1,639
|
$20,011.23
|
Source: IncentivesFlow, a Service from FDI Intelligence
In addition to the top 20 states, the chart below shows announced economic incentives awards in excess of $10 million.
States Awarding >$10M in Economic Incentives ($M)
Source: IncentivesFlow, a Service from FDI Intelligence
Conclusion
As inflation continues to rise, supply chains remain challenged and uncertainty around tariffs and federal programs, the importance of state and local economic incentives in the site selection process cannot be diminished. To learn more about the most utilized U.S. economic incentive programs, notable 2024 projects, and a comparison of economic incentive conditions by state, please review our 2025 Economic Incentives U.S. Market Report.
