Financial Incentive

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Financial Incentive

An incentive to do something because it is less expensive than not doing so. For example, a company may have a financial incentive to open a factory in Town A instead of Town B because Town A's property taxes are lower.
References in periodicals archive ?
Businesses usually have every intention of optimizing incentives and adhering to the rules for obtaining incentive benefits.
Boards must consider all the incentives tools at their disposal--and not simply take the path of least resistance.
This statement is true even if the enclosed incentive is smaller than the reward promised (Goyder, 1994; Hopkins & Gullickson, 1992).
Another incentive category that tends to trouble environmentalists is "open market" emissions trading, which is a scheme developed by the EPA in 1995.
This recommendation makes the SSDI work incentive similar to incentives in the SSI program, because it provides a gradual ramp rather than a sudden drop of the SSDI program.
The Tax and Incentives Model uses the hypothetical firm method to assess the incentive benefits.
The company's energy specialists will identify specific projects that may reduce electric load and qualify for incentive payments.
Although this Court invalidated the state tax incentives in Boston Stock Exchange and the other cited cases, in each case it affirmed the ability of the states to foster economic growth within their borders.
Typically, business-related decisions outweigh incentive decisions up front," Heerman says, but incentives do come into play early in the process--everything from tax abatements and job training credits to performance-based cash incentives.
Currently, many states, from Kansas to the east coast, are providing a broader range of highly flexible economic incentive tools designed to have 'real time' influence on business decisions.
In a decentralized process, however, those corporate officers may not recognize the aggregate value of incentives and may not be aware that, in total, they meet a level of significance and have associated risk (such as not acknowledging the potential repayment requirement for non-performance of incentive agreements).