As government policies, corporate expansions, and infrastructure investments continue to evolve, economic incentives play a crucial role in shaping business decisions. But how do companies navigate the complex landscape of incentives, and what trends are shaping the future? In this Q&A, Colliers’ Monty Turner, Senior Vice President & Principal, Site Selection and Economic Incentives Group, sits down with Anjee Solanki, National Director, Retail & Practice Groups | U.S., to discuss how economic incentives impact site selection, the challenges businesses face, and what’s next for the sector.

Anjee Solanki (AS): Let’s start with the basics – how do economic incentives influence business decisions?

Monty Turner (MT):  At its core, economic incentives help facilitate capital investment and job creation across states and communities. Our role is to help clients reduce upfront costs, minimize ongoing operational expenses, and accelerate their time to market.

For companies evaluating site selection, incentives aren’t just about tax credits or rebates. We look at everything from infrastructure support to workforce training programs, ensuring businesses can maximize short- and long-term benefits. The key is to use incentives to make a good location great – not a poor location good.

AS: With frequent changes in government policies, how do you stay up to date on new incentives and regulations?

MT: It’s a fast-moving space, so staying informed is critical. We track legislative sessions across states, engage directly with economic development organizations, and build relationships with policymakers at all levels.

A big part of our work also involves collaborating with local and state officials, utility companies, and workforce development agencies to understand program changes in real time. In addition, industry events, like the Site Selectors Guild Annual Conference, allow us to exchange insights with economic developers and site selectors from around the world.

AS: What are the biggest challenges businesses face when trying to secure incentives?

MT: The complexity of incentive programs is a major hurdle. Each state, county, and even municipality has its own set of rules, approval processes, and eligibility requirements. For example, two properties across the street from each other might fall under different jurisdictions, each offering completely different incentive packages.

Additionally, incentives are often tied to specific performance benchmarks, such as job creation or capital investment milestones. Companies must carefully plan their commitments to ensure they can meet these requirements and fully realize the benefits.

AS: Incentives aren’t just about tax breaks. What other types of support are available?

MT: That’s right. While tax credits and abatements are a big part of the equation, there’s a whole universe of incentives beyond that. Some key examples include:

We work extensively with utility providers and municipalities to explore options like energy efficiency incentives, renewable energy credits, and cost-sharing programs for infrastructure improvements.

AS: How do you measure the success of economic incentives?

MT: Success is measured by both immediate financial benefits and long-term economic impact. On the client side, we assess how incentives improve project feasibility, lower costs, and accelerate time to market. The faster we can get our clients’ operations to profitability the faster they can in turn expand operations, re-invest in communities, and create new, high quality jobs.

From a broader perspective, we look at job creation, capital investment, and overall economic impact on the community. The best incentive strategies create a win-win situation—helping businesses grow while driving economic development in the regions they choose to invest in.

AS: Looking ahead, what’s one economic incentive trend that isn’t just a passing phase but is here to stay?

MT: One economic incentive trend that is here to stay is the increasing emphasis on capital investment. We are observing a rise in capital investment figures across project, while employment levels remain flat or, in some cases, decreasing. As automation continues to advance across various sectors, the need for substantial capital investment in projects is only growing. Historically, states and communities have prioritized job creation as the primary motivation for incentives. However, there is a noticeable shift towards placing greater importance on capital investment alongside job creation.

That said, the importance of access to a skilled labor force shouldn’t be discounted. As labor shortages persist and industries shift toward advanced manufacturing, AI, and automation, states are doubling down on workforce development and training initiatives.

Programs that support specialized training, apprenticeship models, and talent pipeline development will be a major factor in site selection for years to come. Companies aren’t just looking for economic incentives—they want access to a skilled workforce that can drive long-term success.  

AS: And now for the fun question – if you could create a quirky, fictional economic incentive program to boost local economies, what would it be?

MT: That’s a tough one!  I would structure an incentive program to be similar to an episode of the tv show, How It’s Made. The incentive program would aim to foster a strong connection between manufacturing companies and the local community by offering cash grants directly to companies or their employees for establishing mentorship and apprenticeship programs, providing hands-on training and career development for students and job seekers. This would help build a skilled workforce tailored to the company’s needs and contribute to economic growth and stability of the community. The program would also include grants for companies to engage with teachers and parents through tours of their operations throughout the school year, offering insights into processes, employment opportunities, and specific needs. This dialogue would strengthen community relationships and promote involvement, benefiting both the business and local residents.

Learn more about our Economic Incentives solutions here.