A number of governments taken an aggressive approach to the use tax incentives of tax incentives to promote economic development. Not surprisingly, the use incentives has accompanied by considerable debate among managers, local and state lawmakers, and taxpayers as to their efficacy, especially in rapidly growing regions of the country. What effect do tax incentives, such as tax abatements and tax increment financing, have on equity? On tax neutrality? According to the research, what effect do tax incentives have on economic development at the local level? Under what circumstances should tax incentives be used? Briefly the policies and procedures that a local government should have in place before using tax incentives