Industrial Recruitment
Industrial recruitment policies offer incentives to industry to locate within a state or to manufacture renewable technologies. States institute industrial recruitment incentives to: 1) encourage diverse industries to locate in the state and create new jobs; and 2) support the development of industries that are expected to benefit the environment. Some states welcome industries that can take advantage of renewable resources. Others encourage the development of renewable energy industries for the manufacturing jobs and international trade opportunities they create.
States generally institute renewable energy industrial recruitment as combined clean industry-economic development initiatives. Renewable energy industrial recruitment usually consists of financial incentives like tax credits or grants which are applicable only to renewable energy industries. The recruitment incentives are designed to attract and retain new renewable industries and take advantage of the financial incentives during the industries' fledgling years. In most cases, the financial incentives are temporary measures that help support the industries in their early years, but include a sunset provision to encourage the industries to become self-sufficient.
Arguments for Industrial Recruitment
It induces new types of industry to locate in the state. This creates new jobs to support the economy.
It can provide a "win-win" public policy platform; it helps diversify and strengthen the state's economy, and benefits the environment by producing products or projects that use clean energy.
Generally, financial incentives are designed to phase out over a period of time. This encourages the industries to become self-sufficient.
Because of the phase-out of the incentives, policymakers may endorse the adoption of industrial recruitment plans as a means of supporting renewable energy industries.
Arguments against Industrial Recruitment
It can be viewed as an unfair competitive advantage for the renewable energy industry, at the expense of other energy industries and other manufacturers or businesses.
If the tax credit is too high, if too many companies take advantage of it, or if the number of jobs created is insufficient to offset the expense, the state runs the risk of not being able to financially support it.
For more information on states with industrial recruitment policies, visit the Database of State Incentives for Renewable Energy.