August 7, 2025
Expanding into the U.S. is a major milestone for high-growth tech companies. But while most founders focus on talent, market access, and regulatory issues, one of the most overlooked aspects of U.S. expansion is also one of the most valuable: government incentives.
Each year, the U.S. states allocate over $95 billion in business incentives. Yet roughly two thirds of this remains unused. The reasons? Complexity, fragmentation, and limited awareness. For scale-ups and tech companies navigating international growth, understanding how incentives work—and what’s available—is critical to making the most of your U.S. expansion.
This guide provides a high-level orientation to the U.S. incentive landscape. It’s designed to help founders, CFOs, and global expansion leaders understand what’s on the table and how to think strategically about incentives as part of market entry and growth planning.
Incentives in the U.S. operate across three layers:
Each layer serves different policy goals. Federal programs often target innovation, workforce inclusion, or sustainability. States compete amongst one another to attract investment and jobs, particularly towards economically distressed areas of the state. Local authorities are focused on revitalizing specific neighborhoods or boosting local employment.
Most incentives fall into a few recurring categories. While program details vary by location, here are the most common types:
Both federal and state governments offer tax credits for qualified research activities, including software and product development. These credits can offset income tax or, in the case of qualified small businesses, even payroll tax.
Many states will reimburse companies for training new employees—especially in high-demand industries like advanced manufacturing, life sciences, or software. Depending on the state, these programs cover a percentage of eligible costs or provide lump-sum grants.
Credits are often available for hiring specific demographics (veterans, long-term unemployed, people with disabilities) or hiring within designated geographic areas. In California, for example, credits of up to 35% of qualifying wages may be available—but only if filed within 30 days of hiring a qualified employee.
Some states operate venture capital funds or co-investment programs that match private investments. Others provide low-interest loans or offer financial backing to small businesses through state banks or local development funds.
These are designed to encourage investment in economically disadvantaged areas. Companies may receive tax abatements, credits, or grants for bringing jobs to targeted areas of the state—such as Opportunity Zones or Enterprise Zones.
From solar installations to EV fleets, many sustainability-related expenditures may qualify for state or federal tax credits or grants. Some incentives also apply to energy-efficient retrofits, recycling equipment, or waste management.
States often subsidize internships, apprenticeships, or research partnerships with local universities. Companies may receive wage subsidies, grants, or direct access to candidate pipelines.
When planning a U.S. expansion, the following questions are central to understanding your incentive potential:
Fintech company SwipeSum relocated to St. Louis to tap into a more cost-effective hiring pool—and in the process, secured a $50,000 equity-free Arch Grant for moving operations. By lowering overhead and plugging into a supportive startup ecosystem, SwipeSum found both breathing room and momentum. The mix of accessible talent and valuable local incentives extended its runway and opened doors to local funding opportunities.
Battery-tech startup HeXalayer received matching funds through Kentucky’s SBIR/STTR Matching Funds Program. This state-level grant helped amplify their federal R&D support and significantly accelerated product development. According to public data, Kentucky’s match program has helped over 150 companies and attracted more than $7 in federal/private capital for every $1 in state funds.
This is where Upsite’s platform comes in.
Rather than hiring a team or relying on local CPAs to track hundreds of programs manually, Upsite automates discovery, eligibility matching, and application workflows—while providing full transparency across jurisdictions.
Think of it as your expansion intelligence agent, giving your team:
It’s how modern tech companies are streamlining U.S. expansion, and ensuring they don’t leave value on the table.
Incentives are no longer a “nice to have”—they’re a strategic growth lever. The key is treating them not as a tax footnote, but as part of your location and expansion planning from day one.
