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.
Understanding the Landscape
Incentives in the U.S. operate across three layers:
| Level |
Who Provides It |
Common Forms |
| Federal |
U.S. government agencies |
Tax credits, grants, loan guarantees |
| State |
State agencies |
Tax credits, training funds, co-investment, grants |
| Local |
Cities/counties |
Tax abatements, relocation support |
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.
What Kind of Incentives Are Available?
Most incentives fall into a few recurring categories. While program details vary by location, here are the most common types:
R&D Tax Credits
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.
Workforce Training Grants
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.
Employment Credits
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.
Capital Access Programs
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.
Regional Development Incentives
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.
Sustainability Incentives
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.
University Collaboration Support
States often subsidize internships, apprenticeships, or research partnerships with local universities. Companies may receive wage subsidies, grants, or direct access to candidate pipelines.
What Companies Should Keep in Mind
When planning a U.S. expansion, the following questions are central to understanding your incentive potential:
- What functions will be located in the U.S.? R&D, manufacturing, and overall job creation drive most incentive eligibility.
- What is your projected headcount and salary range? Many credits are tied to the number of jobs created and wages paid.
- Where are you expanding? Location determines access to regional credits and local funding.
- Will you collaborate with universities? Some states offer subsidies for internships or research partnerships.
- Do you qualify as a small business? Many federal programs define this as <500
Case Study 1: SwipeSum (St. Louis, MO)
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.
Case Study 2: HeXalayer (Louisville, KY)
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.
A More Efficient Way to Access Incentives
While the opportunity is massive, the process is often fragmented and hard to navigate:
- Programs have different deadlines, rules, and documentation standards
- Some credits require pre-certification or advance filings
- It’s easy to miss-out simply by applying too late
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:
- A national view of available incentives
- Alerts for upcoming deadlines or opportunities
- Centralized documentation and tracking of filings
It’s how modern tech companies are streamlining U.S. expansion, and ensuring they don’t leave value on the table.
Final Takeaways
- The U.S. offers billions in incentives to companies investing in innovation, hiring, and sustainability
- Programs exist at federal, state, and local levels—each with different goals and mechanics
- High-growth tech companies are often well-positioned to qualify for multiple programs across all three levels of government
- Real success stories show that even modest grants can significantly impact early-stage runway
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.