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This “user’s guide” explains a model for evaluating state or local business incentives. These incentives include tax breaks provided by state and local governments to business, to encourage local job growth. The model is intended to be used by state legislative audit bureaus, state and local economic development agencies, university centers for business research, economic development consulting firms, or any group that wants to evaluate an overall economic development program, or individual economic development projects. Users provide information on the incentives provided, and the incented jobs, and the model then produces estimates of the effects of the program on jobs, on different types of income, and the incomes of different income groups. Estimates are customized to a particular state and program/project start year. The model is currently implemented as an Excel workbook, and also as software that uses Python software, but does not require the user to know Python. This user’s guide explains the model’s structure, how the user should enter inputs, and how to interpret model outputs.

Issue Date

May 2023


Upjohn project #34439


The Pew Charitable Trusts

Subject Areas

LABOR MARKET ISSUES; ECONOMIC DEVELOPMENT; Local labor markets; Regional policy and planning; Business and tax incentives




Bartik, Timothy J. 2023. "Bartik Benefit-Cost Model of Business Incentives: A User’s Guide." Report prepared for The Pew Charitable Trusts.