According to a recent survey of 203 corporations by accounting firm KPMG Peat Marwick, state and local governments are more likely now than they were five years ago to offer tax incentives to companies considering expanding or relocating. Also, incentives are increasingly being offered to small companies and are worth considering when expanding. As shown below, most companies reported that state and local tax incentives were beneficial.

How effective are state and local tax incentive policies in meeting your company's needs?

"Very effective" 20%

"Somewhat effective" 49%

"Not effective" 31%

Source: "Business Incentives Survey," KPMG Peat Marwick LLP, 1995.

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