Financial incentive zones encourage investment by providing reduced taxes in exchange for specific actions that positively benefit the community. Incentive programs used in Greater Philadelphia include the Local Economic Revitalization Tax Assistance Act, real estate tax abatements, and Keystone Innovation Zones in Pennsylvania; and Revenue Allocation District, and the Five Year and Long-Term Exemption & Abatement Laws in New Jersey.

Another type of financial incentive that municipalities can utilize is the Enterprise Zone (EZ): areas in economically disadvantaged communities that receive state grants to undertake business development activities. Businesses located in a designated Enterprise Zone may receive tax credits, loans, or other incentives. In Pennsylvania, Keystone Opportunity Zones (KOZs) serve a similar function. A KOZ builds partnerships between state and local governments to (re)develop underutilized land and buildings into business districts and residential areas to revitalize the community.