[davidw]

Why not just take the same money, and reduce taxes for all businesses, rather than favoring this, that or the other sector.

Italy does this a lot: incentives for biotech startups founded by Sardinian women under 35, or German speaking Italians over 50 with shoe companies, or whatever other silly thing some politician decides is a good idea. It creates incentives for people who are adept at navigating the bureaucracy and finding where the government money is directed, rather than simply getting on with business.

[tolmasky]

Because tax breaks are the products politicians sell: http://youtu.be/TruCIPy79w8 (relevant portion about 5:28 in but it's all worth watching)