Abstract: Efficient tax incentives used to encourage the development of economic sectors may contribute to the economic growth as well as ensure social, economic and budget stability. This article is devoted to the issues of sectorial tax incentives. The author of the article examines peculiarities of modern taxation from the point of view of national economy branches and particular economic activities. Steshenko carries out an analysis of existing elements of tax incentives. According to the author, at the present stage of economic development the most nettlesome problem is the choice of targets for sectorial tax incentives within the existing taxation system. The methodological basis of the research is the fundamental concepts presented by Russian researchers and systematic analysis of tax laws and regulations. In the course of the research Steshenko has used statistical modelling, historical, graphic and multivariate statistics methods that allowed to view the process of sectorial tax incentives from the point of view of their classification. The novelty of the research is caused by the fact that the author offers a classification of national economy branches depending on their clasterization and efficiency of tax incentives using the multivariate statistics method. The author also discovers and theoreticall substantiate three clusters as well as make recommendations on how to choose targets for sectorial tax incentives based on their peculiarities. 

Abstract: Efficient tax incentives are supposed to contribute to the economic growth in long-term and short-term perspectivbes. In this research Steshenko analyzes institutional constraints of tax incentives, in particular, susceptibility of an economic sector to tax incentives; the fact that tax incentives are constrained by budget losses as a result of falling out tax revenues ('tax expenses'); vertical (sectoral) orientation of tax incentives; competence of tax authorities to evaluate the final results when granting tax benefits. The author in detail describes each constraint from the point of view of the way it affects the economic growth. In the course of his research the author has applied economic statistical, historical logical, comparative and restrospective analysis methods as well as the systems approach to studying economic phenomena and processes. The author makes theoretical provisions about the essense and role of the motivating function of taxes in terms of institutional constraints of tax incentives that prevent the economic growth (susceptibility of an economic sector to tax incentives; the fact that tax incentives are constrained by budget losses as a result of falling out tax revenues ('tax expenses'); vertical (sectoral) orientation of tax incentives; competence of tax authorities to evaluate the final results when granting tax benefits) and makes recommendations regarding adapting of tax incentives to aforesaid constraints for the purpose of boosting the economic growth.