Abstract: The article examines the impact of such factors as the average monthly salary of employees, investment in fixed assets, tax burden, cost value for research and development, and workforce productivity. For building the model, the author applies statistical data on socioeconomic development indicators of 32 constituent entities of the Russian Federation for 2017. Tax burden lowers the workforce productivity; therefore, the use of tax incentives and preferences contributes to the achievement of the goals of economic growth. The research is based in the general scientific methods of analysis and synthesis, as well as econometric analysis. The article is dedicated to the creation of correlation-regression model of impact assessment. The conclusion is drawn that three out of four determinants indicate a significant positive correlation with workforce productivity. The effective tax incentive mechanism may become a catalyst for the economic development and contributes to securing employment.

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.