Most discussions of regional tax policy focus on the effectiveness of various alternative subsidy schemes in reaching economic goals, on the implicit assumption that administrative considerations can be ignored. But virtually all regional tax incentive schemes suffer serious administrative defects and policy makers should consider administrative pitfalls as well as economic characteristics of regional incentive schemes. This paper discusses the administrative feasibility of various regional tax incentives and subsidies. Defining labor eligible for subsidies, administering capital subsidies, and the unique problems of consumption and production subsidies are among the problems considered.