Assessment of the optimal level of tax incentives for regional investment projects

According to the Russian tax legislation, organizations which implement regional investment projectscan be granted tax exemptions. The amount of such benefits is independently established by the administration ofthe subject, in which such a project is implemented. The question arises: what level of benefits will be optimal tomaintain the effectiveness of fiscal policy, as well as sufficient subsidization of the projects implemented? This articleanalyzes the conceptual apparatus, preparing a summary table of the amount of benefits for the subjects. Additionally, the article analyzes the theoretical basis for calculating the budgetary effect. The main part of the article is thecalculation of the optimal level of income tax rate. It was found that for Moscow and Moscow region, the optimallevel of income tax is 10%, which corresponds to the current level defined by regional legislation. The article wasprepared within the framework of the implementation of applied research under the state assignment for the year2023 on "Development of screening methodology for assessing regional investment projects".