We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Infant Industry: A Comprehensive Guide to Its Legal Framework and Growth
Definition & Meaning
The term "infant industry" refers to a newly established industry that is still in its early stages of development. These industries often struggle to compete with more established firms, particularly those from other countries. This difficulty arises because infant industries typically face higher production costs compared to their established counterparts. To support these emerging industries, many states implement laws that provide various forms of assistance, such as lower tax rates and economic incentives.
Table of content
Legal Use & context
In legal practice, the term "infant industry" is often associated with economic development policies and trade regulations. It is relevant in areas such as international trade law and economic policy. Legal frameworks may include provisions for tariffs, subsidies, and other forms of assistance aimed at nurturing these industries. Users can manage certain aspects of this process through legal templates available on platforms like US Legal Forms, which can help in drafting necessary documents or applications for assistance.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
One example of an infant industry is the renewable energy sector in certain states. These industries often require state support to develop technologies and infrastructure that can compete with traditional energy sources.
(Hypothetical example) A state may introduce tax incentives for a new electric vehicle manufacturing plant to help it establish itself in a market dominated by established car manufacturers.
State-by-state differences
Examples of state differences (not exhaustive):
State
Assistance Programs
California
Offers grants and tax credits for clean energy startups.
Texas
Provides incentives for technology and manufacturing sectors.
New York
Supports emerging industries through economic development programs.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Established Industry
An industry that has been in operation for a significant period.
Has lower production costs and greater market stability.
Sunset Industry
An industry in decline, often due to obsolescence.
Typically requires restructuring or support to transition.
Common misunderstandings
What to do if this term applies to you
If you are involved in an infant industry, consider researching available state assistance programs that can help reduce your costs. Utilizing resources like US Legal Forms can assist you in preparing the necessary documentation to apply for these programs. If your situation is complex, seeking advice from a legal professional may be beneficial.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.