 The recipient will be required to return the monetary value of the incentive plus a penalty and/or interest to the grantor of the incentive, usually a local or state taxing authority.As the use of incentives mature over time, it is sometimes alleged that the triggering of clawbacks for non-performance will likely become more ubiquitous.Clawbacks can be understood to be the contractual elements that stand between the drive for economic development and community development and the slippery slope of corporate welfare.