Well all states do do it. We lost several opportunities because another city or state beat us on tax incentives. Baltimore (for whatever reason) was doing that to us many years ago; around the time the Cleveland Browns moved there.
To reiterate, some states are just better places to be than others. Up here, the weather is miserable much of the time. If it's not the snow, it's the rain, if it's not the rain, it's the humidity. There are times when businesses have to close or their employees can't make it to work.
So these tax incentives gives us the ability to offer something to level the playing field. And let's face it, you can't stop states from taxing less. The Constitution gives states the ability to run their own governments the way they see fit providing nothing they're doing is violation the US Constitution.
I suppose taxes aren't the only incentive. Has your state considered bringing back droit du seigneur? I bet that would get the attention of some CEO's.