Abstract: Science and technology business incubator is an important policy instrument and widely used in many countries in support of science and technology enterprise innovation and entrepreneurship. The Ministry of Finance announced a tax incentives for national incubator in 2007. Based on the statistical data from 2009 to 2012 of national science and technology business incubator and implementation of tax incentives questionnaire data, this paper test whether tax incentives provided positive incentives for incubator services. So on the basis of researches of previous research, simultaneous equations are constructed to solve the endogenous of tax policy. The empirical results show, the level of economic development in the region will affect the implementation of tax incentives incubator effect. Incubators for each additional 10% tax credit, integrated service revenue increased by an average of 0.6%, an average increase of 0.4% of incubation fund, professional and technical personnel increased by 2 people.