This study analyses the impact of the Pillar Two project on corporate tax incentives from a policy and technical standpoint. Through case studies, this contribution demonstrates that income-based incentives are deeply impacted by Pillar Two whereas certain expenditure-based incentives can continue to be offered by countries such as immediate expensing/accelerated depreciation rules, qualified refundable tax credits (QRTCs) and marketable transferable tax credits (MTTCs). Non-refundable credits which are an essential part of tax equity investment structures, in certain situations, are treated in a beneficial manner. The SBIE carve-out could also aid MNEs to reduce their exposure to top-up taxes. Moreover, tax incentives can continue to be offered to the shipping industry on core cross-border income. This contribution shows that, in order to compete post-Pillar Two, countries can develop new incentives (in particular, expenditure-based regimes) and classify them as QRTCs and/or convert their most-affected incentives fitting them under the QRTC umbrella. This study also discusses the potential for countries to compete using subsidies. Finally, the contribution recommends that certain countries should consider advocating for a permanent or transitional tax incentives safe harbour before the Inclusive Framework.