Subsidies

Subsidies are government financial support programs enacted via legislation that provide profit margin bonuses to qualifying corporations. They are the domestic counterpart to tariffs.

Entry point: src/lib/subsidies/subsidyEffects.ts10d ago

Overview#

• Scope: National or state-level industrial policy
• Beneficiaries: Qualifying corporations (domestic or foreign, based on domesticOnly flag)
• Effect: +7.5pp profit margin per qualifying subsidy
• Enactment: Via subsidy bill provisions in legislation system
• Stacking: Federal and state subsidies stack freely

Subsidy Structure#

interface Subsidy {
  _id: ObjectId;
  countryId: CountryId; // Country (national) or state's country
  scope: "national" | "state"; // Scope level
  stateId?: string; // For state subsidies
  scopeType: string; // "economy_wide" | "sector"
  targetSectorType?: string; // For sector scope
  targetStrategyId?: string; // Optional: require specific operating strategy
  domesticOnly: boolean; // Only corps HQ'd in territory qualify
  active: boolean; // Active status (false = ended)
  sourceBillId: ObjectId; // Enacting legislation
  createdAt: Date;
  updatedAt: Date;
}

Qualification Rules#

A corporation sector qualifies for a subsidy if it passes ALL filters:

// corpQualifiesForSubsidy():21-60

// 1. Territory filter
if (subsidy.scope === "state") {
  if (sectorStateId !== subsidy.stateId) return false; // State: sector must be IN state
} else {
  if (sectorCountryId !== subsidy.countryId) return false; // National: sector must be IN country
}

// 2. Sector type filter
if (subsidy.scopeType === "sector" && subsidy.targetSectorType !== sectorType) return false;

// 3. Strategy filter (optional)
if (subsidy.targetStrategyId != null) {
  const effectiveStrategy = sectorStrategyId ?? "standard";
  if (effectiveStrategy !== subsidy.targetStrategyId) return false;
}

// 4. Domestic-only filter
if (subsidy.domesticOnly) {
  if (subsidy.scope === "state") {
    if (corpHqState !== subsidy.stateId) return false; // HQ must be in state
  } else {
    if (corpCountryId !== subsidy.countryId) return false; // HQ must be in country
  }
}

return true;

Scope Types#

Domestic-Only Flag#

When domesticOnly: true:

• National subsidy: Only corporations with corpCountryId === subsidy.countryId qualify
• State subsidy: Only corporations with corpHqState === subsidy.stateId qualify

When domesticOnly: false (default):

• Foreign corporations operating in the territory also qualify

Margin Modifier#

Each qualifying active subsidy provides +7.5pp profit margin:

// getSubsidyMarginModifier():66-93
const SUBSIDY_MARGIN_BONUS = 7.5;

let total = 0;
for (const s of subsidies) {
  if (!s.active) continue;
  if (
    corpQualifiesForSubsidy(
      s,
      corpHqState,
      sectorType,
      sectorStateId,
      sectorStrategyId,
      sectorCountryId,
      corpCountryId
    )
  ) {
    total += SUBSIDY_MARGIN_BONUS;
  }
}
return total;

Stacking Examples#

Note: Multiple subsidies of the same scope/type do NOT stack - the second overwrites the first via upsert. Different scopes (economy_wide + sector) or different levels (federal + state) DO stack.

Enactment#

Subsidies are enacted via legislation:

// applySubsidyProvision():99-129
const filter = {
  countryId,
  scope,
  stateId: stateId ?? null,
  scopeType: provision.scopeType,
  targetSectorType: provision.targetSectorType ?? null,
  targetStrategyId: provision.targetStrategyId ?? null,
};

await db.collection<Subsidy>("subsidies").updateOne(
  filter,
  {
    $set: { domesticOnly: provision.domesticOnly, active: true, sourceBillId, updatedAt: now },
    $setOnInsert: { createdAt: now },
  },
  { upsert: true }
);

Ending Subsidies#

Subsidies can be terminated via end_subsidy provisions:

// applyEndSubsidyProvision():135-159
await db.collection<Subsidy>("subsidies").updateMany(
  {
    countryId,
    scope,
    stateId: stateId ?? null,
    scopeType: provision.scopeType,
    targetSectorType: provision.targetSectorType ?? null,
    targetStrategyId: provision.targetStrategyId ?? null,
    active: true,
  },
  { $set: { active: false, updatedAt: new Date() } }
);

Audit trail: Subsidies are marked active: false rather than deleted, preserving historical records.

Composite Key#

Subsidies use a six-field upsert key to prevent duplicates:

{
  (countryId, scope, stateId, scopeType, targetSectorType, targetStrategyId);
}

Re-enacting the same provision updates the existing subsidy rather than creating a duplicate.

Collections#

subsidies#

Integration with Corporation Turn Processing#

Subsidy margin modifiers are applied during sector processing:

// src/lib/turn/corporation/sectorTurn.ts:1014-1022
const subsidyMod = getSubsidyMarginModifier(
  lookups.activeSubsidies,
  corp.headquartersState,
  sector.sectorType,
  sector.stateId,
  sector.strategyId,
  sectorCountryId,
  corpCountry
);

const totalMarginMod = /* ... */ +subsidyMod;
const effectiveMargin = Math.min(100, sector.profitMargin + totalMarginMod);

Key Files#

Related Documentation#

• Tariffs - Trade barriers (counterpart to subsidies)
• Corporations - Profit margin modifiers, sector processing
• Legislation System - Bill enactment process