I generally don't like "incentives" like this as a matter of principle. "Special deals" are less desirable than general opportunities. I want less government, and less government power to make special deals. Where "deals" like this have to be made to get the economy going we should really look at the whole picture and realize that taxes are indeed a problem and should be reduced for everyone. Eliminate the nonproductive government activities that are making it hard for business to be profitable in competition with all the places on earth where taxes are lower.
At least realize that lower taxes can often bring in more total revenue, well. . . . when the fact is that business activity is being negatively impacted by the present tax level. . . .
But it is still a valid point that your grandfather did a good thing, working with the situation that he found and finding a way to go forward with the business.
It boggles my mind the percentage of people that have been brainwashed into believing there really isn't that much government waste in spending.