Which entities are not subject to FAA rules regarding incentives?

The correct choice highlights that community entities, such as businesses, are not subject to FAA rules regarding incentives. The FAA primarily regulates airports, airlines, and federal agencies in matters related to incentives, which typically pertain to grant funding, airport improvement projects, and safety regulations.

Community entities do engage with airports and airlines, often seeking partnerships or incentives, but they do not fall under the direct jurisdiction of FAA regulations that apply specifically to aviation-related operations. Their interests and operations are generally governed by local, state, or business regulations rather than federal aviation guidelines.

For instance, while an airport may receive federal funding that comes with certain stipulations, businesses in the surrounding community that may seek incentives for services or development projects do not have the same obligations to adhere to FAA regulations. This means they can operate under different regulatory frameworks that are often more flexible and tailored to local economic development goals.