It is increasingly appreciated that executive control processes need to be understood in terms of motivational as well as cognitive mechanisms. The current study examined the impact of performance-contingent reward incentives (monetary bonuses) on neural activity dynamics during cued task-switching performance. Behavioral measures indicated that performance was improved and task-switch costs selectively reduced on incentive trials. Trial-by-trial fluctuations in incentive value were associated with activation in reward-related brain regions (dopaminergic midbrain, paracingulate cortex) and also modulated the dynamics of switch-selective activation in the brain cognitive control network. Within lateral prefrontal cortex (PFC), both additive (inferior frontal junction) and interactive [dorsolateral PFC (DLPFC)] incentive effects were observed. In DLPFC, incentive modulation of activation predicted task-switching behavioral performance, but with hemispherically dissociable effects. Furthermore, in left DLPFC, incentive modulation specifically enhanced task-cue-related activation, and this activation in turn predicted that the trial would be subsequently rewarded (because of optimal performance). The results suggest that motivational incentives have a selective effect on brain regions that subserve cognitive control processes during task-switching and, moreover, that one mechanism of effect might be the enhancement of cue-related task preparation within left DLPFC.