Post by Logan on Feb 6, 2017 20:09:14 GMT -6
State's largest tax credit for biz costs $1.2M per job, study finds
Tennessee taxpayers forgo $1.2 million each year to subsidize a single job through the state’s largest business tax break program.
An independent firm hired by state officials found that some tax credits awarded to companies had negligible economic impacts, according to the consultant's report, which was completed in December and recently obtained by The Tennessean.
The report highlights trade-offs facing state lawmakers here and elsewhere. Companies expanding or relocating often shop around for state business incentives, so economic development officials covet tax breaks as a selling point. But if Tennessee collected the $142 million it forgoes each year because of the business tax credits, the state could pave nearly 800 miles of interstate highway lanes or hire more than 2,300 teachers – investments also considered key to a healthy economy.
“I’d be asking the question, is there a better way to design our incentives to be more productive?” said William Fox, the director of the Boyd Center for Business & Economic Research at the University of Tennessee. “States are beginning to recognize there is a lot of money involved here.”
Read more: www.knoxnews.com/story/news/politics/2017/02/05/states-largest-tax-credit-biz-costs-12m-per-job-study-finds/97040916/
Tennessee taxpayers forgo $1.2 million each year to subsidize a single job through the state’s largest business tax break program.
An independent firm hired by state officials found that some tax credits awarded to companies had negligible economic impacts, according to the consultant's report, which was completed in December and recently obtained by The Tennessean.
The report highlights trade-offs facing state lawmakers here and elsewhere. Companies expanding or relocating often shop around for state business incentives, so economic development officials covet tax breaks as a selling point. But if Tennessee collected the $142 million it forgoes each year because of the business tax credits, the state could pave nearly 800 miles of interstate highway lanes or hire more than 2,300 teachers – investments also considered key to a healthy economy.
“I’d be asking the question, is there a better way to design our incentives to be more productive?” said William Fox, the director of the Boyd Center for Business & Economic Research at the University of Tennessee. “States are beginning to recognize there is a lot of money involved here.”
Read more: www.knoxnews.com/story/news/politics/2017/02/05/states-largest-tax-credit-biz-costs-12m-per-job-study-finds/97040916/