State Tax Incentives for Economic Development
Pew works to identify policies and practices that help states effectively manage and evaluate their tax incentives for economic development. Every state offers at least one tax incentive, and all together states spend billions of dollars each year on tax credits, exemptions, and deductions intended to promote job creation and economic growth.
This collection of research highlights steps that states can take to create fiscally sound state tax incentives and to determine whether existing incentives are generating solid economic returns.
Two up-front steps can help states create fiscally sound tax incentives. When policy makers omit these steps, they leave their states vulnerable to unexpected budget challenges. more
- States' Fiscal Health
A report by the Pew Center on the States concludes that 13 states are leading the way in generating much-needed answers about tax incentives’ effectiveness. Twelve states have mixed results. Half the states have not taken the basic steps needed to know whether their incentives are effective. The study highlights a wealth of promising approaches states have taken to help lawmakers find those answers.more