States spend billions of dollars a year on tax credits, deductions, and exemptions that are meant to encourage businesses to create or retain jobs and make investments. Pew studies the policies and practices that states have used to generate much-needed analyses about the costs and economic returns of tax incentives. Based on this research, we work with state leaders to:
- Make a plan to evaluate the results of all major incentives on a regular schedule.
- Measure the impact of these programs using high-quality evaluations.
- Inform policy choices with evaluation findings to improve the effectiveness of tax incentives.
A national assessment of evaluation practices
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State and local governments commonly use economic development incentives such as tax credits and exemptions to try to boost their economies by encouraging businesses to relocate or expand within their borders. But such incentives can represent major budget commitments, costing these governments tens of billions of dollars every year. Read More
On March 28, Josh Goodman, senior officer with The Pew Charitable Trusts’ state fiscal health and economic growth project, submitted written testimony describing Pew’s research on tax incentive evaluation to the New Jersey Assembly Budget Committee. The remarks outlined how New Jersey could follow the example of other states that used evaluation findings to improve the results of... Read More
In early November, The Pew Charitable Trusts and the National Conference of State Legislatures (NCSL) hosted a half-day event in Philadelphia focused on the city’s plans to evaluate its economic development tax incentives. The discussion was part of Pew and NCSL’s third annual Evaluators Roundtable, in which state and local staffers from across the country who are responsible for... Read More
Reducing Budget Risks
Using data, design to make state tax incentives more predictable