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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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
In Alabama and other states, examining incentives helps inform policy decisions. In this article, The Pew Charitable Trusts' Josh Goodman discusses state and local tax incentives and how evaluations can help policymaker's improve their effectiveness. Read More
New Jersey faces significant fiscal challenges, including chronic budget shortfalls, substantial long-term obligations, and rising costs for services. These difficulties have led to 11 downgrades from rating agencies in the last seven years. Overcoming them will not be easy, but evidence-based policies can help put the state on stronger financial footing. Read More