Tax Incentive Evaluation Law: Tennessee
This page is no longer being updated. As of June 15, 2017, newer tax incentive evaluation fact sheets are available here.
To ensure that economic development tax incentives are achieving their goals effectively, many states have approved laws requiring regular, rigorous, independent evaluations of these programs. For a list of states that have passed evaluation laws since the start of 2012, click here.
Tennessee
H.B. 291, enacted May 20, 2015
What it does
Requires evaluation of all major tax incentives |
---|
The commissioners of economic and community development and revenue will collaborate to review economic development tax credits on a four-year cycle. Evaluators will assess the fiscal and economic impact of each incentive. |
Ensures that reports draw policy-relevant conclusions |
Evaluations will include a recommendation to modify, discontinue, or extend each credit. Evaluators will provide reports to the governor, speakers of both houses, and legislative budget and tax committees. |
Excerpt from Tennessee’s law: Evaluation criteria
The review shall evaluate the previous four (4) fiscal years and may include an evaluation of the purpose of the credit, foregone revenue to the state as a result of the credit, any benefits provided to the state as a result of the credit, and the estimated indirect economic impact of the tax credit, where applicable.
The report shall include a recommendation to modify, discontinue, or take no action with respect to each credit. The departments shall prepare a report of their findings and recommendations and shall deliver such report to the governor, the speakers of both houses, the finance, ways and means committees of both houses, and the Office of Legislative Budget Analysis no later than January 15, 2017.
Spotlight on Mental Health
Tax Incentive Programs: Evaluate Today, Improve Tomorrow
MORE FROM PEW
Explore Pew’s new and improved
Fiscal 50 interactive
Your state's stats are more accessible than ever with our new and improved Fiscal 50 interactive:
- Maps, trends, and customizable charts
- 50-state rankings
- Analysis of what it all means
- Shareable graphics and downloadable data
- Proven fiscal policy strategies
Welcome to the new Fiscal 50
Key changes include:
- State pages that help you keep track of trends in your home state and provide national and regional context.
- Interactive indicator pages with highly customizable and shareable data visualizations.
- A Budget Threads feature that offers Pew’s read on the latest state fiscal news.