Tax Incentive Evaluation in 2016—in Law and Practice: Studies help states improve economic effectiveness

Source: Josh Goodman and John Hamman, The Pew Charitable Trusts, September 14, 2016

Many states have made progress in recent years toward regular, rigorous evaluations of their economic development tax incentives. In the 2016 legislative session, Alabama, Colorado, Hawaii, Virginia, and Utah enacted laws requiring regular evaluation, while several other states made progress to implement evaluation laws passed in previous years. As a result, lawmakers in numerous states will soon have evidence on the results of their incentives—information that they can use to improve the effectiveness of the programs.