Chances are your state has a number of tax incentives geared toward bringing in (and keeping) new business. But how effective are these tax perks at doing just that?
That’s a question most states don’t have an answer to yet. Reason: More than half of states haven’t even taken the basic steps necessary to determine if their tax incentives are getting results.
However, the following 13 states have put forth some serious effort to determine the effectiveness of their tax incentives:
- New Jersey
- North Carolina
- Washington, and
These findings all come from a study by the Pew Center on the States titled, “Evidence Counts: Evaluating State Tax Incentives for Jobs and Growth.”
Each and every state in the U.S. offers at least one incentive, however, many have a number of different perks. Some of the more common incentives include tax credits, exemptions and deductions to businesses in certain sectors and tax breaks to employers that are willing to put their office in an economically struggling location.