State Business Tax Incentives: Examining Evidence of their Effectiveness
New England Public Policy Center Discussion Paper 09-3
by Jennifer Weiner
State governments commonly use business tax credits to promote economic development. Whether these incentives are successful at generating new economic activity - and whether they do so in a cost-effective manner - are important concerns, particularly in times of fiscal and economic stress. This paper explores the use and effectiveness of a selected group of incentives, namely tax credits geared toward capital investment, research and development, job creation, and film production. The paper examines the various credits offered by New England states and their structural features, and reviews and analyzes the available evidence on the effectiveness and cost-effectiveness of these types of incentives. The analysis reveals the challenges entailed in measuring the impact of business tax credits and the need for both analysts and policymakers to consider those challenges carefully when using existing studies to inform the tax credit debate.
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State Business Tax Incentives: Examining Evidence of their Effectiveness
At this December 2009 forum, the above Discussion Paper was presented. A panel of national and regional experts responded to Center author Jennifer Weiner’s summary remarks.
Evaluating Business Tax Credits: Reading Between the Lines
by Jennifer Weiner
NEPPC Policy Brief 10-1
Hollywood East? Film Tax Credits in New England
by Darcy Rollins Saas
NEPPC Policy Brief 06-3
Ernst & Young Analyses of New Mexico and New York Film Tax Credits 
by Jennifer Weiner
NEPPC Memo (April 2009)
Cost-Benefit Analysis of Connecticut's Film Tax Credits
by Jennifer Weiner
NEPPC Memo (January 2009)
To review other Center research about state and local public finance, please visit our research index.
Business and Tax Climate in the New England States
New England Fiscal Chairs Meeting, National Conference of State Legislatures (February 26, 2010)
Evaluating State Business Tax Credits
Connecticut Voices for Children, 9th Annual State Budget Forum (January 26, 2010)
Lights, Cameras, Caution! Some Questions to Ask about Film Tax Credits
Presented to the Forum on Film and Audio Tax Credits, Connecticut Joint Committee on Finance, Revenue and Bonding
(March 26, 2008)
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