Hidden Tax Breaks Still Used by Many States to Lure Big Business

04/05/2022

" A car on the line at GM's Orion plant in Michigan on March 22, 2019. The auto giant is expanding the plant with the help of a $1.8 billion incentive package from the state, which ranked 7th from the top in Good Jobs First's subsidy-transparency report. Photographer: Jeff Kowalsky/Bloomberg"

Bloomberg Tax wrote about a new Good Jobs First that looked at major economic development programs across the nation. The report is "FINANCIAL EXPOSURE: Rating the States on Economic Development Transparency."

Here's Bloomberg reporter Michael J. Bologna:

"More than a third of state economic development agencies still hide details of the big-dollar deals they make to lure business investments, even though public disclosure of tax subsidy programs is improving in most jurisdictions.

Tax policy think tank Good Jobs First reported Tuesday that 62% of the 250 agencies administering business incentives disclose reasonable information about companies that receive state-sponsored tax benefits. Only 55% of agencies received a passing grade when the study was last conducted in 2014.

Ninety-six of the agencies, 38%, disclose very little information about the projects they support. None of the 96 disclosed the identities of businesses that had been awarded tax subsidies."

Read the full article at Bloomberg Tax.

Real the full study here.