December 21, 2009
Location Tax Incentives: The Best of Times, The Worst of Times
Periods of economic crisis are the worst of times and the best of times for state and local business location tax incentives. These tax expenditures, like all expenditures, face an uphill battle when revenues have collapsed and the number of needy residents requiring assistance has increased. At the same time, economic stringency and lack of revenue sharpen government appreciation for business development and job creation. If a crisis combines danger and opportunity, the current downturn could offer an opportunity to improve these incentive programs.