Buyer Beware: The Fine Print in State Tax Incentive Deals Could End Up Costing Some Taxpayers More Than They Save

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

States concerned about budget shortfalls and an eroding employment base continue to dangle the carrot of tax incentives to lure new industry. In the current climate, however, states are less willing to take economic or political risk if employers fail to deliver on the agreed-upon number of jobs. For some companies, the economic setback is then compounded by having to repay millions in state and local tax breaks. In this article, authors Mark F. Sommer and Jennifer Y. Barber, of Greenebaum Doll & McDonald PLLC, look at recent deals that went south and what they bode for companies seeking incentive packages.

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