Tax incentives ranked fourth in The Council of State Governments’ Top 5 Issues for 2014: Fiscal and Economic Policy, according to a recent blog post by the organization. In particular, the blog notes that “[p]ublic transparency and oversight of specialized tax and financial incentives to businesses may become a political hot potato, especially as the topic gets more attention from the media and watchdog groups.”
During 2014, states will look to reform their business incentive systems, among other things, in order to create more jobs, reports the blog. The Council of State Governments released a report in September 2013, called Chairman’s Report: State Business Incentives, which looks at tax and financial incentive programs across the country.
The working group, led by Senator Jay Emler of Kansas, came up with some important observations based on their research. Some key observations from the report are that states do not know the actual cost of their incentive program and they lack effective methods for evaluating their incentive programs.
The report also notes that states should look for other ways to encourage economic development beyond engaging in ‘bidding wars’ with other states to attract businesses to their jurisdiction. In fact, the working group’s goal is to make this report “a living document that provides guidance to everyone and advances all economic development, putting an end to border wars.”
*Continue the discussion on LinkedIn: Do you think states will be able to put an end to their bidding war over state tax incentive programs?
For more information about state tax credits, check out Bloomberg BNA’s Credits and Incentives Portfolios, Corporate Income Tax Navigator, Individual Income Tax Navigator, and Green Incentives Navigator.
In other developments . . .
The South Carolina Department of Revenue issued a notice stating that contributions to qualifying scholarship funding organizations for exceptional needs children are temporarily eligible for income tax credits, according to a Bloomberg BNA Weekly State Tax Reportarticle.
By: Kathleen Caggiano
Follow Kathleen on Twitter at: @katcaggiano.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)