The hype and hoopla of a new business moving into an area often includes the use of tax incentives to help that business choose one locale over another. But some recent examination of such incentives and failures of some businesses to meet the promises of jobs created has brought on a new wave of corporate accountability. Despite recent legal attacks on incentives, they are not going away and state and local officials will continue to use them to attract business. But the critical factor now becomes making sure the requirements of those incentive agreements are met after the publicity dies now, notes a recent article in CCH’s Property Tax Alert. Experts interviewed by CCH editors note that the real change in this area is follow up by the state and local agencies responsible for economic development. The real effect of economic development is now part of the overall consideration by these officials, who feel the heat of accountability and are passing that on to businesses. But it’s easy to meet these standards by simply making tracking and verification part of the incentive process, these experts noted.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.