[NOTE: An audio version of this story aired on Rhode Island Public Radio.]
In 2013, Rhode Island lawmakers directed the state’s revenue department to analyze tax incentives created to spur economic development. The idea was to assess whether those incentives were actually working.
Linda Katz, co-founder and policy director of the non-profit Economic Progress Institute, was one of the people who supported the law.
“It’s the bang for the buck,” said Katz, whose organization advocates for policies that benefit lower-income Rhode Islanders. “We want to know if we’re giving away money in order to either attract a company here, keep a company here, try to ignite some activity, that we know that, at the end of getting that tax break, we’re actually better off than we were before the company got here.”
But there’s one key problem: the state has yet to produce a single evaluation required under the law. The first report was due last June. Continue reading Despite State Law, Rhode Island Has Never Evaluated Its Business Tax Incentives
As some Maine lawmakers and defense contractor General Dynamics see it, the state needs to continue its Shipbuilding Facility Credit, due to expire this year, if it wants to maintain the competitiveness of subsidiary Bath Iron Works and a crucial part of the state’s economy.
But, if Maine were to keep the multi million-dollar-a-year program going without first making substantial revisions to what some call an obvious sweetheart deal, it would be going against the advice of the very consulting firm it hired to evaluate its tax incentive programs. Continue reading Extending Bath Iron Works Tax Deal Would Ignore State Consultant’s Review
[NOTE: This story is part of an ongoing reporting project being developed for Rhode Island Public Radio.]
Rhode Island appeared to be headed in the right direction in 2013 when it signed into law the Economic Development Tax Incentives Evaluation Act, officially requiring regular analysis of its many “business development” tax breaks to corporations.
But, more than four years on from its enactment, the Evaluation Act has yet to amount to much more than a symbolic victory for the advocates for government and corporate accountability who helped push it through.
Continue reading Rhode Island is Still Not Complying With Its Own Law on Evaluating Tax Incentives