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Well Planned Business Incentives Provide a Direct Return to Taxpayers
Since incentive money comes from state budgets already under constraint, how is it justified to taxpayers?
 

Thomas J. Stringer, Esq., Principal, Site Selection & Business Incentives, Ryan & Company
Simply put well planned incentives provide a direct return to taxpayers, not a cost to them. States do not merely give money away. That is a profoundly false notion. States and localities typically conduct a rigorous economic and fiscal impact analysis to make sure that the incentives they grant to a company provide a significant return on their investment in terms of new taxable property, new income tax revenues, increased economic activity and jobs for constituents.

States and localities cannot afford, and could never have afforded, being in the business of losing money on incentives deals. Further the vast majority of state and local incentives programs are self funding. Which means the incentives exemptions or benefits are paid out of the new incremental tax revenue to offset those awards. So this is money really being generated by the company’s own economic efforts and the municipality is really just assisting in mitigating some of the cost.

Simply put well planned incentives provide a direct return to taxpayers, not a cost to them. States do not merely give money away. That is a profoundly false notion. States and localities typically conduct a rigorous economic and fiscal impact analysis to make sure that the incentives they grant to a company provide a significant return on their investment in terms of new taxable property, new income tax revenues, increased economic activity and jobs for constituents.
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