From the Indianapolis Star:
Every year, government agencies around Indiana dole out millions of dollars worth of tax breaks to businesses to encourage them to expand or relocate and create more jobs.
But it’s anyone’s guess whether those incentives actually work, says state Rep. Eric Koch, R-Bedford, who wants to set up a way to evaluate their effectiveness.
“I get a lot of questions from constituents who see the incentives being granted,” Koch said. “We just need to know whether they’re working.”
Koch has introduced a bill that would require the state to review and evaluate all state and local tax incentives that are provided to encourage economic development.
He said it would generate a comprehensive database on which breaks are working and which ones need another look.
“This bill is about transparency and it’s about providing policymakers and taxpayers with data that we don’t have right now,” Koch said.
The studies would include a cost-benefit comparison of the revenues given up and the property taxes shifted to other taxpayers as a result of allowing the tax incentives.
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http://www.indystar.com/story/news/2014/01/01/bill-to-weigh-effectiveness-of-indiana-tax-incentives/4281883/
