Evidence Counts--Evaluating State Tax Incentives for Jobs and Growth by The Pew Center on the States, April 2012

015_12_RI Tax Incentives Report_web.pdf (application/pdf Object)

Conclusion:

Every year, states invest billions of
taxpayer dollars in tax incentives
designed to promote economic
development, but few know whether
they are getting a strong return on their
investment. Some states do not carefully
measure the economic impact of their
incentives; others do not examine them
at all. Some have conducted rigorous
evaluations of individual tax incentives
and others have systems for regularly
reviewing all major tax incentives—
but no state has put the two together.
As a result, when lawmakers consider
whether to offer or continue such
incentives, how much to spend, and who
should get them, they often are relying
on incomplete, conflicting, or unreliable
information.
Closing this knowledge gap should be a
top priority for policy makers, especially
as states continue their efforts to emerge
from the Great Recession. The good news
is that a number are striving to do so,
creating a blueprint for others to follow.