West Virginia Tax Incentive Policy Idea

Throughout the 2019 legislative session, each issue of the WV Forward newsletter will feature a policy idea for consideration. These policies are in line with research, the WV Forward blueprint and have been elevated in conversations throughout 2018. Policy considerations require thought and analysis, so for many of these ideas more information will be posted on the WV Forward website.
This week, the policy idea spotlights an evaluation of our state's tax policies. Many states evaluate the effectiveness of  their tax incentives to be sure those incentives are producing intended results. West Virginia does not.  

Tax Incentive Policy Consideration:

Implement tax incentive policy reviews to evaluate what is working and what is not. This good government practice could help spend dollars wisely and track results. 

TAX INCENTIVE REVIEW AND EVALUATION

Evaluating the economic and jobs impact of tax incentives is a powerful tool to help avoid wasting taxpayer dollars and losing out on business development opportunities. Yet, according to a recent Pew report on tax incentive accountability, West Virginia remains an outlier in the U.S. when it comes to tracking the effectiveness of its own tax incentives.

A regular review process can help policymakers decide what incentives to continue while ensuring each incentive is deployed strategically for job growth and economic development.

Pew Economic Development Project https://www.pewtrusts.org/en/projects/economic-development-tax-incentives

How to Measure the Results of Tax Incentives: Promising Practices and a Proposal for Nebraska

http://news.legislature.ne.gov/tie/files/2014/06/Pew-Center-Report-on-Nebraska.pdf