One of the concerns with economic development tax credits and other incentives is that their cost will balloon over time, causing fiscal havoc for the issuing government. So what does it mean when these incentives are used less than expected?
We've noticed the following from a set of recent state incentive evaluations:
- In Oklahoma actual payments under the Quality Jobs Program from 1994-June 2017 were $1.1 billion compared to $3.9 billion of potential payments from signed agreements — 28% of the projected cost.
- In North Carolina, an analysis found the state paid $102 million under the JDIG and One North Carolina Grant programs -- 25% of the projected cost.
