In this new environment of reduced tax revenues, impacts on incentives must be considered.
While the country battles the coronavirus, state and local governments will be squeezed financially — just like so many businesses and households. Economic development organizations will have to respond by carefully managing — and better justifying — their incentive and financing programs. Concurrently, it must be recognized that this is an unprecedented economic upheaval, and incentives that were created for another economic era will need to be retooled to meet today’s most pressing business and community needs. Bottom line: We can expect to see near-term shifts in incentive policy.
