Nathan Jensen, a political science professor at Washington University in St. Louis, has found evidence that one of the most popular strategies for state and local leaders to attract new business does not pay off.
The default strategy of stealing away employers from other locations with lucrative incentive packages is almost a default strategy of political leaders in some part of the country, according to an article by J.D. Harrison.
Such incentive packages cost taxpayers around $70 billion annually, according to Harrison, "and there’s new evidence that it’s not particularly effective at a local level, either."
The article describes the findings and implications of a study by Nathan Jensen, which "concluded that there is 'no evidence' that those oft-used tax incentive programs have any positive effect on job creation. In fact, by cutting into public funds that could have been used for other programs that, say, spur private investment or fund research, and by making it harder for employers who do not receive tax breaks to compete in the market, the programs may actually be having a detrimental effect."
FULL STORY: How an oft-used economic development tactic may actually be hurting the economy
Georgia Offers Massive Incentive Package to EV Manufacturer
Critics question the wisdom of giving Georgia's largest-ever incentive package to electric car manufacturer Rivian to secure a new factory and job training center in East Atlanta.
Digging Deeper Into the Deal That Brought GE to Boston
The big news about GE moving to Boston is more than just a story about a large company moving from the suburbs to the big city—it's also about how far cities will go to attract new jobs, and at what cost.
Subsidizing Sprawl Through Relocation Tax Breaks
A new study from the nonprofit research center Good Jobs First looks into how relocation tax breaks for businesses have encouraged sprawl in the Cleveland and Cincinnati metropolitan areas.
What ‘The Brutalist’ Teaches Us About Modern Cities
How architecture and urban landscapes reflect the trauma and dysfunction of the post-war experience.
USDOT Revokes Approval for NYC Congestion Pricing
Despite the administration’s stated concern for the “working class,” 85 percent of Manhattan commuters use public transit to enter the city.
‘Complete Streets’ Webpage Deleted in Federal Purge
Basic resources and information on building bike lanes and sidewalks, formerly housed on the government’s Complete Streets website, are now gone.
Preserving Altadena’s Trees: A Community Effort to Save a Fire-Damaged Landscape
In the wake of the Eaton Fire, Altadena Green is working to preserve fire-damaged but recoverable trees, advocating for better assessment processes, educating homeowners, and protecting the community’s urban canopy from unnecessary removal.
The VW Bus is Back — Now as an Electric Minivan
Volkswagen’s ID. Buzz reimagines its iconic Bus as a fully electric minivan, blending retro design with modern technology, a 231-mile range, and practical versatility to offer a stylish yet functional EV for the future.
Investigation Reveals Just How Badly California’s Homeless Shelters are Failing
Fraud, violence, death, and chaos follow a billion dollar investment in a temporary solution that is proving ineffective.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Economic & Planning Systems, Inc.
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research