The offering of tax and other location-based incentives to firms considering locating operations in a state, as well as firms with existing operations, has become a common practice of both state and local governments in the past thirty years. However, these programs are not without their critics. Some of the concerns about these programs arise from the lack of strong evidence, either supportive or critical of these programs. The Kentucky Cabinet for Economic Development contracted with the Center for Business and Economic Research (CBER) to produce a series of reports examining the effectiveness of tax incentives in Kentucky.
An Examination of Incentives to Attract and Retain Businesses.pdf