Study of Fiscal Incentives for "green" Business in Ohio PDF Download

Author: David Sjoquist
Publisher:
ISBN:
Category : Electric power transmission equipment industry
Languages : en
Pages : 100

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Author: Daphne A. Kenyon
Publisher:
ISBN: 9781558442337
Category : Electronic books
Languages : en
Pages : 0

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Book Description
The use of property tax incentives for business by local governments throughout the United States has escalated over the last 50 years. While there is little evidence that these tax incentives are an effective instrument to promote economic development, they cost state and local governments $5 to $10 billion each year in forgone revenue. Three major obstacles can impede the success of property tax incentives as an economic development tool. First, incentives are unlikely to have a significant impact on a firm's profitability since property taxes are a small part of the total costs for most businesses--averaging much less than 1 percent of total costs for the U.S. manufacturing sector. Second, tax breaks are sometimes given to businesses that would have chosen the same location even without the incentives. When this happens, property tax incentives merely deplete the tax base without promoting economic development. Third, widespread use of incentives within a metropolitan area reduces their effectiveness, because when firms can obtain similar tax breaks in most jurisdictions, incentives are less likely to affect business location decisions. This report reviews five types of property tax incentives and examines their characteristics, costs, and effectiveness: property tax abatement programs; tax increment finance; enterprise zones; firm-specific property tax incentives; and property tax exemptions in connection with issuance of industrial development bonds. Alternatives to tax incentives should be considered by policy makers, such as customized job training, labor market intermediaries, and business support services. State and local governments also can pursue a policy of broad-based taxes with low tax rates or adopt split-rate property taxation with lower taxes on buildings than land.State policy makers are in a good position to increase the effectiveness of property tax incentives since they control how local governments use them. For example, states can restrict the use of incentives to certain geographic areas or certain types of facilities; publish information on the use of property tax incentives; conduct studies on their effectiveness; and reduce destructive local tax competition by not reimbursing local governments for revenue they forgo when they award property tax incentives.Local government officials can make wiser use of property tax incentives for business and avoid such incentives when their costs exceed their benefits. Localities should set clear criteria for the types of projects eligible for incentives; limit tax breaks to mobile facilities that export goods or services out of the region; involve tax administrators and other stakeholders in decisions to grant incentives; cooperate on economic development with other jurisdictions in the area; and be clear from the outset that not all businesses that ask for an incentive will receive one.Despite a generally poor record in promoting economic development, property tax incentives continue to be used. The goal is laudable: attracting new businesses to a jurisdiction can increase income or employment, expand the tax base, and revitalize distressed urban areas. In a best case scenario, attracting a large facility can increase worker productivity and draw related firms to the area, creating a positive feedback loop. This report offers recommendations to improve the odds of achieving these economic development goals.

Author: Michael Wasylenko
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 114

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Author:
Publisher:
ISBN:
Category : Community development
Languages : en
Pages : 28

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Author: Robert D. Plattner
Publisher:
ISBN:
Category :
Languages : en
Pages :

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The author says that there will be more public debate of incentives as a result of the U.S. Supreme Court's decision in DaimlerChrysler v. Cuno, even though the decision was based on the plaintiffs' lack of standing in federal court.

Author: Glenn P. Jenkins
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 120

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Author: Robert F. Barsky
Publisher:
ISBN: 9781526497741
Category : Alternative fuel vehicles
Languages : en
Pages :

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Governments across the globe use tax deductions, credits, and penalties for a wide variety of reasons. One set of goals of these governmental tools is to incentivize production and purchase of environmentally sustainable products and discourage the production and purchase of less sustainable goods. This case provides a realistic context in which to demonstrate and consider the use of tax incentives to promote sustainable technology. The case study challenges students to analyze two hypothetical tax proposals facing a company to encourage production of alternative fuel vehicles that would run on sustainable biofuels. Student responses provide the basis for small group and class discussion, and insights into the use of tax incentives to achieve public policy objectives.

Author: Ohio. Department of Development
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages :

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Author: Junia Purwandani
Publisher:
ISBN:
Category : Entrepreneurship
Languages : en
Pages : 65

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Book Description
The depletion of natural resources as a byproduct of widespread, global economic growth has urged several entrepreneurs to think about the environment when starting or conducting business. However, several entrepreneurs and smaller-sized firms struggle with implementing environmentally conscious business practices, especially Small and Medium Enterprises (SMEs), which represent more than 95% of all private sector firms, and are, thus, worth studying in the context of environmental impacts. This research uses survey methods to assess and better comprehend the key drivers and barriers of green business practices by SMEs in the State of Ohio specifically. Results from this study show that a majority of the respondents reported that they have implemented green practices within their business. The two main drivers for engaging in those practices are internal motivations and the opportunity to obtain a better public image. However, respondents also mentioned a lack of capital as the central barrier to implementing green business practices. These results can be used by government and business actors, especially in Ohio, as a benchmark to consider better strategies for implementing green business techniques. Overall, this work helps to better discern best practices and ways to develop more prosperous SMEs without undermining the quality of the environment.

Author: D. Robinson
Publisher: Springer
ISBN: 1137317493
Category : Political Science
Languages : en
Pages : 340

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Book Description
This definitive work mixes case law, public policy, economic strategy, and examines the wide range of issues facing efforts to improve the American economy, to illustrate how economic growth is driven through strong public-private partnerships, and how successful growth strategies from the state and local level operate to grow jobs.