Inefficiency in Economic Development: Money Looking for Makers
Readers of Philip Marcelo’s article, in today’s Providence Journal, about restoration of the historic-structure tax credit program in Rhode Island should see some warning signs indicative of a broader flaw in government economic development:
… the national recession and a 2008 moratorium on the tax-credit program brought such projects to a near halt.
Dozens stalled or never got off the ground, leaving around $150 million in credits –– which can be redeemed to offset business and personal income taxes — still pending final approval. …
Millions of dollars more in credits also could become available, if developers do not meet a May 2013 deadline to show some progress on their projects. (A project must be fully completed and its expenses reviewed before state officials approve issuing credits.)