Evaluating the Effectiveness of Tax Incentives Without ROIMichaela Miller gave a brief presentation at the FTA Revenue Estimation and Tax Research Conference on evaluating the effectiveness of tax incentives without ROI. The REAP tax credit was used as a case study. Tags: incentives, roi, tax |
Pennsylvania Economic Development IncentivesThis research brief presents data on Pennsylvania economic development incentives for fiscal years (FY) 2015-16 through FY 2020-21. The tables provide annual detail on tax credit utilization or awards, state spending or grants, job training programs and state loan programs. The brief also highlights recent changes to incentive programs spending or utilization. Tags: brief, credits, development, economic, incentives, research, tax |
Pennsylvania Economic Development IncentivesThis research brief presents data on Pennsylvania economic development incentives for fiscal years (FY) 2014-15 through FY 2019-20. The tables provide annual detail on tax credit utilization or awards, state spending or grants, job training programs and state loan programs. The brief also highlights recent changes to incentive programs spending or utilization. Tags: brief, credits, development, economic, incentives, research, tax |
Tax Credits and Economic Development incentivesThis report presents data on Pennsylvania tax credits and economic development incentives for fiscal years (FY) 2018-19 through FY 2023-24. The tables provide annual detail on tax credit utilization or awards, state spending or grants, job training programs and state loan programs. Fiscal year 2023-24 amounts are budgeted, authorized or projected and may differ from final amounts expended or awarded for the year. The report also highlights recent changes to incentive program spending or utilization. 01/09/2024 |
Tax Credits and Economic Development incentivesThis research brief presents data on Pennsylvania tax credits and economic development incentives for fiscal years (FY) 2017-18 through FY 2022-23. The tables provide annual detail on tax credit utilization or awards, state spending or grants, job training programs and state loan programs. Fiscal year 2022-23 amounts are budgeted, authorized or projected and may differ from final amounts expended or awarded for the year. The brief also highlights recent changes to incentive program spending or utilization. This research brief was reposted on December 21 to correct a text error on page 1. 12/15/2022 |
Evaluating the Effectiveness of Tax incentives Without ROIMichaela Miller gave a brief presentation at the FTA Revenue Estimation and Tax Research Conference on evaluating the effectiveness of tax incentives without ROI. The REAP tax credit was used as a case study. 10/26/2022 |
Do SNAP Changes Impact Work incentives?A new IFO research brief examines the impact on SNAP benefits from the ongoing public health emergency that eliminates the income phase-out and the recent expansion of income thresholds from 160% to 200% of federal poverty income guidelines (FPIG). Due to the elimination of the income phase-out, recipients face a vertical all-or-nothing benefits cliff. Research finds that vertical cliffs provide strong disincentives. 09/29/2022 |
Pennsylvania Economic Development incentivesThis research brief presents data on Pennsylvania economic development incentives for fiscal years (FY) 2015-16 through FY 2020-21. The tables provide annual detail on tax credit utilization or awards, state spending or grants, job training programs and state loan programs. The brief also highlights recent changes to incentive programs spending or utilization. 11/29/2021 |
Pennsylvania Economic Development incentivesThis research brief presents data on Pennsylvania economic development incentives for fiscal years (FY) 2014-15 through FY 2019-20. The tables provide annual detail on tax credit utilization or awards, state spending or grants, job training programs and state loan programs. The brief also highlights recent changes to incentive programs spending or utilization. 10/15/2020 |
Economic Development incentivesThis research brief compiles data on economic development incentives into a single document to facilitate a tabulation of Commonwealth spending on these incentives. The report displays this information for the two most recently completed fiscal years (FY): 2013-14 and 2014-15. 03/25/2016 |
RB-2016-02.pdfIndependent Fiscal Of Ðice March 2016 1 Research Brief 2016‐2 March 2016 Economic Development Incentives Economic development incentives attempt to stimulate economic growth through various direct (e.g., expenditures) and indirect (e.g., tax credits) spending mechanisms. Many Hits: 57 |
TC_2019_Film_Production_Tax_Credit_Report.pdfAdministration and Implementation .................................................................................................. 6 Historical FPTC Data ........................................................................................................................ 7 Section 3: State Tax Credit Comparison .................................................................................. 9 Film-Television Production Incentives Across States ........................................................................... 9 Industry Employment Trends ......................................................................................................... 11 Industry Output Trends ................................................................................................................. 13 Film Production Tax Credit Studies Across States ............................................................................. 15 Section 4: Economic tax credit (FPTC) with an $85 million annual cap for the next five fiscal years. Film-Television Production Incentives Across States Table 3 provides a summary comparison of certain FPTC attributes across states. In practice, the incentive can take three forms Hits: 42 |
TC_2020_Mobile Telecommunications Broadband Investment Tax Credit.pdfto fulfill the requirements contained in Act 48. Currently, twenty-four states (includes Pennsylvania) offer one or more incentives to encourage investment in broadband infrastructure. Many of these states limit funding to, or provide a greater incentive for, equip- ment that is deployed in unserved/underserved areas and meets minimum speed requirements. The impact of these broadband incentives can Hits: 34 |
TC_2023_Manufacturing.pdffulfill the requirements contained in Act 48. Only four states (Pennsylvania, Oklahoma, Maryland and Washington) offer a manufacturing tax credit incentive. Some states offer the credit as a fixed dollar amount per job ($500 to $4,000 depending on the state likely the job would have been created regardless. ▪ Four states (Pennsylvania, Oklahoma, Maryland and Washington) offer a manufacturing tax credit incentive. Some states offer the credit as a fixed dollar amount per job ($500 to $4,000) while others compute the Hits: 28 |
TC_2019_New_Jobs_Tax_Credit_Report.pdfpresents historical data. Section 3 presents relevant data for states that offer a broad-based job creation tax incentive program. Section 4 contains a discussion of factors that affect the economic return of the tax credit and provides a simplified economic of existing Pennsylvania firms and the attraction of new economic development opportunities to the state. Goals Provide incentives to enhance business development within Pennsylvania. Attract new firms to the Commonwealth and secure the preservation or expansion of existing in- Hits: 26 |
TC_2021_Video_Game_Production.pdftax credit review for the Video Game Production (VGP) Tax Credit. The IFO re- viewed studies on video game production incentives, held discussions with various stakeholders and met with agency staff who administer the tax credit. Based on that research, the submits this report to fulfill the requirements contained in Act 48. Currently, nineteen states (includes Pennsylvania) offer one or more incentives to video game production companies. Twelve states offer tax credits and the remaining offer grants or a rebate. Pennsylvania is Hits: 25 |
TC_2020_Organ and Bone Marrow Donation Tax Credit.pdffor the Organ and Bone Marrow Donation Tax Credit (OBMD). The IFO reviewed studies related to organ donation incentives, held discussions with various stakeholders and met with agency staff who administer the tax credit. Based on that research, the IFO submits bone marrow transplants by reducing financial barriers to living donation. Currently, 21 states (including Pennsylvania) offer a tax incentive to mitigate the expenses associated with living organ or bone marrow donation, with most states providing an income tax deduction for non- Hits: 25 |
TC_2020_Research and Development Tax Credit.pdffor the Research and Development Tax Credit (RDTC). The IFO reviewed numerous studies on state research and development incentives, held discussions with various stakeholders and met with agency staff who administer the tax credit. Based on that research, the IFO submits data processing firms and certain professional service firms. For eligible firms, the RDTC can be an important incentive to offset a high statutory corporate net income tax (CNIT) rate (9.99 percent). Many firms that claim the RDTC are large Hits: 21 |
Summary_Tax_Credit_Reviews_Oct_2023.pdflimited to wireless broadband providers (excludes fixed-line providers). State Comparison ▪ Twenty-four states (includes Pennsylvania) offer one or more incentives to encourage investment in broadband infrastructure. ▪ Many states limit funding to, or provide a greater incentive for, equipment that (1) is deployed in unserved/underserved areas and (2) meets minimum speed requirements. Economic Impact ▪ Tax Credits Hits: 21 |
TC_2019_Historic_Preservation_Tax_Credit_Report.pdfstate. 7 State of Georgia Although not explicitly stated, this review assumes that the purpose of the tax incentive is to stimulate rehabilitation of historic structures and homes. The credit reduces the cost of the rehabilitation project by subsidizing the activity or spillover effects from rehabilitation projects that are triggered by a tax credit can be substantial. Unlike other incentives, the main goals of the HPTC do not include short-term economic development, but rather community building, the revitalization of distressed areas Hits: 18 |
2013_special_report_funding_and_reforming_public_employee_retirement_systems.pdfincrease in funding to offset the resulting additional liabilities (such as post-retirement cost-of-living adjustments or early retirement incentives) also requires corresponding increases in contributions or investment returns to ensure adequate funding. The board of trustees of a public occur, the statutes governing the systems would need to be amended. - 13 - 4. It has been suggested that early retirement incentive programs (ERIPs) could be employed as a means of reducing pension system liabilities. The short-term cost- saving potential of Hits: 17 |
TC_2023_Rural_Jobs_Investment.pdfthe requirements contained in Act 48. Seventeen states (including Pennsylvania) offer investment programs similar to the RJITC. Eight states offer incentives in the form of a tax credit equal to 39% of the qualified investment, eight states offer a tax credit another amount (24% to 100%) and one state (Alaska) offers a loan program. All states limit the dollar amount of incentives awarded each year, although not necessarily through the use of an annual cap. Allocations range from $6 million (Pennsylvania) to Hits: 16 |
TC_2022_Brewers.pdfIFO submits this report to fulfill the requirements contained in Act 48. Currently, 12 states (includes Pennsylvania) offer a tax incentive for brewers. Six states offer a tax credit for brewers, five states offer a tax exemption or reduced tax rate and one state offers a tax rebate. Requirements for each incentive vary but most states provide larger benefits to small brewers (based on annual production). IFO welcomes all questions and comments Hits: 15 |
PEW_Presentation(Video).pptxHow States Are Improving Tax Incentives for Jobs and Growth A national assessment of evaluation practices Chaaron Pearson cpearson@pewtrusts.org The Pew Charitable Trusts 11/16/2017 1 pewtrusts.org/ taxincentives pewtrusts.org/ taxincentives Why evaluate tax incentives • Tax incentives are one of states’ primary economic development tools • Tax incentives collectively cost states billions of dollars per year Hits: 15 |
PEW_Presentation(Video).ppsxHow States Are Improving Tax Incentives for Jobs and Growth A national assessment of evaluation practices Chaaron Pearson cpearson@pewtrusts.org The Pew Charitable Trusts 11/16/2017 1 pewtrusts.org/ taxincentives pewtrusts.org/ taxincentives Why evaluate tax incentives • Tax incentives are one of states’ primary economic development tools • Tax incentives collectively cost states billions of dollars per year Hits: 15 |
TC_2021_Keystone_Special_Development_Zones_Update.pdftax credit review for the Keystone Special Development Zone (KSDZ) Tax Credit. The IFO reviewed relevant research related to economic incentives for brownfield remediation and rede- velopment, held discussions with various stakeholders and met with agency staff who administer the tax administration of the tax credit and presents limited historical data. Section 3 provides relevant research on brownfield remediation and redevelopment incentives. Section 4 contains an economic impact analysis. Section 5 concludes with the tax credit plan, as required by Act 48 Hits: 14 |
Tax_Credit_and_Other_Incentives_2022.pdfThis research brief presents Pennsylvania tax credit and other incentives for fiscal years (FY) 2017-18 through FY 2022-23. The brief separates incentives into four categories: tax credits, state spending or grants, job training programs and state loan programs. The amount reported for Hits: 11 |
IFO_Hearing_Materials_Feb_22_2022.pdf12 State and Local Tax Burden ..................................................................................... 13 Corporate Net Income Tax State Comparison ........................................................... 14 State Pension Outlook ............................................................................................. 15 Economic Development Incentives ........................................................................... 16 Minimum Wage by State ......................................................................................... 18 PBB – Agency Reviews ............................................................................................ 19 PBB - Tax Credit Evaluations .................................................................................... 20 PBB – Five-Year Schedule ........................................................................................ 21 1.1 billion prepayment in unfunded liability from The Pennsylvania State University. Independent Fiscal Office 16 February 2022 Economic Development Incentives Economic Development Incentives Economic Development Incentives Est. 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Tax Hits: 11 |
TC_2021_Resource_Enhancement_and_Protection.pdftax liabilities (79.3 percent). This implies that the REAP Tax Credit benefits small businesses. ▪ Available research generally concludes that incentives (e.g., tax credits and grants) combined with regulatory compliance efforts are the most effective way to increase the use of funds grew at an average rate of 11.2 percent per annum. Federal programs (e.g., Environmen- tal Quality Incentives Program and Conservation Innovation Grants) comprise over three-quarters of public funds provided. The Pennsylvania Growing Greener program is also Hits: 10 |
RB_2021_11_Economic_Development_Incentives.pdfThis research brief presents Pennsylvania economic development incentives for fiscal years (FY) 2015-16 through FY 2020-21. The brief divides economic development incentives into four categories: tax credits, state spending or grants, job training programs and state loan programs. The dollar amounts reported Hits: 10 |
PBB_2022_DHS_REPORT_ADDENDUM.pdfmillions. Actual expenditures are listed in the year the expenditure was recorded. Quality Child Care | Page 44 Notes on Measures ▪ Incentive funding is provided to child care providers for achieving a Keystone STARS level 2 or higher, with more incentive funding provided the higher the STARS level. ▪ Tuition assistance is provided to child care staff who earn credits in early Hits: 10 |
index.cfmis likely in the range of $10.50 to $11.00 per hour. ... (Full Report) Tax Credits and Economic Development Incentives Economics and Other January 09, 2024 This report presents data on Pennsylvania tax credits and economic development incentives for fiscal years (FY) 2018-19 through FY 2023-24. The tables provide annual detail on tax credit utilization or Hits: 10 |
RB-10-2020-Economic_Development_Incentives.pdfThis research brief presents Pennsylvania economic development incentives for fiscal years (FY) 2014-15 through FY 2019-20. The brief divides economic development into four categories: tax credits programs and state loan programs. The dollar amounts reported in the table for each category are estimates of the total incentives claimed or awarded for each fiscal year. The estimates represent a mix of conventions and data sources. Most tax credit Hits: 9 |
Tax_Credits_and_Other_Incentives_2024.pdfThis report presents Pennsylvania tax credit and other incentives for fiscal years (FY) 2018-19 through FY 2023-24. It is separated into four categories: tax credits, spending or of $163.3 million over the prior year. For FY 2023-24, $1,230.4 million is projected for these incentives. Est. Tax Credits 18-19 19-20 20-21 21-22 22-23 23-24 Educational Improvement $150.9 $174 Hits: 8 |
2004_srpvffinal.pdfof two-income families. The decline in available volunteer manpower has compelled many community leaders to consider various types of incentive programs to address the perceived recruitment and retention difficulties. One type of incentive program provides pension-like benefits to volunteer firefighters as a reward for long tenure in the volunteer fire service. These Hits: 8 |
TC_2023_PA_Resource_Manufacturing.pdf1.53 billion in PRM tax credits. The PRM Tax Credit was part of a package of economic development incentives granted to the owners of the Pennsylvania ethylene cracker plant. The package included tax exemptions granted under Act 16 of the ethylene cracker plant in Pennsylvania, as the tax credit was one part of a larger package of economic development incentives granted to the developer of the plant. The package included tax exemptions granted under Act 16 of 2012 (related to Hits: 7 |
TC_2021_Entertainment_Economic_Enhancement_Program.pdfthe tax credit review for the Entertainment Economic Enhancement Program (EEEP). The IFO reviewed industry reports that relate to economic incentives for the entertainment industry, held discussions with various stakeholders and met with agency staff who administer the tax credit. Based that the credit has a material impact on location decisions. ▪ For less established performers, the tax credit may provide greater incentives by making a tour more financially viable. ▪ The analysis finds that the net return on investment (ROI) is 15 to Hits: 7 |
Newsstand_January_2020.pdfYear on Targeted Tax Breaks A recent article in the Wall Street Journal discusses the benefits of targeted business tax incentives offered by state and local governments. A study conducted by economists at Columbia Business School and Princeton University found that the number of tax incentives has tripled over the last thirty years. The study estimates that states are paying $30 billion per year to offer Hits: 7 |
ITEP-Presentation-11-14-2019.pdfnot keeping pace with the tax base (profits) Reason #1: income shifting Reason #2 : federal tax cuts and incentives Reason #3: state tax cut and incentives Reason #4: shift to pass-through entities The good news: state policymakers have the tools to combat each Hits: 7 |
IFO_Hearing_Materials_March_2023.pdf15 State and Local Tax Burden ..................................................................................... 16 Corporate Net Income Tax State Comparison ........................................................... 17 State Pension Outlook ............................................................................................. 18 Economic Development Incentives ........................................................................... 20 Minimum Wage Rates by State ................................................................................ 22 Marijuana Taxes ..................................................................................................... 23 - This page intentionally left blank. - Independent Fiscal Office 1 March to FY 50-51 SERS: FY 23-24 to FY 42-43 Independent Fiscal Office 20 March 2023 Economic Development Incentives Economic Development Incentives Budget Proposed 18-19 19-20 20-21 21-22 22-23 23-24 Tax Credit or Hits: 7 |
Economic_and_Revenue_Update_2021.pdfLocal Tax Burden: Average Tax Rate and Rank ........................................ 17 SERS and PSERS Financial Data ............................................................................. 18 Tax Credit and Economic Development Incentives ................................................... 19 Minimum Wage Rates by State .............................................................................. 21 PA Worker Distribution by Hourly Wage Rates ......................................................... 22 PIT Revenue Proposal: Impact on billion prepayment in unfunded liability from Penn State University. Independent Fiscal Office 19 March 2021 Tax Credit and Economic Development Incentives Est. 15-16 16-17 17-18 18-19 19-20 20-21 Tax Credit or Refund Educational Improvement $98 Hits: 7 |
TC_2022_Mixed_Use_Development.pdffeedback for this report, but all declined to participate. Currently, only three states offer a mixed-use development tax credit incentive. Pennsylvania’s program is unique in that the proceeds from the sale of the Mixed-Use Development Tax Credits are first year (FY 2017-18), along with a third appli- cant. ▪ Three states offer a mixed-use development tax credit incentive. Pennsylvania’s program is unique in that proceeds from the sale of Mixed-Use Development Tax Credits are deposited into Hits: 6 |
PBB_2020_DCED_REPORT.pdfwith the Department of Labor and Industry to verify all new employment at firms that receive economic development incentives. Currently, the department requires payroll compliance reports for only one in ten projects on a random basis across a small number of incentive programs. The employment impact from job creation programs administered by DCED is difficult to quan- tify accurately. Two factors drive this outcome Hits: 6 |
PBB-Board Hearing Jan 23 2020.pptxenhance quality ▪ No requirement to locate in underserved/unserved areas ▪ No requirement on minimum speeds 24 states have a broadband incentive ▪ But only 3 use tax credits | most use grants and allow wired investment At most, only 3 firms have claimed federal R&D credit made permanent ▪ Proration factors: small 68% | large 38% Most states offer some type of R&D incentive ▪ 3 states dominate: CA ($1,800m), TX ($660m), MA ($242m) ▪ PA offers a mid-tier dollar credit ($55m) | typical credit Hits: 6 |
IFO_Hearing_Materials_02_2024.pdf20 State and Local Taxes Per Capita .......................................................................... 21 Corporate Net Income Tax Comparison ................................................................. 22 State Pension Outlook .......................................................................................... 23 Economic Development Incentives ........................................................................ 24 - This page intentionally left blank. - Independent Fiscal Office 1 February 2024 Independent Fiscal Office Overview Independent Fiscal Office – Overview 1.1 billion prepayment of unfunded liability from The Pennsylvania State University. Independent Fiscal Office 24 February 2024 Economic Development Incentives Economic Development Incentives Tax Credits 19-20 20-21 21-22 22-23 23-24 24-25 Educational Improvement $174 Hits: 6 |
2002_dbdc_report.pdfemployee’s individual account. No potential for cost-of-living adjustments or service purchase authori- zations. Personnel Management Early retirement incentives easily imple- mented to reduce personnel complement. Retains (and is more beneficial to) experi- enced, long-term employees. Complement reduction through early retirement incentives is not feasible. Attracts (and is more beneficial to) youn- ger, mobile employees. Topic Defined Benefit Defined Contribution -5- Administration Hits: 6 |
Economic_and_Revenue_Update_2020.pdfPBB and Tax Credit Review Schedule .................................................................................................. 29 PBB Year 2 Agency Funding by Activity .............................................................................................. 30 Tax Credits and Economic Development Incentives ...................................................................... 31 1 Independent Fiscal Office Overview The office was created by Act 120 of 2010 and enters its ninth year Senior Spending and Tax Revenues (September 2019) Minimum Wage Increase Estimates (October 2019) Redevelopment Assistance Capital Program (October 2019) Tax Incentive Expansion (December 2019) Special Education Survey (November 2019, unpublished) Property Tax Homestead Exclusion and PIT (March 2019) School District Property Hits: 5 |
2006_surviving_spouse_healthcare_study.pdfcases, the MHMO plan may provide additional benefits, including immunizations, routine dental and vision care, and hearing aids. As an incentive for reducing the Commonwealth’s retiree health coverage costs, retirees with Commonwealth-subsidized health insurance receive a monetary incentive for joining 2 Interested parties should consult the 2006 rates contained in Appendix VII of this report. 3 In addition Hits: 5 |
TC_2020_Keystone_Innovation_Zone_Tax_Credit.pdfand data should be verified and not simply self-reported. Many KIZ firms likely receive other state incentives such as R&D tax credits and economic devel- opment grants. The amount of these other incentives is unknown and should be reported. 1 Article XIX-F of the Tax Reform Code of 1971 (P.L. 6, No. 2 Hits: 4 |
Revenue-Proposal-Analysis-2018-04.pdfa behavioral impact that partially offsets the revenue loss due to the lower rate because corporations have less incentive to use tax planning techniques to reduce Penn- sylvania corporate tax liability if tax rates are reduced. In addition, when fully phased e., a smaller relative base expansion and reve- nue impact) at lower tax rates because firms have less incentive to engage in tax plan- ning. Therefore, a parameter on the higher end of the given range is used for this esti- Hits: 4 |
PBB_2021_DHS_REPORT_ADDENDUM.pdfor less. MA – Physical Health Services | Page 11 Notes on Measures ▪ The Department offers a P4P program that provides financial incentives to the Physical Health Managed Care Organizations (PH-MCOs) that meet certain quality measure goals. The quality measures include broad and minimize emergency department visits and other costlier forms of care. ▪ There are three ways for PH-MCOs to receive incentive payments: (1) benchmark performance in which the PH-MCOs achieve a rate at or above the 75 th percentile benchmark Hits: 4 |
Boyd PA IFO November 2016.pdfpublic pension plans maintained earnings assumptions and increased investment risk. Private plans and plans in other countries reduced earnings assumptions. •Incentives & institutions encourage risk taking. Lowering earnings assumptions would require large contribution increases. •Risk to taxpayers & stakeholders in govt is 3- make risk go away. Mature plans (e.g., PA) tend to have greater risk. Shared-risk provisions might slightly dampen incentives that favor risk taking. •PA and most other states need risk-taking to work out well or else contributions will Hits: 4 |
ACN_SB1_A01354_A01558_2017_06_03a.pdfmortality improvement been included. (See page 21 for discussion.) The disability benefit for new PSERS members may cause an incentive for such members to seek a disability retirement as the accrual rate is higher than the Mr. Matthew Knittel June disability benefit being provided at a 2% accrual rate rather than the 1.25% or 1% accrual rate provides an incentive for PSERS members to retire under disability if eligible rather than under early or superannuation retirement as members would receive Hits: 4 |
Revenue-Proposal-Analysis-2019-03.pdfimpact that partially offsets the static revenue loss due to the lower tax rate because corporations have less incentive to use tax planning techniques to reduce Pennsylvania corporate tax liability if tax rates are reduced. In addition, when fully phased in i.e., a smaller relative base expansion and revenue impact) at lower tax rates because firms have less incentive to engage in tax planning. However, Pennsyl- vania also has a higher tax rate than the six CR states and more restrictive Hits: 3 |
RB_2021_01_Economic_Impact_of_Federal_Stimulus.pdfwhen extra federal UC payments expire. At that time, workers receiving those weekly payments will have a much stronger monetary incentive to return to work. What is unclear is whether sufficient employment opportunities will be available at that time. The federal July 2021 could lock in gains achieved by certain workers and possibly attract other workers sooner who lack sufficient monetary incentives. However, given the effective hourly wage differentials noted above, it is unclear how much incentive that would supply and it Hits: 3 |
PBB_Board_Hearing_Apr_26_2021.pdf42% of project cost (avg. cost = $60,400) ▪ Must be maintained for a predetermined lifespan (5-10 years) ▪ Research concludes incentives combined with regulation are effective ▪ 55% credits sold | farmers lack necessary tax liability ▪ Credits awarded for previously completed projects are May enhance long-term viability of young firms ▪ Credit is oversubscribed | significant potential demand 19 states offer video game production incentives ▪ 12 states offer a tax credit | remaining offer grants or rebates ▪ Most combine program with film production ▪ 5 states offer Hits: 3 |
PBB_2022_PHMC_REPORT.pdfand nonprofit organizations to apply for grants to aid in historic preser- vation efforts. National Register designation is also an incentive for income-producing projects seeking historic preservation tax incentives to promote rehabilitation and reuse. The office also has a role in administering state and federal historic tax credits. Nearly Hits: 3 |
PBB_2021_PennDOT_REPORT_ADDENDUM.pdfCommercial and Other Multimodal The department provides operational and financial support for other commercial and modal transportation networks. Grant and incentive programs are available to assist rail freight and port and waterways opera- tions throughout the Commonwealth. These programs help fund the expenditure was recorded. Activity 10: Commercial and Other Multimodal | Page 48 Notes on Measures ▪ The Pennsylvania Intermodal Cargo Growth Incentive Program (PICGIP) incentivizes the use of Penn- sylvania’s ports. PennDOT provides grant funding for ocean carriers to move cargo Hits: 3 |
PBB_2020_DEP_Report.pdfto border states. 14-15 15-16 16-17 17-18 18-19 19-20 Output # Alternative fuel incentive rebate awards 434 497 724 671 2,251 2,000 # Alternative fuel incentive grant awards 29 0 37 25 44 32 Alternative fuel grant and rebate awards ($ millions) 1 $6.5 $0.9 $5.3 Hits: 3 |
FTA_Presentation_Oct_24_2022.pdfEvaluating the Effectiveness of Tax Incentives Without ROI 2022 FTA Revenue Estimation and Tax Research Conference October 24, 2022 Background: Independent Fiscal Office Created by Act Environmental protection ▪ Public health Evaluating these programs presents unique challenges ▪ Calculating an ROI for these programs does not indicate whether incentive is accomplishing its legislative intent ▪ Quantitative outcome data is often lacking October 24, 2022 3 Resource Enhancement and Protection (REAP Hits: 3 |
Five_Year_Outlook_2017_Presentation.pdf Revenue and Expenditure Detail, Revenue Package Chaaron Pearson| The PEW Charitable Trusts Evaluation of State Economic Development Tax Incentives November 16, 2017 2 Budget Emphasis: Cost Containment State governments have used three methods. Efficiency Initiatives - Lean, TQM, Continuous 16, 2017 3 Our Guest Speaker Chaaron Pearson| The PEW Charitable Trusts Current Position: Senior Manager Economic development tax incentives project. Ensure tax incentives are effective, accountable and fiscally sound. Work with states to develop and implement best Hits: 3 |
TC_Board_Hearing_Jan_10_2023.pdfReviews for Year 5 Statute: Did the tax credits accomplish their legislative intent? ▪ Manufacturing – Unlikely due to low level of incentive, but not yet possible to assess reliably ▪ All Others – Minimal data, not yet possible to assess reliably Credits do not chain) ▪ Wage income of $282m = $9m in additional PIT revenue ▪ Unclear if tax credit deciding factor in location decision | other incentives used Recommendations ▪ Credit should be subject to annual cap | limits impact on state revenues ▪ Sale of credits: relax requirements | potential Hits: 2 |
TC_2022_Coal_Refuse_Energy_and_Reclamation.pdfprices are unusually low and more credits are needed to maintain operations. This adjustment provides more revenue stability and maintains incentives. To maximize the environmental benefits to the Commonwealth, CRER Tax Credits could be priori- tized or targeted to refuse average wholesale prices for the calendar year. When wholesale electricity prices are high (such as 2021), the tax credit likely incentives little or no incre- mental activity. Conversely, if prices are low, generators require additional assistance to cover costs. A mechanism Hits: 2 |
TC_2021_Neighborhood_Assistance_Program.pdfthe Neighborhood Assistance Program (NAP) Tax Credit. The IFO reviewed studies on state and federal charitable contribution and neighborhood assistance incentives, held discussions with stakeholders and met with agency staff who administer the tax credit. Based on that research, the IFO of the tax credit as envisioned by policymakers. ▪ How do policymakers measure program success? The NAP Tax Credit provides significant incentive (25 to 80 percent of private funding) for investment in distressed neighborhoods and communities. However, funding for such a wide Hits: 2 |
Single-Use Plastics Report-2020_06.pdfto consumers. The regulation also stipulates other bag types that retailers may provide to consumers. Fee: Uses economic incentives to discourage consumers from using LWPBs. Retailers may continue to provide bags, but they must charge consumers a standard fee for each Utilities, July 2019. http:// www.seattle.gov/Documents/Departments/SPU/Services/Recycling/Bag_Ban_Report_2019.pdf. Homonoff, Tatiana. “Can Small Incentives Have Large Effects? The Impact of Taxes versus Bonuses on Disposable Bag Use.” American Economic Journal: Economic Policy 10, no. 4 (2018 Hits: 2 |
Senate Appropriations Response Letter 3-6-2020.pdfstate. New York enacted the Get on Your Feet Loan Forgiveness Program in 2015 and Utah enacted the Talent Development Incentive Loan Program in 2019. More recently, Colorado and West Virginia March 6, 2020 Page 5 introduced legislation that support loan for free tuition or loan forgiveness programs targeting public service. The most commonly eligible careers are health care professionals. These incentive programs may be funded by private or public sources. See Table 5 for an overview of the states offering each Hits: 2 |
PBB_2020_DHS_REPORT_Final_Updated.pdffamilies that have never received TANF, Foster Care assistance or MA. Notes: CSPIA is Child Support Performance and Incentive Act. NEON is New Opportunities for Noncustodial Parents. Data measured on a federal fiscal year basis except where noted. 2 Data from 95.8% 92.9% 9 (32) Child Support Benchmarks (FFY 2018) Note: CSPIA is Child Support Performance and Incentive Act. Source: PA Department of Human Services; U.S. HHS, ACF. LIHEAP Eligibility and Benefits | Page 45 Activity 13: LIHEAP Eligibility and Hits: 2 |
NAP-2018-03.pdfto identify a reliable study that could quantify the predisposition of businesses to donate funds in the absence of tax incentives. This is particularly the case for EZP contributions, where it is unclear whether the investment would occur regardless, albeit possibly SIMILAR PROGRAMS IN OTHER STATES Other states have implemented programs similar to the NAP and use tax credits as an incentive to induce private investment in disadvantaged communities. However, the level of credits and aggregate caps differ among the states. For Hits: 2 |
MQRE-FY19-20-Aug.pdfcollections by $1.7 million. FY 2019-20 Monthly and Quarterly Estimates | Page 8 Computer Data Center Equipment Incentive Program (Act 13) The act increases the cap for SUT refunds to $7 million annually for purchases of computer data center equipment million) and PIT annual ($0.1 million). FY 2019-20 Monthly and Quarterly Estimates | Page 13 Historic Preservation Incentive Tax Credit (Act 13) Various changes to the program include: (1) increasing the annual cap to $5 million, (2) extending the sunset Hits: 2 |
IFO - Economic and Budget Outlook - January 2012.pdfin conformity with the federal provision for full expensing. 13 The temporary expensing provision should provide firms with a strong incentive to increase investment since it greatly reduces their cost of capital and marginal effective tax rate on new investment. Yet the current weakness in corporate net income tax revenues should be viewed as temporary and largely attributable to a tax incentive that merely affects the timing of payments. For FY 2012-13, the economic forecast projects that corporate profits will remain Hits: 2 |
HAC testimony Feb 2019.pdfintends to compute similar performance metrics for all tax credits so that policymakers can compare outcomes across the various economic incentive programs. A comparison of the programs may facilitate an overall strategy that could be used to target limited incentive funds to their best use. Author: Matthew Knittel Creator: Microsoft® Word 2016 CreationDate: 2019-02-11 14:01:25 ModDate Hits: 2 |
ACN_SB1071_A10803_text.pdfsubsection (b), shall forfeit such credited service and shall have his frozen present value adjusted as if his 10% retirement incentive had not been applied to his account. In the event that the cost-of-living increase enacted December 18, 1979 State service shall forfeit such credited service and shall have his frozen present value adjusted as if his 10% retirement incentive had not been applied to his account. In the event that the cost-of-living increase enacted December 18, 1979 Hits: 2 |
Pensionsof-living Adjustments (2000) Service Purchase Authorizations for Pennsylvania Public Employee Retirement Systems (1997) Fiscal Impact of the Early Retirement Incentive for Public School Employees (1996) Feasibility of Early Retirement Incentives in the Public Sector (1995) Rate of Employer Contribution for the Alternate Retirement Program (1994) Current Structure of Local Government Hits: 2 |
TC_Board_Hearing_Jan_24_2022.pdfcredits expire and cannot be used | significant accumulation January 24, 2022 4 #2 Brewers’ 11 other states offer a brewers’ incentive ▪ Most (8) place a limit on production and target smaller brewers ▪ Credits or rebates range from $1.00 to $7 Hits: 1 |
TC_2023_Waterfront_Development.pdfa tax credit that incentivizes businesses to contribute to waterfront development pro- jects. Some states (summarized below) provide tax credit incentives for contributions to specific economic development projects, which may include waterfront development. None of these tax credits are refundable or Hits: 1 |
TC_2022_Educational_Tax_Credits.pdfof contributions for scholarships and/or educa- tional programs. A comparison of state programs reveals that: ▪ In most states, the incentive is available to businesses and individuals and 10 states provide a tax credit at a rate equal to 100% of Hits: 1 |
SUT Exemption for Aircraft - January 2013.pdffor MRO services. 3 The significant resources necessary to purchase, repair and maintain aircraft can provide a meaningful incentive for consumers to reduce or eliminate tax liability. The text that follows provides a brief description of exemptions recently enacted in nearby Hits: 1 |
SEIU_HCPA_Wage_Contract_Analysis_2023.pdfanalysis is based solely on data supplied by the Office of Administration. The analysis excludes any impact of the “Retention Incentive Payment Program”, as details required to compute the impact of those provisions were not transmitted to the IFO. If you Hits: 1 |
SEIU Healthcare Wage Contract Analysis- 2019.pdf23). The four-year total is $30.3 million. 1 Estimates do not include the impact of a new Retention Incentive Payment Program which would provide eligible employees in certain job classifications with an annual payment of $1,000 beginning in Hits: 1 |
RTR-2014-07.pdfthe State Gaming Fund, $2 million from the Manville Property Damage Settlement Account, and $6 million from the Alternative Fuels Incentive Fund. Change in General Fund Tax Revenues (compared to same period in prior year; dollar amounts in millions) Revenue Source Hits: 1 |
Revenue-Proposal-Analysis-2020-04.pdfa 40 percent reduction in corporate tax liability due to the rate change alone. Firms had a strong incentive to shift taxable income out of TY 2017 (taxed at 35 percent) into TY 2018 (taxed at 21 percent). Therefore, increased TY Hits: 1 |
REU-2019-12.pdfcap on state and local tax (SALT) deductions under the federal Tax Cuts and Jobs Act (TCJA), taxpayers had an incentive to pay their last PIT quarterly payment for the current tax year in December (in advance of the January due Hits: 1 |
Response_Letter_9_23_2019.pdfwould likely be modest. For the scenario that eliminates school district property tax but continues to exempt retirement income, the incentive to remain in state will be stronger and could have some impact on the projected future senior population. For senior Hits: 1 |
RB_2022_09_SNAP_Changes.pdflikely reduce the supply of labor, which is reinforced by expansion of the income thresholds. Do SNAP Changes Impact Work Incentives? Independent Fiscal Office | Research Brief | September 2022 700 800 900 1000 1100 $0 $200 $400 $600 $800 $1,000 $1 Hits: 1 |
RB 2019 RACP.pdf In certain cases, the state spending could be viewed as a way to correct local market failures, where private incentives and returns are insufficient to result in outcomes that would, on net, be positive if all benefits could be measured Hits: 1 |
PBB_TaxCredits_Schedule_2022_Update.pdfRevenue Executive Offices Environmental Hearing Board Conservation and Natural Resources Year Tax Credits 1 Film Production New Jobs Historic Preservation Incentive 2 Research and Development Keystone Innovation Zones Mobile Telecom and Broadband Organ and Bone Marrow 3 Neighborhood Assistance Resource Enhancement Hits: 1 |
PBB_Board_Hearing_Apr_27_2021.pdffocus on preventative services and chronic conditions to lower costs and improve outcomes ▪ MCOs that meet quality measure goals receive incentive payments ▪ 5 out of 12 quality measures in the MA Physical Health Services pay-for-performance initiative met or exceeded Hits: 1 |
PBB_2023_DOR_REPORT.pdfAny prize amount greater than $2,500. Data is by calendar year beginning in 2017. 5 Includes retailer commissions and incentives in numerator and traditional sales only (excludes iLottery) in denominator. Calculations by the IFO. 6 Includes general operating and advertising Hits: 1 |
PBB_2023_DDAP_REPORT.pdfand Medical Marijuana Program funds. The LRP is a grant of up to $100,000 in loan repayment as an incentive to recruit and retain SUD practitioners to provide services within the Commonwealth. Clinical and medical personnel from DDAP-licensed treatment Hits: 1 |
PBB_2022_PDE_REPORT_Amended.pdfBuilding Condition Assess- ment is part of the new PlanCon program. It is an optional activity but offers additional financial incentives for participating districts. PDE plans to track the number of schools that complete a building condition assessment and the number Hits: 1 |
PBB-Board-Hearings-Schedule-2019.pdf1- NOB Department of Corrections Tax Credit Reviews: Pennsylvania Board of Probation and Film Production, New Jobs, Historic Parole Preservation Incentive Juvenile Court Judges' Commission 11:30 A.M. - 1:30 P.M. Pennsylvania Commission on Crime Department of Banking and Hits: 1 |
PBB-Board-Hearing-Agenda-January 2019-Revised.pdfWarburton, Deputy Director, Independent Fiscal Office 10:15am - 11:30am Review of Tax Credits (Film Production, New Jobs & Historical Preservation Incentive) Amy Gill, Deputy Secretary of Tax Policy, Department of Revenue Scott Dunkelberger, Executive Deputy Secretary, DCED Carol Kilko, Deputy Secretary Hits: 1 |
PBB Board Hearing Agenda- January 2019.pdfWarburton, Deputy Director, Independent Fiscal Office 10:15am - 12:00pm Review of Tax Credits (Film Production, New Jobs & Historical Preservation Incentive) Amy Gill, Deputy Secretary of Tax Policy, Department of Revenue Scott Dunkelberger, Executive Deputy Secretary, DCED Carol Kilko, Deputy Secretary Hits: 1 |
OPEIU_Wage_Contract_Analysis_2023.pdfanalysis is based solely on data supplied by the Office of Administration. The analysis excludes any impact from the “Retention Incentive Payment Program” and the increase in certification payments, as details required to compute the impact of those provisions were not Hits: 1 |
Official_Revenue_Estimate_Methodology_2023_06.pdfon gross receipts from certain sales. Transfers Revenues are net of the 0.25 mill transfer to the Alternative Fuels Incentive Grant Fund. Exemptions Gross receipts (1) of public utilities owned or operated by a municipality to the extent the receipts Hits: 1 |
Official_Revenue_Estimate_Methodology_2022.pdfon gross receipts from certain sales. Transfers Revenues are net of the 0.25 mill transfer to the Alternative Fuels Incentive Grant Fund. Exemptions Gross receipts (1) of public utilities owned or operated by a municipality to the extent the receipts Hits: 1 |
Official_Revenue_Estimate_Methodology_2021.pdfon gross receipts from certain sales. Transfers Revenues are net of the 0.25 mill transfer to the Alternative Fuels Incentive Grant Fund. Exemptions Gross receipts (1) of public utilities owned or operated by a municipality to the extent the receipts Hits: 1 |
Official-Revenue-Estimate-Methodology-2020-6.pdfreceipts from certain sales. Transfers Revenues are net of the 0.25 mill transfer to the Alternative Fuels Incentive Grant Fund. Exemptions Gross receipts (1) of public utilities owned or operated by a municipality to the extent the receipts are derived Hits: 1 |
Official-Revenue-Estimate-Methodology-2019-06.pdfreceipts from certain sales. Transfers Revenues are net of the 0.25 mill transfer to the Alternative Fuels Incentive Grant Fund. Exemptions Gross receipts (1) of public utilities owned or operated by a municipality to the extent the receipts are derived Hits: 1 |
Official-Revenue-Estimate-2018-06.pdffor the fiscal year is partially offset by a shortfall in annual remittances (-$78 million). Taxpayers had an incentive to remit pay- ments for tax year 2017 during the calendar year (as estimated payments) rather than April 2018 (as annual payments Hits: 1 |
NCSL_PA_IFO_11_15_21.pdf25 NATIONAL CONFERENCE OF STATE LEGISLATURES Notable Allocations ○ Hazard/premium pay – 6 states ○ Funding pandemic-related positions – 7 states ○ Vaccine Incentives – Massachusetts, New Mexico, and Nevada ○ Food banks and insecurity - 13 states ○ Childcare grants to business, relief to workers and families Hits: 1 |
Monthly_Economic_Update_September_2020.pdfto an article by Edmunds, consumers are turning to used cars due to increased consumer fiscal responsibility, favorable interest rates, incentives on certified pre-owned cars and low inventory of new cars. Partly due to increased demand for used cars, growth Hits: 1 |
Initial-Revenue-Estimate-2018-05.pdfthe fiscal year is partially offset by an anticipated shortfall in annual remittances (-$89 million). Taxpayers had an incentive to remit payments for tax year 2017 during the calendar year (as estimated payments) rather than April 2018 (as annual payments) due Hits: 1 |
IFO_Testimony_CR_June_29_2023.pdf350 million per annum, full phase-in 9% Base Expansion $450 to $500 million • These include rate reduction, which reduces incentives to shift profits to other states, the codification of economic nexus and market sourcing, which expand the tax base. Potential Hits: 1 |
IFO_Hearing_Packet_Feb2018.pdfEnhancement Video Game Production Keystone Special Development Zones 4 Educational Tax Credits Coal Refuse and Reclamation Mixed Use Historic Preservation Incentive Community- Based Services 5 Resource Manufacturing Brewers’ Computer Data Center Manufacturing and Investment Waterfront Development Rural Jobs and Investment 29 Hits: 1 |
IFO Five-Year Outlook.pdfstudent. Where will the unexpected growth come from? Consumers – debt levels still high, employment unsure. Investment – little incentive due to lack of demand. Government – fiscal pressures at all levels. Exports – major trading partners project weak growth Hits: 1 |
Five_Year_Outlook_2023.pdfless certain because birth, death and migration rates can vary significantly due to changing economic conditions, immigration policies, domestic migration incentives and health care. Table 2.1 reveals the following trends: ▪ The total population grew 0.8% from 2015 to 2020 Hits: 1 |
Five_Year_Outlook_2022.pdfless certain because birth, death and migration rates can vary significantly due to changing economic conditions, immigration policies, domestic migration incentives and health care. Table 2.1 reveals the following trends: ▪ The total population grew 288,000 from 2010 to 2020 Hits: 1 |
Five_Year_Outlook_2020.pdfthe long term than in the short term due to factors such as changing economic conditions, immigration policies, domestic migration incentives and health care. 1 Page 2 of the Pennsylvania Demographic Outlook notes that since the COVID-19 impact on overall Hits: 1 |
Demographics_Outlook_2023.pdfHowever, long-term birth, death or migration rates could change substantially due to changing economic conditions, immigration policies, domestic migration incentives and health care. Table 2.1 reveals the following trends for the three time periods: ▪ The total population grew 0 Hits: 1 |
Demographics_Outlook_2022.pdflong- term birth, death or migration rates could change substantially due to changing economic conditions, im- migration policies, domestic migration incentives and health care. Table 2.1 reveals the following trends for the three time periods: The total population grew Hits: 1 |
Demographics_Outlook_2021.pdfrates could change substantially in the long term due to factors such as changing economic conditions, immigration policies, domestic migration incentives and healthcare. Table 2.1 reveals the following trends for the previous decade (2010 to 2020), near-term projections (2020 Hits: 1 |
Demographics_Outlook_2020.pdfquite substantially in the long term due to factors such as changing economic conditions, immigration policies, domestic migration incentives and healthcare. Table 2.1 reveals the following trends for the recent past (2015 to 2020), near-term projections (2020 to 2025 Hits: 1 |
Budget Hearings Packet.pdfAnalyses (since January 1, 2016) • Impact Fee Update (January 2016) • Natural Gas Production Report Quarter 4 (February 2016) • Economic Development Incentives (March 2016) • Analysis of Revenue Proposals in FY 2016-17 Executive Budget (April 2016) • Analysis of Executive Order 2016-02 Hits: 1 |
Budget Hearings Packet- Web Version.pdfAnalyses (since January 1, 2016) • Impact Fee Update (January 2016) • Natural Gas Production Report Quarter 4 (February 2016) • Economic Development Incentives (March 2016) • Analysis of Revenue Proposals in FY 2016-17 Executive Budget (April 2016) • Analysis of Executive Order 2016-02 Hits: 1 |
2007_divestment_complete_report.pdfIt will serve as the Westinghouse headquarters and technology center for the worldwide hub of Westinghouse Electric Company, the global leader in commercial nuclear power. Westinghouse President and CEO Steve Tritch said the company is pleased that Pennsylvania, under Governor Rendell Hits: 1 |
2002_drop_report.pdfunreduced retirement benefits. The existence of a DROP program may induce those employees who would otherwise have little or no incentive to continue employment to continue working. 2) A DROP can assist public employers in succession planning for retiring employees and Hits: 1 |
2001_hr266.pdfskilled 25 employees, designing benefits for special target groups, 26 recognizing past service, the ability to provide early 27 retirement incentives and the most efficient use of investment 28 talent; and 29 WHEREAS, The features of DB plans may make them Hits: 1 |
About IFObased budget reports. Other responsibilities include working on special projects pertaining to debt, retiree healthcare, federal stimulus and economic development incentives. Frank Lill Fiscal Analyst Mr. Lill joined the IFO in 2022 and his primary responsibilities include leading performance-based budgeting Hits: 1 |