The Times delves deep into the financial incentives that cities, counties, and states dole out to corporations to lure jobs and economic development to their corner of the country. Just what does the $80 billion spent each year actually buy?
Once focused on automakers, and now sought by everyone from Caterpillar to Facebook, governments in every corner of America "who are desperate to create jobs, outmatched by multinational corporations and short on tools to fact-check what companies tell them" use incentives to attract and keep businesses large and small without a clear indication that those investments ever pay off. "For local governments, incentives have become the cost of doing business with almost every business," says Louise Story. "The Times found that the awards go to companies big and small, those gushing in profits and those sinking in losses, American companies and foreign companies, and every industry imaginable."
Exploiting local fears that companies would move jobs overseas, or over county lines, corporations have created "a high-stakes bazaar where they pit local officials against one another to get the most lucrative packages. States compete with other states, cities compete with surrounding suburbs, and even small towns have entered the race with the goal of defeating their neighbors."
At the same time that local governments are cutting back on services, they're creating new tax credits and exemptions. And while incentives take many forms - cash grants and loans; sales tax breaks; income tax credits and exemptions; free services; and property tax abatements - it's unclear how effective certain ones are over others, or over nothing, because government agencies and officials "rarely track how many jobs are created," notes Story. "Even where officials do track incentives, they acknowledge that it is impossible to know whether the jobs would have been created without the aid."
This article is the first in the Times' United States of Subsidies series. The series is accompanied by an extensive interactive database of incentives cataloged by state and company.
FULL STORY: As Companies Seek Tax Deals, Governments Pay High Price
Depopulation Patterns Get Weird
A recent ranking of “declining” cities heavily features some of the most expensive cities in the country — including New York City and a half-dozen in the San Francisco Bay Area.
California Exodus: Population Drops Below 39 Million
Never mind the 40 million that demographers predicted the Golden State would reach by 2018. The state's population dipped below 39 million to 38.965 million last July, according to Census data released in March, the lowest since 2015.
Chicago to Turn High-Rise Offices into Housing
Four commercial buildings in the Chicago Loop have been approved for redevelopment into housing in a bid to revitalize the city’s downtown post-pandemic.
Google Maps Introduces New Transit, EV Features
It will now be easier to find electric car charging stations and transit options.
Ohio Lawmakers Propose Incentivizing Housing Production
A proposed bill would take a carrot approach to stimulating housing production through a grant program that would reward cities that implement pro-housing policies.
Chicago Awarded $2M Reconnecting Communities Grant
Community advocates say the city’s plan may not do enough to reverse the negative impacts of a major expressway.
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Universal City TX
ULI Northwest Arkansas
Town of Zionsville
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.