New Tennessee bill would shine a light on economic development incentives

A new bill before the Tennessee General Assembly would impose a higher level of transparency and accountability for the state’s most widely used economic development incentives. The Fair Accountability and Clarity in Tax Subsidies Act, or FACTS Act, would allow the public to scrutinize companies receiving state tax credits and grants. Tennessee awards more than $218 million in tax credits a year to lure companies or encourage them to expand in Tennessee, and has a running tab for unclaimed business credits at nearly $1.3 billion. That’s forgone revenue that could be spent on government services such as schools and roads. But state law has prevented the public from knowing which companies receive tax credits, how much they receive, and whether the companies are fulfilling their hiring or investment obligations. Knoxville News Sentinel

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Author: Matthew Randle