Comment on In gov race, different views on incentive programs

In gov race, different views on incentive programs

After scoping dozens of sites, including four outside of Minnesota, the firm landed close to home in New Brighton amid a pocket of north suburban med-tech companies. Similar deals have been inked across Minnesota lately involving both homegrown firms and out-of-state recruits, many eagerly touted by Democratic Gov. Mark Dayton's administration as proof government can play a key role in priming economic development. The governor is adamant that a turnaround on his watch is undeniable and that more jobs are on the way, helped along by incentive programs like the new $24 million Minnesota Job Creation Fund and a supersizing of the loan-based Minnesota Investment Fund he helped launch 30 years ago. According to Pew Charitable Trusts researchers, each state has at least one tax incentive program for economic development — and most have several — that gobble up billions of combined tax dollars per year. At Good Jobs First, a left-leaning think tank that has produced reports skeptical of such programs, executive director Greg LeRoy has detected a shift toward pay-for-performance designs. Just Friday, Nevada's Republican governor enacted legislation giving Tesla Motors tax credits and other incentives worth up to $1.3 billion for locating a new $5 billion battery factory there instead of California, Arizona, New Mexico or Texas.

 

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