Rethinking Property Tax Incentives for Business

timely public policy issues relating to land use, land markets, and property taxation. Each report is designed to bridge the gap between theory and practice by combining research!ndings, case studies, and contributions from scholars in a variety of academic disciplines and from profes-sional practitioners, local of!cials, and citizens in diverse communities. About This Report State and local governments across the United States use several types of property tax incentives for business, including property tax abatement programs,!rm-speci!c property tax incentives, tax increment!nancing, enterprise zones, and industrial development bonds com-bined with property tax exemptions. The escalating use of property tax incentives over the last 50 years has resulted in local governments spending billions of dollars with little evidence of economic bene!ts. This report provides an overview of use of property tax incentives for business and offers several recommendations. State and local governments should consider forgoing these often wasteful incentive programs in favor of other, more cost-effective policies, such as customized job training, labor market intermediaries, and the provision of business services. If endin