Looking at incentives
Site selection magazine says North Carolina - High Point and Greensboro in particular - have been effective in luring companies to locate or expand around here. Of course, a key tool for doing that is handing over tax rebates and other goodies to said companies.
And everyone once in a while, as in the case of Google, people begin to question whether the state is a little too eager to give out money.
Well, the General Assembly says it is on the case. From a press release issued by the Senate President Pro Tempore’s office:
Raleigh – House Speaker Joe Hackney and Senate President Pro Tempore Marc Basnight have created a special legislative committee that will review the state’s economic-development incentives.The Joint Select Committee on Economic Development Incentives will review:
- How incentives are used in North Carolina and in other states, by both state and local governments, to attract new business;
- The cost of incentives and their effectiveness in promoting economic development;
- Ways to ensure that lawmakers have adequate information about potential projects when considering legislation and when tracking long-term use of incentives; and
- Whether “clawback” provisions in various incentive programs sufficiently protect North Carolina’s investments in economic development.
North Carolina’s aggressive economic-development tools have helped the state earn the top-ranked business climate in the country, according to Site Selection magazine. Basnight said he sought to create the joint committee as a way for lawmakers to gain more comprehensive knowledge of how state and local governments interact as they work to recruit new jobs and employers.
“Our state has a successful record in creating jobs and economic growth, but we should always be looking for ways to improve our efforts,” Basnight said.
“North Carolina’s economy has improved in recent years due to our efforts to attract new jobs and industries to our state while also helping our current businesses grow and expand,” said Speaker Hackney. “However, legislators must always look for efficiencies and examine the cost effectiveness of the way we attract new industries.”