Saving the States from Themselves: Commerce Clause Constraints on State Tax Incentives for Business

1996 ◽  
Vol 110 (2) ◽  
pp. 377 ◽  
Author(s):  
Peter D. Enrich
Keyword(s):  
Tax Incentives ◽  
Commerce Clause ◽  
State Tax

Lord of the Rings Impact on Federal and State Film Industry Tax Incentives and Their Tax Treatment

2009 ◽  
Vol 7 (1) ◽  
pp. 57-75
Author(s):  
Kathleen K. Wright ◽  
Stewart S. Karlinsky ◽  
Kim A. Tarantino
Keyword(s):  
Film Industry ◽  
Tax Incentives ◽  
Entertainment Industry ◽  
Film Production ◽  
Lord Of The Rings ◽  
State Tax ◽  
Recent Developments

ABSTRACT: This article discusses recent developments for both federal and state tax purposes that directly impact the entertainment industry. For federal purposes, Congress has recently expanded the scope of the Section 181 and 199 deductions to allow more generous deductions, and in the case of Section 199 to relax the requirements which must be met to claim the deduction. The states seem to be in competition to “outdo” each other in enacting rebates or transferable credits to enhance the desirability of their states for film production. The tax treatment of these credits for both federal and state purposes is discussed, and the Appendix summarizes the provisions of these incentives on a state-by-state basis. The article concludes with a discussion of the effectiveness of this type of incentive legislation.

Private Long-Term Care Insurance and State Tax Incentives

2009 ◽  
Vol 46 (3) ◽  
pp. 305-321 ◽  
Author(s):  
David G. Stevenson ◽  
Richard G. Frank ◽  
Jocelyn Tau
Keyword(s):  
Long Term Care ◽  
Private Insurance ◽  
Tax Incentives ◽  
National Data ◽  
Term Care ◽  
State Tax ◽  
Long Term Care Insurance

To increase the role of private insurance in financing long-term care, tax incentives for long-term care insurance have been implemented at both the federal and state levels. To date, there has been surprisingly little study of these initiatives. Using a panel of national data, we find that market take-up for long-term care insurance increased over the last decade, but state tax incentives were responsible for only a small portion of this growth. Ultimately, the modest ability of state tax incentives to lower premiums implies that they should be viewed as a small piece of the long-term care financing puzzle.

scholarly journals Evaluation of the tax benefit effectiveness for certain types of activities in Ukraine (part 2)

2021 ◽  
Vol 2021 (6) ◽  
pp. 40-54
Author(s):  
Alla SOKOLOVSKA ◽  
Keyword(s):  
Tax Incentives ◽  
The State ◽  
Annual Reports ◽  
Effective Control ◽  
Production Cycle ◽  
State Support ◽  
Space Industry ◽  
Council Directive ◽  
State Tax ◽  
Tax Benefits

The second part of the article considers the consequences of assessing tax benefits for cinematography and the space industry, which they enjoyed in 2014-2019. Since these types of activities, in addition to tax benefits, also received direct state support in the form of expenditures on targeted budget programs, the effectiveness of their aggregate state support was analyzed. It was found that for both activities it was quite effective. At the same time, of the four types of activity which were the subject of analysis, the largest state support during this period was provided to cinematography, the smallest – to the space industry, which indicates real state priorities. The analysis of state support for priority activities in Ukraine showed that the most common form of tax benefits provided to them, in contrast to EU countries, is exemption from VAT for transactions of supply of goods to the customs territory of Ukraine. However, the application of such a benefit (this exemption becomes a benefit only in the case of a long production cycle), firstly, requires the establishment of effective control at customs over the legality of its provision and accounting for the amount of the benefit and losses of budget revenues due to its provision, as well as the transfer of relevant information from the customs authorities to the State Tax Service for the purpose of taking them into account in general reports. Secondly, considering that this contradicts the requirements of Council Directive 2006/112/EC, its truly temporary application must be ensured. In general, according to the results of the study, it was concluded that the introduction of constant monitoring of the effectiveness of the use of tax benefits requires clarification of the list of benefits that are losses of budget revenues, and that do not lead to such losses; providing public access to the reports of the State Tax Service on the amounts of benefits that are losses of budget revenues; ensuring proper control over the legality of the application of tax benefits, the completeness and accuracy of their accounting, the fulfillment of the conditions for the provision and targeted use of funds released as a result of the application of tax incentives prescribed in the legislation; inclusion of information about tax expenditures in reports on the execution of state budget, preparation of annual reports on the fulfillment of the conditions for the provision of tax benefits defined in the Tax Code of Ukraine; in case of using temporary tax incentives, a mandatory audit of their effectiveness and efficiency as a prerequisite for extending the period of their use.

Ten Principles for State Tax Incentives

1995 ◽  
Vol 9 (4) ◽  
pp. 339-355 ◽  
Author(s):  
Keith R. Ihlanfeldt
Keyword(s):  
Economic Theory ◽  
Economic Development ◽  
Empirical Evidence ◽  
Tax Incentives ◽  
The State ◽  
Incentive Programs ◽  
State Tax

The use of tax incentives for economic development is growing among states. This growth is partially caused by a response to new incentives of neighboring states, and similar incentive laws are passed in the interest of remaining competitive. As a result, many states have adopted tax incentives not well founded on economic theory or empirical evidence. This article draws on the latter to develop ten principles that states can employ to enhance the fairness and effectiveness of tax incentives. To illustrate their application, the principles are used to evaluate the state of Georgia's incentive programs.

The Diffusion of State Tax Incentives for Business

2015 ◽  
Vol 45 (3) ◽  
pp. 334-363 ◽  
Author(s):  
Stephanie Leiser
Keyword(s):  
Tax Competition ◽  
Event History Analysis ◽  
Tax Incentives ◽  
Tax Credits ◽  
Empirical Literature ◽  
Tax Rates ◽  
Tax Incentive ◽  
History Analysis ◽  
State Tax ◽  
Incentive Policies

Tax competition scholars are increasingly recognizing that states compete with each other not only by manipulating tax rates but also by adopting tax incentives. However, there is a comparative lack of empirical literature exploring why states adopt different types of tax incentives. This article draws on the literatures on tax competition and policy diffusion to develop hypotheses about what factors motivate states to adopt business tax incentives, paying particular attention to the influence of other adopting states. It uses event history analysis methods to test hypotheses regarding the adoption of four state tax incentive policies: investment tax credits, apportionment formula changes, research and development tax credits, and job creation tax credits. Regression results show that factors that influence adoption decisions are largely inconsistent across the four incentive types. However, analyses of duration dependence find evidence consistent with the idea that states are “racing to the bottom.”

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