A state commission examining business incentives was unaware that an $89-million subsidy for tire manufacturers was not specifically named on its review list. But state officials say the panel will evaluate the program, two years after subsidy recipients can apply for more funding.
A new state oversight panel has decided to target for scrutiny this year 11 business incentives that have been reducing state revenue by at least $110 million a year. Among the targets is an incentive for wind power generation.
The state’s 4.5-cent sales tax has 150 statutory exemptions, but state officials and others say despite a budget crunch and more scrutiny of tax breaks, it’s unlikely any sizable exemptions will be eliminated.
Responding to a new law, state officials are suggesting an independent review of up to 75 business incentives that have reduced state revenue by more than $335 million a year. Will the review lead to cutbacks in business breaks?