Hoosier Pols Joust on Tax Incentive Efficacy
Indiana Secretary of Commerce Mitch Roob has responded to concerns from House Speaker Patrick Bauer about the distribution of tax incentives for companies that may no longer be in compliance.
Roob says there is no clear way for the state to guarantee specific performance projections of companies deciding to locate in Indiana. In a letter to Bauer, Roob points to more than 600 decisions by companies to place projects in the state between 2005 and 2008. As of the end of 2009, only 66 of those initaitives were not moving forward, according to a release from the Indiana Economic Development Corp. (IEDC)
Several RV companies are among the more than 600 that received IEDC assistance over the period in question.
Roob also says that as required by law, companies receive incenctives that are in line with reports filed to the Indiana Department of Revenue.
He adds the IEDC currently offers companies an average of $8,502 per job in incentives, which pays off for the state after two years.
Click here to read Roob’s letter.
Upon receipt of Roob’s letter, Bauer, a Democrat from South Bend, issued the following statement:
“While we are all a little stunned to see the administration respond to a request for information in a timely manner, we do appreciate that the IEDC has provided us with some of the materials that we have requested.
“It is refreshing to see the administration actually provide some information, although we need to assess what questions they have answered and what questions still remain.
“We look forward to making sure that they have responded fairly and accurately to our request to finally show Hoosiers how their tax dollars are being used.
“We will have a more detailed response once we have completed our study of the data.”