Jobs have fallen in Cincinnati over the last decade even as economic development incentives have “spurred investments,” so the city hired an independent consultant to evaluate how to use tax incentives more effectively, Cincinnati.com reports. HR&A Advisors “studied 218 development deals between 2005 and 2015 in four city incentive programs,” according to the article. The group’s 152-page report made “five main recommendations,” including developing “standard evaluation metrics for economic incentives,” “[r]efining the use of Job Creation Tax Credits to maximize the city’s return on investment,” and “[i]mproving how the city grants its Community Reinvestment Act tax abatement.” The Cincinnati Business Courier reports that HR&A’s findings noted that property tax abatements “basically costs the city no property tax revenue” because the City Council has “set the amount of revenue it collects from property taxes at about $29 million per year.” While that policy remains in effect, property tax abatements are more favorable to the city than job creation tax credits, according to the article. City Manager Harry Black expects to recommend changing a future budget to set the city’s property tax at the maximum allowed, saying, “[i]t’s not enough in the first place. . . . I just don’t think it is smart to restrict full utilization of what we are eligible to get.” For more, read the full Cincinnati.com and Cincinnati Business Courier articles.
Cincinnati: review of economic development incentives shows what city can do better
