Ohio ranks third in U.S. for number of tax “megadeals” to companies



Ohio ranks third in the nation, tied with Texas, for the number of “megadeals” awarded companies in tax subsidies, according to a new report by nonprofit Good Jobs First.

State and local governments have been awarding economic development subsidy packages to corporations more frequently than before, Good Jobs First said in releasing findings of a study into tax incentive practices in the U.S. Tax credits and abatements are meant to encourage investment and/or the creation and retention of jobs.

The group identified 240 tax incentive packages that cost at least $75 million a piece over the past 35 years. The cumulative cost of these deals is more than $64 billion, Good Jobs First said, a Washington, D.C., think tank studying public economic development issues.

Eleven deals identified cost $1 billion or more, Good Jobs First said. Since 2008, the group also found the average frequency of “megadeals” per year has doubled compared to the previous decade.

Michigan has awarded 29 such deals, New York has done 23, and Ohio and Texas has done 12 each, according to the report.

This newspaper reported in October 2012 that Ohio has awarded millions in tax incentives to companies that threaten to leave the state.

“Despite their high costs, some of the deals involve little if any new-job creation,” said Good Jobs First Executive Director Greg LeRoy in a statement. “Some are instances of job blackmail, in which a company threatens to move and gets paid to stay put. Others involve interstate job piracy, in which a company gets subsidies to move existing jobs across a state border, sometimes within the same metropolitan area.”



Reader Comments


Next Up in News

Here’s why Rue Dumaine’s downsizing is a big deal
Here’s why Rue Dumaine’s downsizing is a big deal
The news that Rue Dumaine will scale back operations and will no longer have regular hours as a public restaurant rocked the Miami Valley’s...
Video from I-75 crash that killed 5 released
Video from I-75 crash that killed 5 released
The Ohio Department of Transportation has released video that shows the wrong-way crash that killed five people on Interstate 75 on Feb.
4/20: In case you get really, really hungry today
4/20: In case you get really, really hungry today
Every year on April 20, there is a celebration of sorts for an unofficial holiday: 4/20. 4/20 is widely considered to be the day, once a year, to...
14 apply for Southeastern board seat
14 apply for Southeastern board seat
The Southeastern Local School District Board of Education received 14 applications to fill a seat vacated by the resignation of Tammy Stoops last...
U.S. Senate candidate Ted Strickland visits Dayton today
U.S. Senate candidate Ted Strickland visits Dayton today
Former Ohio Gov. Ted Strickland, a Democrat trying to unseat U.S. Sen. Rob Portman, R-Ohio, was in Dayton today.
More Stories

You have reached your limit of free articles this month.

Enjoy unlimited access to myDaytonDailyNews.com.

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of free premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and bonus content- exclusively for subscribers. Starting at just 99¢ for 8 weeks.

X

Welcome to myDaytonDailyNews.com

This subscriber-only site gives you exclusive access to breaking news, in-depth coverage, exclusive interactives and bonus content.

You can read free articles of your choice a month that are only available on myDaytonDailyNews.com.