Advisor(s)

David A. Rochefort

Abstract

Launched in 1994, the Massachusetts Economic Development Incentive Program (EDIP) is a state and local partnership designed to relieve unemployment, redevelop blighted commercial districts and promote economic growth by providing tax incentives for businesses relocating or expanding in Massachusetts communities. Despite the size and scope of EDIP over 1,000 companies have likely received over $100 million in tax relief through the program the Commonwealth has neglected to conduct elementary oversight or basic cost-benefit analyses of EDIP. This paper attempts to examine, through new quantitative and qualitative data, whether EDIP has created lower levels of unemployment or higher levels of business activity in the communities it serves. The paper concludes with ten legislative recommendations for reforming EDIP.

Date Accepted

May 2007

Subject Categories

Economic development, Tax incentives

Keywords

tax policy, economic development policy, state and local issues, state and local government

Degree Grantor

Northeastern University

Publication Date

5-8-2007


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