SPRINGFIELD — Illinois is among 25 states that don’t regularly measure the effectiveness of tax incentives are aimed at spurring economic growth and job creation, according to a new study.
By Anthony Brino
SPRINGFIELD — Illinois is among 25 states that don’t regularly measure the effectiveness of tax incentives are aimed at spurring economic growth and job creation, according to a new study.
Since the Great Recession in 2008, the 50 states have used tax breaks and credits to promote economic growth. But only 13 states adequately measure their effectiveness and 12 regularly try to, according to a report released last week from the Pew Center on the States, a nonprofit that researches state policies.
In Illinois and 24 other states, it’s unclear how effective the tax breaks have been or how many jobs they’ve sustained because there has been little or no evaluation, according to the Pew report.
Jeff Chapman, lead author on the Pew report, said a sound evaluation would measure the economic impact of individual tax breaks and the number of jobs they created.
Illinois lawmakers have increased tax incentives from about $188 million in 2009 and $272 million in 2010, said Marcelyn Love, a spokeswoman for the state Department of Commerce and Economic Opportunity.
Love said that in 2009 the incentives led to the creation or retention of 42,000 jobs in Illinois. Love said 2010 data were not available.
Critics say tax-incentive programs sometimes favor politically connected industries or companies.
Illinois’ incentives cover programs overseen by the Department of Commerce and Economic Opportunity, including the Enterprise Zone Program, a system offering tax breaks for sectors such as manufacturing, which are set to expire in the next few years.
Last year, with Sears Corp. and the CME Group, which runs the Chicago Mercantile Exchange, talking openly about leaving their home state, Illinois lawmakers enacted incentives that allowed the two firms to save about $100 million in taxes a year.