The Legislature is working on a tax credit increase for “energy businesses.” These businesses already have a 35% tax credit, spread over 5 years, up to $10 million. The proposal is to increase the credit to 50% for up to $20 million.
Both are a waste. John Sedgwick, the co-founder and vice president of Solaicx, which is the latest and largest company coming to the state, has this to say:
“The ready availability of skilled people was far and away the main reason for choosing Portland.” He goes on to add that “We love the incentives and that the expanded credit would be “…icing on the cake.”
So much for the supposed need for the incentives. Studies going back over 20 years have shown that almost all incentives to lure business, from autos to high-tech, cost the taxpayers more than the economic benefit of the jobs created.
— Richard Leonetti is from Oregon Tax Research