North Dakota is one of 16 states leading the nation when it comes to tax incentives used to create jobs, attract new businesses and strengthen their economies.
Tax incentives are huge budget commitments in the part of state governments, representing, in many cases, tax losses now in exchange for greater tax collection benefits in the future
As a result, the strategies for offering tax incentives and the methods for measuring the return on those investments is critical in determining which incentives are working and which need some tweaking.
The Pew Charitable Trusts, in annual rankings, measures each state’s process for developing and measuring tax incentives, particularly in three areas: Making a plan, measuring the impact, and informing policy choices.
These criteria were selected because they lead to regular, high-quality analyses that lawmakers use to improve the results of the state’s economic development efforts.
For 2019, North Dakota joins the list of states leading the nation in developing, implementing and evaluating tax incentive programs.
Neighboring Minnesota is also on the top 16 list.
You can read more on the rankings and methodology used here.