As they attempt to steer their economic future, many state and local governments have adopted the practice of providing incentives to expanding and relocating businesses. A wide variety of policy instruments are used to create these incentives, ranging from taxes on very specific items (e.g., hotel occupancy taxes) to tax abatements and public subsidization of infrastructure. In recent years, certain questions have arisen regarding these incentives:
TXP’s past economic and fiscal impact studies have covered a wide range of topics, including expanding and relocating businesses, tourism activity, arts and music festivals, transportation projects, and mixed-use developments.
- Will incentive-based projects truly add to the existing base of economic activity in the region?
- How much new tax revenue will each taxing jurisdiction receive because of these projects?
- Do local governments ever recoup their investment?
TXP’s past economic and fiscal impact studies have covered a wide range of topics, including expanding and relocating businesses, tourism activity, arts and music festivals, transportation projects, and mixed-use developments.
EXAMPLE PROJECTS
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Estimated Economic and Tax Revenue Impact of an Expanded Pennsylvania Convention Center
Pennsylvania Convention Center Authority
Travel and tourism is important in the Philadelphia region, and an active convention center brings diverse and substantial benefits, both in terms of its overall economic impact and its role in enhancing the image of the region. TXP was retained by the PCCA to measure the anticipated economic and tax revenue impacts of increased delegate, exhibiting company, and event organizer spending associated with the proposed expansion of the Pennsylvania Convention Center.
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The Economic Impact of Austin's Entertainment Software/Digital Media Industry
The City of Austin
The growth of entertainment software and digital media into a vibrant industry that creates thousands of jobs, improves the performance of other industries and spurs technological advancement has been established, and Austin is on the global map when it comes to this important sector. TXP was hired to help determine what is required for the local entertainment software/digital media industry to thrive. A survey was conducted to help determine the "footprint" of the industry as well as to solicit identification and prioritization of the key factors influencing entertainment software's local prospects, a process that was amplified by individual interviews with industry leaders. The findings led to a series of specific recommendations related to the City's role in the economic development of this sector.
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The Economic and Fiscal Impact of Toyota's Manufacturing Facility
Southwest Independent School District in conjunction with Moak Casey & Associates
TXP evaluated the economic impact of Toyota's proposed $800 million manufacturing facility on the San Antonio area economy. The end result was a detailed report that assisted the Southwest I.S.D. and Bexar County leaders in determining the short and long-term economic benefits generated by Toyota.
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Estimated Economic and Tax Revenue Impact of an Expanded Pennsylvania Convention Center
Pennsylvania Convention Center Authority
Travel and tourism is important in the Philadelphia region, and an active convention center brings diverse and substantial benefits, both in terms of its overall economic impact and its role in enhancing the image of the region. TXP was retained by the PCCA to measure the anticipated economic and tax revenue impacts of increased delegate, exhibiting company, and event organizer spending associated with the proposed expansion of the Pennsylvania Convention Center.
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The Economic Impact of Austin's Entertainment Software/Digital Media Industry
The City of Austin
The growth of entertainment software and digital media into a vibrant industry that creates thousands of jobs, improves the performance of other industries and spurs technological advancement has been established, and Austin is on the global map when it comes to this important sector. TXP was hired to help determine what is required for the local entertainment software/digital media industry to thrive. A survey was conducted to help determine the "footprint" of the industry as well as to solicit identification and prioritization of the key factors influencing entertainment software's local prospects, a process that was amplified by individual interviews with industry leaders. The findings led to a series of specific recommendations related to the City's role in the economic development of this sector.
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The Economic and Fiscal Impact of Toyota's Manufacturing Facility
Southwest Independent School District in conjunction with Moak Casey & Associates
TXP evaluated the economic impact of Toyota's proposed $800 million manufacturing facility on the San Antonio area economy. The end result was a detailed report that assisted the Southwest I.S.D. and Bexar County leaders in determining the short and long-term economic benefits generated by Toyota.
