Very often, in order to attract business, local communities will offer tax abatements, loans or grants for the company to build the new factory or warehouse. But do they work? San Antonio says, yes, they do. For every dollar spent on tax abatements and grants to attract new businesses to San Antonio, the City of San Antonio is projected to earn almost three times the initial investment, according to a local research report.
The analysis, solicited by the city’s Economic Development Department, demonstrates that the money spent on incentives has paid for itself through property tax and sales tax revenue, company and employee spending and CPS Energy revenue.
Combining the total costs of the program and the incentives, he said that for every dollar spent, the city earned $2.85 in revenue. The city began a process in 2021 to evaluate the economic development incentive guidelines it uses to attract new industry.
Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.
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