I wonder if the 30% tariff our esteemed President, slapped on Chinese solar
panels is part of this story!
@utlosttheirminds, isn't it grand though? Because all of the deals are
post performance, nothing is lost. Also, because the deals are all based on tax
revenue from the companies themselves, nothing is lost from the general tax
payers either.See, if a company doesn't meet the goals, they
don't get the tax credits. Also, if a company doesn't come to the
State or expand within the State, they wouldn't get the tax credit offer
either.As such, there is no need for reporting on these incentives
as they cannot exceed 100% of the taxes received by the company. They cannot
include the taxes from the employees or sub-contractors, it must be directly
from the company and their purchases. Most incentives are less than 25% of
estimated tax revenue.Tax credits can never result in a company
receiving money as part of an over payment of taxes, it just reduces the amount
of taxes due. If a company fails to make money and has negative income, the
credit is of no use. It is one reason why the terms are generally over a 5 to 7
year average.Cities can offer money, land and more but the State
just provides post performance credits to save tax payers for a reason.
In case you haven't figured it out yet, solar is NOT the future of
energy...far from it based on numerous scientific journals of late.
Utah's GOED knocks another right out of the park... So much for the 4000
Utah jobs they announced and tossed in up to $25,000,000.00 post-performance tax
credit rebates, don't get me wrong I'm glad its performance based but
this system of "economic development" isn't working and GOED is not
getting a reasonable return for Utah's tax payers. I wish there was a more
transparent reporting system to all successes and failures. Once a deal is
struck they go quieter than a submarine running on silent and move onto their
Republican tax cuts are impacting the job market and the economy, just like they
said they would. Only in the opposite direction.