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The Commonwealth employs a variety of means to achieve the goals of "economic development," to promote job creation, attract and retain businesses, and foster economic growth in the state. These include long-term strategies to increase the productivity of our workforce and our economy by investing in education and in infrastructure as well as short-term strategies to try to attract and subsidize specific businesses and industries. Though states use a combination of these approaches within their economic development programs, most--including Massachusetts--spend a significant share of their economic development resources on economic development tax expenditures. These tax exemptions, deductions, credits, deferrals and the creation of special tax rules are employed by state governments in an effort to attract new businesses to the state and prevent those are already in the state from leaving.
December 2, 2009 | PDF | Budget Brief