Growth of the state's myriad tax credit programs is outpacing general revenue growth, yet policymakers are paying little attention, according to a report today from the Iowa Fiscal Partnership.
An estimated $224 million, or 3.44 percent of all state revenues, will be given away in the form of tax credits that are meant to create economic development that would not occur without that the taxpayer subsidy, according to the report. The tax credits have little oversight and few are reviewed to determine whether they meet their intended goals, according to the report.
The report concludes that "Iowa lawmakers would do well to return to the findings of the most comprehensive review in the last decade, that of the Tax Credit Review Panel (which was created in 2010), and address these issues anew."
Click here to read the full report.