COSTS AND BENEFITS OF BUSINESS TAX INCENTIVES IN KANSAS

Abstract

This report is a cost-benefit study of Kansas business tax incentives: the Job Expansion and Investment Tax Credit and the Sales Tax Refund. The ultimate objectives of these tax incentives include generation of job opportunities for state residents and the strengthening of state fiscal capacity. The issue then, is whether the cost to the state of a particular incentive outweighs the resulting benefits which accrue to the state, the locality, or both.