The annual Tax Expenditure Report provides a comprehensive listing of the state’s statutory provisions that promote quality of life and economic growth through tax incentives.
Tax expenditures are tax credits, deductions, and exemptions that reduce state revenue. They can include everything from poverty-reducing income tax credits and broad sales tax exemptions to targeted credits and exemptions for businesses to promote economic development.
Tax expenditures represent a cost to state treasuries, just like direct spending for schools and health care, and are a tool states can use to accomplish policy goals.