A state-commissioned study from December found tax breaks had mixed results in Tennessee. Consultants recommended some changes to the subsidy programs, including adding a so-called “claw-back” provision to force companies to repay if they fell short of hiring targets and other commitments. The Tennessean obtained a copy of the study and published an analysis in February. House Minority Leader Craig Fitzhugh, D-Ripley, introduced the bill soon after.
Some credits, consultants found, have more economic impact than others. In December, Anderson Economic Group showed that the Jobs Tax Credit generated an average of 600 jobs per year and cost the state an average of $52.1 million annually from 2011 to 2014. That equates to about $87,000 per job, including direct hiring by the company receiving the credits and indirect hiring at other companies.