Bill > S1522

This bill establishes new rules for economic development tax credits, which are financial incentives offered by the government to encourage specific business activities. It amends existing law to include the investment tax credit and the abandoned building renovation deduction as types of tax credit programs. A key provision is that all tax credit programs will now automatically expire after three years unless the legislature reauthorizes them, and existing programs will expire after one year from the bill's passage unless reauthorized. Before reauthorization, the Department of Revenue and the Office of Commonwealth Performance, Accountability and Transparency will review each program's effectiveness, including identifying how much tax revenue is being forgone, who benefits, and how many jobs are created, and will then report their findings and recommendations to the governor and legislative committees. Furthermore, all tax credit programs will be required to include a "clawback provision," which allows the government to recover tax credits from recipients who fail to meet their stated goals, such as job creation targets. Finally, before proposing any new tax credit program, the governor must include specific details in the proposal, such as the program's purpose, expected effectiveness, estimated revenue loss, and, for certain types of programs, annual spending caps, award criteria, and administrative procedures including public disclosure and enforcement mechanisms.