Pew Offers Montana Best Practices for Evaluating Tax Incentives

The Pew Charitable Trusts sent a letter to Montana’s Legislative Services Division on Aug. 29, 2019, offering examples of best practices for evaluating tax incentives as the state began to conduct its first round of analyses.

The letter is designed to help Montana consider how to approach assessing the criteria required by the state’s evaluation law, including concepts like but-for, displacement, leakage, timing effects, opportunity costs, and effects on the economy. It provides examples from other state tax incentive evaluations and offers additional criteria for Montana’s interim revenue committee to consider.