Comptroller: Industry-wooing incentives too costly

December 19, 2010 3:28:43 PM PST
A study by Texas Comptroller Susan Combs' office shows the state is paying to much to attract major economic development projects, particularly farms of wind-powered electric generators.

A state law allows school districts to provide tax incentives to recruit such projects. Those breaks have helped the state to attract industries with significant employment, Combs wrote, but it has also been "increasingly used to over-incentivize projects that create few or no jobs."

About two-thirds of the 98 projects that have won the tax breaks are the so-called "wind farms," the Austin American-Statesman reported in Sunday's editions.

The report shows that the cost per job is 40 times what the state spends on projects that earn grants from the governor's Texas Enterprise Fund.