How Do Place-Based Investment Tax Incentives Target Low-Income Communities? A Multi-State Survey of Enterprise Zone Tax Incentives

63 Pages Posted: 28 May 2019

See all articles by Michelle D. Layser

Michelle D. Layser

University of Illinois College of Law

Date Written: May 1, 2019

Abstract

Place-based investment tax incentives known as enterprise zone laws have historically been used as a method for subsidizing investment in low-income communities. Scholarly and policy treatments of enterprise zone laws commonly discuss them as if there is a unified approach to designing these programs. This report finds, however, that although most (33/50) states have enterprise zone laws, these programs vary significantly in important respects — including zone eligibility requirements; eligible investment types; incentives to invest in human capital or affordable housing; and taxpayer eligibility. Understanding these variations is particularly important to understanding how past experience with enterprise zones can inform new place-based incentives, such as those that have been introduced in the federal Opportunity Zones program.

Keywords: Tax, Tax Incentives, Taxation, Community Development, Housing, Poverty, Legal Geography

JEL Classification: K34

Suggested Citation

Layser, Michelle D., How Do Place-Based Investment Tax Incentives Target Low-Income Communities? A Multi-State Survey of Enterprise Zone Tax Incentives (May 1, 2019). University of Illinois College of Law Legal Studies Research Paper No. 19-29, Available at SSRN: https://ssrn.com/abstract=3381243 or http://dx.doi.org/10.2139/ssrn.3381243

Michelle D. Layser (Contact Author)

University of Illinois College of Law ( email )

504 E. Pennsylvania Avenue
Champaign, IL 61820
United States

HOME PAGE: http://https://law.illinois.edu/faculty-research/faculty-profiles/michelle-d-layser/

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