That’s because, while states and localities need every dollar they can find to balance their budgets, they also need to encourage investment and job creation during these tough economic times, writes Cara Griffith, author of “Practice Notes,” a former manager at PricewaterhouseCoopers LLP, and a former legal editor for State Tax Notes.
In offering these tax breaks, however, states want to make sure they get their money’s worth, Griffith writes. Consequently, some states are more inclined to enforce clawback provisions, under which they can rescind the tax breaks if businesses do not fulfill their promises.
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