Here is the City of Phoenix report from Phil Bradstock that clearly shows the impact production tax credits have.
The graph tracks money spent in the city. It shows very graphically that other states with tax credits were syphoning millions of dollars out of the Phoenix economy before our own tax credit program was created to fight back, and the positive effect the old program had even with it’s problems.
What I find significant is the serious downturn that began as the program was set to expire going into FY 2009-10 when we tried and failed to get it extended, and the further serious drop during FY 2010-11 when our revised bill was held as the old program expired.
It graphically illustrates the effect New Mexico and Louisiana’s tax incentives have on what was once a significant economic engine just for the city, and the very positive effect Arizona’s own program had when it existed. Multiply that by the number of other cities and towns in Arizona and you can see the effect that tax credit programs in surrounding states are having on our economy.
Not to make a dismal picture worse but, sad to say, Phil has been tracking activity to date and expects June’s report to show a dramatically lower number for fiscal year 2011-12 most likely half that of 2010-11 … that would make it something like 7 to 8 million. That’s not an impact … it’s a slight ripple in the water. That’s just plain scary!