Press release from the Office of State Sen. Lowe Finney, D-Jackson; November 18, 2013:
NASHVILLE – Troubled by a recent audit that found state government can’t say whether companies are creating jobs in exchange for tax credits they’ve received, state Sen. Lowe Finney requested a review of state contracts to be presented during the 2014 legislative session.
“I brought ‘claw back’ legislation to protect taxpayers if promises of new jobs for tax credits are broken,” state Sen. Lowe Finney said. “According to this audit, the administration wouldn’t know when to ‘claw back’ taxpayers’ money.”
Sen. Finney sponsored SB 0605 during the last legislative session, which directs the Department of Economic and Community Development to include “claw back” provisions in all contracts to ensure the state has the authority to take back any incentives awarded to companies that don’t create jobs.
A recent audit by the comptroller’s office found that the Department of Revenue “could not provide evidence that companies audited complied with state law” for tax credits awarded to the 27 companies audited between Jan. 1, 2010 and June 30, 2012.
In a letter to Department of Revenue Commissioner Richard Roberts, Sen. Finney requested a thorough review of those contracts and the jobs created to be presented to the Senate Finance Committee during the 2014 legislative session.