Out of Control Policy Blog

More Thoughts on "Stimulus" Tax Cuts and the States

In an earlier post I pointed out a new paper on the high cost and distortion of tax credits for hybrid vehicles to cut ghgs.  Now a Portland Tribune article points out the problems with that state's green tax credit program.

But the credit comes with a hefty price tag for Oregon taxpayers. State projections expect the program to double in cost in the next biennium, providing $143.8 million in tax breaks during the next two years.

What’s more, an investigation of the program’s inner workings by the Pamplin Media Group shows that when state agencies use the tax credit to fund sustainability projects, those projects often wind up costing the state more than what it would have cost to just pay for them outright.

Adrian Moore is Vice President, Policy


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