The Cost of Tax Incentives to Public Schools 1

This chapter analyzes the impact of tax abatements on school finance. We use FY 2019 financial disclosures by US school districts, state statutes on tax incentive programs, and school demographic and fiscal indicators to assess the impacts. At least $2.4 billion earmarked for public education was lost that year to tax abatements that local governments awarded companies in the name of economic development. This large figure is an undercount, since school district-specific financial data does not exist in some states.