In my column today, I comment on a recent report by the Pew Center on the States. The study, Evidence Matters, examines how states evaluate tax incentives. From the column:

Pew identifies Washington as one of 13 states “leading the way” in the systematic evaluation of tax incentives.

Washington’s review process does a good job of regularly evaluating major incentives, drawing clear conclusions and channeling the information to policymakers, reports Pew. The state is faulted for not routinely conducting economic impact analyses, which Pew acknowledges are difficult and complex.

While there’s a lot of good information in the report, I take issue with one implied recommendation.

Pew commends Oregon for a 2009 law that has most tax incentives expire after six years. Legislation introduced here last session had a similar objective.

It’s a bad idea. Rather than burden the entire system with uncertainty masquerading as due diligence, lawmakers here should selectively identify sunset dates for specific, targeted incentive programs. Corporations intent on making major, enduring capital investments will shun an environment that offers the tax policy equivalent of Lucy holding the football for Charlie Brown.

I expect we’ll hear a lot about this stuff in the coming months. Please take a look at the column and the Pew research.