A promise by the individual or entity to take a specific action (like building a factory or creating jobs) that benefits the government or its citizens.
: A brief description of the tax abatement programs, including the names and purposes. gqseb-77
An agreement between one or more governments and an individual or entity. A promise by the government to forgo certain tax revenues. A promise by the individual or entity to
: Descriptions of any other commitments the government made as part of the abatement agreement beyond tax reductions. A promise by the government to forgo certain tax revenues
Issued in August 2015, this rule requires state and local governments in the U.S. that follow Generally Accepted Accounting Principles (GAAP) to disclose information about tax abatements in their annual financial reports. The goal is to provide transparency regarding the amount of tax revenue foregone to encourage economic development or other public benefits. Key Disclosure Requirements
Governments must include the following details in the notes to their financial statements: