Economic Development Accountability Framework
Ensuring Tax Incentives Deliver Real Results
No more blank checks for corporations – accountability for every dollar
$5M
Annual Oversight Investment
$18+/hr
Living Wage Requirement
50%
Local Hiring Target
100%
Clawback on Broken Promises
⚠️ The Problem: Incentives Without Accountability
Louisville has given away hundreds of millions in tax incentives to corporations that promised jobs but often failed to deliver. When companies don’t meet their commitments, taxpayers are left holding the bag.
No more. Every incentive will have strings attached – and we’ll enforce them.
Key Accountability Measures
📊 TIF/PILOT Oversight
- Annual audits of all Tax Increment Financing (TIF) districts
- Payment In Lieu Of Taxes (PILOT) compliance tracking with public dashboard
- Public reporting of actual vs. promised job creation – updated quarterly
- Automatic clawback provisions for unmet commitments
- 5-year performance reviews before any incentive renewals
💰 Job Quality Requirements
- Living wage minimum: $18-20/hour for all incentivized jobs
- Benefits requirement: Health insurance, paid leave for full-time positions
- Full-time job preference: At least 75% of created jobs must be full-time
- Annual job quality reports – wages, benefits, turnover rates
- Worker voice: Companies must allow employee surveys on job quality
🏠 Local Hiring Preferences
- 50% Louisville Metro residents for all incentivized projects
- Priority hiring from high-unemployment ZIP codes
- Apprenticeship requirements: 10% of workforce in training programs
- Partnership with local workforce development – KentuckianaWorks, JCTC
- Penalties for out-of-state hiring that bypasses local workers
🤝 Community Benefits Agreements
- Mandatory community impact assessments for projects over $10M in incentives
- Neighborhood input requirements – public hearings before approvals
- Infrastructure commitments: Roads, utilities, public spaces
- Environmental mitigation plans with enforcement mechanisms
- Affordable housing set-asides for residential developments
Enforcement Mechanisms
🔴 Clawback Triggers
- Job creation falls 20% below target
- Wages below promised levels
- Company relocates within 10 years
- Failure to meet local hiring goals
⚠️ Warning System
- Quarterly performance reviews
- Yellow flag at 10% underperformance
- Red flag triggers remediation plan
- Public disclosure of all warnings
✅ Good Actor Bonuses
- Extended incentive terms for exceeding targets
- Priority consideration for future projects
- Public recognition program
- Streamlined permitting for expansions
Transparency Dashboard
Every incentive deal will be tracked on a public dashboard at IncentiveTracker.Louisville.gov
What You’ll See:
- ✅ Company name and incentive amount
- ✅ Jobs promised vs. jobs created (updated quarterly)
- ✅ Wage levels – average and median
- ✅ Local hiring percentages
- ✅ Compliance status (green/yellow/red)
- ✅ Clawback actions taken
- ✅ Community benefits delivered