Enterprise Zones

GAO discussed enterprise zone programs, focusing on whether a Maryland enterprise zone program: (1) created jobs while reducing welfare dependence; (2) generated federal revenues by decreasing federal transfer payments to enterprise zone workers; and (3) demonstrated the effective use of tax incentives and other business strategies in influencing firms' hiring decisions. GAO found that the Maryland program: (1) did not lead to employment growth or reduced welfare dependency; (2) did not decrease federal transfer payments; and (3) failed to demonstrate that tax and other zone incentives were important factors in firms' hiring decisions.