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Pursuant to a congressional request, GAO studied the enterprise zone program in Maryland to identify issues for the possible development of a federal program, focusing on: (1) program cost offsets; (2) employment growth; (3) program effects on workers; (4) reductions in welfare dependence; and (5) the effectiveness of tax incentives and other local development strategies.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Congress The GAO assessment of the Maryland experience does not show that enterprise zones are effective. If Congress decides to introduce a federal program along those lines, the program should be a modest demonstration rather than the large effort proposed in several bills.
Closed - Not Implemented

Recommendation status is Closed - Not Implemented.

The new administration is proposing enterprise zone legislation with major differences from the bill GAO examined.

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