Who We Are
The Tax Expenditure Review Commission (TERC) was created under Chapter 207 of the Acts of 2018 to review each tax expenditure every five years and evaluate its purpose, intent, goal, and effectiveness.
The TERC is chaired by the Commissioner of the Department of Revenue, and other members include the State Auditor; the State Treasurer; the chair of the House Committee on Ways and Means; the chair of the Senate Committee on Ways and Means; the House and Senate chairs of the Joint Committee on Revenue; the Minority Leader of the House of Representatives; the Minority Leader of the Senate; and 3 members to be appointed by the governor, who have expertise in economics or tax policy. The 3 members appointed by the governor will serve 4-year terms. TERC members may appoint designees.
What We Do
The focus of TERC will be on past and forecasted impacts on state and local taxing authorities, including
- Revenue loss versus gain
- Jobs created, retained or lost
- Return on investment
Similar tax expenditures offered in other states, as well as impacts on regional and national competitiveness, also will be evaluated. A biennial report of the TERC's findings and recommendations is due to the legislature by March 1.
The TERC also will create a 5-year review schedule of each tax expenditure, as well as adopt policies and procedures to ensure taxpayer confidentiality of information. DOR will provide aggregate tax information.