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CED-82-78 1 (1982-07-15)

handle is hein.gao/gaobabdnl0001 and id is 1 raw text is: 





BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES





Revitalizing Distressed Areas

Through Enterprise Zones:

Many Uncertainties Exist



The administration has proposed the enter-
prise zone concept as a new approach to
revitalize distressed areas by providing tax
relief and regulatory reform. Objectives
would be to stimulate business develop-
ment and create jobs.

Many unknowns exist about the effective-
ness of the proposed incentives and their
costs. For example, will the zones attract
substantial private investments, create jobs,
and/or result in adverse effects? And be-
cause Federal costs for the program will
depend upon response to the incentives
offered rather than congressionally con-
trolled appropriations, will the actual pro-
gram costs be more or less than estimated?

If the Congress enacts an enterprise zone
program, GAO agrees with the administra-
tion that it should be undertaken on an
experimental basis. Further, GAO recom-
mends that enterprise zone legislation re-
quire the administering Federal agency to
establish program effectiveness criteria sup-
ported by systematic data collection and
evaluation to analyze the benefits and costs
of the program.


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  1'        'GAO/CED-82-78
                                                              JULY 15,1982

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