I have also heard that productivity for remote government jobs is not as high.
TSMC and Intel also shopped around the country for new fabs, a combination of geological stability, water resources, support by municipal and state governments. Offering tax incentives were a part of that package, with the expectation of increasing job opportunities.
The tax breaks are not for the land, but for operating there. These often involve contracts with milestones.
The lack of payroll tax (and income tax), is in theory made up for by the increased number of people and businesses in the state. This leads to more people buying houses and cars (property tax), or buying things in general (sales tax). And more bodies in turn create more demand for goods and services, driving the economy more.
Now, when the bodies are leaving, the state and municipality are taking a hit -- their big tax cuts aren't being hedged by personal spending because all of the persons left.
That also crushes other demand: no one is using gyms near their office, or getting gas to/from work, or grabbing coffee and lunch at places nearby. Fewer sales there, so even less tax, and eventually less people working there and potentially going out of business.
So consequently a lot of cities and states straight up said: get them back locally or we cut your tax breaks, and executives shrugged their shoulders and said "so be it".
Yeah but at the some time downtown became more alive, the center has shifted so to say or became more fuzzy.