Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Will Corporate Tax Breaks Be Enough To Keep Companies in Certain States?
Author: Scarinci Hollenbeck, LLC
Date: November 29, 2013
Key Contacts
Back
States have long provided corporate tax breaks and deductions to profitable companies that agree to maintain operations within their territories. While these tax breaks can total into the millions of dollars, they may not always be a reliable way to convince some companies to stay put, a new analysis suggests.
Washington state recently made history when it signed a tax law offering Boeing an unprecedented $8.7 billion in tax breaks through 2040 in an attempt to convince it to locate production of a new jetliner fleet within the state. Analysts agree that this may be the largest corporate tax offering ever. The breaks would relate to the company’s business and occupation tax – the major business tax levied in Washington – as well as many property tax exemptions. However, it is unclear whether Boeing will agree to locate its operations to the state.
According to a recent analysis in The New York Times, corporate tax breaks for occupying a certain state are not uncommon, and states, counties, and cities routinely extend roughly $80 billion a year in tax benefits to businesses each year. However, these tax benefits are not always enough to keep companies in their cross hairs, and even in cases where these benefits are accepted, reputational damage can sometimes ensue.
For instance, San Francisco – which recently provided tax benefits valued at $56 million to Twitter and other tech companies – is currently managing a string of protests from residents who feel the tax breaks are excessive and unnecessary. The protests follow a report that the city stands to lose roughly $22 million on the tax deal. However, companies and advocates of the tax breaks contend that the money and the jobs they generate – both of which contribute to the state and national economy – outweigh any subsidies they receive.
- Practices: Corporate Tax Planning, Tax and Trusts & Estates, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.