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
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
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.