ANNOUNCEMENT 01 Apr 2014

In April 2014, a US state government announced a targeted tax change.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Main data from Good Jobs First at http://www.goodjobsfirst.org/sites/default/files/docs/Megadeals_February2015.xlsx. Dave Berman, "$20.8M 'Magellan' package gets OK," Florida Today, (March 26, 2014), available at http://www.floridatoday.com/story/money/2014/03/25/-208m-magellan-package-gets-ok/6897787/ and Dave Berman and Wayne T. Price, "Lease deal would help 'Magellan' avoid taxes,"? Florida Today (April 4, 2014), available at: http://www.floridatoday.com/story/news/local/2014/04/03/lease-deal-help-magellan-avoid-tax/7281725/


Inception date: 01 Apr 2014 | Removal date: open ended
Still in force

Tax or social insurance relief

State and local governments in Florida provided $471,005,000 in incentives to Northrup Grumman in 2014 for an aerospace production facility expansion. The package includes an estimated $450 million that the company will save over 50 years through local property tax exemptions; $20.8 million grant from the state's Quick Action Closing Fund; and $205,000 grant from Brevard County to cover impact fees. Space Florida, a state economic development agency, will build and equip a complex, which Northrop Grumman will lease from the agency (as a tenant of the state entity the company will be exempt from paying local property taxes). In addition, Melbourne City Council agreed "not to challenge the company's pursuit of a full tax exemption" for new and renovated buildings, parking, and personal property. 
 
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.

AFFECTED SECTORS