ANNOUNCEMENT 10 Dec 2014

In December 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.
Agenda for the board meeting of the New Jersey's Economic Development Authority on December 9, 2014; available online at: http://www.njeda.com/web/Aspx_pg/Templates/Pic_Text.aspx?Doc_Id=419&menuid=1500&topid=717&levelid=5&midid=1498. The deal was was approved on that day. The information on the local property tax abatements was taken from: Jim Walsh, 'Subaru in for break on local taxes, too,' Courier-Post (December 15, 2014)


Inception date: 10 Dec 2014 | Removal date: open ended
Still in force

Tax or social insurance relief

In 2014 the New Jersey Economic Development Authority provided an incentives package to Subaru of America, Inc. for headquarters retention and relocation. It awarded the company $118 million in tax credits over 10 years. The company is also eligible for local property tax abatements (the offices will be taxed as a vacant land for 10 year) under Garden State Growth Zones program (the amount was not reported and is not included in the total). Subaru will move its offices from two locations in Cherry Hill, NJ and one in Pennsauken, NJ to Camden, NJ in late 2016. 
 
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