ANNOUNCEMENT 17 Apr 2015In April 2015, a US state government announced a targeted tax change.
NUMBER OF INTERVENTIONS
The Iowa Economic Development Authority approved on April 17, 2015 a request from Google for additional tax incentives through the High Quality Jobs Program for new construction at its site in Council Bluffs, Iowa. To get these new incentives, Google promised to create an additional 35 jobs and make an additional investment of $1 billion, bringing the total investment to $2.6 billion. Google had originally received just over $16 million in tax incentives; the new agreement increases them to approximately $36 million. The company will receive rebates on sales taxes that it must pay when paying its contractors and subcontractors. The agreement also calls for the company to pay just 20 percent of its property value for five years, followed by a 70 percent abatement the following five years, and 45 percent abatement the 10 years after that.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.