Examining corporate tax breaks

New York /
May.May 21, 2007 12:00 AM

JP Morgan Chase is negotiating with the city for tax breaks and subsidies to build a headquarters on the site of the Deutsche Bank building in Lower Manhattan, looking for a deal similar to the one the Bloomberg administration gave Goldman Sachs for its new headquarters, which involved $1.6 billion in federally funded Liberty Bonds and around $650 million in tax breaks and other incentives. Although Bloomberg has recently said he is tightening city purse strings when it comes to corporate incentives, the new Yankee and Mets stadiums, the Atlantic Yards project, Time Warner, Hearst, the New York Times, Bank of America, Pfizer, Aon and the Bank of New York are all recent beneficiaries of subsidies or tax credits totaling billions of dollars. And yet many experts say the incentives–which are meant to keep jobs in the city–aren’t effective. A 2001 study from the Center for an Urban Future noted that “a large percentage of the firms that have benefited from city retention deals during the past decade have been acquired by other companies, put themselves up for sale, gone belly-up, moved major parts of their business out of the city or simply eliminated many jobs in New York shortly after taking advantage of city incentives.” more [Gotham Gazette]


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
CEO David Simon (Simon Property Group)
Simon Property raises full-year guidance as shoppers return to stores
Simon Property raises full-year guidance as shoppers return to stores
Photo Illustration of Paramount Group Chairman, CEO and President Albert Behler in a Manhattan Equinox (Paramount, Equinox, Getty)
Despite rent-deferral agreement, landlord claims Equinox still won’t pay
Despite rent-deferral agreement, landlord claims Equinox still won’t pay
45 South Grove St in East Orange (Rendering via Progress Capital)
Hero Construction lands $20M loan to build East Orange apartments
Hero Construction lands $20M loan to build East Orange apartments
One New York Plaza and 60 Broad Street (Brookfield, Google Maps)
Manhattan office rents hit 4-year low as availability remains at record-high
Manhattan office rents hit 4-year low as availability remains at record-high
The rise of e-commerce, fueled by the pandemic, has created unprecedented demand for cardboard-producing facilities. (iStock)
Cardboard demand could fuel an industrial real estate boom
Cardboard demand could fuel an industrial real estate boom
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...