Tax Incentives for Moving into Blighted Areas

One of the bigger stories out of San Francisco of late is Twitter’s planned move into the Tenderloin –a blighted area riddled with shuttered restaurants, graffiti, and crumbling facades. Considering a move into the suburbs, Twitter managed to brokerage a deal with the city wherein it promised to move into the Tenderloin if the city would provide tax breaks. While the majority of the debate in San Francisco was about gentrification, the fact of the matter is that sometimes, if it cleans up an area and increases safety, gentrification is a good thing. It can also be good for business. Twitter is a large company with a decent amount of pull, but that doesn’t mean that you can’t benefit from moving into a blighted area as well. Cities and states across the country are trying to figure out how to increase economic development in areas that have been hit hard, and many of them are turning to tax incentives. Some states, such as Missouri , have programs in place, while others leave it up to cities and counties to offer local tax abatements. There are credits for income and employee taxes, equipment purchases, and even insurance. If you think that you might be willing to move your business into a blighted area, get in contact with your state and local redevelopment agencies. And if there aren’t any programs, it doesn’t hurt to negotiate. Twitter did, and it netted the company a five year reprieve on city employee taxes . Related Resources: Showdown time for Twitter/Tenderloin tax break (Bay Guardian) Commercial Zoning (FindLaw) State Resources: Starting a Business (FindLaw)

Read the original post:
Tax Incentives for Moving into Blighted Areas

Twitter Follow

Follow us on

Contact Us

ATTORNEY ADVERTISEMENT:  This communication or portions thereof may be considered "advertising" as defined by Section 6157(c) of the California Business and Professions Code or within the jurisdiction in which you are viewing this.  Nothing in the discussion above is intended to be a representation or guarantee about the outcome of any legal proceeding in which you may be involved.  By providing the information above in this format, Michel & Associates is not soliciting you to hire it to handle a specific legal matter you may currently have or be anticipating commencing in the future.  Notwithstanding the discussion above, you should not act or refrain from acting on the basis of any content on this site without seeking appropriate legal advice regarding your particular circumstances from an attorney licensed to practice law.  This communication is informational only and does not create an attorney-client relationship between you and Michel & Associates.  Michel & Associates's attorneys are licensed to practice in California, Texas, and the District of Columbia.