Tax Credits: I haven't posted regularly in years, but I felt compelled

[corktownyuppie]

The other aspect to consider is what action, if any, the government will take against you if you fail to meet the provisions of the tax credit.

For example, if the Illitch organization gets tax credits for an arena project that required building other developments around its arena, or credits for agreeing to renovate a historic property like the Hotel Eddystone... and they know the state/city will never penalize them if they don’t follow through.., then a business can apply for the credit, collect the revenue, and never have to spend money on what was promised. Another good way to make dough.

I agree with your sentiment and the concept. If an entity is promised $______ in discounts on future tax bills in exchange for completing ________, then they shouldn't get the discounts unless they complete the ________.

Your comment about Illitch is not the way I understood the agreement. According to my understanding and research, the portion of the incentives attributable to building the other developments around the arena comes to $74MM and is only payable if Olympia follows through on $200MM of additional development around the arena within five years.

I admit that my understanding of this project is relatively surface level, and there lots and lots of layers. If I'm missing something on this, I'm open to hearing about it.


But yes, in essence, I agree with you. These agreements are two-sided, and if one party fails to meet their commitment, the consequences should be clearly defined and punishments should be exacted.