Empty Threats to Leave Jersey, Gain Firms $100 Million Taxpayer Subsidies

(p. A1) PEARL RIVER, N.Y. — In the summer of 2015, Jaguar Land Rover North America told state officials in New Jersey that it was considering moving to an office development in New York called Blue Hill Plaza.

To keep the automotive giant’s headquarters in New Jersey, the state offered $26 million in tax credits. So Jaguar stayed.

Five months later, FC USA, a travel company, also told New Jersey that it was looking to relocate to the very same office development in New York.

So did Groupe SEB, an appliance manufacturer.

In total, over five years, 12 companies threatened to leave New Jersey and move to Blue Hill Plaza unless the state provided tens of millions in tax credits.

None followed through on the threat. In fact, an investigation by The New York Times suggests that nearly all of the 12 companies never seriously considered moving to New York.

But all 12 received lucrative tax credits from New Jersey to stay — more than $100 million in total, according to documents obtained by The Times.

For the full story, see:

Nick Corasaniti and Matthew Haag. “Businesses Are Cashing In on Empty Threat to Leave New Jersey.” The New York Times (Tuesday, Sept. 24, 2019): A1 & A25.

(Note: the online version of the story has the same date as the published version, and has the title “How One Address Led to a $100 Million Tax Credit Scheme.”)

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