SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Motorola Mobility gets huge state tax credit

Friday, May 6, 2011

* There are some things missing from this AP story

Gov. Pat Quinn says the state of Illinois will provide $100 million in tax credits to Motorola Mobility as part of a deal with the company to keep its headquarters in the Chicago suburb of Libertyville.

Under the deal announced Friday, the Motorola spinoff will keep a workforce of about 3,000 at the facility. Motorola Mobility designs mobile phones and other related products.

* That $100 million number is pretty astounding until you realize that it will be doled out over 10 years and requires a significant commitment from Motorola

Motorola Mobility is committing to spend more than $500 million in research and development related to these jobs over the next three years.

* The cash is a tax credit applied to the company’s annual withholding tax liability or its annual corporate income tax liability. However, Gov. Quinn did not announce a corresponding budget cut to make up for the revenue loss. Then again, the revenue loss to the state would’ve been quite big if the company had left - not to mention the hit to the state’s reputation. And Motorola Mobility had been looking elsewhere

The cell phone maker had been considering moving its head office to more high-profile tech centers, such as Silicon Valley, San Diego or Austin, Texas, since it was spun off from Motorola Inc. earlier this year.

More

Morningstar analyst Joseph Beaulieu said, “Given that CEO Sanjay Jha has a second home in Southern California and given that the San Francisco area is home to some of the top technology companies in the United States, this is a big win for Illinois.”

Ed Longanecker, executive director of Naperville-based tech trade association TechAmerica, said Illinois’ efforts to keep Motorola Mobility and to create an Illinois Innovation Council are welcome efforts to accelerate technology and economic growth.

Discuss.

- Posted by Rich Miller        


19 Comments
  1. - Ghost - Friday, May 6, 11 @ 1:04 pm:

    With the attached obligations on Motorola, the 10 year committment, reasearch dollars, staff etc wthis is a win win for everyone.

    We need more deals like this. Not just deals that lure or start a new location, but deals which are long term and have obligations which go both way.


  2. - Jonsey - Friday, May 6, 11 @ 1:07 pm:

    “With the attached obligations on Motorola, the 10 year committment, reasearch dollars, staff etc wthis is a win win for everyone.”

    You should talk to the people in Harvard, IL.


  3. - amalia - Friday, May 6, 11 @ 1:14 pm:

    Motorola is on the upswing since the split so there should be growth and good obligation from them. Morningstar has good analysis.


  4. - Anon - Friday, May 6, 11 @ 1:23 pm:

    Now lets see Motorola push for the extension of the R&D income tax credit so they can get an additional 6.5% credit on the planned $500 million dollar investment. That would work out to an additional $32.5 million.


  5. - Fed up - Friday, May 6, 11 @ 1:26 pm:

    Let’s see madigan wants to increase local propert taxes the same day this is announced. It seems alot of people here can’t wait to tell people to load up the uhaul and go ahead and move if they don’t like quinns tax increase betrayal but will support lowering motorolas taxs to keep them from leaving.
    Someone has to pay taxes in this state. I wonder if motorolas made any campaign donations. You k ow like the sweet deal Quinn gave state employees for no layoffs in exchange for a campign donation and endorsement.


  6. - CircularFiringSquad - Friday, May 6, 11 @ 1:28 pm:

    Speaking of important biz developments, the once important Chicago Tribune got another smackdown when an LA dish TV exec was placed in charge — the move reaks of quality journalism
    BTW the announcement brought the name of another Blagoof figure ……
    “The executive council — which also included Chicago Tribune Media Group President….Chairman of Tribune Broadcasting Nils Larsen…..we all remember Nils was the Trib bag trying to get $100 million Blagoof for Wrigley….do we need to mention there is no record that any Trib official ever went to the USA to report their antics?


  7. - Bill Baar - Friday, May 6, 11 @ 1:41 pm:

    Re: You should talk to the people in Harvard, IL.

    My first thought. I drive by the place every so often and amazed Illinois got shellacked with it.


  8. - LittleLebowski - Friday, May 6, 11 @ 1:47 pm:

    Fed Up- Your act is getting old. What would you be saying if Motorola left? Give it a rest.


  9. - Rich Miller - Friday, May 6, 11 @ 1:52 pm:

    LittleLebowski is right, Fed Up. The act is old.


  10. - Quinn T. Sential - Friday, May 6, 11 @ 2:07 pm:

    Jonsey and Bill Baar; you are right on. MOTO received a $30 million incentive to build in Harvard and create jobs, on top of a HUGE property tax abatement.

    How much of that sweetheart deal was ever paid back to the local taxing bodies, or to the state? Based on the past behavior of both the Governor, and MOTO, both sides might want to count their fingers after shaking hands on this deal.


  11. - 4 percent - Friday, May 6, 11 @ 2:23 pm:

    @ Jonesy & Quinn

    Motorola signed a deal for tax incentives for the Harvard facility that included a specific number of jobs for a specific time period. They met and exceedced all of the conditions of their agreement.


  12. - thechampaignlife - Friday, May 6, 11 @ 2:54 pm:

    Of course this would be a federal issue but I’d like to see a prohibition on public fund subsidies such as this for specific businesses (as opposed to industries where promoting green jobs, for instance, may be desirable) unless there is some measurable risk of that business leaving the country (perhaps a voter referendum or supermajority legislative vote required). Basically, it’d be nice if we were fighting with ourselves over these jobs and instead worked together.


  13. - Palatine - Friday, May 6, 11 @ 3:30 pm:

    I don’t think it’s worth this kind of money


  14. - thechampaignlife - Friday, May 6, 11 @ 3:44 pm:

    Just realized I made a typo and it that last “were” should have been “weren’t”.


  15. - JN - Friday, May 6, 11 @ 3:59 pm:

    10Mil per year, 3000 employees, so 3.3k/job/yr.

    “Motorola Mobility CEO Sanjay Jha says the company has a longstanding commitment to Illinois.”

    It’s funny that they were looking at California (taxes), and Texas (competing with TI in the labor market). Obviously, never play poker with that CEO.


  16. - wordslinger - Friday, May 6, 11 @ 4:12 pm:

    CircularFiringSquad, I’m pretty sure you have something significant to say, and I’m kind of confident I know why you write the way you do, but this is one of those times I have no idea what you’re talking about.

    Give us a chance.


  17. - 47th Ward - Friday, May 6, 11 @ 4:22 pm:

    Lol Word. I thought I knew the code, but I’m still scratching my head over that one.


  18. - wordslinger - Friday, May 6, 11 @ 4:48 pm:

    47, I’m a big CFC fan in reality (what a concept) and am thoroughly amused by the beatnik prose he chooses to (try) to hide his identity.

    But I’m getting a little concerned that the alter-ego might be taking over..

    “I saw the best minds of my generation destroyed by madness, starving, hysterical naked,…”


  19. - Rob - Saturday, May 7, 11 @ 10:26 am:

    Motorola has a presence already in Silicon Valley.

    They will simply use these millions to boost their efforts elsewhere while doing some here.

    If you put $100 million into a seed fund for startups, you would be get a LOT bigger bang. Giving it to a global power like Motorola is throwing it away.

    We gave Groupon a few million recently. They then opened up a technology center in Palo Alto.


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* CUB Poll: 84% Oppose Exelon Bailout - Solar Poll: 81% Oppose Demand Charges
* SUBSCRIBERS ONLY - New cable TV buys and fundraiser calendar
* Question of the day
* *** UPDATED x1 - Friends of the Parks responds *** Lucas pulls plug on museum
* "Dead. Yes, dead."
* Radogno shares some deets on stopgap, blames Chicago for holdup
* Maybe this will convince Democrats to cut a deal?
* Nobody's right if everybody's wrong
* Another way Chicago is behind the times
* More on that Cullerton meeting
* Creating a workaround for new CPS debt?
* Settlement talks in Duckworth case "initiated by the judge"
* Hostage dies
* Close on 6-month stopgap, not there yet on K-12
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Galaxy Note7 confirmed as device name, Samsung does indeed skip a number
* Incipio will purchase Skullcandy for $177 million
* Okay, we’ve seen this vivo X7 Plus before…
* Windows 10 Mobile also headed for AT&T Lumia 1520
* Google Support app may let Nexuses screen-share for assistance
* Future Apple Watch may ditch OLED for micro-LED display
* Nexus 5X discounts keep on, dollar by dollar

* White Sox hold on after big hit from Frazier
* Minor leg soreness keeps Abreu out of lineup
* White Sox sign top Draft pick Collins
* White Sox sign top Draft pick Collins
* Hahn hopes White Sox positioned as buyers
* Minor leg soreness keeps Abreu out of lineup
* Surgery a possibility for reliever Putnam

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Rauner signs ID law making Illinois comply with.....
* Letter: To fix Illinois, impeach Rauner, vote o.....
* Governor Rauner Tours Tornado Damage In Pontiac.....
* Rauner signs ID law making Illinois comply with.....


* US Rep. Duckworth settles workplace retaliation lawsuit
* Chicago police arrest teen in slaying of city dispatcher
* Lucas abandons plan to build museum in Chicago after lawsuit
* Illinois women hit hard by state budget impasse
* 17 calves die when semi overturns on Illinois interstate
* Illinois windfall from license plate late fees exceeds $5M
* Illinois to get $17 million for HIV assistance programs
* Dick Van Dyke visits Illinois hometown, starting foundation
* EXCHANGE: Toddler has right stuff to become sensation
* 'West Wing chicken' dish wins Peoria girl White House trip

* Illinois women hit hard by state budget impasse
* Survey: Nearly 1 million human service clients affected by budget impasse
* Illinois lawmakers to reconvene Wednesday as budget deadline nears
* Illinois State Museum given path to accreditation
* Illinois insurance co-op sues feds over health law payments
* Gun bill at Illinois Capitol gets support from Rifle Association
* Budget standoff forces layoffs at Illinois child aid group
* Rochester dipping into reserves to fund next school year
* Chicago-to-Moline passenger rail project resurrected
* Mental health provider closing due to no Illinois budget

* Redistricting reform won't save Illinois
* Here are the Illinois stocks hammered—and helped—by Brexit vote
* Lucas pulls the plug on Chicago museum
* Sanders says he'll vote for Clinton
* Illinois more than doubles its take in license plate late fees


* Few know extremes like Blackhawks’ Kane
* Police: 2 dead, 6 wounded in Chicago weekend shootings
* Kane, Rose delighted us together, but great stories do end
* Police: Man shot to death in Auburn Gresham
* Police warn of gas station thefts in Auburn Gresham
* Dear Abby: Friend talks of nothing but his sexual ‘theology’
* Georgia Nicols horoscopes for June 25, 2016
* Man wounded in Austin shooting
* Robertson pitches out of jam, Sox grind out 3-2 win over Jays
* Contreras pumps ‘oxygen’ into injury-depleted Cubs


* Old East Aurora High School stadium to get rousing farewell party
* Can Bulls fans trust a plan executed by GM so many find hard to believe?
* Confident Giants move past Cubs as National League's hottest team
* 23 dead in West Virginia floods; search and rescue continues
* Pro-European Union Scots, Northern Irish eye UK escape after Brexit vote
* Texas mother fatally shoots 2 daughters; police shoot and kill her
* Resurgent White Sox grind out 3-2 victory over Blue Jays
* The Brexit King of Britain
* Cubs' Willson Contreras commands attention everywhere
* Rookie Willson Contreras' clutch hitting helps Cubs snap losing streak


* Dr. Rebecca Green: When will the gun madness end?
* Charles Krauthammer: Clinton offers empty rhetoric
* Illinois women hit hard by state budget impasse
* Patrick M. Twomey: Don't let schools be pawns in budget battle
* Survey: Nearly 1 million human service clients affected by budget impasse
* Illinois lawmakers to reconvene Wednesday as budget deadline nears
* Illinois State Museum given path to accreditation
* Illinois insurance co-op sues feds over health law payments
* Gun bill at Illinois Capitol gets support from Rifle Association
* Budget standoff forces layoffs at Illinois child aid group


* Hester moving on from radio
* Trailblazer's Rodeo
* Benefit set for Tuesday for family of motorcycle crash victim
* Services at Alpha Park Library are not expected to be disrupted
* UI roundup: Danielson sparks U.S. effort
* A look back at the 2001 football team
* 'I never got this kind of applause in high school'
* Nottingham to play hoops for father
* Dick Van Dyke Welcome Home
* (No heading)


* Chicago Blackhawks trade Shaw to Canadiens
* Crowds, tight security expected for Cincinnati pride parade
* Pope prays at Armenia memorial after denouncing 'genocide'
* Frazier, Chicago White Sox continue to find in win over Jays
* Contreras helps Cubs end 4-game skid by beating Marlins 5-4

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Illinois to get $17 million for HIV assist......

* Workplace retaliation suit against Tammy D......
* Workplace retaliation suit against Tammy D......
* Workplace retaliation suit against Tammy D......

* Jack Franks Still Running for State Rep – Part 275
* “The Driver’s Side” – News From The Motorist’s Perspective
* Who deserves the political blows in upcoming Tammy Duckworth trial?
* Ridesharing
* The PI Week In Review
* Illinois Immigration Reform Advocates Vow To Press On After Supreme Court's Split Vote On Executive Orders (VIDEO)
* Pentagon To Lift Ban On Transgender Service Members On July 1
* Cartoon of the Day - 6/23/16 Guns in Chicago
* Kirk Touts His Anti-Trump Stance In New TV Ad (VIDEO)
* Cartoon Of The Day


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller