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.


* $3 million in one pop from Rauner
* Reader comments closed for the weekend
* SUBSCRIBERS ONLY - State House fundraising report
* *** UPDATED x1 *** Has the haymaker punch arrived?
* SUBSCRIBERS ONLY - State Senate fundraising report
* Third straight poll shows Rauner leading Quinn
* Last call for tickets!
* Vast Majority of Illinois Voters Support Renewable Energy, Energy Efficiency
* Sun-Times reporters want you to sign their petition
* Same song, different century
* Question of the day
* Quinn finally wins a newspaper endorsement!
* SUBSCRIBERS ONLY - Today's cable TV buy report
* SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs, TV ads
* Report: Another tie between Rauner and CS-T chairman
* Bost's "anger," Cook's ratings, Foster's ad
* $580 MILLION EXELON RATE HIKE?? That’s the price tag for their nuke bailout…EVERY YEAR!
* *** UPDATED x1 *** Rauner pumping dollars
* Rauner pushing IDOT back into the news stream
* Gov. Quinn runs new TV ad featuring FLOTUS
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* No, your eyes didn't deceive you
* Good morning!
* 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

          
        * Google Nexus 9, Nexus 6, iPad Air 2 comments & more – Pocketnow Daily Recap
        * Android Lollipop imminent, new Nexuses nearing, no more Nokia | Pocketnow Weekly 119
        * U.K. Startup Swytch Is Building An App To Open Up The ‘Burner’ Phone Number Market
        * Lockdown Pro allows selectively locking almost any app
        * Pronto Fast Charge battery gives a full charge in 5 minutes
        * GunFinger is a zombie shooter with fun shooting gameplay
        * Samsung answers design questions for Note 4, Note Edge

        * CVS, Rite Aid Shut Down Support for Apple Pay
        * Know How to Spot the Signs of a Hidden Handgun
        * Twitter Acquires Twitpic's Archive, Saga Finally Ends
        * Add Public Transportation to Your Weight Loss Plans
        * Nexus 6 Passes Through the FCC
        * Twitpic says it has reached a deal with Twitter, images and domain will continue to exist
        * Empty the Gas Tank Before Storing Your Lawn Mower for Winter

        * A 15-GIF salute to Moises Sierra's White Sox career
        * Konerko caps stellar career with Clemente Award
        * Konerko caps stellar career with Clemente Award
        * World Series Game 3: Notes and discussion
        * Rollins, Konerko named co-winners of Clemente Award
        * Alexei Ramirez and Adam Eaton Gold Glove finalists, but maybe not f...
        * Longtime scout Provas passes away after battle with cancer


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

        Archives
        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


        * Gov. Quinn welcomes home Illinois National Guar.....
        * Soldiers welcomed home after serving in Kuwait..
        * Southern Illinois residents rally, wait for fra.....
        * Colorado task force tours Weld County drilling,.....
        * Nurse quarantined over Ebola criticizes her tre.....
        * Experts: Quarantines may dissuade Ebola volunteers..


        * Few details offered on quarantines over Ebola
        * State Farm seeks to test drones in Illinois
        * Costly Capitol renovations recognized for design
        * Chicago Fire Department hired few blacks in 2014
        * Illinois lieutenant governor candidates on issues
        * Illinois lieutenant governor candidates bios
        * Lieutenant governor picks hope to help lead
        * Chicago Fire Department hired few blacks in 2014
        * Coroner's jury: July SWAT shooting justified
        * Illinois quarantine for who touched Ebola patients

        * Feminist Gloria Steinem endorses Quinn for governor
        * Madigan, Rauner spend big on Illinois House races
        * Officials rethink early vote-counting after Madigan ruling
        * Minimum wage increase supporters urge early voting
        * Sun-Times political reporter resigns following Rauner complaint
        * Minimum wage hike supporters urge early voting
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes

        * Why the Chicago-Illinois tech startup partnership won't be easy
        * Republican hopes fade for a comeback in U.S. House races
        * Jennifer Pritzker talks about a year of change
        * How much money do Exelon's nukes really make?
        * Shopping startup Trunk Club sizes up the women's market


        * Enthusiastic student Stan Kij, 25, dies of stomach cancer
        * Judge rejects Pistorius comparison, gives 17-year sentence in murder-for-hire plot
        * Keep it peaceful in Ferguson, Mo.
        * Why wasn’t Ebola doc kept under scrutiny?
        * Editorial: Bruce Rauner for governor
        * Back to the past with mayor’s move
        * Illinois needs better way to deal with terminally ill inmates
        * At panel on school closings, board acknowledges more planning needed
        * Marina City residents reminded to watch their step during Wallenda’s walk
        * Republican senators question Quinn’s IDOT scandal response


        * 2 held after boy, 13, fatally shot in Gary
        * Man held on $1M bail in August slaying on South Side
        * $500K bail for man accused of taking semi, critically injuring cyclist
        * 1st phase of $719 million Tri-State, I-57 interchange opens
        * $1M bail for teen charged in fatal Englewood shooting
        * 2 dead, 8 hurt in shootings Friday into Saturday
        * Illinois orders mandatory Ebola quarantine for high-risk travelers
        * Driver injured in Dan Ryan shooting
        * 2 shot in daytime shootings Saturday


        * Listen to State Week - October 24, 2014
        * 2014 Election Coverage: Citizens, here's your homework!
        * 2 dead, including gunman, in high school shooting
        * Prosecutors want more of indicted police commander’s 'bad acts' in court
        * Prosecutors want more of indicted police commander's 'bad acts' in court
        * Bedrock 66: Charlie Parr Plays Springfield Friday
        * Oberweis Would Back Federal Same Sex Marriage Law
        * Wild Bison Return To IL
        * Scary Story: The Diviner by Susan Vondrak
        * Artist Profile: Local Troubadour Tom Irwin


        * Michael Bromberg: Benedictine looking ahead at changes in higher ed
        * Charles Krauthammer: Barack Obama, aggrieved bystander
        * Feminist Gloria Steinem endorses Quinn for governor
        * Madigan, Rauner spend big on Illinois House races
        * Our Opinion: Bell, Manar, Davidsmeyer endorsed in state legislative races
        * Craig Burns: Honesty, integrity in great supply at CWLP
        * E.J. Dionne: Ebola, pandering and courage
        * Esther Cepeda: Benefits of closing the word gap
        * Officials rethink early vote-counting after Madigan ruling
        * Our Opinion: Frerichs has the expertise to be Illinois treasurer


        * Costly Capitol renovations recognized for design
        * LIVE! Back at Huff
        * Nancy Hill
        * MacMurray College marks homecoming
        * Beckman: Minnesota postgame
        * Mary Utgaard
        * Daniels: 'Biggest win in Beckman's tenure'
        * Cecelia Leone
        * Communities to hold trick or treat
        * Carter Koepke


        * Wisconsin defense throttles Maryland in 52-7 rout
        * Batavia frosh Stephens wins regional
        * Illini defense delivers win over Gophers, 28-24
        * Egypt leader: ‘Foreign hands' behind Sinai attack
        * Iran hangs woman for killing alleged rapist

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Our View: 17th Congress: Cheri Bustos...
        * Election 2014...
        * Election 2014...
        * Election 2014...
        * Election 2014...

        * Sen. Mark Kirk helps introduce anti-cyberb......
        * Bruce Rauner & Carly Fiorina Inspire Downe......

        * More Illinois voters report machine switching votes from Dem to GOP
        * More Illinois voters report machine switching votes from GOP to Dem
        * Clowns With Sex Toys Attacked Illinois Family
        * Oberweis: DOJ needs to investigate threats against Pastor Corey Brooks and his family
        * More reports on potential voting fraud in Rock Island County, Illinois
        * More reports of potential voting fraud in Rock Island County, Illinois
        * Have You Seen This Young Woman?
        * Andrew Klavan: Just Say No To Emma Watson and Feminism [video]
        * Davis Launches New Ad [video]
        * Young conservative woman’s epic response to the vile little girl feminism video


        * Governor Quinn Announces Major Expansion of Public Recreational Access at Lake Calumet - Project Will Be Centerpiece of Governor’s Millennium Reserve Initiative
        * Governor Quinn Welcomes Illinois National Guard Brigade Home from Kuwait - Illinois’ 108th Sustainment Brigade Returns from Deployment
        * Rauner rips Quinn on IDOT patronage oversight
        * Governor Quinn Announces Winners of 2014 Illinois Export Awards - State’s Trade Programs Help Companies Increase Global Sales
        * Governor Quinn Directs Illinois Department of Public Health to Require Quarantine to Protect Against Ebola




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller