A123 Systems files for bankruptcy

[mheslep]

Tax credits are a boost for a start-up company (I work for one) but are generally not refundable. Thus, the local taxpayer does not feel the difference.

A tax credit is dollar for dollar reduction in revenue, which some other business or person then has to make up later, often through increased taxes. A123 received grants from the fed.

 

[SunnyBoyNY]

A tax credit is dollar for dollar reduction in revenue, which some other business or person then has to make up later, often through increased taxes. A123 received grants from the fed.

A123 received money from the fed, certainly. Why would local governments have to make up revenue lost due to tax breaks on new companies when there had been no income from such an entity prior to the tax break?

Say I open a pizza place on my street. I pay the electric bill, thrash pickup. Taxes on desolate offices have been minimal. The local government does not necessarily see a hike in its expenditures that would justify the dollar for dollar argument.

 

[OmCheeto]

However, the US seems to be going on right track:
http://spectrum.ieee.org/energywise...icity-pricing-complicates-smart-gird-buildout

/me resubscribes.

pats puppy on the head, and says; "Good dog".

/me re-unsubscribes


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"means to an end" has some nasty connotations. But if the "means" is simply taking your first step in the morning with your left foot, rather than your right foot, then, it's pretty much meaningless.

 

[mheslep]

A123 received money from the fed, certainly. Why would local governments have to make up revenue lost due to tax breaks on new companies when there had been no income from such an entity prior to the tax break?

Either the firm made money and would have paid taxes or it did not. If the firm made no money then it received no tax credit. Either the tax credit had value or it did not.

Say I open a pizza place on my street. I pay the electric bill, thrash pickup. Taxes on desolate offices have been minimal. The local government does not necessarily see a hike in its expenditures that would justify the dollar for dollar argument.

These are not city property taxes but state business income taxes in the Michigan case - have to be for the term 'credit' to apply.

 

[Jones64]

hmm missed that news apparently. Sad it went down, the products they made were actually quite good in comparison to other lifepo batteries.