Tax Break a state Treasury


Shorter NC Governor: Tax Breaks didn’t work to keep business in NC, but tax breaks are the only thing that works to keep business in NC.

Gov. Beverly Perdue says North Carolina has no choice but to keep offering incentives packages to attract out-of-state companies even with the closing of the Dell computer plant.

But Perdue told reporters Thursday she’s made plain to Dell the state expects back every “red cent” it’s owed in tax breaks and other benefits because it didn’t meet job and investment performance standards.

Dell announced Wednesday its Forsyth County computer desktop plant would close by the end of January, putting 900 people out of work.

The Legislature and local governments had offered Texas-based Dell a deal worth up to $318 million in tax breaks and grants.

Perdue said she would prefer that states stop bidding wars but that tax breaks are necessary to bring in new jobs.

via Perdue says Dell will pay back every “red cent” – BusinessWeek.

What’s the penalty for Dell leaving without holding up its end of the agreement? Maybe a long term tax rebate may be better next time? In any case, good luck getting that money back from Dell.