THE State
Governor Pat Quinn and Motorola Mobility Chairman and CEO Dr. Sanjay Jha
last Friday announced that the Motorola Mobility Inc. (MMI)
corporate headquarters will be located in Libertyville, Illinois. The US-based
telecom giant Motorola Mobility Holdings has decided so after
the Governor agreed to extend a tax incentive law that will allow the company
to reduce its tax bill by up to USD100m over ten years . Governor Quinn
signed Senate Bill 4 on May 6 expanding the Economic Development for a
Growing Economy (EDGE) tax credit, which was a determining factor in Motorola
Mobility Inc. MMI’s
decision to locate in Illinois.
Generally the EDGE tax credit is used to decrease corporate income tax liability.
However, with companies' profits depressed, the law was revised to allow Motorola
to apply the tax credits against withheld employee income tax liability instead,
allowing it to avail itself of the tax credits even when profits are low, effectively
by retaining tax paid by employees.
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