I don't know enough about this particular tax rule to say something useful but on the general idea of a 'tax holiday' I do have some thoughts. Ad-hoc governmen

I don't know enough about this particular tax rule to say something useful but on the general idea of a 'tax holiday' I do have some thoughts. Ad-hoc government policies are wrong. Tax holidays, cash for clunkers, amnesty for illegal immigrants, tax credits for favored businesses, loan-gurantees for that new stadium or 'preferred' manufacturers (e.g. Solyandra), health care 'waivers' for certain companies, are all examples of ad-hoc government. These sorts of policies shred the idea of equality under the law, encourage rampant lobbying in order to gain 'legal' favors, enable politicians and bureaucrats to wield power preferentially, reduce the predictability of the legal and financial environment (taxes, fees, licenses, etc), and skew economic decisions to fit into legislative time windows. Laws should be uniform and consistent rather than moving targets with varying applicability.