4 ms·
The "zone" programs are for specific, limited, areas where the government entity wants to see the company employees spend their money. Generally areas that neT
by tyingq 3y ago
The "zone" programs are for specific, limited, areas where the government entity wants to see the company employees spend their money. Generally areas that neThe tax break to the business is because their employees are spending money in the area where the office is located...some area in need of renewal/spending.
With WFH, the employees stay at home in their upscale suburb areas that don't need artificial incentives to attract money.
- bombcar 3y agoExactly. The government of an area could spend $3m (say) to try to revitalize an area of town, but that might not even pay for redoing the sidewalks or whatever. So instead they give a $3m tax credit to a largish company to locate in that area, which brings in X number of employees each day; and those employees will eat lunch nearby, etc. And then stores begin to open around that area because the demand is there. If done right, the government gets way more than $3m worth of redevelopment, and more than $3m in increased incidental tax revenue (sales tax, etc). If done wrong it's a horrible flop, but they're usually just out tax money they wound't have received anyway. This is why you see it being done so often. WFH is disrupting this strategy.