LivingSocial Gets Outrageous $23 Million Tax BreakBy: Shawn Hess - June 20, 2012
LivingSocial has been doing very well for itself. In fact, it is time for the daily deals provider to expand its operations, and they contemplated moving headquarters outside its current Washington, D.C. home.
Fortunately, the D.C. City Council and many local business professionals want to do something to entice them to stay. Members of the business community and state legislator came forward to support a proposed tax abatement that would save LivingSocial over $23 million if they decide to open a new office building in D.C.
Local legislators and business advocates feel a new office would draw more top-level talent to the area and further stimulate an already flourishing tech-based district economy. The tax breaks would begin at the beginning of 2015.
Living social currently employs about five thousand people with about a fifth of those actually working within the city. While the majority involved in the decision making process were in favor of the tax incentive, others would like to see the break tied to a percentage of the workforce which must be residents of the area.
Some have even suggested the incentives be related to the company’s ability to create new positions based on true progress rather than new hires as a result of turnover. Daily Deal Media has fuller coverage of the debate over the proposed tax abatement for LivingSocial.