7am News, Sports and Obits

Latest WGIL news
Click to play or
Right click and "Save Target As" to download
Click for Galesburg, Illinois Forecast
Home - Cancellations - Community Events - Contact Us - Mornings - News - Obituaries - Pictures - Programs - Special Events Audio - Sports - Weather
Cities, Counties Take Back Corporate Tax Breaks
CHICAGO (AP) -- As the economy sputters along, municipalities struggling to fix roads and fund schools increasingly are rescinding tax abatements to companies that don't hire enough workers, that lay them off or that close up shop.

They're also sharpening new incentive deals, leaving no doubt what is expected of companies and what will happen if they don't deliver.

Brendon Gallagher, an alderman in the northern Illinois city of DeKalb, said recently that his city tries to "roll out the red carpet" for companies -- but they must honor the contract.

Target Corp. got tax abatements from DeKalb, the county and others after promising at least 500 jobs at a distribution center. But when it came up 66 workers short in 2009, Target found out its next tax bill will jump almost $600,000.

(Copyright 2010 by The Associated Press. All Rights Reserved.)
01 02 10 by Newsroom
News management powered by Xpression News

Click here for the WGIL News Archive

Click here for national news

The following provision applies to all visitors (which shall include persons and representatives of legal entities, whether such representatives are persons or digital engines of a kind that crawls, indexes, scrapes, copies, stores or transmits digital content). By accessing this Web site or digital service, you specifically acknowledge and agree that: (i) Associated Press text, photo, graphic, audio and/or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium; (ii) No Associated Press materials nor any portion thereof may be stored in a computer except for personal and non-commercial use; (iii) The Associated Press will not be held liable for any delays, inaccuracies, errors or omissions therefrom or in the transmission or delivery of all or any part thereof or for any damages arising from any of the foregoing; (iv) The Associated Press is an intended third party beneficiary of these terms and conditions and it may exercise all rights and remedies available to it; and (v) The Associated Press reserves the right to audit possible unauthorized commercial use of AP materials or any portion thereof at any time.