NEW YORK CITY-Tax incentives totaling tens of millions of dollars for Thomson Reuters and Deloitte got the nod Tuesday from the New York City Industrial Development Agency, with both breaks contingent on the companies increasing their respective head counts here. The Thomson Reuters package extends an existing 1998 agreement with Reuters America Inc., NYCIDA says.
Under the 18-year NYCIDA agreement, Deloitte can earn up to $10.6 million in tax credits if it adds 2,100 jobs to its current employment count of 4,211 in Manhattan. NYCIDA says the package is intended to assist Deloitte in relocating and expanding its headquarters to as much as 630,000 square feet of space at Brookfield Office Properties’ 4 World Financial Center. A Deloitte spokesman told GlobeSt.com last week that regarding a move to 4 WFC, “no final decisions have been made and no deals have been signed.”
Thomson Reuters LLC, the successor to Reuters America, similarly must increase its New York City employee base to access up to $20.8 million in unused tax benefits from the ’98 package. That earlier agreement originally applied only to its headquarters at 3 Times Square; Thomson Reuters now plans to use the benefits to help renovate and refurnish seven office locations across Manhattan.
NYCIDA says the company must increase its base employment commitment from 1,800 to 3,744 and grow its overall employment count in New York City above 4,210 to access the full package. Thomson Reuters will also be required to locate its corporate headquarters in New York City and report project information under Local Law 48 until the agreement’s expiration in 2025.
In a statement, the Newspaper Guild of New York, which is in a contract dispute with Thomson Reuters, calls the package “a somewhat watered-down extension of the once lucrative tax credit deal it won 12 years ago.” The union had sought to block the extension, and last week sponsored a letter sent to Mayor Michael Bloomberg and signed by 11 of the city’s labor leaders.
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