Ken Archer opines on whether proposed tax incentives being offered by D.C. to retain the corporate offices of website LivingSocial are a smart trade-off amongst a backdrop of sparse public resources.
D.C.'s mayor, Vincent Gray, has initiated a full-court press to retain the city's prized tech tenant, LivingSocial, and its 956 employees, by offering tax breaks of up to $32.5 million over 5 years. "One major rationale for giving tax breaks to tech companies is to create a "tech hub," a concentration of jobs, talent, and investment that leads more potential tech workers, entrepreneurs, and investors to choose to move to, start companies in, and invest in DC," states Archer.
"The proposed tax breaks reduce LivingSocial's property and income tax from 2015-2020 on a sliding scale based on number of DC residents employed. At least half of their employees must be DC residents for the tax breaks to kick in at all." The major caveat introduced by Archer is that the majority of LivingSocial's employees work in sales and copywriting, not in engineering, and therefore would not contribute to growing a tech hub.
Archer explains that in order for DC residents to benefit from the deal, the company bring two critical elements of all successful tech hubs: smart money and smart engineers. Neither of which appears achievable through the proposed deal.
FULL STORY: Will LivingSocial help build a tech hub in DC?
Subsidizing Sprawl Through Relocation Tax Breaks
A new study from the nonprofit research center Good Jobs First looks into how relocation tax breaks for businesses have encouraged sprawl in the Cleveland and Cincinnati metropolitan areas.
Data Centers Gaining Ground in Central Ohio
Massive data centers are gobbling up energy resources and tax breaks while creating few jobs in the region.
American Climate Corps Echoes New Deal Programs
A new federal initiative places young workers in jobs aimed at building climate resilience, but will it avoid the mistakes of similar programs?
Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?
King County Supportive Housing Program Offers Hope for Unhoused Residents
The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.
Researchers Use AI to Get Clearer Picture of US Housing
Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.
Making Shared Micromobility More Inclusive
Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
planning NEXT
Appalachian Highlands Housing Partners
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie