LivingSocial Could Save $32M Under D.C. Tax Proposal
WASHINGTON (AP) — District of Columbia lawmakers are considering tax incentives for the fast-growing online deals business LivingSocial to keep its headquarters in Washington.
The Washington Post reports business advocates and economic development officials supported the proposal
at a hearing Thursday. Many say it’s a sign D.C. is competing more aggressively with Maryland and Virginia to attract businesses.
The D.C. Council bill would save LivingSocial $32.5 million in taxes with the stipulation that it be headquartered in D.C. The size of the tax abatement is tied to the percentage of new hires residing in D.C.
LivingSocial has yet to turn a profit. But it’s become one of the city’s largest private employers with a staff that’s grown to
5,000. The company expects to add more local employees and consolidate into one office.
(Copyright 2012 by The Associated Press. All Rights Reserved.)