Cuts to cost Motorola tax credits

CHAMPAIGN (AP) – Google Inc.’s plan to cut more than 700 jobs at Motorola Mobility’s operations in Illinois means the company will lose the tax credits it receives from the state, and experts say it underscores just how little the kind of perks that big companies often insist they need really matter when they’re making decisions.

The deal Illinois struck last year with Motorola Mobility Inc. promised $100 million over 10 years in tax breaks if the company kept at least 2,500 employees. It was one of the largest packages of subsidies the state had ever promised a company.

The company has so far received $18.6 million in tax credits, but the cuts announced Monday will reduce its Illinois work force to 2,256, said Illinois Department of Commerce spokeswoman Sandra Jones. Motorola Mobility will be able to apply to restart those tax breaks if it again tops 2,500 workers, she said.

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