Sony Music Entertainment is owned by Tokyo-based Sony corp. The company owns either full or partial rights for the New Jersey native Bruce Springsteen, The Beatles and Michael Jackson.
Sony Corp. has been making cuts across the board and indicated that the receiving these tax breaks would be a major factor in location decision. The company had proposed a location in Rutherford, a project that would have required $5.85 million in capital investment. The tax credits given will apply only to Sony Music Entertainment.
The incentive was approved unanimously on March 13 by the New Jersey Economic Development Authority. The annual credit is $162,500 for 10 years.
Liz young, spokeswoman for the company in New York declined to comment on the company’s plans for the tax break. The relocation of jobs from Manhattan offices will bring 50 jobs with median wages of $100,000.
Sony is not the only entertainment company seeking tax breaks. They are beginning of the end for a long line of entertainment companies who have sought relief from the government to help with production and overhead expenses.
Almost every state has some form of tax credit program to attract entertainment and production jobs. While this may benefit individual firms, it is often at the expense of other companies who did not receive the same kind of aid.
In such a high taxed state as New Jersey, it is hard to attract jobs and companies that want to settle there. This addition of 50 jobs could be a step in the right direction.