The governor confirmed that the state has offered incentives.
Governor Dannel Malloy says he last visited with General Electric two weeks ago, as the conglomerate prepares to make a decision about relocation. The governor spoke for the first time about the possibility that GE might leave.
Malloy told a news conference Connecticut stands ready to work with GE and compete with other states to keep them. "We would like them to remain in the state," he said. "They have been approached by other states over the years — states that they have larger employee numbers in. We understand it’s a competitive situation, as it is with many of our large employers."
The governor confirmed that the state has offered incentives, but he wasn’t giving away exactly what was on the table. "Those negotiations tend to be had between the parties. And if it leads to a transaction you’ll certainly get all the details," he said.
GE has about 800 workers at its corporate headquarters in Fairfield, with many more at GE Capital in Norwalk, and at its Industrial Solutions center in Plainville. The company is being aggressively courted by several other states including New York, Georgia, and Texas.
GE first spoke publicly about its discontent with the state of Connecticut in June, during budget negotiations which proposed to raise tax burdens on corporations, including imposing a unitary tax, or combined reporting on companies that operate in multiple states.
In a statement at that time, the corporation said, “retroactively raising taxes again on Connecticut’s residents, businesses and services makes businesses, including our own, and citizens seriously consider whether it makes any sense to continue to be located in this state.”
GE's objections came despite the fact that the amount of tax it actually pays in Connecticut is in some doubt. The corporation maintained that it paid $1 billion in federal, state and local taxes in the U.S. last year, but said it does not break out how much was paid in each state.
After GE intervened, the legislature and the governor agreed to postpone the imposition of the unitary tax until 2016. Of the states known to be actively pursuing GE, New York and Texas also require combined reporting.
