ABC Inc. plans to buy XYZ Inc., a manufacturing company, for $5 million. XYZ Inc. has 300 employees and is located in a targeted economic zone. XYZ's unemployment experience rating is at 2.5. ABC seeks the guidance of a well-trained CSULA SALT consultant.
ABC Inc. is also seeking a Targeted Tax Incentive (TTI) from California Congresswoman Agness in order to close the deal.
a. What tax savings advice would you provide ABC Inc.?
b. Should ABC?Inc. assume XYZ ?Inc.'s experience rating?
c. How many points of caution/advice can you give Congresswoman Agness about the TTI?
This question was answered on: Sep 18, 2020
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