Financial Accounting Blog

Wednesday, October 29, 2003

Tax Breaks. Kroger, other local firms get tax breaks. Here is a good example of a company benefiting from incurring more debt. The Government is willing to "partner" with Kroger and incur some of this debt by way of a tax credit.

The authority granted Kroger a 10-year, 70 percent tax credit if the company chooses to expand its downtown corporate headquarters facility. The business benefit of the tax credit is expected to be $2.2 million over the term, and to receive the credit, Kroger is required to maintain operations at the site for 20 years.