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Disney Could Claim $570M In State Tax Breaks For New Florida Facility: Report

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Disney Could Claim $570M In State Tax Breaks For New Florida Facility: Report

Walt Disney Co (NYSE: DIS) could claim more than half-billion dollars in Florida tax breaks for moving 2,000 of its California employees to the Sunshine State.

What Happened: Disney announced last week it's shifting California non-Disneyland Resort jobs in its Parks, Experiences and Products Division (PEPD) to a new facility in the Lake Nona section of Orlando, approximately 20 miles east of the Walt Disney World resort. In announcing the move, PEPD Chairman Josh D’Amaro praised Florida’s “business-friendly climate.”

Indeed, it appears to be very friendly: The Orlando Sentinel reported Disney could claim more than $570 million in tax breaks over 20 years under the state’s Capital Investment Tax Credit program, making it among the largest in Florida history for a single corporation.

Disney’s capital investment for the Lake Nona project could be as high as $864 million, according to documents from Florida’s Department of Economic Opportunity. The average wage for the positions connected with this relocation is $120,000 annually.

Related Link: Disney Slammed By Theater Owners For Simultaneous Cinema-Streaming Release Of 'Black Widow'

What Else Happened: In an unattributed statement sent to the Sentinel, Disney acknowledged the tax break as being a consideration in bringing the jobs out of California.

“Like other companies, we are utilizing an existing incentive offered by the state of Florida in the development of the new regional hub where we will be bringing more than 2,000 professional roles to Central Florida and making a sizable investment in this community where we have a long-standing presence and commitment,” the statement said.

However, the company is still seeking to expand its presence in California. In March, Disney unveiled plans for “DisneylandForward” and stated it would be working with Anaheim’s municipal government to update 1990s-era zoning decisions that separate districts for hotels and theme parks within the facility.

The Disneyland park itself would not be expanded beyond its current footprint, but instead would bring additional theme park attractions and new hotels, retail stores, restaurants and entertainment venues within the resort property.

 

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