Markets

Sanofi Gets the Tax Breaks It Wanted in Vaccine HQ Deal

By Jim Edwards

Updated on: January 1, 2009 / 7:07 PM EST / MoneyWatch

Sanofi-Aventis appears to have successfully gotten tax breaks from Upper Saucon in a deal to move its new vaccine division HQ to the Pennsylvania town. In the deal, according to BerksMontNews.com, Sanofi gets:

The borders of a "Keystone Opportunity Zone" expanded to encompass its new HQ.
An extended waiver of township taxes (i.e. a "tax abatement") until 2013.
No traffic impact fees.

In return, Sanofi's developer must pay $2.5 million to improve the roads around the site, a cost which would normally have been born by the local school district.

The size of the abatement and whether it is smaller or larger than the tax bill Sanofi would have paid is not mentioned in the report. Previously, Sanofi was looking to pay only $200,000 over 10 years.

BNET readers are already aware of how this deal will create no significant new jobs but nonetheless threaten local schools because abatement monies cannot be used for school district funds.