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LivingSocial Headquarters Stays In DC Thanks To Job Creation Tax Incentives Act

12:38 PM, Jul 19, 2012   |    comments
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WASHINGTON (WUSA) -- In April, we told you about how D.C. officials were wooing LivingSocial to stay in the District by proposing tax incentives. Then, earlier this month, D.C. Council approved The Social E-Commerce Job Creation Incentive Act of 2012 to allow LivingSocial to consolidate its corporate headquarters in the District.  Thursday, Mayor Vincent Gray signed the bill. 

Mayor Gray said in a statement Thursday: 

"Keeping LivingSocial in the District is important so that we can continue to draw additional business and tech companies to D.C. and help build the New Economy I talked about in my State of the District Address. This legislation, unlike any previous incentive package in the District, also ensures that the incentives received by the company are directly tied to the creation of new jobs for District residents."

According to D.C. officials, LivingSocial employs over 1,000 people in D.C., and half of them are District residents. LivingSocial has almost 5,000 employees worldwide.

In April, LivingSocial said in a statement:

"If passed, this legislation will help ensure LivingSocial creates more than a thousand new jobs in Washington, DC. Though a number of other cities approached us with compelling relocation offers, Washington, DC is LivingSocial's home and in our DNA. We are very grateful to Mayor Gray for his leadership and support in designing this mutually beneficial legislation, and we look forward to working with the City Council on its quick passage, which will allow LivingSocial to continue to grow and prosper with the District."

Under the legislation, at least 50 percent of LivingSocial's new hires have to be DC residents for it to receive "$32.5 million in benefits tied to real property and corporate franchise tax abatements." Officials say the bill also included "District commitments from LivingSocial, such as hiring local youth in the Summer Youth Employment Program (SYEP) and assisting small businesses located along corridors affected by construction."

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