Motorola Mobility Stays in Illinois After Split
Motorola Mobility will keep its corporate headquarters in Illinois after state Governor Pat Quinn offered the company a $100 million tax credit to remain in the state.
The company has decided to move its corporate headquarters to Chicago suburb Libertyville, Ill., about 30 miles from Motorola Solutions in Schaumburg, Ill.
"The decision to locate Motorola Mobility's corporate headquarters in Libertyville highlights our long-standing commitment to the state of Illinois," CEO Sanjay Jha said in a statement.
In addition to its Libertyville headquarters, Motorola will also maintain a design center in downtown Chicago.
The news, announced May 6, ends months of speculation about whether Motorola Mobility would move its headquarters out of Illinois after its split from Motorola Solutions.
Motorola's decision to stay in Illinois came the same day Gov. Quinn signed Senate Bill 4, expanding a key tax credit for large companies. The Economic Development for a Growing Economy (EDGE) tax credit now allows some companies to apply the credit against their annual withholding tax liability or their annual corporate income tax liability.
Under the new bill, Motorola Mobility will receive more than $10 million in EDGE tax credits every year for the next ten years, adding up to $100 million in tax credits over the next decade.
The state is also providing Motorola Mobility funds to train its workforce, as well as a grant covering some of the expense of moving the company's headquarters to a new location. Finally, Motorola Mobility is eligible for benefits reserved for companies that have a large impact on the state's economy.
Motorola Mobility will retain about 3,000 employees in Illinois and has committed to spend more than $500 million in research and development in the state over the next three years.