For the second time in six months, Connecticut’s State Bond Commission has approved a multi-million dollar tax incentive package to keep a hedge fund operating in the state.
On Tuesday, the Commission approved a $35 million package for Greenwich-based AQR Capital. Under the deal, AQR will get $28 million in loans and $7 million in grants over the next 10 years to retain and add jobs in the state. In May, the Commission approved a $22 million package for the world’s largest hedge fund, Westport-based Bridgewater Associates.
Connecticut Governor Dannel Malloy defended the AQR deal, saying: “We’re not giving money to anyone. We are investing in a company that has 529 jobs in the state and is willing to grow a substantial number.”
Tax incentives for businesses is a sensitive subject for Malloy. In January, GE moved its headquarters from Fairfield to Boston, and the governor faced sharp criticism over claims that he didn’t do enough to keep the company in Connecticut.
“If the company was to pick up and move, would that be a good thing? Or if any company picks up and moves, doesn’t that get wide coverage? What we’re talking about here is making an investment that guarantees a company stays in our state,” Malloy said.
The deal was approved by a vote of 8 to 2. The state’s democratic comptroller was one of the no votes.
This report contains information from CRN.