California state gave India-based outsourcing tech firm a tax break
The Governor’s Office of Business and Economic Development in Sacramento, California approved a $1.3 million tax credit for HCL America Inc. last week.
HCL America Inc. is a subsidiary of an Indian tech company that is well-known for outsourcing jobs from the U.S. to other inexpensive locations.
The state is offering the firm a tax break with the condition of hiring Californians. It will be repealed if HCL fails to meet the hiring target of 633 workers over five years or terminates the employees within three years of hiring them.
As critics share their fears and opinions about the new development, state officials are defending the decision.
Chris Dombrowski, a spokesman for the economic development office said “We are charged with providing incentives to businesses that have choices about where they want to expand. It’s high-wage tech jobs and it’s a significant number of jobs.”
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