Firms That Left U.S. to Cut Taxes Could Qualify for Fed Aid
- Central bank’s guidelines give leeway for emergency assistance
- Senate Democrat says ‘inverted’ firms shouldn’t get bailout
Photographer: Ariana Lindquist/Bloomberg
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American companies that moved their official headquarters offshore to avoid U.S. taxes could qualify for coronavirus aid from the Federal Reserve, tax lawyers say, raising new questions about which firms should get access to public money.
Under guidelines published by the Fed, companies that engaged in so-called corporate inversion transactions while maintaining meaningful U.S. operations appear to be eligible for two new programs designed to provide credit to large employers by purchasing new or outstanding corporate bonds.