SCHAUMBURG, Ill.-Motorola Inc. will score $4.4 billion in accumulated earnings in the third and fourth quarters thanks to a federal tax incentive. The company said the incentive will add $200 million to its net income in the third quarter.
The incentive comes from the American Jobs Creation Act of 2004, which provides a one-time tax incentive for U.S. multinational companies to repatriate accumulated earnings from their foreign subsidiaries. In its most recent Securities and Exchange Commission filing, Motorola said it approved its repatriation plan in July and intends to add $4.4 billion in accumulated earnings during the third and fourth quarters.
Motorola’s stock was up slightly on the news to about $21.86 per share.
