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Business

Wednesday business briefs

Citigroup will hold on to

billions in tax breaks

The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal announced this week to wean the company from the massive taxpayer bailout that helped it survive the financial crisis. The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and a few other companies partially owned by the government. As a result, Citigroup will be allowed to retain billions of dollars worth of tax breaks that otherwise would decline in value when the government sells its stake to private investors. While the Obama administration has said taxpayers are likely to profit from the sale of the Citigroup shares, accounting experts said the lost tax revenue could easily outstrip those profits.

Intellicheck wins PA contract

Intellicheck Mobilisa has won a contract to supply the Port Authority with handheld biometric ID card readers, the Woodbury-based company said Tuesday. The mobile card readers are part of a high-tech Homeland Security Department program aimed at preventing intruders from posing as workers at the nation's ports. The machines read ID badges that contain such biometric data as fingerprints and are issued to maritime workers who need unescorted access to secure areas of the nation's ports. "I think everyone can recognize the value of supporting the Port of New York and New Jersey in increasing their security measures," Nelson Ludlow, chief executive of Intellicheck Mobilisa, said in a statement. The transportation worker identity credential, or TWIC, program is a government initiative that provides tamper-resistant biometric identification cards to port facility workers. The cards became a mandatory requirement for access to all U.S. ports as of April 15.

Inflation fears deflate stocks

The stock market fell from 14-month highs and Treasurys slipped Tuesday after inflation rose faster than expected last month. The Dow Jones industrial average, fell 49 points to 10,452.00. The Standard & Poor's 500 index fell 6.18, or 0.6 percent, to 1,107.93, and the Nasdaq composite index fell 11.05, or 0.5 percent, to 2,201.05.

From staff and wire reports

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