Norwalk-based Frontier Communications is considering moving its headquarters to Texas or Florida, where the cost of business is lower and there is no income tax, according to published reports.
Frontier is one of the largest companies based in Connecticut and made Fortune 500’s rankings in 2022, but dropped out in 2023.
Some of the telecommunication company’s top executives already live in Dallas, including Chief Executive Officer Nick Jeffery, according to Bloomberg.
According to a memo from Dallas’ assistant city manager, Majed Al-Ghafry, to members of the City Council, Frontier is seeking tax incentives to convert its office in Dallas into a corporate headquarters, the Dallas Morning News reported.
As a second option, Frontier is considering Tampa, Florida, the memo says.
Both states are seeing an influx of companies taking advantage of their business-friendly policies, by either moving to or expanding within their borders, according to Bloomberg.
Among the companies that have relocated to Texas in recent years are Tesla Inc., Hewlett Packard Enterprise Co. and Caterpillar Inc., Bloomberg reported.
According to the draft agenda for the City Council’s Aug. 23 meeting, the council is set to consider authorization of “Frontier Communications Parent Inc.” for designation as an Enterprise Zone Project under the Texas Enterprise Zone Act.
The designation would allow Frontier to receive a refund of the sales and use taxes paid as part of its capital investment, up to $2,500 per job created or retained.
The news comes despite a historic tax cut approved by the state legislature and signed into law by Connecticut Gov. Ned Lamont.
At the close of the 2023 legislative session, CBIA President and CEO Chris DiPentima said the lack of business tax cuts in the two-year, $51.1 billion budget was “baffling and frustrating,” especially given the state’s strong fiscal position, and bipartisan agreement on the need to grow the economy.
Frontier has more than 14,000 employees across the United States, including 220 in Norwalk, and more than 600 in its existing Dallas office, according to Bloomberg.
Adam Joseph, a spokesman for Lamont, told Bloomberg the administration is in regular contact with Frontier, but the company hasn’t communicated its intention to relocate.
A spokeswoman for Frontier did not immediately respond to the Hartford Business Journal’s request for comment.
