Can't be as bad as Rhode Island $75 million loan to 38 studios. http://en.wikipedia.org/wiki/38_Studios
Tax breaks for companies is pretty common now a days. The city of Austin, TX I believe handed out a huge tax break to Apple with their plans to expand their site in Austin (Apple threatened to go elsewhere and the city bowed down). I suppose giving breaks to proven companies is a lot better than just giving it to anyone.







