ANNOUNCED AS TEMPORARYNo
Tax or social insurance relief
On January 10, 2018 the governor of Alabama joined with Toyota and Mazda to announce that the two Japanese producers would locate a joint manufacturing plant in north Alabama. The plant will have the capacity to build 300,000 vehicles annually, with production split evenly between two lines for each company. The joint venture represents a $1.6 billion investment (divided evenly).
Although state agencies have not made any formal announcement regarding the incentives package offered to the automakers, press accounts quoted state officials to report that it may be valued at nearly $380 million over a ten-year period. According to data that the press attributed to the Alabama Department of Commerce, the state's incentive package is based primarily on various forms of tax abatement. It includes a jobs credit with an estimated value of $90.6 million over 10 years; an investment credit of $210 million over 10 years; state sales tax abatement of $25 million; and noneducational property tax abatement of $14.3 million over 20 years.
The figure does not include any local incentives that are part of the deal, such as the tax-increment financing district that the city of Huntsville is creating at the site of the project. Press accounts state that at least five other local governments have promised to provide incentives: The cities of Athens and Madison as well as the counties of Madison, Limestone, and Morgan. Athens Utilities is also reportedly offering incentives.
Local governments followed with complementary incentives. The city of Huntsville canceled property taxes for 20 years, valued at $107 million, and the Limestone County Commission approved a property tax abatement valued at $80 million over 20 years.
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