ANNOUNCEMENT 05 Feb 2016In February 2016, a US state government announced a targeted tax change.
NUMBER OF INTERVENTIONS
On February 5, 2016 the Mississippi state legislature approved a plan to borrow $274 million and provide millions in tax breaks to attract a tire plant in Hinds County and a shipyard in Gulfport. According to press accounts, Continental Tire plans to build a $1.45 billion plant to make industrial tires. The deal that it reached with the state provides for the employment of 500 people by the time that the plant opens in 2019 and 2,500 people by 2028. The state will borrow $263 million for the tire plant and help with site acquisition and preparatory work, roads and other infrastructure, workforce training and help with building costs. Hinds County will pay off $20 million of the debt. The tire plant will be given 25-year income tax and corporate franchise tax exemptions, sales tax exemptions, and roughly $3 million a year in rebates on employee income tax collections. The firm Edison Chouest of Louisiana plans to invest $68 million in its Topship yard on the Industrial Seaway in Gulfport. Topship makes service and supply vessels for offshore oil and gas exploration rigs. The company plans to complete construction by 2018 and create 1,000 jobs. The state will borrow $11 million for the port project to help with infrastructure, workforce training and other costs, coupled with $25 million in federal port money. The shipyard will receive 20-year income tax and franchise tax exemptions, sales tax and other exemptions or rebates. Lawmakers held a special, one-day session and approved the subsidies in a single bill. The deal cleared the House of Representatives by a vote of 118-3 and the Senate by 48-3.