ANNOUNCEMENT 01 Jan 2010

State and local governments, with indirect and conditional support from the Federal government, offered more than $11 million in support to a railcar manufacturer.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Jan 2010 | Removal date: 15 Aug 2018
Still in force

State aid, nes

In 2010 the state of Illinois offered Nippon Sharyo Manufacturing LLC an incentives package worth more than $4.7 million in training funds, grants, corporate income tax credits and other incentives in order to build a $35 million passenger rail car plant. The largest share of that incentives package came from tax breaks worth more than $2.85 million, according to the state's Department of Commerce and Economic Opportunity. The state then announced on July 20, 2012 an additional $5.5 million in incentives through the Illinois Department of Transportation to build a rail spur to the new factory. The city of Rochelle offered another $866,000 in assistance. Taken together, these incentives were worth more than $11 million.

In August, 2018 Nippon Sharyo announced the closure of this facility, following decreased demand and a years-long reduction in its workforce.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 01 Jan 2010 | Removal date: 15 Aug 2018
Still in force

Local sourcing

The project also benefited from an unknown level of federal government incentives that are provided through states, municipalities, or transit authorities. Those incentives are subject to Buy American requirements by which companies have to produce 60% of the total value of the rail cars in the United States, and the final assembly must be made by American workers with American-produced steel, iron, and manufactured components.