ANNOUNCEMENT 01 Nov 2013In November 2013, a US state government announced a targeted tax change.
NUMBER OF INTERVENTIONS
Main data from Good Jobs First at http://www.goodjobsfirst.org/sites/default/files/docs/Megadeals_February2015.xlsx. Max Ehrenfreund, 'The Stakes at Cove Point,' The Washington Post (December 7, 2014), available online at: http://www.washingtonpost.com/business/community-divided-over-cove-point-natural-gas-terminal/2014/12/05/8f4e7300-7003-11e4-8808-afaa1e3a33ef_story.html. The details of the agreement were taken from documents presented at a November 5, 2013 Board of Calvert County Commissioners public hearing on 'Proposed Amendments to the Code of Public Local Laws of Calvert County and Consideration of an Agreement for a Payment in Lieu of Taxes (PILOT) and Tax Credit for Dominion Cove Point LNG, LP.' The documents are posted on the Board of County Commissioners website at: http://md-calvertcounty.civicplus.com/DocumentCenter/View/4755
In 2013 the Calvert County Board of County Commissioners provided $506 million in incentives to Dominion Resources for the expansion of a facility for the liquefaction of natural gas. According to the Washington Post the first part of the package includes 5-year PILOT agreement that locks the taxable value of the equipment at the facility at $15.1 million for the duration of the PILOT agreement. At the end of the 5-year agreement, the county will grant the company a 42 percent tax credit on new and repurposed equipment for nine years. In return, the company will make one-time, $25 million payment to the county at the beginning of the package agreement. The company is also obligated by the program rules to create 25 new jobs that pay above average county wage and to make a $2.5 million investment in the land or the equipment.
A general concern about these submissions is that they may distortinter-state rather than inter-national commerce. Sure, they makeproduction less costly and thus potentially lower domestic marketprices.