ANNOUNCEMENT 06 Oct 2011In October 2011, 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.
Rick Brundrett , "$35 Million 'Rabbit' Pulled Out of Hat for Continental," The Nerve (June 26, 2012), available at: http://thenerve.org/news/2012/06/26/Continental-incentives/. The jobs and investment values as well as CDBG grant information are taken from October 6, 2011 press release by South Carolina Department of Commerce, available at: http://sccommerce.com/news/press-releases/continental-tire-americas-llc-announces-new-plant-sumter-county
In 2011 state and local governments in South Carolina provided a package of incentives for Continental Tire's new plant in Sumter County and for the company's U.S. headquarters expansion in Lancaster County. The package will be disbursed over 10 years and includes both state and local subsidies: $118 million in corporate income tax credits; $37 million in Job Tax Credits; up to $35 million from a deal closing fund; $32 million in Job Development Credits; $18.6 million in unspecified local assistance; $5.1 million in training assistance; and a $5 million grant from the South Carolina State Port Authority. Sumter County also approved unspecified amount in FILOT (fee-in-lieu of taxes) assistance in the form of a flat fee of 4 percent instead of 10 percent of the plant's assessed value. The county will rebate to the company its FILOT payments for first 10 years. The project also received $4 million in federal Community Development Block Grant funds.
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.