ANNOUNCEMENT 01 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.
Daniel Connolly and Amos Maki, "Landing Electrolux; New factory comes at a high cost for taxpayers and with big risks," The (Memphis) Commercial Appeal (September 18, 2011); the investigative reporting is available online at: http://www.commercialappeal.com/landing-electrolux/
In 2010 state and local governments in Tennessee provided an incentives package to the vacuum cleaner company Electolux for an appliance manufacturing plant. The package included: $77 million in bonds issued by the state; $20 million in cash; $3.1 million in FastTrack Job Training assistance; $1 million in other training assistance; $40.8 million in bonds backed by the city and the county; $8 million in land donated by the Port of Memphis; a 15-year PILOT property tax abatement worth an estimated $33.9 million; a $3 million grant from Delta Regional Authority for infrastructure and workforce training; an estimated $41 million in state tax credits; $76 million in interest on the bonds; and $1.5 million in federal aid from the Tennessee Valley Authority. Electrolux was also exempted from diversity requirements for companies receiving local funds and from clawback provisions.
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.
As no official source could be obtained, this measure is coded "amber".