ANNOUNCEMENT 01 May 2012

In May 2012, a US state government announced a targeted tax change.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE



Main data from Good Jobs First at http://www.goodjobsfirst.org/sites/default/files/docs/Megadeals_February2015.xlsx.
Christopher Quinn, "Anatomy of a deal; Plant incentives hit $210M," The Atlanta Journal-Constitution (April 28, 2012), available at http://www.ajc.com/news/business/total-incentives-for-baxter-plant-top-200-million/nQTNj/


Inception date: 01 May 2012 | Removal date: open ended
Still in force

Tax or social insurance relief

In 2012 state and local governments in Georgia provided an incentive package to Baxter International for a pharmaceutical manufacturing facility. The value was estimated by The Atlanta Journal-Constitution based on the Economic Development Agreement Between Baxter and the State of Georgia.
State level subsidies include: at least $27.2 million in sales tax exemptions on machinery and equipment; a $28.1 million Quality Jobs tax credit; $14 million for a training facility; a $13.8 million infrastructure grant; $10.4 million in Quick Start job training funds; a $4.7 million Jobs tax credit; a $2.5 million sales tax exemption on construction materials; $1.47 million in job training funds from Georgia Works Ready; a $1.35 million energy sales tax exemption; and $150,000 from the Georgia Department of Labor for a recruitment center.
 
Local subsidies include: 15-year real and personal property tax abatements worth $94.1 million; a site worth $6.5 million; a $5.9 million grant for a new wastewater treatment plant; $1.3 million in waived fees; $100,000 for road improvements; $60,000 for use of authority offices; and unknown amount in Freeport tax exemptions and costs associated with industrial development bonds. 
 
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".

AFFECTED SECTORS