ANNOUNCEMENT 01 Jun 2014In June 2014, a US state government announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Main data from Good Jobs First at http://www.goodjobsfirst.org/sites/default/files/docs/Megadeals_February2015.xlsx.
Dawn Kent Azok, "New business for Alabama's Black Belt: Chinese manufacturer opens plant, plans future expansions," AL.com (May 28, 2014), available at: http://www.al.com/business/index.ssf/2014/05/chinese_copper_manufacturer_op.html; see also: Michael Tomberlin, "Enter Golden Dragon with Wilcox County plant," Birmingham News (February 8, 2012). For an "aid intensity" analysis of the deal, see: Kenny Thomas "Another Day, Another Bad Incentive Deal" posted June 4, 2014 on the Middle Class Political Economist blog; available at: http://www.middleclasspoliticaleconomist.com/2014/06/another-day-another-bad-incentive-deal.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+blogspot%2FmoiCu+%28Middle+Class+Political+Economist%29
In 2014 state and local governments in Alabama provided an incentives package for Golden Dragon Precise Copper Tube Group to locate in the poorest county in the state. This included up to $160 million over 20 years in capital income credits; $20 million in state discretionary grants; $8.5 million in property tax abatements; $5.7 million in site preparation and road improvements; $5.1 million in sales and use tax abatements; $1.8 million in worker training; and $1 million to purchase and prepare the site. Golden Dragon Precise Copper Tube Group is a company whose headquarters is in China.
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.