ANNOUNCEMENT 14 Apr 2009

In April 2009, a US state government announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 2 neutral
  • 0 liberalising

SOURCE



Main data from Good Jobs First at http://www.goodjobsfirst.org/sites/default/files/docs/Megadeals_February2015.xlsx.
April 14, 2009 press release issued by the office of then-Gov. Jennifer Granholm. The job training portion came from: Pete Daly, "LG Chem brings jobs," Grand Rapids Business Journal, February 7, 2011. The Renaissance Zone figure came : Ken Kolker, "Volt no jolt: LG Chem employees idle," WOOD TV 8 (October 18, 2012). The additional MEGA tax credits and personal property tax exemptions came from: Terry Oparka, "City tax break continues to power lithium ion battery corporation," Troy Times (March 8, 2012)


Inception date: 14 Apr 2009 | Removal date: open ended
Still in force

Tax or social insurance relief

In 2009 state and local governments in Michigan provided to battery manufacturer LG Chem-Compact Power up to $100 million in state battery tax credits, MEGA tax credits worth $25.2 million; additional MEGA credits worth $3.8 million; $19.6 million from Michigan New Jobs Training Program; an estimated $48.5 million in Renaissance Zone subsidies; and about $870,000 in local infrastructure improvement and personal property tax abatements. The federal Department of Energy also provided a $151 million grant. 
 
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

 
Inception date: 14 Apr 2009 | Removal date: open ended
Still in force

Financial grant

In 2009 state and local governments in Michigan provided to battery manufacturer LG Chem-Compact Power up to $100 million in state battery tax credits, MEGA tax credits worth $25.2 million; additional MEGA credits worth $3.8 million; $19.6 million from Michigan New Jobs Training Program; an estimated $48.5 million in Renaissance Zone subsidies; and about $870,000 in local infrastructure improvement and personal property tax abatements. The federal Department of Energy also provided a $151 million grant. 
 
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".