ANNOUNCEMENT 01 Jul 2009In July 2009, 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.
The subsidies are summarized in A123's 10-K filing for FY 2009, available online at: http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7125710-971-716880&type=sect&dcn=0001047469-10-002210
In 2009 the state of Michigan provided a subsidy package to A123 Systems for advanced battery manufacturing. The package included up to $100 million in Michigan Business Tax Battery Credits; up to $25.3 million in MEGA tax credits; two $10 million Centers of Energy Excellence grants; a $4 million low-interest forgivable loan; a $2 million grant; and $1 million in Southwest Michigan Community Alliance job training assistance.
The company also stood to receive additional subsidies by virtue of being located in a Renaissance Zone, but the value cannot be determined. In addition to the state subsidies, A123 received a $249 million federal Recovery Act grant. The larger state subsidies are listed separately in the main Subsidy Tracker data under the individual program names.
In 2012 the company filed for bankruptcy and later sold its assets to the Chinese company Wanxiang Group. Michigan officials took the position that the tax credits could not be transferred to Wanxiang.
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.