ANNOUNCEMENT 01 Apr 2013In April 2013, a US state government announced a targeted tax change.
NUMBER OF INTERVENTIONS
Press release issued by the Arkansas Economic Development Commission on January 29, 2013; available online at: http://www.arkansasedc.com/content/big-river-steel-llc-build-1-billion-plant-mississippi-county-arkansas.
Sean Beherec, "House votes yes on bonds for steel mill," Arkansas Democrat-Gazette (April 9, 2013)
Ardray Maxwell, "Mississippi County Court approves local incentives for steel mill," WREG.com (March 28, 2013), available online at: http://wreg.com/2013/03/28/mississippi-county-court-approves-local-incentives-for-steel-mill/
In 2013 state and local governments in Arkansas provided incentives for the start-up Big River Steel mill. The state legislature agreed to issue $125 million in general obligation bonds that will be used for as follows: $50 million in a loan for the company, $70 million for the site preparation, and $5 million for bond issuance costs. In addition, the legislature agreed to grant the company an unspecified amount, not included in the total, in sales and use tax exemptions on energy purchases and a 14-year carry forward recycling income tax credit. Mississippi County provided the company with $14.5 million in local subsidies for unspecified improvements.
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".