ANNOUNCEMENT 14 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.
Rick Brundrett, "Why the Michelin Man is Smiling in S.C.," The Nerve (May 14, 2012), available online at: http://thenerve.org/news/2012/05/14/Michelin-incentives/. The job and investment projections are taken from: Nikie Mayo, "Michelin to get at least $7.5 million in state incentives for Starr plant," Anderson Independent-Mail (April 13, 2012)


Inception date: 14 May 2012 | Removal date: open ended
Still in force

Tax or social insurance relief

In 2012 state and local governments in South Carolina provided an incentives package to Michelin for the expansion of a tire manufacturing plant in Lexington and a new tire plant in Starr. The estimated $123 million package included subsidies for projects in Lexington and Anderson Counties.
The Lexington County portion included about $45 million over 30 years in property tax abatements from the county and a state grant of $1.5 million, in addition to other unspecified subsidies which are not included in the total.
The package for the Anderson County's new plant included property tax abatements worth about $52 million over 40 years; the state offered a $7.6 million in a grant for site preparation, $6.47 million in job-tax credits, $4.86 million in "economic-impact zone" equipment credits, $4.77 million in job-development credits and $1.12 million in job-training. 
 
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.

AFFECTED SECTORS