ANNOUNCEMENT 14 May 2012In May 2012, 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.
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)
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.