ANNOUNCEMENT 10 Dec 2009

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

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Main data from Good Jobs First at http://www.goodjobsfirst.org/sites/default/files/docs/Megadeals_February2015.xlsx.
Dawn Kent, "C-Class tax abatements OK'd," Birmingham News (July 22, 2011). See also: "Vance to make new C-Class," Birmingham News (December 3, 2009)


Inception date: 10 Dec 2009 | Removal date: open ended
Still in force

Financial grant

In 2009 state and local governments provided an incentives package to Daimler for relocating Mercedes-Benz sedan production from Germany to Alabama. The package included: $10 million in cash grant from the state; a $10 million cash grant from the local governments, $15 million in tax abatements; and $65 million for job training. 
In May, 2015 Tuscaloosa County agreed to give additional property tax abatements to Mercedes-Benz to offset plant expansion costs that doubled from the original estimate. The Tuscaloosa County Industrial Development Authority agreed to increase the value of the company's tax abatements to about $28.1 million, up from the $12.5 million approved in 2011.
 
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