Wednesday, July 30, 2014

What does it cost to attract a new industry?

money_stacks
Did you ever wonder what it would cost to land a Toyota Plant? Would you believe $146 million or $195,000 per job?  That’s the incentive package that Toyota received when they relocated to Kentucky.

The Site Selection Group recently identified more than 320 economic incentive packages offered to companies, like Toyota, across the country in the 2nd quarter of 2014. The estimated value of these incentives is in excess of $1.7 billion. This represents a huge increase over the 1st quarter report which totaled $450 million.

Interestingly, the top 25 incentive packages during the 2nd quarter of 2014 accounted for $135 billion of the total $1.7 billion.  However, 90% of the incentive packages provided during the 1st and 2nd quarters of 2014 were for $5 million or less. The Site Selection Group found that the most common forms of incentives offered are tax credits and cash grants.
As an example of the importance of the state incentive package in the process, of the top 25 incentive packages in the 2nd quarter of 2014, nine were in New Jersey. This is primarily the result of its new initiative, Grow New Jersey. Since New Jersey enacted the Economic Opportunity Act of 2013, they have awarded $1.1 billion to 45 projects. Below are the top 25 packages.

Company






Incentive
Value ($M)
Offered

Capital
Investment
Jobs
Created
Location
United Technologies






$400.00

$500.00
400
CT
JPMorgan Chase






$224.84

$77.00
1,000
NJ
Toyota Motor






$146.50

$520.00
750
KY
Philadelphia 76ers






$82.04

$82.00
250
NJ
RBC Capital






$78.80

$17.00
900
NJ
General Electric






$51.60

$0.00
2,000
OH
Toyota Motor






$46.75

$350.00
3,650
TX
Conopco






$38.00

$57.00
0
NJ
Starwood Worldwide






$25.00

$30.00
340
CT
Kum & Go






$22.40

$92.00
62
IA
Princeton Tectonics






$22.11

$3.00
151
NJ
Northrop Grumman






$21.00

$500.00
1,800
FL
Lee Company






$20.95

$50.00
200
CT
ArcBest Corporation






$19.00

$30.00
975
AR
Metropolitan Foods






$18.49

$68.00
139
NJ
Enable Midstream Services






$17.45

$0.00
366
OK
Advance Auto Parts






$17.40

$5.00
600
NC
InSinkErator






$15.50

$65.00
165
WI
Rent the Runway






$14.56

$8.00
277
NJ
Baked by Melissa






$12.98

$6.00
140
NJ
Cisco






$12.90

$2.00
550
NC
Fuyao Glass America






$11.39

$230.00
800
OH
Better Team USA Corp






$11.25

$2.00
150
NJ
Alliance Data Systems






$11.20

$80.00
700
OH
Alcoa






$11.10

$100.00
329
IN





































Source-ICIncentives


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