What does it cost to attract a new industry?

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 2^nd quarter of 2014. The estimated value of these incentives is in excess of $1.7 billion. This represents a huge increase over the 1^st quarter report which totaled $450 million.

Interestingly, the top 25 incentive packages during the 2^nd quarter of 2014 accounted for $135 billion of the total $1.7 billion.  However, 90% of the incentive packages provided during the 1^st and 2^nd 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 2^nd 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

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