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Millions of dollars in incentives could be on the line for companies that invest in major factory upgrades or move their headquarters to Tennessee. The plan was submitted to the legislature this week.
Tennessee not only wants to land the big corporations...but wants to keep them once they have arrived.
The incentive for major factory upgrades would apply to projects such as General Motors $225 million re-tooling of the Spring Hill plant.
GM officials say their investment depends on the state offering incentives to support the project.
At this time, companies are elegible for a 1% tax break on new industrial equipment, but can only qualify for additional incentives if they add a minimum of 100 new jobs with an investment of over $100 million.
The new proposal would offer a sliding scale of 3% tax credit for the equipment investment, a 5% jump for over $250 million, a 7% jump for $500 million and a 10% tax break for a $1 Billion plus investment. Apparently, this legislation is meant to encourage re-investment when manufacturing equipment has worn out.
The bill would also let companies that relocate their corporate headquarters in Tennessee claim a credit for moving expenses up to $50,000 per employee if they invest at least $1 billion in the state.
There is a sliding scale for businesses that invest less money...but the incentives are less generous.
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