US Credits & Incentives
ALABAMA
With a robust aviation and aerospace industry, Alabama legislators are now seeking to extend a key tax exemption that is otherwise set for expiration. As introduced, HB 20 would extend the state’s preexisting gross receipts tax exemption on the sale of parts, components, and systems that become a part of a fixed or rotary wing military aircraft through May 30th, 2032. In the state senate, legislation has been introduced to repeal all incentives which do not currently have a sunset date. In addition to setting new reporting requirement, SB 57 would repeal, at the end of 2023, any programs and credits that do not have an expiration date on the books.
ALASKA
To support communities devastated by the lack of tourism due to Covid-19, the federal Economic Development Administration (EDA) is awarding over $300 million in recreation grants via the American Rescue Plan Act funding. Alaska will be a major beneficiary of the grants after the state was awarded $10.4 million under the program.
Known as American Rescue Plan State Travel, Tourism, and Out-door Recreation grants, the Alaska Travel Industry Association will be allocated the funds. Among other efforts, the funding will help support the state’s initiative to promote Alaska as a year round travel destination.
ARIZONA
Grand Canyon State economic development officials and political leaders received a robust bump in their discretionary grant authority in FY 2022. Known as the Arizona Competes Fund, state officials can leverage tax withholdings, state lottery fund deposits, legislative appropriations, and other fees to attract businesses to invest and expand operations in the state. To directly support the deal closing grant, Arizona lawmakers added an additional $50 million to the fund, particularly to help win mega deals the state often strongly competes for.
In his FY 2023 budget, Governor Doug Ducey announced the allocation of $30 million to support new workforce accelerators in the state. Deploying monies from the Corona virus State and Local Fiscal Recovery Fund, the funding will allow the Arizona Commerce Authority to establish six advanced manufacturing training centers located at community colleges statewide.
ARKANSAS
A popular relocation incentive in Northwest Arkansas is now turning to crypto to spur interest in the region. Known as the “Life Works Here” initiative, the program pays eligible workers $10,000 to relocate to the region. To add a new twist, program leaders are offering the equivalent in bitcoin, as opposed to traditional currency.
CALIFORNIA
As part of the State of California’s economic recovery plan, Governor Gavin Newsom and the California Legislature allocated $120 million for FY 2021-2022 for a new California Competes Grant Program (CCGP). This program is an addition to the preexisting California Competes Tax Credit program, which has an allocation of $394 million available for fiscal year 2021-2022. The California Competes Grant Program provides a cash grant to companies that are looking to expand in or relocate to California. To be eligible for this program a project must meet at least one of the three following criteria:
- Create 500 net new jobs in the State of California;
- Make a significant infrastructure investment requiring construction or renovation expenditures of at least $10,000,000; and/or
- Locate in an economically distressed community as defined by the California Competes Program.
The first application round for the new grant program went live in January 2022. While a second round of the grant has not yet been approved, the expectation is that information about the grant’s future will be forthcoming by late spring.
COLORADO
Economic development and tourism officials in the Rocky Mountain State had a robust cash grant to attract meetings and events in 2022. Supplemental to the Meetings and Events Incentive Cash Rebate, which provides a 10% rebate against eligible hard costs for hosting meetings and events in Colorado, the new Meeting and Events Incentive Direct Support Grant provides up to 50% of eligible direct support costs, not to exceed $200,000 for hosting events that take place before the end of 2022. To be eligible, the event must have a significant economic impact, which must affect multiple counties. The application round has since closed for the program.
CONNECTICUT
To incentivize the deployment and utilization of battery systems in Connecticut businesses, customers of Eversource and United Illuminating can now leverage installation rebates and performance incentive payments through the Energy Storage Solutions program. With savings of up to 50% on installation prices for eligible battery systems, businesses can also capture significant incentives on the first 50 MW of commercial storage projects during peak demand and seasonally. Savings are dependent on the overall sites of the customer and power demand. Originally commencing at the start of 2021, the program is set to continue through 2030. Administered by the Connecticut Green Bank, the program is also available for residential customers.
DELAWARE
Film and television productions may soon be re-incentivized in the First State. The Joint Legislative Oversight and Sunset Committee, a ten-member legislative body responsible for guiding the sunset process, recently approved a request for the Delaware Motion Picture & Television Commission to be reconstituted. According to media reports, the film commission, which was established in 2015, has not convened for an official session since 2017 under Delaware’s Division of Small Business.
DISTRICT OF COLUMBIA
To deliver direct support for eligible businesses seeking to purchase commercial properties in the nation’s capital, Mayor Muriel Bowser, the Office of the Deputy Mayor for Planning and Economic Development,and the Council of the District of Columbia, have invested $4 million into a program referred to as the Commercial Property Acquisition Fund. With an initial opening in November 2021, the program provides down payment assistance through grants of up to $750,000 or 25% of the sale price, whichever is less, to eligible businesses looking to maintain and expand their operations to a physical presence by acquiring commercial property.
Eligible businesses are defined as “equity impact enterprises” that are resident-owned small businesses that are at least 51% owned by an individual who is, or a majority number of individuals who are, economically disadvantaged or have been subjected to racial or ethnic prejudice or cultural bias. For the Commercial Property Acquisition Fund, the term “property” is defined as existing properties located in the District of Columbia that will be used for commercial use only, including commercial condos.
FLORIDA
Legislation has been introduced in the Sunshine State to leverage new and expanded incentives for investments in rural areas and federally designated opportunity zones. Originally introduced by State Senator Ben Albritton, SB 800 would provide several incentives to businesses investing ineligible areas, including: an exemption from public service tax on electrical energy purchases; exemption from sales tax related to certain real property investments; revisions to the existing Rural Job Tax Credit Program;establishment of a new Rural ob Tax Credit Program, which would be crafted similarly to a previously expired state program; and designation of 10% of Florida Job Growth Grant Fund monies for rural communities. The legislation is currently moving favorably through the Florida Senate Committee process.
Governor Ron DeSantis is strongly advocating for full funding of the previously mentioned Florida Job Growth Grant Fund, presenting a potential battle with Florida legislators. Typically funded annually in the $50million range, this successful infrastructure grant program is facing potential cuts in the proposed Florida House budget plan. Defending the overall success of the program,especially supporting the development of industrial parks, road development,and work-force training centers,Governor DeSantis is seeking $100 million for the program.
GEORGIA
Georgia lawmakers approved legislation last year expanding several key state incentive programs, along with introducing new transparency provisions. Credited with helping win several significant economic development projects for the Peach State, including the recent Rivian electric vehicle manufacturing facility, SB 6 expanded the Mega Project Tax Credit program by removing a credit cap of 4,500 jobs. The legislation also added new eligible industries to the program, including high-impact aerospace projects.
In addition to modifying the mega deal incentive, the legislation also implemented new transparency measures by allowing for independent economic analyses to be procured by the Office of Planning and Budget upon request by the chairpersons of the House Committee on Ways and Means and the Senate Finance Committee.
HAWAII
As a broad transition to remote working continues to sweep across the world during the pandemic, the Aloha State may find it to be an opportunity, as opposed to a long-term challenge. In his latest State of the State address, Hawai’i Governor David Ige discussed the major requirement to continue investing in connectivity and broadband across the islands. Core to the effort will be leveraging federal and private funds to support development and deployment of key broadband infrastructure. In his speech, the governor indicated that part of his initiative will be the creation of a Broadband and Digital Equity Office, which will help lead and oversee this generational endeavor.
IDAHO
With the United States Department of Agriculture’s (USDA) recent announcement of $1.4 billion in funding and financing for rural America, Gem State communities and companies received critical support for economic development efforts. In total, Idaho entities received approximately $16.5 million through several USDA initiatives geared towards supporting rural businesses. According to reports, over $12 million is being allocated through the Business & Industry Loan Guarantee Program, above $1 million via the Value-Added Producer Grants Program, and more than $1 million for rural innovation grants, among others.
ILLINOIS
In his 2022 State of the State and Budget Address, Governor J.B. Pritzker outlined a number of key initiatives his administration is focusing on as the Land of Lincoln recovers from the pandemic. When it comes to economic development and job creation, the governor spoke specifically about the success and his support for grant programs like Rebuild Downtowns & Main Streets Capital Grant Program, which supports investment in commercial corridors and downtowns that have experienced disinvestment.
Perhaps the most significant comment was encouraging renewal of the state’s premier incentive, the Economic Development for a Growing Economy Tax Credit Program (EDGE). The popular and often controversial EDGE program is set to expire in June.
INDIANA
Legislation is moving through the Indiana General Assembly that would modify a number of key existing incentive programs in the state and establish a new initiative to entice remote workers to the Hoosier State. Known as the Remote Worker Grant Program, SB 361 would establish a remote worker grant program for an annual grant of $5,000 for up to three years. However, the grants would not be eligible for employers that also receive state tax credits through the Indiana EDGE program. Grant awards would be capped at $1 million in FY2023 and $1.5 million in FY 2024.
In addition to the remote worker program, the legislation would also establish a Film and Media Production Tax Credit and create an Innovation Development District Fund, both of which would be administered by the Indiana Economic Development Corporation (IEDC).
IOWA
Iowa lawmakers are currently debating legislation to advance biofuel incentives and mandates to support Hawkeye State producers.
Known as the “2022 Biofuel Access Bill”, among its key provisions the legislation would require certain dispensers to offer E15 statewide by 2026, along with modifying the promotion tax credit by nine cents through 2025. As part of this E15mandate, the legislation would provide grants and/or exemptions for eligible fuel retailers to comply with the law.
KANSAS
Jayhawk State legislators are actively working on a bill to establish new incentives to specifically target a mega-deal opportunity, the identity of which as of early February 2020 is still unknown. In brief, the new program would create a 15% tax credit on qualified investment, which must be no less than $1 billion. Additionally,the legislation would establish a 10% payroll refund and workforce training reimbursement for up to five years,along with provisions to incentivize up to five supplier companies.
According to reports, the incentives as debated would provide an award upwards of $320,000 per direct job created. While these figures create sticker shock for many, Kansas Department of Commerce officials are citing the state failing to win on nearly a dozen recent mega-projects,which would have come with a potential capital investment of $63 billion. We’ll continue to update this section as the process moves forward in the Kansas State Legislature.
KENTUCKY
Film and television productions are navigating new provisions regulating the Bluegrass State’s entertainment and film incentives program. Now overseeing the program, Kentucky’s Cabinet for Economic Development will be tasked with tracking progress and developing annual reports for state legislators. This new shift follows several major changes to the program in 2021 by Kentucky lawmakers, including an annual cap of$75 million, tighter production timelines, and a requirement that productions must be completed within a two-year period.
LOUISIANA
The Bayou State is going to be home to another animation and visual effects studio, with much thanks to the state’s film and television production incentives. While many states focus incentives on direct productions, Louisiana has developed programs specifically focused on permanent jobs and capital investment. Known as the Qualified Entertainment Company program, this program provides that for eligible hires in entertainment content creation employers may capture a tax credit up to 20% of payroll tax.
MAINE
With a generational opportunity to invest federal stimulus and recovery dollars, Governor Janet Mills launched her $1 billion Maine Jobs & Recovery Plan. The robust plan has three main goals for the future of the Pine Tree State:
- Immediate economic recovery from the pandemic;
- Long-term economic growth for Maine; and
- Infrastructure revitalization.
Throughout 2022 and beyond, the Governor will be launching initiatives out of the plan, including recent investments in housing and apprenticeships.
MARYLAND
To support community development and economic growth, Governor Larry Hogan recently announced $63 million in awards. Leveraging six different state revitalization programs, the awards went to all 23 Maryland counties and Baltimore City. Through these programs, communities will receive direct funding for the following revitalization and redevelopment activities:
- Business expansion and retention;
- Streetscape improvements;
- Home ownership and homer rehabilitation incentives;
- Commercial improvement programs;
- Community facilities;
- Mixed-use development; and
- Demolition activities
MICHIGAN
Following extensive debate by Michigan legislators and Governor Gretchen Whitmer, legislation was approved appropriating $1.5 billion in incentives. With a focus on competing for mega projects, the incentives were developed specifically to target major job creation and capital investment opportunities. Core to the program are two initiatives:
- a Site Readiness Fund to invest in critical, strategic sites; and
- a Critical Industry Fund to act as a deal-closing
MINNESOTA
In a joint effort to promote the Land of10,000 Lakes to prospective businesses, talent, and investors, Governor Tim Walz and Minnesota Department of Employment and Economic Development (DEED) Commissioner Steve Grove launched their ‘Build What Matters’ campaign. Driven through a new website, JoinUsMN.com, the government officials are joined by local business and economic development stakeholders from across Minnesota. Ultimately, the goal is to “highlight why Minnesota is an exceptional state to build a business or advance a career.”
MISSISSIPPI
Magnolia State lawmakers approved legislation last year allowing for supplemental ad valorem tax exemptions for certain renewable energy projects.
If a renewable energy project is eligible, a county now has the discretion to grant an exemption of ad valorem taxes up to 50% of total assessed value.
In order to be eligible for the new Mississippi incentive,projects must have private capital investment of at least $100 million, energy generation through qualified renewable energy sources, and be placed into operation after April 16, 2021.
MISSOURI
State legislators in the Show Me State work through their latest session, there are several bills dealing with incentives moving through the lawmaking process. One that is sparking conversation around a growing industry – no pun intended – would establish a tax credit for urban farming. While not being significant in scale to begin, the tax credit would create a nonrefundable, nontransferable tax credit equal to 50%of eligible expenses for the construction or development of a new or existing urban farming operation. Credits will be capped at $5,000 for any single urban farm, which can be carried forward for three years.
Another bill being tracked closely is referred to as the “Show MO Act”, legislation to virtually reinstate a film production incentive that expired in 2013. The bill would authorize a 20% tax credit for eligible motion media production projects. Sunsetting at the end of 2029, the legislation would provide an additional 5% credit if the production also met certain goals, including if at least 50% of the production is filmed in the state, if at least 15% is filmed in a rural or blighted area, and if the script positively markets Missouri, among others.
MONTANA
Big Sky State legislators will certainly continue a robust debate in 2022 over their premiere film and production incentive. Credited with success fully driving marquee productions to Montana, including the wildly popular Yellowstone television series, the state has the Montana Economic Development Industry Advancement (MEDIA) Act, which can provide up to 35% tax credits. Many in the state capital are not questioning the success of the program, instead, the conversation is focused on the overall cap of the program. Proposals have been floated to increase the cap from $10 million to $250 million per year but faced staunch opposition. A compromise only led to an increase to $12 million. Expect this conversation to be heated as the year goes on.
NEBRASKA
Legislation has been introduced in the Cornhusker State to allow ethanol plants to receive incentives tied to investments in carbon capture facilities. Under HB 801, ethanol plants in Nebraska could be eligible for tax credits under the Imagine Act that allows for the “capture, transport or geologic storage” of carbon dioxide. Facing opposition from certain environmental groups, advocates of the legislation will be vital to support the development and deployment of carbon capture technologies in the state.
NEVADA
The dynamic Las Vegas metropolitan region will have a new face leading to economic development. Tina Quigley, most recently serving as CEO for the Regional Transportation Commission (RTC) of South Nevada, has been announced as President & CEO of Las Vegas Global Economic Alliance (LVGEA). Quigley will become the first woman ever to lead the organization.
NEW HAMPSHIRE
Lawmakers in New Hampshire are moving through a bill to establish a new incentive for individuals to pursue work certifications for high demand occupations. Known as the Workforce Pathway Program, SB 44 would direct the community college system of New Hampshire to develop training programs to support residents in workforce sector priority areas. The bill would leverage resources and funds from the federal Workforce Innovation Opportunity Act and the community college system of New Hampshire financial aid programs, among other sources.
NEW JERSEY
To drive more film and television productions to the Garden State, New Jersey Governor Phil Murphy signed legislation expanding the state’s tax credit program. Known as the New Jersey Film and Media Tax Credit Program, originally established in 2018, this program has now been extended through 2034 and provides tax credits up to 35%, dependent on where the production is located in the state. Additionally, the legislation increased an annual tax credit cap to $30 million, which is a major increase from the previous $10 million limits.
NEW MEXICO
In her FY 2023 Executive Budget Recommendation, New Mexico Governor Michelle Lujan Grisham listed a number of key funding priorities across the Land of Enchantment, including several dealing directly with economic development. One of those would allocate $50 million to establish a Media Academy to provide training, internships and other avenues for individuals to find success in the state’s growing film and media industry. Additionally, the governor has proposed $13 million for the state’s Job Training Program and $50 million in nonrecurring funding for the Local Economic Development Act program, a key incentive in the state.
NEW YORK
As the Empire State enters a new era of political leadership, there are a number of economic development programs being debated across the state. One program which has found success is New York’s film and media production tax credit. With over $400million in tax credits, which can be up to 35%, the program has been set to expire in 2026. To provide more certainty and long-term viability for the industry, Governor Kathy Hochul proposed a three-year extension for the credit in her latest FY 2023 budget plan released earlier this year.
NORTH CAROLINA
In response to media requests, the state’s Department of Commerce released details on its incentive package offer for a major automotive joint venture project by Toyota and Mazda. Ultimately, the project went to the State of Alabama over North Carolina, despite a reported $1.6billion incentives offer. According to reports, the state’s offer actually doubled as the project decision process moved forward and included $81 million in sales tax savings and $415 million in grant awards. An additional $100 million was being offered by Randolph County in the form of a property tax grant.
To remain competitive and build for a sustainable future, Tar Heel State economic development leaders developed a comprehensive four-year strategy. Not surprisingly, that strategy focused heavily on workforce, even titled as First in Talent. The report released last year focuses on three key goals for the future, which will be supported by incentives,particularly through training programs.
NORTH DAKOTA
To leverage remaining federal stimulus dollars for key state priorities, Governor Doug Burgum signed several bills into law allocating funds to several North Dakota economic development initiatives. Along with infrastructure investments and tax relief, the legislation directs nearly $150 million into workforce development programs targeting private sector needs and technical skills, along with over $50 million grants for focus industries such as hydrogen, bio fuels, and agriculture.
OHIO
In one of the highest-demand industries, Ohio just became a global leader following the announcement of a $20 billion Intel semiconductor facility. Not only is the project the Buckeye State’s largest ever, it also marks what would likely be the state’s biggest incentive package. Reported at over $2 billion in total, the incentive package is a blend of cash performance grants, infrastructure investments, and state tax credits, along with a local property tax abatement from the City of New
Albany. Intel is reported to commit to 3,000 workers at an average annual wage level of $135,000.
Perhaps the most interesting is the discretionary cash performance grants, which altogether total $600 million. Described as ‘onshoring grants’, the grants are meant to offset the incremental expense of building fabrication plants in the United States, as compared to Asia. Each of the plants will be eligible for a $300 million grant, which is to be built by 2025.
OKLAHOMA
In his latest budget proposal, Governor Kevin Stitt outlined the need for robust resources to support the attraction of business and work force to the Sooner State. To aid in his ability to drive more business to Oklahoma, Governor Stitt requested $20 million for the Quick Action Closing Fund, a deal-closing incentive.
He also proposed $10 million for a new out-of-state marketing campaign to recruit workers to relocate to Oklahoma.
OREGON
While many often focus on state-level incentives, support from the local government can prove the biggest impact on economic development. To help their struggling restaurants, the City of Troutdale’s City Council approved a new incentive. Through a council resolution, all initial sewer System Development Charges (SDC) are waived for eligible investments. For a new restaurant, the SDC cost could reportedly be upwards of $1,000 per seat. The program will run through June 2023.
PENNSYLVANIA
Ahead of his official annual budget proposal, Governor Tom Wolf announced a spending plan for $1.7 billion of remaining federal stimulus dollars. Along with funding to bolster Pennsylvania’s health care sector, he proposed $225 million for small businesses, with a priority for women-and minority-owned and rural entities,and $204 million in property tax relief.A further $450 million would go to community development investments,including conservation funding.
RHODE ISLAND
A transformative project in Pawtucket is set to capture key tax relief as part of new development efforts. Known as the Tidewater landing site, the community recently approved a 20year property tax exemption for a soccer stadium development.
Beginning in 2023, the abatement will provide nearly $2 million in annual tax savings. This latest incentive is in addition to funds already committed to the large project by the Rhode Island Commerce Corporation.
PUERTO RICO
There is a long list of reasons why individuals relocate to the beautiful U.S. territory of Puerto Rico. For many, these justifications are buoyed by friendly tax incentives, particularly via a law known as Act 20. The biggest benefit presented from this legislation for individuals is an exemption from tax on any income garnered from investment interest, capital gains, and dividends. As cryptocurrency is covered under the law, a new generation of investors is also calling Puerto Rico home.
SOUTH CAROLINA
Sound and sustainable infrastructure is core to successful economic development, which is why Governor Henry McMaster proposed deploying significant funding for key initiatives.Leveraging federal stimulus dollars,his proposal would direct $500 million for rural water and sewer infrastructure, along with $400 million for broadband upgrades and expansion projects, with another $600 million for specific road investments.Additionally, he proposed $124 million to expand the Workforce Scholarships for the Future program, aiming to support skill development in key industries.
SOUTH DAKOTA
The City of Aberdeen has a new creative workforce recruitment program targeting initiatives. Leveraging federal stimulus dollars, his proposal would direct $500 million for rural water and sewer infrastructure, along with $400 million for broadband upgrades and expansion projects, with another $600 million for specific road investments. Additionally, he proposed $124 million to expand the Workforce Scholarships for the Future program, aiming to support skill development in key industries.
the program will provide up to $5,000 per employee for local businesses to offer incentives to new hires. Committing $150,000 to the program, on top of the state funding, job candidates must be from out-of-state, live in Aberdeen, and have an hourly wage of at least $20.
TENNESSEE
The Volunteer State won a mega-deal last year from the Ford Motor Co., with much credit to a bipartisan incentive package approved during a special session. To support the $5.6 billion, 5,800 job project, the state incentive package totals out to $900 million. Similar to other projects reviewed in this report, the offer nearly doubled as the project progressed. Of the key provisions in the package, $500 million will be in performance-based cash grants, $200 million for road infrastructure, $138 for water and wastewater facilities, and $21 million for workforce training. Funding for the project comes from a $2.2 billion surplus from FY 2021.
TEXAS
Longhorn State lawmakers decided not to extend a widely used incentive set to expire at the end of 2022.Known as the Chapter 313 program, the incentive allows for a ten-year tax property tax abatement if the company meets certain criteria. As one of the most popular programs leveraged by economic development officials across the state, the incentive is not without critics. We expect a big showdown later in the year as expiration continues to creep closer.
UTAH
The film and television industry has had a storied history in Utah, including being home to one of the world’s most famous festivals, Sundance. However, when it comes to the Beehive State’s production incentive, many proponents believe it doesn’t go far enough. Primarily the concern is over the program’s annual credit cap.
Legislation is currently being debated to make major adjustments to that cap. If passed, the bill (SB 49) would effectively remove the cap for eligible projects in rural Utah, widening the opportunity to utilize the incentive outside of the state’s urban regions.
VERMONT
In a briefing for the Vermont Senate Committee on Economic Development earlier this year, State Commissioner of Economic Development Joan Goldstein outlined the administration’s agenda. Among the key provisions for 2022 proposals likely to come, Commissioner Goldstein mentioned making the popular remote worker incentive permanent, along with a one-time boost in funding, expansion of the Green Mountain State’s tax increment financing (TIF) program, funding for workforce recruitment, and revising certain programmatic guidelines to support more projects with much-needed capital investment financing support, among other priorities.
VIRGINIA
As Governor Glenn Youngkin begins his new four-year term leading Virginia, he has already begun introducing changes to the commonwealth’s economic development policies. In his recent FY 2023-2024 biennial spending plan, Governor Youngkin included more than two dozen amendments across a long list of proposals. One focus in particular, was funding and expanding the GO Virginia program. Serving as a bipartisan economic development initiative, the governor proposed $75 million for a new grant program to drive “Talent Pathways”, which aims to address regional workforce shortages and high-value skill gaps. In addition, his proposal included supplemental funds for annual investments in site development across the commonwealth.
WASHINGTON
Lawmakers in the State of Washington are currently debating a hot topic in the Evergreen State – film production incentives. As their neighboring states continue to strengthen their production support programs,
Washington has found itself missing out on several film and television opportunities. The current program, the Motion Picture Competitiveness Program, provides $3.5 million annually in funding to support eligible productions. New legislation, SB 5760, would drastically increase annual funding for the tax credit to $20 million, along with an increase in the per entity cap from $750,000 to $1 million. Currently overseen by a nonprofit corporation, Washington Filmworks, the bill would also modify the membership of the oversight board.
WEST VIRGINIA
Economic development officials in the Mountain State have been celebrating a major project win after landing a new sheet steel mill in Mason County. Planned by Nucor Corp., the mill would create approximately 800 manufacturing jobs and invest $2.7 billion into the project, with operations commencing by 2024. To land the project, West Virginia leaders secured a Memo of Understanding with the company outlining how incentives would work for the project. According to reports, roughly $250 million in incentives would be directed towards site development work in two tranches. In order to capture the initial $125 million, the company would have to invest at least $500 million in the project. To secure the next $125 million, Nucor Corp. would need to invest another $250 million.
WISCONSIN
Under a new agreement, the Foxconn Technology Group (Foxconn) has finally qualified for its first tax credits from the Badger State. According to reports, the Wisconsin Economic Development Corporation (WEDC) has verified that the company has met hiring and capital investment goals at its Racine County facility. With the company hitting its revised commitments, the business will be eligible for $2.2 million in job credits, and another $26.6 million in credits for capital investment. Per the Wisconsin State Journal, Foxconn will be eligible for up to $80 million in state tax credits if it creates 1,454 jobs and invests at least $672 million by 2026.
WYOMING
Known for Old Faithful and roaming bison, the Cowboy State is now becoming a destination for data centers, including two recent expansions by Microsoft for its Azure network capabilities. Crediting the state’s data center tax incentive, which is delivered typically as a sales tax exemption, Wyoming has seen a boom in sector development. Despite the program’s success, economic development officials and industry advocates successfully beat an effort to eliminate the exemption last year, which was more of an effort to generate revenues by repealing exemptions, as opposed to a negative view on the incentive itself.
