To help understand economic incentive trends, Site Selection Group has evaluated the economic incentive deals announced during the first quarter of 2015. 

More than $480 million in economic incentives
Site Selection Group identified 230 economic incentive packages offered to companies across the UnitedEconomicIncentives_webinar States during the first quarter of 2015. These economic incentive packages represent an estimated total incentives value in excess of $480 million, as compared to $450 million in the first quarter of 2014. To generate these economic incentives, companies are expected to spend more than $6 billion of capital and generate over 35,000 new jobs; representing a return on investment of approximately 8%, an award of $13,600 per new job, and an average deal value of approximately $2 million.


The following  chart depicts the 230 deals broken out by incentives values:


Top 25 economic incentive packages in the 1st quarter

The following table identifies some of the largest economic incentive deals offered in the first quarter of 2015. These projects provide a great way to benchmark what types of economic incentives exist for a variety of project types. However, it is important to understand the values are estimated and typically only reflective of state-level incentives.

CompanyIncentive value
Capital Investment
Jobs CreatedState
Nissan North America 53 160 1,000 TN
American Specialty Alloys 34 1200 1,450 LA
IBM 24.2 0 400 LA
Mercedes-Benz 23.3 74 800 GA
Sierra Nevada Corp. 23.2 88 2,100 CO
Volkswagen Group of America 17.7 3 100 FL
Citigroup 15 90 1,163 FL
Amazon 14.89 54 500 MA
Mercedes-Benz Vans 14 500 1,300 SC
Love's Travel Stops & Country Stores 13.66 0 516 OK
McKesson 12.94 65 164 IA
IKEA 9.5 64 175 TN
Johnson & Johnson Services 9.1 23.5 700 FL
Exact Sciences 9 26.3 758 WI
Littler Mendelson PC 8.9 0 275 MO
Procter & Gamble (P&G) 8.5 500 700 WV
Dorada Poultry 6.78 0 450 OK
Raytheon 5.8 0 250 IN
Audubon Field Solutions 4.72 0 93 OK
Bechtel Corp. 4.5 10 700 VA
Cummins 4.34 30 160 IN
Amsterdam Printing and Litho 4.15 6 40 NY
Northern Trust 4 95 1,000 AZ
Fuyao Glass America 4 130 750 OH
Crosscom National 3.84 0 230 OK

The top 25 deals represent approximately $330 million of the total $480 million of incentives, more than 68 percent, offered in the first quarter of 2015. These projects in isolation will account for more than $3 billion of capital and generate over 15,000 new jobs; representing a return on investment of approximately 10% and $21,000 per new job. For the top 25 projects listed above, the following graphs reflect the project type, incentive type and industry function:


    Project-type  Incentive-type


In this quarter, the top 25 projects in terms of incentives values are distributed evenly throughout the United States. Notably, while Texas has been highly scrutinized for granting large economic incentive packages, the Lone Star State was not represented in the 230 deals reported in the first quarter of 2015.  There may be several reasons for this, including the fact that many incentives are granted locally in Texas, the transition from Gov. Rick Perry to Gov. Greg Abbott, the legislature being in session and/or the continued scrutiny of the state’s primary funds: the Texas Enterprise Fund, Texas Emerging Technology Fund and Texas Enterprise Zone.

For additional information about these projects and others, please contact Site Selection Group.


Let us know what you think!