Largest Economic Incentive Deals of Q3 2015

by Kelley Rendziperis, on Oct 26, 2015 4:18:43 PM

Economic incentives continue to play an important role when companies are looking to open new sites or expand their existing facilities. The capital invested and jobs created by these projects will often make companies eligible to receive valuable economic incentives such as tax abatements, tax credits, cash grants, training grants, infrastructure grants and other incentives offered by economic development organizations. To help understand economic incentive trends in the site selection process, Site Selection Group has evaluated economic incentive packages awarded to companies across the United States during the third quarter of 2015. Economic Incentives


More than $11.8 billion in economic incentives awarded

At the time of this article, there were 467 projects offered economic incentives. The total value of incentives offered was $11.8 billion; however $9.5 billion of the total represents tax credits awarded to Ford Motor Co. by the Michigan Economic Development Corp. through the Michigan Strategic Fund in July for its expansion in Dearborn, Michigan. In order to receive the credits, Ford has committed to spending $3.1 billion at its Michigan sites over the next 10 years. 


Compared to this quarter last year, total economic incentive values increased by $8.3 billion; however, total incentive values actually decreased by $1.1 billion from the third quarter 2014 when the Ford deal is excluded, despite there being 222 more projects granted economic incentives in Q3 2015 than in Q3 2014. It is noteworthy that the Tesla deal in Nevada, which garnered approximately $1.7 billion, was reported in Q3 2014.


The average economic incentives awarded per job was $37,512 for third quarter 2015 and average deal value was approximately $5 million, excluding the Ford deal. Most projects, 74 percent, were offered less than $2.5 million in economic incentives. The companies offered incentives packages are expected to create 71,639 new jobs, retain 50,500 jobs, and invest $26.2 billion of capital, which represents an overall return on investment of approximately 45 percent.


The following chart depicts the 467 deals broken out by the value of incentives:


Number of Projects by Incentive Value



On a per project basis the return on investment, for the 354 projects which actually project a capital investment, is as follows:


Number of Projects by Return on Investment


Number of Economic Incentive Projects by ROI


Top 25 economic incentive packages offered in Q3 2015

The following table identifies some of the largest economic incentive deals offered in the third 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 estimates and typically only reflective of state-level incentives.


CompanyLocationIncentive Value ($M)Capital Investment ($M)Jobs CreatedJobs Retained
Ford Motor Company Dearborn, MI $9,500.00 $3,100.00 0 40200
Ameream East Rutherford, NJ $390.00 $3,182.00 0 0
EMR Eastern Camden, NJ $253.00 $0.00 285 62
Facebook Fort Worth, TX $146.70 $500.00 40 0
Vistakon Jacksonville, FL $98.60 $301.00 100 0
Google Stevenson, AL $81.00 $600.00 100 0
Boeing Oklahoma City, OK $62.80 $80.00 828 0
KRE Hamilton Urban Renewal Jersey City, NJ $40.00 $163.63 0 0
Atlantic City Contact Center Atlantic City, NJ $33.00 $0.00 332 0
Ready Pac Foods Florence, NJ $27.41 $0.00 80 471
SMP Automotive Systems Tuscaloosa, AL $27.00 $150.00 650 0
Jaguar Land Rover Mahwah, NJ $26.61 $42.00 61 252
SolarCity Salt Lake City, UT $24.64 $94.00 4,000 0
Chelten House Products Logan, NJ $23.40 $0.00 125 176
B Positive National Blood Services Glassboro, NJ $23.40 $0.00 65 0
Paycom Payroll Oklahoma City, OK $20.51 $0.00 1,090 0
Synchrony Financial Stamford, CT $20.00 $0.00 200 310
Chef'd Camden, NJ $19.00 $0.00 200 0
ZenPayroll Denver, CO $19.00 $0.00 1,000 0
Krause Holdings Des Moines, IA $18.60 $143.00 90 11
Dimensional Fund Advisors Charlotte, NC $17.90 $105.00 316 0
Amazon Multiple locations, OH $17.50 $200.00 2,000 0
Beachway Urban Renewal  Keansburg, NJ $17.02 $65.67 0 0
HM Ventures Group Detroit, MI $16.90 $22.30 48 0


The top 25 deals represent $10.9 billion of the $11.8 billion of economic incentives, over 92 percent, offered in the third quarter. These projects also account for $8.9 billion of capital, generate 11,610 jobs and retain 41,482 jobs. The average return on investment for the top 25 deals is 30 percent, with an average award of $350,000 per new job.


Excluding the Ford deal, the remaining 24 projects amount to $1.46 billion of the $2.3 billion of economic incentives, or 64 percent. These 24 deals represent $5.8 billion of capital and will produce 11,610 new jobs, with an average award per project of $364,882 per new job.


New Jersey continues to drive the majority of the high economic incentive values based on the use of the Grow New Jersey program.


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


Topics:Call CenterDistribution CentersManufacturingEconomic IncentivesEconomic Development



Blog Posts →


News →


Success Stories →