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Top 25 Economic Incentive Deals of 2015

by Kelley Rendziperis, on Jan 25, 2016 11:47:32 AM

Site Selection Group estimates that in 2015 more than $6 billion in economic incentives were offered to attract various projects in the United States ranging from office projects, such as headquarters and data centers, to industrial facilities, including manufacturing plants and distribution centers. EconomicIncentives_webinar.jpgWhile economic incentives continue to be scrutinized and heavily debated, they continued to be utilized by states to attract business. 

 

More than $6.6 billion in economic incentives awarded in 2015                                                          

In 2015, 2,395 projects were offered economic incentives valued at $6.6 billion. The total excludes $9.5 billion of tax credits awarded to Ford Motor Co. by the Michigan Economic Development Corp. through the Michigan Strategic Fund in July 2015 for its expansion in Dearborn, Michigan, because it was an amendment of a previous deal. 

 

The average amount of economic incentives awarded per job created was $27,443 for 2015, and the average deal value was approximately $2.7 million, excluding the Ford deal.  The companies offered incentives are expected to create 311,909 new jobs and invest $79.8 billion of capital, which represents an overall return on investment of approximately 8 percent.

 

The following chart depicts the 2,395 deals broken out by the value of incentives:

 

Number of Projects by Economic Incentive Value

Number-of-Economic-Incentive-Projects-2.jpg

On a per project basis the return on investment, for the 1,871 projects with a announced capital investment, is as follows:

 

Percent of Projects by Return on Investment

Percent-of-Projects-by-ROI.jpg

 

Economic incentives were critical in attracting large projects

The following table identifies some of the largest economic incentive deals offered in 2015. These projects reflect the types of economic incentives which may 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.

 

Top 25 Economic Incentive Packages in 2015

 

Company NameLocationIncentives Value
($M)
Capital Investment
($M)
Jobs CreatedJobs Retained
Ameream East Rutherford, NJ 390 3182 0 0
Faraday Future Las Vegas, NV 335 1000 4,500 0
EMR Eastern Camden, NJ 253 0 285 62
Volkswagen Chattanooga, TN 166 704 9,800 0
Facebook Fort Worth, TX 146.7 500 40 0
Boeing St Louis, MO 146.04 1600 0 14,485
Vistakon Jacksonville, FL 98.6 301 100 0
1366 Technologies Batavia, NY 97 750 1,000 0
Boeing Oklahoma City, OK 91.8 0 979 0
Soraa DeWitt, NY 90 1300 420 0
Google Stevenson, AL 81 600 100 0
Polaris Industries Huntsville, AL 80 172 2,000 0
Mercedes-Benz Tuscaloosa, AL 80 1300 300 0
Volvo Ridgeville, SC 74 500 2,000 0
Alcoa Massena, NY 68 0 0 600
Boeing Oklahoma City, OK 62.8 80 828 0
Nissan Smyrna, TN 53.00 160 1,000 0
Seldat Piscataway, NJ 51.5 0 1,050 0
Giti Tire Holdings Richburg, SC 40 560 1,700 0
Kushner Real Estate Group Jersey City, NJ 40 163 0 0
Audible.com Newark, NJ 39.38 56.7 350 50
Praxair Danbury, CT 36 65 0 0
American Specialty Alloys Pineville, LA 34.00 1200 1,450 0
Contemporary Graphics  Camden, NJ 33.9 7.47 56

170

New York Life Insurance Jersey City, NJ 33.9 0 300 325

 

The top 25 deals represent $2.6 billion of the $6.6 billion of economic incentives offered in 2015. These projects also account for $14 billion of capital and generate 28,000 jobs. The average return on investment for the top 25 deals is 18 percent, with an average award of $92,000 per new job. 

 

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

Click Here to Contact Us

 Source-IncentivesMonitor.jpg

 

Topics:Call CenterDistribution CentersManufacturingEconomic IncentivesEconomic Development

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