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Subsidy Tracker Individual Entry

Company: Panasonic
Parent Company: Panasonic
Subsidy Source: multiple
Location: Kansas
City: De Soto
County: Johnson
Project Description: EV battery manufacturing
Year: 2022
Major Industry of Parent: electrical and electronic equipment
Specific Industry of Parent: consumer electronics
Subsidy Value: $1,274,600,000
Subsidy Value in 2023 Dollars: $1,327,179,096
Program Name: multiple
Awarding Agency: multiple
Type of Subsidy: 
Number of Jobs or Training Slots: 0
Capital Investment: $4,000,000,000
Source of Data: APEX subsidy detail and break-down are taken from: Andrew Bahl, "Provision in Panasonic deal may make details on Kansas megaprojects exempt from open records law," Topeka Capital-Journal (Kansas), July 21, 2022, via LexisNexis; Kevin Hardy and Katie Bernard, "'Shocking.' Kansas secures no jobs or pay commitments in Panasonic's $4B battery plant," The Kansas City Star, July 25, 2022, via LexisNexis. Transportation and local subsides, including TIF are taken from: Thomas Friestad, "De Soto approves TIF, setting the table for Panasonic's incoming megaproject," Kansas City Business Journal (Missouri), July 22, 2022, via LexisNexis. Kevin Hardy, "JoCo, De Soto and Kansas add millions more in incentives toward Panasonic battery plant," The Kansas City Star, July 28, 2022, via LexisNexis.
Notes: In early 2022, Kansas and Oklahoma were competing for a secretive project that later was announced to be a Panasonic's EV battery plant. The Kansas legislature created a special program called Attracting Powerful Economic Expansion (APEX) to entice the company. The bill allows Panasonic to access $829 million in public state funds: 15% investment tax credits (estimated $500 million), 10% payroll reimbursement for 10 years (estimated $234 million), workforce training and relocation reimbursement for 10 years, and state sales tax exemptions on construction material purchases (estimated $60.2 million). Many of the tax breaks are structured as "refundable" credits, meaning the company will receive annual cash payments based on investment made and jobs created. In addition, the state's Transportation Department will provide $26 million in roads improvements. The Johnson County will provide $15 million (ARPA funds) for road infrastructure and a new fire station. De Soto will provide $2 million for infrastructure development. The city also approved two 20-year TIFs (for the current project and possible expansion), what will generate estimated $402.6 million in increment to pay for the development. Even though not all the TIF funds will go directly to Panasonic, the company will benefit from activities that the TIF revenue will pay for (Sunflower Redevelopment LLC is the project developer). The state agreement with the company does not include any specific job creation or wage requirements but it was advertised that the project would create 4,000 jobs paying $50,000 a year. The agreement requires $1 billion investment but $4 billion was advertised. The company must stay 15 years in the state. Overlaps with main data: none.
Source Notes: If an online information source is not working, check the Tracker inventory page for an updated link.