Subsidy Tracker Individual Entry

Company: 
Continental Tire the Americas, LLC
Parent Company: 
Continental AG
Subsidy Source: 
multiple
Location: 
Mississippi
City: 
Clinton
County: 
Hinds
Project Description: 

commercial vehicle tire manufacturing plant

Year: 
2016
Major Industry of Parent: 
automotive parts
Specific Industry of Parent: 
automotive parts-tires
Subsidy Value: 
$595,500,000
Program Name: 
multiple
Awarding Agency: 
multiple
Type of Subsidy: 
MEGADEAL
Number of Jobs or Training Slots: 
2,500
Capital Investment: 
$1,450,000,000
Source of Data: 

The value of the state and county assistance through the Major Economic Impact Authority program as well as the investment and jobs projections were cited in a February 8, 2016 press release issued by the Office of Governor Phil Bryant; online at http://www.governorbryant.com/continental-tire-locating-tire-manufacturi.... The estimated value of the tax breaks are taken from The Associated Press, "AP Analysis: Continental Tire Deal Incentives At $600 Million," February 6, 2016. Online at: http://www.jacksonfreepress.com/news/2016/feb/06/ap-analysis-continental....

Notes: 

During a one-day session, the Mississippi Legislature approved a subsidy package for a new Continental Tire plant. The officially disclosed amount included $263 million from the Mississippi Major Economic Impact Authority for site acquisition and preparation, infrastructure improvements and workforce training. Hinds County contributed $20 million of that amount. In addition, the package includes various tax breaks, the value of which has not been officially released. The AP estimated the tax breaks to be worth: $177 million in income and franchise tax exemptions over 25 years (after that the state will use a single sales formula to calculate the company's corporate income tax, providing additional savings); $68 million in county property tax abatements over 10 years and an unspecified amount in city property tax reductions via the city's agreement not to annex the company's site for 30 years; and $87.5 million in income tax rebates (the company will retain 3.5 percent of workers' income tax withholding for 25 years). Overlaps with main Subsidy Tracker data: none.

Source Notes: 
If an online information source is not working, check the Tracker inventory page for an updated link.