Subsidy Tracker Individual Entry

Company: 
Volkswagen
Parent Company: 
Volkswagen
Subsidy Source: 
multiple
Location: 
Tennessee
City: 
Chattanooga
County: 
Hamilton
Project Description: 

expansion of a car manufacturing plant and creation of a R&D center

Year: 
2014
Major Industry of Parent: 
motor vehicles
Specific Industry of Parent: 
motor vehicles
Subsidy Value: 
$263,300,000
Program Name: 
Multiple
Awarding Agency: 
Multiple
Type of Subsidy: 
MEGADEAL
Number of Jobs or Training Slots: 
2,000
Capital Investment: 
$600,000,000
Source of Data: 

Elements of the subsidy package as well as job and investment data were taken from: Louie Brogdon and Dave Flessner, "Chattanooga, Hamilton County may dip into reserves to cover Volkswagen incentives," Times Free Press, July 17, 2014; available online at http://timesfreepress.com/news/2014/jul/17/city-county-may-dip-into-rese.... Memorandum of Understanding between VW and localities is also available on the newspaper website at: http://media.timesfreepress.com/news/documents/2014/07/16/Incentives_pac...

Notes: 

The $263.3 million subsidy package for an expansion of a production line and a creation an R&D research center in Chattanooga included state and local subsidies: $165.8 million grant from the state for site preparation, plant construction and equipment; $52.5 million grant from the city and the county, split evenly, for the site construction and equipment (VW will pay $2.5 million in economic development fees over 10 years to the city and the county); $33 million in property tax abatements over 10 years (VW will pay school taxes); and a $12 million state grant for job training. We did not include in our total the $9 million in federal aid from the Tennessee Valley Authority. VW waived its rights to statutory state tax subsidies. Overlaps with main Subsidy Tracker data: none.

Source Notes: 
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