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:
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 (click here). Memorandum of Understanding between VW and localities is also available on the newspaper website at: (click here) 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: If an online information source is not working, check the Tracker inventory page for an updated link.