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Wed May 21, 2014
Fuyao State Tax Incentive Valued At Nearly $10 Million
The state has approved part of a package of tax breaks for Fuyao, the Chinese auto-glass company coming to the former GM Moraine plant in Moraine.
Tjob creation tax credit is meant to retain jobs —but such tax breaks don’t always work out that way. Lewis Wallace of member station WYSO in Yellow Springs reports.
The idea behind the Job Creation tax credit is to give companies a break on taxes—if they create new jobs.
Fuyao’s planning to bring in more than 800 jobs, which would mean more than 32 million dollars in annual payroll.
If the company succeeds, the state will give Fuyao a tax discount totalling almost 10 million dollars over 15 years.
Economic development officials say incentives like this are a way to compete with other states. Kristi Tanner is with JobsOhio.
KT: JobsOhio started working with Fuyao not quite a year ago, and they could have selected any state, they could have selected any site.
A New York Times analysis found Ohio spent about a tenth of the state budget from 2006 to 2011 on tax credits, grants and other incentives for businesses.
But that hasn’t always worked to retain jobs: GM, which pulled out of Moraine in 2008, had been one of the largest recipients of government tax credits in the state.
The Fuyao tax credit requires the company to stick around for at least 18 years.