Incentives to Companies Can Pay Off…. Handsomely
In 1992, the State of South Carolina kicked off the incentives game for corporate recruitment. While incentives have changed investment attraction forever and many believe companies should not receive any inducements for large corporate facilities, the move by South Carolina has paid off incredibly well. In 1992, corporations rarely received large incentives to locate an investment in any given community but South Carolina wooed BMW’s first production facility outside of Germany with (at the time) an unbelievable incentive package of $130 million. BMW in turn committed to invest $600 million and create 2,000 jobs.
Since 1992, BMW has invested more than $7.8 billion in the state and directly employs just under 9,000. Through its supplier network, many more billions have been invested and tens of thousands of jobs have been created.
The initial incentive (and subsequent ones) have paid off multiple times over in terms of State and local taxes, education and training programs, port duties and much more.
If used wisely, incentives pay dividends.
Read the recent related article in Site Selection Magazine here.
If you are interested to talk about investment attraction in general or incentives specifically, reach out to us at email@example.com or 1-800-940-990.