State would pay to keep jobs
Thursday, August 30th, 2007
By Chris Fitzsimon
A new incentives program would require modernization of factories in the state’s poorest counties
Jonathan B. Cox, Staff Writer To get tax breaks, grants and other economic incentives in North Carolina, companies in the past have had to create jobs.
Under a plan put forth by Gov. Mike Easley on Wednesday, they wouldn’t have to add a single one.
Easley proposed an incentives program aimed at keeping manufacturing facilities that employ a lot of people and pay well in the state’s poorest counties. They could qualify for aid if they agree to "invest substantial amounts" to modernize existing plants.
The proposal, which Easley plans to push when the General Assembly reconvenes in May, will help "secure commitments from major anchor industries" to upgrade operations and "enhance their presence in North Carolina," Easley said in a statement.
The plan comes after the legislature this year approved a grant program that, because of the way it is written, would mostly benefit Goodyear Tire & Rubber Co. in Fayetteville. The tire maker could get as much as $40 million over 10 years for spending at least $200 million to modernize its plant and maintaining at least 2,000 of its existing 2,750 positions.
The bill awaits action by Easley, who can veto it or sign it into law. If he does nothing by Saturday, it will automatically take effect.
Dan Gerlach, Easley’s adviser on fiscal matters, said his boss proposed the new plan because of a broader conversation started by the legislature’s action. "There was a lot of discussion this year when this bill emerged about existing companies in North Carolina and how do you help these companies," Gerlach said.
And the General Assembly has approved a measure with that goal, said Tony Rand, a Fayetteville Democrat and one of the state’s most powerful lawmakers. Companies other than Goodyear, at least in principle, could qualify. (more…)
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