In the United States, by contrast, state and local governments have given at least 13 packages with a nominal subsidy value of $100 million or more since early 2008. (As with the book, I will be calculating their present value, because that is what the European Union does; this allows for better comparability of subsidies and, besides, present value is the more meaningful figure.) Before I send this article off, I want to make sure I haven't missed any, which is why I am asking for your help. Please let me know if there are any projects I've missed. I will, naturally, acknowledge you in the article.
First, here is a corrected version of the table that appeared in the book. In the course of writing a report, not yet published, for the North Carolina Budget and Tax Center, I discovered that our estimate of Google's subsidy in North Carolina was too low. It is corrected here.
|Advanced Micro Devices||2006||Malta||NY||$1,118,000,000|
|Scripps Research Institute||2003||Palm Beach County||FL||$566,500,000|
|Samsung Austin Semiconductor||2006||Austin||TX||$171,244,444|
Source: Investment Incentives and the Global Competition for Capital and author's calculations
While researching this new article, it occurred to me that Kansas City, MO, has given several tax increment financing (TIF) subsidies that exceed the lowest value in this table. In fact, four Kansas City TIFs should have appeared in the table: KC Live, H&R Block, Pershing Road, and Three Trails (source). KC Live, the smallest of these, had a nominal subsidy of $167.9 million. To the best of my knowledge, the EU does not approve subsidies for retail, and I know for a fact that it does not approve them in the steel industry (ThyssenKrupp in the table above, Nucor in the table below).
The following list was begun by identifying the "top projects of the year" for 2008-10 according to Site Selection magazine. Pursuing news stories to determine the incentive package details led to the discovery of several other projects of at least $100 million in nominal subsidy value.
Company State Minimum nominal incentive package
AREVA ID $276.6 million present value
Nucor LA $373 million
Hemlock MI $358.4 million
Spirit Aero NC $250.9 million
Cerner/OnGoal KS $230 million
Hemlock TN $200 million
Electrolux TN $188.3 million present value
Ford KY $180 million
Boeing SC $900 million
Apple NC $320.7 million
Xtreme MI $100 million
Schott NM $130 million
Panasonic NJ $102 million
Thus, in the last three years, there have been at least 13 deals for $100 million or more in the U.S. (though the last three may fall below $100 million in present value) compared to just five in the European Union. The deals in the U.S. are larger, too: the largest deal in the EU is for Global Foundries (formerly Advanced Micro Devices) in Dresden, Germany, where EU state aid rules allowed it to receive 211.0 million euros, about $284.9 million. Not only is this dwarfed by what South Carolina gave Boeing, Global Foundries is asking New York State for $1 billion for a new wafer fabrication plant there. As I will argue in the article, new evidence continues to demonstrate that the EU is successful in reducing the investment incentives granted to mobile investors there, compared to what they get for similar projects in the U.S.
Again, these results are preliminary, but striking. Because of the EU's centralized register of cases, it is more likely that I may have missed 9-figure subsidies in the U.S. than in the EU. Of course, please let me know if I've missed any in either place. Thanks!