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back to index backAMERItalk February,  2017


Understanding Incentives in the Automotive Industry

In the competition between states and localities for new automotive jobs and investment, economic development incentives often play an integral role in influencing corporate location decisions. Incentives -- which can take the form of cash grants; tax credits, exemptions or abatements; free or discounted land and buildings; and employment training assistance (among others) -- are able to materially offset the large upfront investments required by many production facilities, mitigate risks, and/or reduce projected operating costs.

However, a full understanding of the commitments involved (there are strings attached) as well as the true, realizable value of the incentive, is paramount to making a sound location decision.

Below are descriptions and examples of the types of incentives that deliver the most value to automotive projects, followed by recommendations for optimizing the value of incentive packages and negotiating with public entities.

To read entire article, please click here.

Source: By Kyle Syers and Tracey Hyatt Bosman via LinkedIn - GAI





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