Arkansas is offering Ruyi Technology Group approximately $15 million in state incentives for expanding its textile operation into Arkansas, according to an Arkansas Economic Development Commission (AEDC) spokesman. Gov. Asa Hutchinson said regarding the announcement:
Gov. Asa Hutchinson said regarding the announcement:
- Up to $4 million in grants from AEDC (this is dependent upon job creation)
- Create Rebate – the company will receive an annual cash rebate that is equal to 5.0% of total payroll (associated with the new jobs created) for ten years.
- Tax Back – provides sales tax refunds on building materials, taxable machinery and equipment associated with the project.
All in all, that means Ruyi is getting approximately $20,000 in incentives per job created. That's not chump change, but it is much more cost-effective than previous economic development deals the state has been involved in.
The Sun Paper deal in Arkadelphia cost taxpayers about $62,000 in incentives per new job created. A proposed Lockheed Martin project in Camden will cost taxpayers about $145,000 in state incentives per job.
Ruyi is scheduled to begin operations in Forest City in late 2017.
--------------
Caleb Taylor is a reporter for The Arkansas Project ;an affiliate of the Advance Arkansas Institute, a nonprofit research and educational organization committed to advancing public policy based on free markets, individual liberty, and limited, transparent government.
Tags: Governors, Asa Hutchinson, Arkansas Legislature, Forest City, Arkansas, Chinese Tech Firm, $16 Million, taxpayer dollars, to create, 800 jobs, Caleb Taylor, The Arkansas Project To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service and "Like" Facebook Page - Thanks!
Source
No comments:
Post a Comment