Louisiana

2theadvocate.com reports that, upon the recommendations of the Louisiana Development staff, a state commerce board has approved approximately $103 million in tax breaks. The article leads off by telling of the incentives won by a paper mill, a chemical manufacturer, and glass manufacturer. Board Chairman Mike Thompson indicated that “[i]n this case, those were three worthwhile industries we wanted to save and keep in Louisiana. And that’s what we’re about.” I would like to know more on what constitutes a "worthwhile industry."

The 2theadvocate.com article also tells us that

The board meets bimonthly to act upon tax incentives recommended by Louisiana Economic Development staff.

Tembec of Canada, which bought the former Crown paper mill in St. Francisville in 2001, projects a loss of $235 million for its first five years of operation in the state.

The company said it believes it can make the 515-employee facility profitable again with help from the state.

Tembec, which cut 200 St. Francisville jobs in the past two years, agreed to maintain existing jobs in exchange for up to $17.5 million in exemptions from state income, corporate franchise and sales taxes for the next five years. A drop in employment would bring a similar percentage drop in aid.

It is a shame that you have to promise jobs in order to receive a break from the state. It is unclear whether tax liability saved from the $17.5 million in exemption will be greater or less than the amount paid as salary to those are able to keep their jobs. I'm guessing that the savings will be far greater and that is will be a pretty sweet deal for Tembec, one in which small business owners will never have access.