Small Businesses Are Nice, Too

By Kleinheider Posted on July 2, 2008 at 11:01 am

Adam Groves on the new push to entice large corporations to relocate in Tennessee:

Gov. Bredesen has said that a major economic incentive program could help lure big investments to Tennessee. The change allows state recruiters to grant enhanced job-tax credits to suppliers locating near and providing parts solely to a manufacturer making a $1B or greater investment in Tennessee. Volkswagen is expected to meet that investment requisite if they choose to build an auto assembly plant in Chattanooga. Bredesen says while the plant is important, the smaller industries that pop up to service the larger plant could be just as valuable - and the new economic incentive allows these smaller businesses to piggy-back on the larger investment for tax breaks. State Revenue Commissioner Reagan Farr said the new incentive allows a company investing $1B to designate “integrated” suppliers locating near the firm’s new plant to qualify for the same credit for creating new jobs. Bredesen: “If we’re successful in getting another major auto manufacturer in the state, I also want to make sure we’re then reaching out. The next step of that is to get lots of suppliers to supply, to locate in the state as well.”

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