Kisber Assures Big Money, No Whammies For State On VW Plant

By Kleinheider Posted on July 24, 2008 at 9:49 am

Andy Sher and friend report on the historic incentives afforded Volkswagen:

Tennessee offered its richest incentive package — and perhaps the most government assistance and tax breaks ever for an American automobile plant — to lure Volkswagen to Chattanooga.

But the state’s chief business recruiter said Tuesday that the benefits from VW’s $1 billion assembly plant far will exceed what could top $500 million in government assistance and tax breaks for the project.

“The Volkswagen investment in this community is going to have a tremendous economic gain for the entire region,” said Matt Kisber, Tennessee’s commissioner for economic and community development. “I’m confident we’re going to have a very reasonable incentive package when you look at the initial costs of what is being offered compared with a much bigger long-term return.”

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