The state of Tennessee is providing a $165.8 million grant for costs associated with site development and preparation, infrastructure, production equipment acquisition and installation, and facility construction. In addition, the state will provide a $12 million grant for training new employees. As part of the incentive package, Volkswagen Group of America has agreed to waive its right to claim certain statutorily available tax credits directly related to the expansion.
Local incentives are not mentioned, and it's not clear if these are all of the state incentives or not.
In 2008 the University of Tennessee Center for Business and Economic Research conducted an exhaustive review of the economic impact of Volkswagen locating in Tennessee, including the value of the incentives offered to VW.
At that time they said the Volkswagen Chattanooga facility was expected to generate nearly $500 million dollars in income each year, create more than 11,000 jobs, and produce $55.7 million in state and local tax revenue each year. They said over the course of 30 years, Tennessee would see income rise by nearly $12 billion and tax revenues by more than $1 billion.
They said those benefits would come in exchange for $577 million in local and state incentives
According to the UT experts, "The investment by Tennessee state and local governments appears to yield a very high rate of return."CLICK HERE
to read the entire August 2008 ReportCLICK HERE
for the raw video of the entire News Conference from Germany