Carpet firm could get $100 million in incentives
by Associated Press Wire
May 09, 2013 12:05 PM | 568 views | 0 0 comments | 6 6 recommendations | email to a friend | print
ATLANTA (AP) — State officials say a Georgia-based carpet manufacturing company could get state incentives worth more than $100 million.

Information released Wednesday by the state shows that Engineered Floors stands to get state incentives worth as much as $105.6 million over several years, The Atlanta Journal-Constitution reported.

Calhoun-based Engineered Floors will open two facilities in the northwestern part of the state, creating about 2,400 jobs over the coming years, Georgia Gov. Nathan Deal announced last week.

The new plants in Whitfield and Murray counties are expected to employ 2,000 people over the next five years.

Allison Tyrer, a spokeswoman with the Georgia Department of Economic Development, said the company has committed to creating 2,400 jobs in the state.

If the maximum value of the state package alone is realized, it could amount to $44,000 per job, the Atlanta newspaper reported.

Georgia has had recent successes in attracting industry to the state, but they have come at a cost.

State and local officials wooed construction equipment maker Caterpillar to Athens with an incentive deal worth more than $75 million in tax credits, infrastructure improvements, grants and property tax abatement. That could be worth more than $53,500 per promised job.

A full draft of the state incentives package for Engineered Floors was not released.

However, based on elements of the deal outlined by Tyrer, some facts are known.

Discretionary or elective incentives provided by economic development officials total $13.9 million. These include a grant of $6 million from the OneGeorgia Authority, $3.4 million in energy tax exemptions and an estimated exemption from sales tax of $4.5 million for construction materials.

Engineered Floors also is eligible for $91.7 million in "statutory" jobs tax credits, tax exemptions and training assistance — up from the nearly $70 million state officials estimated last week at the time of the company's announcement. Such incentives pegged to job creation are built into the state's tax code.

The "statutory" benefits include $22 million in sales tax exemptions for machinery, and about $60 million in credits that depend on jobs actually being created and other factors such as salaries and a county's unemployment rate.

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Information from: The Atlanta Journal-Constitution.



Copyright 2013 The Associated Press.

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