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Tennessee May Dial Back Business Incentive Packages

By: The Associated Press | TriCities.com
Published: November 19, 2008

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NASHVILLE, Tenn. (AP) - Gov. Phil Bredesen says he plans to dial back Tennessee's efforts to attract businesses to the state if it lands one or two more projects on the scale of the new Volkswagen plant being built in Chattanooga.
Bredesen, a Democrat, says the state has offered incentive packages to attract two major projects, and to a series of VW suppliers. He declined to name the companies, but said the offers of tax breaks will stand despite a growing budget shortfall and a dire economic outlook.
Bredesen says if the state is successful in landing either or both of the unnamed projects, it will be a good time for what he calls "a breather" on incentive packages.
The state offered Volkswagen a $575 million incentive package, largely made up of tax breaks over a 20-year period, to persuade the German automaker to build the $1 billion plant in Chattanooga.

(Copyright 2008 by The Associated Press. All Rights Reserved.)