American states offer billions of dollars to outbid each other to secure new projects and jobs
US states offered a record level of tax breaks and deal sweeteners last year as they battled to attract investors drawn to America by President Joe Biden’s clean energy and microchip subsidies. Corporate tax breaks offered by state-level governments to secure projects surpassed $24bn in 2022, according to an FT analysis of corporate subsidy packages worth at least $100mn compiled by watchdog Good Jobs First.
” In addition to other general subsidies, states including Texas, Idaho, New York and Pennsylvania are rolling out programmes targeted at cleantech and semiconductor manufacturing. The Chips Act stipulates that applicants for federal funding must have secured support from states. Earlier this year, Texas lawmakers introduced a state version of the Chips Act, while New York offers $10bn in economic incentives for environmentally friendly semiconductor projects.
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