RALEIGH – Toyota’s decision to build a huge $1.3 billion battery plant in the Triad was already one of the state’s biggest economic deal to date. But now that the carmaker is nearly doubling it’s North Carolina investment and adding more than 350 jobs also means a bigger package of state tax incentives.
As much as $315 million.
The original commitment was just over $79 million.
So confirms the North Carolina Department of Commerce, which calls Toyota’s news – announced early Wednesday – “exciting.”
“It’s exciting to see Toyota confirm their commitment and plans to grow in North Carolina with their announcement today,” Commerce spokesperson David Rhoades tells WRAL TechWire. “North Carolina is quickly becoming a major center for the emerging clean energy economy, which is already bringing thousands of jobs and billions of investment to our state and will reduce carbon emissions, making our environment healthier for everyone.”
Toyota will receive additional tax incentives, he added.
“As our initial press release from December 2021 outlined, Toyota holds a transitional-class Job Development Investment Grant (JDIG) with the state. Under the conditions of their current grant, if within 36 months of the initial award the company commits to making a $3 billion investment and creating 3,875 jobs, the phase 2 benefits of the grant are triggered, increasing the potential payment to the company,” Rhoades explains.
The project was initially announced last December.
“Should Toyota increase the number of jobs and capital investment committed to the project to 3,875 jobs and $3 billion of investment within 36 months of today’s award, the company will trigger phase 2 of the Transitional JDIG and could then receive up to an estimated $315 million over the life of the grant, which could expand to run for as many as 39 years. The state’s economy would grow by a total of nearly $35 billion, due to the increased scale of the project,” Commerce said at the time.
“The potential phase 2 payment to the company is only an estimate at this point, since the ultimate amount will be calculated based both on when the increased investment and job creation targets are met, as well as the final reported number and type of jobs that are ultimately created for the project.”
Read the details here:
