Governor Haslam, Gives Up on Union City Workers !

To Offset Loss of Goodyear, Gov. Haslam Gives Obion County Special Tax Status
Fri February 25, 2011

e-mail > bill.haslam@tn.gov <

Phone# > 615-741-2001

Feb. 25--NASHVILLE -- Gov. Bill Haslam today designated Obion County a "Tier 3 Enhancement County," eligible to offer expanded state job tax credits to spur job creation in the wake of the closing of the Goodyear (GT) tire plant in Union City by the end of the year, costing 1,900 local workers their jobs. The governor acknowledged that the move "won't change things overnight for a community facing significant job issues. It will, however, give state and local economic developers some additional tools to go out and recruit new investment to create jobs and help the local economy rebuild. "This is a challenging time for the people of Northwest Tennessee," Haslam said. "I am committed to working with local and federal officials to do our best to mitigate the impact of these jobs losses. Raising Obion County to Tier 3 distressed community status is just one step in our effort to help this community's economy to recover." The three-tiered tax credit system was developed to encourage new industry to locate or expand in primarily rural communities challenged by high unemployment. To receive the maximum "Tier 3" enhanced job tax credit of $4,500 per new full-time position created, companies must make a minimum capital investment of $500,000 in a 12-month period and create at least 25 new full-time jobs, according to state Economic and Community Development Commissioner Bill Hagerty. A "Tier 3" designation allows a company to receive an annual jobs tax credit for five years as compared to three years for a "Tier 2" designation and one year for a "Tier 1" designation. Tier 3 status also allows a company to offset up to 100 percent of its state franchise and excise tax liability with the annual credit during the five-year period. Goodyear -- the largest industrial plant in northwestern Tennessee and one of the largest in the state, announced plans Feb. 10 to close the facility by the end of the year. State, local and federal officials have begun identifying Tennessee companies within the Goodyear supply chain which may be impacted by the announcement and developing processes to assist laid-off Goodyear workers in expediting their unemployment insurance claims. Hagerty has asked his staff to review the residency of idled Goodyear workers to determine if additional Northwest Tennessee counties might also benefit from Tier 3 status.

Editorial : Did`nt take Governor Haslam (R) long to give up ! His plan will assist those who have ! And those who have not, can do without ! More Jobs for China !