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Lights, Camera, Spend: Tennesseans Boost Hollywood With Film Incentives

Did you enjoy ABC’s “Nashville” series? Good, because you’ll be paying for it to the tune of $8.5 million.

Millions of public dollars — in tax credits and, as of this year, via grants — have flowed into the state’s film incentive program to aid productions such as Larry the Cable Guy’s Christmas special, “Hannah Montana: The Movie” and promos for “Monday Night Football.”

In all, Tennessee is on track to fork over $22 million worth of handouts for Hollywood productions that are made in the state, a TNReport review of state records from 2008 to 2012 shows.

“This is one of the most insidious forms of corporate welfare out there,” Trey Moore, with the free-market think tank Beacon Center, said. “It’s hard to argue that this is a good deal for taxpayers.”

To put the amount in context: $22 million could pay for an additional 455 Nashville firefighters or five additional teachers in each of Tennessee’s 95 counties this year.

Tennessee film subsidies

Supporters of the state’s film incentive program say it boosts economic development, spurs job creation and is good marketing for Tennessee. The program is overseen by the Tennessee Department of Economic and Community Development.

Officials point to “Nashville,” ABC’s prime-time soap opera in which a 40-something country star must share the stage with a sassy young starlet.

“The program that’s had the most accolades is the recent film series ‘Nashville,’” Economic and Community Development commissioner Bill Hagerty said during a recent budget hearing.

Bill HagertyBill Hagerty

“The pilot was outstanding,” he said in November. “It still ranks number three in the ratings today, and we’re very optimistic that ‘Nashville’ is putting an important brand on the state and one that’s very positive for us.”

Over the past year, film incentives weren’t just teed up for the show “Nashville,” but to productions such as the faith-based drama “Unconditional,” and “Water for Elephants,” the circus-train romance/animal cruelty flick starring Reese Witherspoon.

Supporters of the incentives say that the program’s front-end money translates into economic benefits for the state, with “Nashville” alone bringing in $49.5 million in economic development. But for most of the program’s short history, the formulas for arriving at such numbers have been kept secret, and it’s still not clear exactly how the $49.5 million is estimated.

See all of the projects that have received public incentives from Tennessee here.

State officials say the program will be more transparent going forward. As of July 1, the state began administering all incentives as grants rather than tax credits — called “spurious” by one study.

There appear to be some benefits to this change, including greater transparency. Under former Gov. Phil Bredesen, who launched the incentive program, many of the presumed economic benefits were closed to the public. Benefits to film companies were in the form of tax credits, and a great deal of tax information in Tennessee is not public under state law.

But now, under Gov. Bill Haslam: “It is a more transparent process,” ECD spokesman Clint Brewer told TNReport. “The collapsing of the tax credit had several benefits, and that’s one of them. By and large everything we do in this department is an open record.”

It’s now easier for smaller and independent film productions to tap into the cash, too.

“The result is that we took a complicated, burdensome process that involved tax credits and a lot of paperwork and streamlined it significantly,” Brewer said.

But critics of the program doubt the benefits from the movies move the economic needle in Tennessee.

“This is just another example of corporate welfare,” said Moore, of the Beacon Center. “It’s rampant across the country when it comes to the film and movie industry, and, unfortunately, it’s hard to identify what’s really coming in the door.”

All these film incentives have Hollywood licking its chops: The Los Angeles-based Screen Actors Guild makes a web page available to all its members showing the film tax and grant benefits available in states across the U.S.

What of all those other states that have taxpayer-supported film incentive programs? Won’t jobs leave Tennessee and head there? Alabama, Kentucky, Mississippi and Missouri all have robust film incentive programs. And Louisiana is the granddaddy of film incentives in the U.S. — second only to California and New York — garnering the nickname “Hollywood South.”

“If giving away money is a good way to create jobs when you’re not getting anything in return, I would have a hard time believing that,” Moore said. “It’s a notoriously fickle industry. There’s no guarantee that even once we give them this money that this is going to stick around.”

It’s not just the fiscal conservatives who question grants to film companies.
The left-leaning Center on Budget and Policy Priorities conducted a national study on film subsidies and found that “in the harsh light of reality, film subsidies offer little bang for the buck.”

The study found:

+ Subsidies reward companies for production that they might have done anyway. Some makers of movie and TV shows have close, long-standing relationships with particular states. Had those states not introduced or expanded film subsidies, most such producers would have continued to work in the state anyway. But there is no practical way for a state to limit subsidies only to productions that otherwise would not have happened.

+ The best jobs go to non-residents. The workforce at most sites outside of Los Angeles and New York City lacks the specialized skills producers need to shoot a film. Consequently, producers import scarce, highly paid talent from other states. Jobs for in-state residents tend to be spotty, part-time, and relatively low-paying work — hairdressing, security, carpentry, sanitation, moving, storage, and catering — that is unlikely to build the foundations of strong economic development in the long term.

+ Subsidies don’t pay for themselves. The revenue generated by economic activity induced by film subsidies falls far short of the subsidies’ direct costs to the state. To balance its budget, the state must therefore cut spending or raise revenues elsewhere, dampening the subsidies’ positive economic impact.

And while Tennessee officials boast that film subsidies can lead to good public relations for the state, some states’ programs have backfired in the PR department.

Louisiana recently received a black eye when consultants determined the program wasn’t getting the results officials said it was.

From the Los Angeles Times:

Louisiana, for instance, estimates that for every dollar it paid out in tax incentives for film projects over the last three years, it got back tax revenue of 24 cents. Still, the state’s analysis shows that film jobs in the state rose from about 900 in 2001 to about 5,000 now, so although the Big Easy’s state loses money on every job, it presumably hopes to make it up in volume.

Iowa’s film program was rocked by a scandal when prosecutors charged the state’s former film chief with various felonies, including official misconduct over his handling of state film tax credits.

Michigan was hit with some ironic bad press after reporters found that the state had coughed up more than $831,000 in tax dollars for “Capitalism: A Love Story,” Michael Moore’s movie that, in part, is critical of companies that accept corporate welfare.

Tennessee film subsidies by year

Under Haslam, the state has accelerated spending on film incentives, with more dollars thrown at moviemakers in 2012 than in 2009, 2010 and 2011 combined.

“As part of Governor Haslam’s Jobs4TN economic development plan, the entertainment industry was identified as one of the key industries in which the state has a clear competitive advantage,” Hagerty said in a statement last year after legislation was passed giving the film incentive program a $2 million boost.

At the same time, the brass behind the show “Nashville” is not so subtly indicating that if they don’t get additional incentives, they’ll pack up their Dobros and go home.

“The show’s backers are saying additional incentives — the extension of a heightened state reimbursement and other possibilities — will likely be needed to justify the cost of continued filming in Music City,” the Nashville Business Journal reported. “The fact that the show, which has seen ratings drop since its premiere before regaining some ground (in November), has been picked up means there will be a full season for backers to tout and public officials to weigh.”

Trent Seibert can be reached at trent@tnreport.com, on Twitter at @trentseibert or at 615-669-9501.

About Half a Billion in Gov’t Bacon ID’d by Beacon

In Tennessee, taxpayer money has been used to dabble in the movie-making business, prop up car companies, and promote country music heritage — in Virginia.

Such projects are cataloged in a new Pork Report tracking $468 million in waste and public malfeasance in the past year, $216 million worth of loin, butt and chops at the state level, the Center says.

Authored by the Nashville-based Beacon Center, the report identified more than $182 million in what the center calls “corporate welfare.” Furthermore, “politicians went hog wild” spending the citizenry’s resources on what Beacon Center president Justin Owen described as “taxpayer-funded tourist traps,” including a country music museum in Virginia and a planned water-and-snow theme park in Nashville.

“Many times politicians try to convince us that somehow their visions are grander and more wonderful,” said Ben Cunningham, a Tea Party leader and spokesman for Tennessee Tax Revolt who Tuesday joined Owen at a press conference on Capitol Hill. “Sometimes they even try to convince us that they are a cut above — morally and intellectually above the rest of us — and that their grand, good intentions are somehow grander and more wonderful than the good intentions of the citizenry.

“But in fact, they’re ordinary human beings just like you and I, and they have to be held to the same standards that everybody else is held to.”

This is the seventh year the Beacon Center, formerly known as the Tennessee Center for Policy Research, has published the Pork Report. TCPR was founded in 2004 by Johnson City-native Drew Johnson, who next month will succeed 70-year veteran Tennessee newspaperman Lee Anderson as an opinion page editor for the Chattanooga Times-Free Press.

State spending Beacon’s 2012 Pork Report identified as wasteful included:

  • $2 million in film incentives in 2012.
  • $1.5 million in economic incentives for GM to expand its plant in Spring Hill.
  • $266,200 to Volkswagen to put a sign, only visible from the air, atop its plant in Chattanooga.
  • $500,000 for a planned country music museum in Bristol on the Virginia side of the state line adjacent to Lt. Gov. Ron Ramsey’s district.
  • $88.7 million for pre-kindergarten, which has “repeatedly failed to have a significant lasting impact on the education of Tennessee’s children.”

“This year state and local governments didn’t hold back when spending taxpayers’ money,” said Owen.

Political responsibility for much of the iffy spending and sketchy programs pegged in the report can be assigned to fiscally conservative-talking Republicans, who run state government and are not expected to lose their grip on power in this year’s legislative elections.

“Republicans spend just like Democrats do,” Owen said. “And when you’re spending someone else’s money, you have an incentive to spend it unwisely.”

Although the report points to spending made on Gov. Bill Haslam’s watch, the governor contends his administration is already on top of cutting out pork spending.

“I can promise you that government waste has got our full attention. Now, waste is obviously defined different ways by different folks,” Haslam told reporters Tuesday after defending spending on Pre-K, economic development and tourism.

“One of the value judgements you make every year in the budget is, what are you going to fund out of a lot of potential good things and what are you going to cut out of several things that people have an opinion about whether that’s critical or just nice to have.”

The Center thinks much remains in the latter category and says the state should adopt a law to return excess revenues to taxpayers and set up a state spending commission to root out waste.

The Center advocates strengthening a 1978 state constitutional provision meant to rein in growth. If the state is considering spending that exceeds the growth rate in personal income, lawmakers are required to take a separate vote on the amount beyond that cap. The Center says this vote should require a two-thirds approval, rather than the current majority, and that the measure of personal income growth should be replaced by a figure based on population growth plus inflation.

New Amazon Deal Praised As Improvement On Deal, Not Backtracking

When all was said and done in the announcement Thursday that Amazon will collect sales taxes in Tennessee beginning in 2014, the state was in a different place from its original agreement with the online sales giant.

The original plan had been that Tennessee would get hundreds of jobs from two distribution centers in the Chattanooga area, so in return the state would let Amazon avoid collecting sales taxes on purchases. The deal was subject to debate almost from the time it became known.

Now, with a commitment that will bring the total number of Amazon jobs to 3,500 in the state, Amazon will have to collect sales taxes, although it is not soon enough for some critics of the deal.

So by negotiating a new deal with the company, taxes included, does that mean that in the big picture Tennessee went back on its word?

“No, absolutely not,” said Speaker of the House Beth Harwell, pointing to the efforts of Gov. Bill Haslam and Commissioner of Revenue Richard Roberts. “I’m proud the governor and the commissioner were able to sit down with Amazon and work out an arrangement that is pleasing not only to Amazon but also to the taxpayers of this state.

“I think it is a fair way to bring a large number of jobs to the state of Tennessee.”

Lt. Gov. Ron Ramsey, R-Blountville, called the announcement Thursday a “big win for unified Republican government on the jobs front.”

“The governor has negotiated a deal that promotes economic growth and jobs creation while protecting the interests of brick-and-mortar businesses who are the backbone of our economy,” Ramsey said in a formal statement.

“This is a good solution for the state of Tennessee, and I commend the governor for resolving this.”

Deputy Gov. Claude Ramsey said the deal simply means an improvement on what the state had before.

“It didn’t go back on its word. It just worked out a better deal,” Claude Ramsey said.

The deputy governor was asked if the new deal would in any way be detrimental to future negotiations with other companies.

“No, sir,” he said. “Because I think it shows that there is a solution. We worked to a solution.”

The original deal was struck by a Democratic governor, Phil Bredesen, who told Haslam of his plans and the reasons behind them: Get the jobs and collect no taxes, or lose the jobs and collect no taxes. Haslam, a Republican and newly elected when Bredesen told him of the deal, told Bredesen he would honor the agreement.

But ultimately, the Haslam administration engaged Amazon in an entirely new discussion. The result was an arrangement where Amazon not only would be collecting the sales tax but would be adding jobs to the point its total commitment had grown to 3,500 jobs and $350 million.

The entire scenario involved a Democratic administration sacrificing a substantial amount of revenue and a Republican administration doing everything it could to collect owed taxes — shifts from the stereotypical depictions of Democrats as tax-and-spenders and Republicans as advocates of revenue reduction.

Republicans did so in the name of tax fairness, yet other retailers were not satisfied that Amazon still gets until 2014 to start collecting and remitting.

In the Legislature, it was a Republican duo, Sen. Randy McNally of Oak Ridge and Rep. Charles Sargent of Franklin, who had contemplated legislation to force the tax collections.

Sen. Bo Watson, R-Hixson, speaker pro tem, said the new deal does not go against the original deal.

“I don’t think you can say it’s anything against the original agreement,” Watson said. “I think this is a continuation of dialogue that’s been going on between the administration and Amazon since the original agreement was discussed.

“All along, as this whole debate has been occurring, many of us, me being one, have been saying that conversations have been continuing, and this is just a continuation of that conversation.”

Democrats held a press conference Thursday, calling for $15 million toward a jobs plan. When they were asked about the Amazon deal, House Democratic Leader Craig Fitzhugh did what Haslam did and emphasized the part of the deal that was about jobs, not taxes.

“I think the primary focus is on the jobs, the jobs that the Bredesen administration brought here through Amazon, and through an agreement that has to do with the revenue, that there’s going to be another 2,000 jobs on top of that,” Fitzhugh said.

“So I think that’s the key thing we have to focus on in these times, which as everybody has said, is jobs.”

Mike Turner, the House Democratic Caucus chairman, said, “The law is already on the books. You’re supposed to be paying that tax as it is now.

“There’s no new taxes being added to the books because of what we’re doing.”

Andrea Zelinski contributed to this report.

Southerland Holding Out Hope for NE TN Megasite

State Sen. Steve Southerland sounds enthusiastic about the possibility of Upper East Tennessee landing a TVA megasite like the ones taxpayers provided for Volkswagen and Hemlock Semiconductor.

But the Morristown Republican’s enthusiasm may be more a matter of a legislator cheerleading than an indication of any substantive action. Other officials, including some community leaders in the region itself, say they see no hint of a megasite headed to the area, for a variety of reasons.

State Economic and Community Development Commissioner Bill Hagerty said recently he had heard the subject come up in regard to Upper East Tennessee, but he downplayed the potential.

“In terms of a new large-scale megasite like West Tennessee, I think there is a lot of optimism we might be able to do that in other parts of the state, but there is nothing along that magnitude on the drawing board right now,” Hagerty said.

Alan Palmieri, mayor of Jefferson County, said he has heard the subject raised for his region — but only “for years and years and years.” Mayor Bill Brittain of Hamblen County, which includes Morristown, said this week he has not heard the matter come up.

But in talking to a reporter at a recent event in Morristown, Southerland made it sound like efforts are underway for landing a megasite.

“We’ve got sites in the area that could be a megasite,” Southerland said. “It has a good possibility, because our counties are working together. We know it has to be a joint, regional project.

“We approved three megasites. We’ve got one in West Tennessee, Middle Tennessee and then one in Chattanooga. But we have not received one for Upper East Tennessee. It’s our turn. We spent the money down there. If the people are willing to work together up here and we have somebody wanting to come this way we’re going to go for it.”

Megasites have been noteworthy for several reasons recently. Tennesseans have begun to see the fruits of preparing large tracts of land and infrastructure, with Volkswagen opening its manufacturing plant in Chattanooga and Hemlock making an impact in Montgomery County, including ties with Austin Peay State University.

A third megasite, in Haywood County in West Tennessee, has begun to get more attention from government officials, but it remains vacant.

Gov. Bill Haslam has taken some of the glimmer off the headline-grabbing practice of attracting large businesses to the state, pointing out that most of the job growth comes from existing businesses, not high-profile relocations.

Nevertheless, Haslam has repeatedly said that doesn’t mean the state has abandoned the big relocation approach. At an economic development meeting in Morristown, Haslam said the administration is still ready “to move heaven and earth” to get such investments.

Southerland picked up on that line.

“Just like he said, we’d move heaven and earth to get another Volkswagen here,” Southerland said. “When you look at Hamblen County, we’re like a hub for other counties bringing in automotive jobs.”

Taxpayer bill can reach hundreds of millions of dollars

State and local taxpayers typically can end up contributing hundreds of millions of dollars to the development of a megasite.

In the case of the Enterprise South industrial site that attracted Volkswagen to Hamilton County, the government’s bill, including tax breaks, was estimated in one report at $500 million. Volkswagen made an investment of $1 billion, roughly the amount Hemlock put into the megasite in Montgomery County.

Arrangements for the sites can involve help from federal, state and local governments. After that, the value of the investment is widely open to debate. Economic development officials routinely have said the kinds of businesses attracted by the megasites are giant winners for the locations. But increasingly, questions exist as to the return on the investment in attracting jobs, as states have become highly competitive.

Haslam has expressed surprise at what some companies want in return for creating jobs in Tennessee, although he has said his administration remains interested in attracting the types of investments made by Volkswagen and Hemlock.

“In this state, the funding for the megasites has been a combination of local government money and state government money, with some participation from TVA funding the certification process,” said Clint Brewer, spokesman for the Department of Economic and Community Development.

In Montgomery and Hamilton counties local governments handled the purchase of the land. For the Haywood County megasite, where local governments lack such resources, the state has purchased most of the land. Theoretically, private entities could have to assemble the property at a megasite.

“The local communities pay for the site’s due diligence and improvement, such as environmental reviews, infrastructure improvements, etc.,” said Mike Bradley, of the TVA news bureau in Knoxville, by e-mail Thursday. “This sometimes is done even after the site has been certified as a megasite. The effort is usually championed by a local economic developer.”

The Tennessee General Assembly this year passed legislation (SB1239) to allow the East Tennessee Regional Agribusiness Marketing Authority, or ETRAMA, to issue bonds.

The idea of economic development in the region is to enhance development along the I-81 corridor.

Two issues face the region on infrastructure for business development: hooking up a sewer system to accommodate large capacity and getting connectors in place for major rail lines in the region. Plans for the sewer line would involve trunk lines that would feed wastewater into a plant in Lowland, which is in Hamblen County.

The vacant megasite in Haywood County has 1,720 acres. Another vacant TVA megasite in Hopkinsville, Ky., has 2,100 acres. Those kinds of numbers may work against mountainous Upper East Tennessee.

“I was told years ago because of our geography it’s hard to collect 500 flat acres,” said Rep. Tony Shipley, R-Kingsport. “Maybe we don’t get a megasite. Maybe we get a mega-area.

“The same amount of money is being spent in Chattanooga, West Tennessee and the Nashville basin area. Maybe that same amount of money could come here, because we are distinctly different.”

Palmieri, the Jefferson County mayor, makes a similar observation.

“You look at the land, and you say, ‘Where are you going to locate this?’ Terrain would be part of the process because whatever you do, you’ve got to make it economically feasible. If you’re going to have to go in and take down mountains and blast and everything else, it’s going to add to the cost, which everybody wants to avoid.”

In another way, however, geography is a plus for the region. State and local government officials point to the fact the region is within driving distance of a large portion of the nation’s population.

Like Disney World theme park, talk of megasite ‘just conversation’

Palmieri has heard talk of a megasite but sees little in the way of real progress.

“I know various mayors have talked about it for many years. Various chambers (of commerce) have talked about it. Nothing has really developed outside the fact it’s just conversation,” he said.

“Where would you go? Who’s going to bring in something that massive today? It’s probably been put on the back burner, but it’s been going on for I guess probably the last 10-12 years.”

Southerland sees other factors.

“We know with the earthquake in Japan and the value of the U.S. dollar that Japan will be looking more at investing in the United States in automotive plants. And we’re hoping to get one of whatever comes this way,” Southerland said. “You’ve got to be prepared because when they come they’re going to be looking for somebody that’s already ready to go.”

Palmieri said that for years there was talk that the people from Disney World were going to put a theme park in Cocke County.

“I heard that for 20 years,” he said. “That was a hot one there for awhile. It was going to be just a regular theme park, like a Disneyland or Dollywood. That was before Dolly owned Dollywood.”

But if the region were to get a large plant, Palmieri says the automotive or airline industries would make good sense. He said the area’s workforce, which has experience in production lines, would be good for a manufacturing base.

When asked why the airline industry would be a good fit, Palmieri said, “Everything they have is predominantly in a high-tax area. What they’re having to pay the workforce there is probably three or four times what they could have to pay a workforce here in Jefferson County or East Tennessee.

“Transportation-wise, with the Interstate and everything else, easy access in and out, I can see where they could save a lot of money, and it’d be much more profitable for their company.”

Aircraft maker Boeing has recently been involved in a dispute with the National Labor Relations Board over a plant it plans to build in South Carolina. Palmieri said Tennessee should get a look.

“If Boeing ever took a serious look, they could come in, acquire property and build buildings and have a workforce ready to go, and they would save money almost right off the bat,” he said. “South Carolina is more expensive. They have payroll taxes and everything else. I don’t understand that.

“I have family there. It’s a beautiful state. I can’t stand Steve Spurrier (the South Carolina football coach). But why would you go to South Carolina when Interstate access, transportation needs, centralization, taxes, everything is so much better right here in East Tennessee? I don’t understand that.”

Electrolux Wins Backing For Tax Breaks, Honored By Industry Mag

It was a good day for Electrolux, winning approval in the Senate Finance Committee of the $90 million state package for its planned Memphis factory and landing on a real estate insiders’ magazine’s list of notable deals.

The kitchen appliance maker’s manufacturing plant was named one of the top economic-development deals in the country in 2010 by Site Selection magazine, several outlets reported today. Internet retailer Amazon’s planned distribution centers in East Tennessee garnered an honorable mention.

The $190 million Electrolux plant will reportedly create 1,200 jobs.

As Amazon Heads to TN, Retailer Shuns Texas’ ‘Unfavorable Regulatory Climate’

Amazon is pulling out of Texas because of that state’s hard line on collecting sales tax from the Internet retail giant’s sales. Some of those Lone Star State workers could relocate to Tennessee, where the company has been received with open arms by the Haslam administration, which has taken a much softer line on online tax collections. Amazon is building two massive distribution centers in East Tennessee.

KPRC Channel 2 in Houston reports that Amazon is closing its Dallas-area distribution center and won’t expand in Texas after a dispute stemming from the Texas state comptroller’s demand the company fork over $269 million in uncollected taxes.

Dave Clark, Amazon’s vice president of operations, writes in the e-mail that the center will close April 12 due to Texas’ “unfavorable regulatory climate.” Amazon spokeswoman Mary Osako would not say Thursday how many employees work at the Irving distribution center.

…(A state official) said Texas loses an estimated $600 million in Internet sales taxes every year.

Amazon has been the target of numerous lawsuits filed by states seeking sales taxes on online purchases made from within their borders.

Clark also said in his e-mail that the company was “previously planning to build additional facilities and expand in Texas, bringing more than 1,000 new jobs and tens of millions of investment dollars to the state, and we regret the need to reverse course.” Texas employees who are willing to relocate will be offered positions in other states, Clark said.

Gov. Bill Haslam has said his priority is making sure Amazon comes to Tennessee, and has shied away from the tax issue, but both he and Republican Lt. Gov. Ron Ramsey told the Tennessee Press Association Thursday they are committed to maintaining and enhancing the state’s reputation of having one of the business-friendliest political climates in the United States.

“I’m a small-business man myself, and you know what I want out of state government? Absolutely nothing,” Ramsey said. “Leave me alone. Get out of the way, and I’ll create jobs. All I want for government is to get out of the way.”

Late last year, Haslam said the issue of untaxed online sales was something “to look at long term, but I do not think it needs to interfere with our recruiting of Amazon to Tennessee. That’s a huge priority for us,” according to the Chattanooga Times Free-Press. The Chattanooga-area centers will reportedly be up and running in time for the Christmas shopping season.

Amazon Wants Tennessee Sales To Stay Tax-Free

Tennessee customers of Amazon.com won’t be charged sales tax, even though the Internet retail giant is building two 1-million-square-foot distribution centers in the state, if the company has its way.

That would be in line with the company’s practice in six of the nine states where it operates distribution centers, the Seattle Times reports:

The company argues that, because the facilities are separate legal entities, they do not give the e-tailer a physical presence. …

Officials for Tennessee’s revenue and economic-development departments declined to comment, citing a long-standing policy of not divulging tax information about a particular business. Amazon, which rarely talks about behind-the-scenes business practices, did not answer questions about its sales-tax plan for Tennessee.

Amazon will employ 1,400 full-time and another 2,000 people seasonally “once the centers are fully ramped up in three years,” the Chattanooga Times Free-Press reported last month. The centers amount to a $139 million investment.

The newspaper has also reported on Gov. Bill Haslam’s friendly stance toward Amazon:

(Haslam said) that untaxed online sales are a growing problem for states such as Tennessee.

“I do think this is something we need to look at long term, but I do not think it needs to interfere with our recruiting of Amazon to Tennessee,” he said. “That’s a huge priority for us.”

Amazon is getting the Hamilton County site free and is getting significant tax breaks on both the Hamilton and Bradley sites, the Chattanooga Times Free-Press reported. The state is offering job tax credits and employee training assistance.

Appliance Maker Electrolux Wins Tax Break

Cooking appliance maker Electrolux has been approved for a 15-year tax freeze – or a $38.7 million savings for the company – in exchange for building a manufacturing center in Memphis, various Memphis news outlets have reported.

The Commercial Appeal says that the tax break is part of a $137 million incentive package from the city, county and state:

The (Memphis-Shelby County Industrial Development Board) ratified a site location and development agreement under which the governments will assist Electrolux in developing a 700,000-square-foot factory in Frank C. Pidgeon Industrial Park in southwest Memphis.

The vote was the first in a fast-track approval process designed to meet Electrolux’s deadline for a done deal by Jan. 31. The City Council and County Commission will vote later on a pair of $20 million contributions to go along with a $97 million state grant.

The company has said it will build ranges, ovens and cooktops at the new plant, which will reportedly employ 1,240 people in jobs with an average salary of about $30,500.