While early estimates put the cost of the incentives at $1.3 billion, the Kansas Department of Commerce on Wednesday said Panasonic would be eligible for $829 million in tax credits, exemptions and other incentives. The state’s new incentive program created refundable tax credits, which allow firms to not only reduce their tax burdens but receive cash from state coffers for meeting certain hiring and investment goals. Paired with an expected local property tax incentive from De Soto, the state deal means taxpayers will fund close to a quarter of the projected $4 billion cost of the project. Kelly said the cost to the state would more than be recovered by Panasonic’s investment, both in full-time employees and the thousands of construction crews who will build the factory.
Source: Wichita Eagle
