Remington: How Much The State Pays To Bring The Company To Huntsville
HUNTSVILLE, Ala. (WHNT) – We got the numbers that helped convince Remington to relocate to the Rocket City.
State incentives anchor the deal, though local incentives do help.
Here’s what the state offer:
- $38,474,901 for buildings, equipment, and machinery
- $15,900,00 in recruitment and job training
- $150,000 for site preparation
- $54,397,901 in total incentives from the state
So how does that stack of cash compare to other incentive deals?
Gvernor Robert Bentley tells WHNT News 19, “It’s comparable. All of them vary, but we look down the road to see when we can make the money back in taxes primarily.”
So how long before the new production here pays it back? Here’s what the state expects from Remington.
- $110,900,00 in capital investment
- $105,516,508 estimated payroll
- $78,092,768 annual indirect earnings
- 1868-2100 full-time employees at full employment
- 1,411 indirect jobs
With all that in play, the state anticipates big tax revenues.
- $87,871,981 of 10-year Cumulative State & Local Revenues
- $201,364,731 of 20-year Cumulative State & Local Revenues
In case something goes wrong here, Governor Bentley assures, “We also always have some type of clawback in all of our agreements that we have with companies, so we make sure the taxpayers of this state are covered and that money will be recouped. primarily in taxes back to our state.”
All told, each promised job at Remington should cost the state around $27,000 up front, but the jobs themselves pay around $40,000 every year.