‘War of the states’: EV, chip makers lavished with subsidies

April 1, 2023

Associated Press: ‘War of the states’: EV, chip makers lavished with subsidies

HARRISBURG, Pa. (AP) — States are doling out more cash than ever to lure multibillion-dollar microchip, electric vehicle and battery factories, inspiring ever-more competition as they dig deeper into their pockets to attract big employers and capitalize on a wave of huge new projects.

Georgia, Kansas, Michigan, New York, North Carolina, Ohio and Texas have made billion-dollar pledges for a microchip or EV plant, with more state-subsidized plant announcements by profitable automakers and semiconductor giants surely to come.

States have long competed for big employers. But now they are floating more billion-dollar offers and offering record-high subsidies, lavishing companies with grants and low-interest loans, municipal road improvements, and breaks on taxes, real estate, power and water.

A bar chart of megadeals given to companies in 2022. A megadeal is when a package includes at least $50 million in subsidies.

Full the full story at the AP.

Read the Good Jobs First study chronicling over $13.8 billion worth of subsidies to at least 51 electric vehicle (EV) and EV battery factories.