The measure allows the state to reimburse a business up to $50,000 per employee for relocation costs if a company moves its headquarters to Tennessee and has already invested more than $1 billion in the state.
In Nissan's case, that could be worth $65 million if all its Gardena employees make the move.
For The Record
Los Angeles Times Friday December 09, 2005 Home Edition Main News Part A Page 2 National Desk 2 inches; 63 words Type of Material: Correction
Nissan relocation -- An article in Thursday's Business section about Nissan Motor Co.'s relocation of its North American headquarters from Gardena to Tennessee said California's package of incentives to keep the automaker included a $20-million reduction in utility bills. In fact, $20 million was the approximate total value of California's failed offer, which included tax breaks, job training funds and reduced utility bills.
Nissan, which has invested more than $3 billion in Tennessee, also will receive a tax credit of $5,000 a year for 20 years for each new job created by its relocation. The Nashville Tennessean recently reported that Nissan is the only company so far that qualifies for the relocation reimbursement.
Another part of the incentive package calls for the city of Franklin's industrial development board to spend $15 million to purchase a 50-acre parcel for Nissan's new headquarters and then lease it to the automaker. Nissan plans to spend $70 million to build a headquarters with about 500,000 square feet of office space within a developing business complex in Franklin.
Bloomberg News was used in compiling this report.
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