Economic Impact and Advantages for Michelin in the State of South Carolina.

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Introduction: This report will explain how Michelin was successful establishing over 7 manufacturing plant in the state of South Carolina. We will discuss the economic impact and advantages for Michelin in the State of South Carolina. I’ll explain why Michelin decided to set up a manufactory plant in SC and how influences from the local State government low-tax, low-cost, non-union business environment can coax Michelin to stay in SC to expand and invest over 750 billion dollar for a new plants and a factory expansions. Methodology: Data for the research was collect from was collected from the Michelin North America Inc. corporate website at www.michelinman.com. Data and analyze was also collected from Charlotte Business journal www.bizjournals.com, and local newspapers; Charlotteobserver.com, The nerve and the TandD.com. Findings/Analysis: The government plays a dynamic role in building the economy in the State of South Carolina. South Carolina is known for its aggressive incentives reward industries growth program. The state working with the government has developed numerous ways to potentially eliminate corporate income taxes, implement a wide range of tax exemptions to reduce start- up cost as well as annual operating cost. Special flexible incentives at the local and state level, to meet the needs of individual companies on a case-by-case basis. They offered great incentive package, Grants and tax breaks for attracting new companies and keeping those already established within its state to expand and hire more employees. Some of those incentive tax breaks are the fee-in-lue-of-taxes (FILOT) agreement. This FILOT agreement for Michelin is a reduction of approximately $73 million, which added up to about 72 percent of what the company would owe on property taxes under the impost rate for manufactures. Lexington County located in SC, was approved for

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