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Louisiana: $1.5 billion In Tax Breaks For $9.4 Billion Plant

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https://creativecommons.org/licenses/by-nc-nd/2.0/

Louisiana Economic Development Secretary Don Pierson says state and local governments offered an estimated $1.5 billion in incentives for a $9.4 billion plastics complex.

That includes 10 years of local property tax exemptions for a subsidiary of Taiwan's Formosa Petrochemicals Corp. The subsidiary filed its proposals before rules were changed to allow only five years of full exemptions and three of partial exemptions. A company-sponsored analysis estimates the project will generate $675 million in new state and local taxes through 2035. The study estimates that it also will bring $4.7 billion in new personal earnings and $18.5 billion in business spending during these 17 years.

The Louisiana Environmental Action Network has criticized the project on the Mississippi River, saying it and other plants will increase air pollution.