Gov. Bill Haslam has designated Obion County a “Tier 3 Enhancement County,” eligible to offer expanded state job tax credits to spur job creation in the wake of the closing of the Goodyear tire plant in Union City by the end of the year, costing 1,900 local workers their jobs.
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The governor acknowledged that the move “won’t change things overnight for a community facing significant job issues. It will, however, give state and local economic developers some additional tools to go out and recruit new investment to create jobs and help the local economy rebuild.
“This is a challenging time for the people of Northwest Tennessee,” Haslam said. “I am committed to working with local and federal officials to do our best to mitigate the impact of these jobs losses. Raising Obion County to Tier 3 distressed community status is just one step in our effort to help this community’s economy to recover.”
The three-tiered tax credit system was developed to encourage new industry to locate or expand in primarily rural communities challenged by high unemployment. To receive the maximum “Tier 3” enhanced job tax credit of $4,500 per new full-time position created, companies must make a minimum capital investment of $500,000 in a 12-month period and create at least 25 new full-time jobs, according to state Economic and Community Development Commissioner Bill Hagerty.