Tennessee incentives for VW total $577 million

Tennessee Economic and Community Development Commissioner Matt Kisber said in announcing the incentives package on Friday that he does not know if the total is a record offer to an automaker.

Kisber said regardless, it is a deal that he "would never turn down."

A state report shows the German automaker's July selection of Chattanooga for the $1 billion plant that will have 2,000 employees is expected to create another 9,477 related jobs.

Kisber joined economic development officials and the mayors of Chattanooga and Hamilton County at a news conference in Chattanooga before the State Funding Board approved the package at a meeting in Nashville.

He said the VW plant represents Tennessee's "largest investment" and the largest projected economic impact of any project since Gov. Phil Bredesen took office after the 2002 election.

Tennessee was a finalist with Alabama and Michigan for the VW plant.

Alabama Gov. Bob Riley has said Alabama put together incentives worth over $385 million, the most that state had ever offered for an auto project.

A report by Mississippi's economic developers shows incentives totaling $294 million were provided Toyota in 2007 for an assembly plant at Blue Springs. Kia received about $400 million in incentives from Georgia in return for agreeing to build an assembly plant at West Point, Ga., in 2006.

Kisber said the other states' totals, unlike Tennessee, do not necessarily include tax credits for the automaker.