The federal CHIPS Act signed into law by President Joe Biden in August 2022 is offering $52 billion in federal subsidies to boost America’s semiconductor industry. The goal is to reduce U.S. dependence on foreign chip production. The federal program has lured states and cities to serve up billions of dollars of their own subsidies in a bid to win projects.

These public corporate subsidies have long been a way for companies to lower the cost of developing everything from factories to shopping malls. For decades they’ve been used for projects like a uranium enrichment plant near Idaho Falls, a Google data center in Pryor Creek, Oklahoma, and an electric vehicle battery plant in De Soto, Kansas.

These subsidies manifest in different ways, including generous tax abatements and tax credits to reduce or eliminate federal, state, or local corporate tax liabilities. They include no-interest loans, loan guarantees, infrastructure assistance, workforce training grants, and other forms of public support for private development.

Case study: Micron’s “Megadeal” 

So far, the biggest deal in the wake of the CHIPS Act has been in New York, where the state is dishing out $5.5 billion in tax breaks to Idaho-based computer chip maker Micron Technology (NASDAQ: MU). In return, Micron says it will spend $100 billion over the next 20 years to develop the semiconductor facility near Syracuse.

As outlined by the non-profit subsidy watchdog group Good Jobs First, Micron is receiving additional public support through hundreds of millions of dollars in state and county funds to improve roads and infrastructure around the factory complex. The company says it will also require federal support through the CHIPS Act.

New York Gov. Kathy Hochul touted the deal as a win-win that will bring 50,000 jobs, including 9,000 permanent company positions. This Rust Belt region witnessed the exodus of big local employers like Carrier and General Electric in recent decades.

Why are corporate subsidies controversial?

Critics say that there are better ways to promote economic growth and create good jobs. They argue that these corporate tax cuts reduce public revenue to pay for public schools, road maintenance, and other services. Subsidies can also generate private-sector dependency on public support, reducing incentives for businesses to innovate on their own. These deals also lack transparency, making it difficult to measure their true economic impact. Lobbying efforts and campaign donations may also tip the scale in favor of corporations that receive these subsidies.

Proponents have a different view. They argue these subsidies provide benefits to local economies that are greater than the costs. Public support of the private sector creates jobs, promotes business retention and expansion, revitalizes economically depressed areas, and propagates industry development. Infrastructure spending around these project sites make an area more attractive to businesses and the employees they hire.

How do we even measure the long-term benefits of corporate subsidies?

One of the big challenges is simply auditing a subsidized project years down the road. A “megadeal” like Micron’s makes big headlines when it’s announced with fanfare by its backers. But will the same attention be paid 20 years from now to examine if the deal had the long-term benefit touted by its backers today?

Studies about the long-term benefits corporate subsidies have mixed results. “Distinguishing ‘good’ and ‘bad’ subsidies is analytically and politically fraught,” said a 2022 report from international organizations including the International Monetary Fund and the OECD.

Challenges to auditing corporate subsidies to measure their long-term impacts include establishing a mutually agreed-upon definition of a subsidy. For example, people who believe tax cuts promote job creation and economic growth (aka supply side, or “trickle down” economics) don’t view corporate tax cuts as handouts. Crucially, the availability and quality of data can be incomplete or unreliable, making future subsidy audits difficult.

The largest corporate subsidies in every state

These are the companies that won the largest state and/or city subsidy deals in every state. Megadeals are subsidies that are worth at least $50 million to their corporate recipients. These figures exclude federal support, such as the recently announced $15.5-billion Department of Energy program to boost the manufacture of electric vehicles and EV batteries through grants and loans. This information comes from the Megadeals Subsidy Tracker at Good Jobs First and numerous media reports.

Twenty-five of these megadeals occurred from 2010 to 2020. Sixteen were unveiled since 2021. Hawaii, Montana, North Dakota, South Dakota, Vermont, New Hampshire, and Wyoming don’t have any megadeals, meaning subsidy packages worth at least $50 million, and so have no entries on this list.

Alabama – Company with biggest megadeal: ThyssenKrupp

• Number of megadeals: 18
• Total value of state’s megadeals: $4.27 billion
• Company with state’s biggest megadeal: ThyssenKrupp
• Value of megadeal: $1.07 billion
• Project: Steel plant

Alaska – Company with biggest megadeal: Teck Resources

• Total number of state megadeals: 2
• Total value of state’s megadeals: $267 million
• Company with state’s biggest megadeals: 2 deals for Teck Resources
• Project: Mining road infrastructure

Arizona – Company with biggest megadeal: Thomas J. Klutznick Co.

• Total number of state megadeals: 5
• Total value of state’s megadeals: $375 million
• Company with state’s biggest megadeal: Thomas J. Klutznick Co.
• Value of megadeal: $97 million
• Project: Phoenix’s CityNorth development

Arkansas – Company with biggest megadeal: Shandong Sun Paper Industry

• Total number of state megadeals: 4
• Total value of state’s megadeals: $479 million
• Company with state’s biggest megadeal: Shandong Sun Paper Industry
• Value of megadeal: $168 million
• Project: Pulp mill (terminated by the company in 2020)

California – Company with biggest megadeal: Lockheed Martin and Northrup Grumman (tie)

• Total number of state megadeals: 5
• Total value of state’s megadeals: $1.40 billion
• Companies with state’s biggest megadeals: Tie between Lockheed Martin (NYSE: LMT) and Northrup Grumman (NYSE: NOC)
• Value of megadeals: $840 million (split evenly)
• Project: Aerospace/military contracting

Colorado – Company with biggest megadeal: Starwood Property Trust

• Total number of state megadeals: 1
• Total value of state’s megadeal: $300 million
• Company with state’s only megadeal: Starwood Property Trust (NYSE: STWD)
• Project: Gaylord Rockies hotel and conference center

Connecticut – Company with biggest megadeal: United Technologies Corporation

• Total number of state megadeals: 15
• Total value of state’s megadeals: $2.43 billion
• Company with state’s largest megadeal: United Technologies Corporation (NYSE: RTX)
• Value of megadeal: $400 million
• Project: Aerospace/military contracting

Delaware – Company with biggest megadeal: AstraZeneca

• Total number of state megadeals: 1
• Total value of state’s megadeal: $178 million
• Company with state’s only megadeal: AstraZeneca (NASDAQ: AZN)
• Project: Headquarters relocation from Pennsylvania

Florida – Company with biggest megadeal: Walt Disney

• Total number of state megadeals: 11
• Total value of state’s megadeals: $2.58 billion
• Company with state’s biggest megadeal: Walt Disney (NYSE: DIS)
• Value of megadeal: $570 million (cancelled amid feud with Gov. Ron DeSantis)
• Project: Relocation of divisions/offices from California

Georgia – Company with biggest megadeal: Hyundai Motor

• Total number of state megadeals: 13
• Total value of state’s megadeals: $5.71 billion
• Company with state’s biggest megadeal: Hyundai Motor
• Value of megadeal: $1.80 billion
• Project: EV manufacturing plant

Idaho – Company with biggest megadeal: Areva Group

• Total number of state megadeals: 1
• Total value of state’s megadeal: $276 million
• Company with the state’s only megadeal: Areva Group
• Project: Uranium enrichment plant

Illinois – Company with biggest megadeal: Amazon.com

• Total number of state megadeals: 13
• Total value of state’s megadeals: $2.72 billion
• Company with state’s biggest megadeals: 2 deals for Amazon.com (NASDAQ: AMZN)
• Value of megadeals with state’s top recipients: $825 million
• Project: Warehouses

Indiana – Company with biggest megadeal: General Motors

• Total number of state megadeals: 21
• Total value of state’s megadeals: $4.41 billion
• Company with state’s biggest megadeals: 2 deals for General Motors (NYSE: GM)
• Value of megadeals: $1.39 billion
• Projects: Truck assembly upgrade and EV battery plant

Iowa – Company with biggest megadeal: Orascom Construction Industries

• Total number of state megadeals: 8
• Total value of state’s megadeals: $895 million
• Company with state’s biggest megadeal: Orascom Construction Industries
• Value of megadeal: $251 million
• Project: Fertilizer plant

Kansas – Company with biggest megadeal: Panasonic

• Total number of state megadeals: 8
• Total value of state’s megadeals: $2.53 billion
• Company with state’s biggest megadeal: Panasonic
• Value of megadeal: $1.27 billion
• Project: EV battery plant

Kentucky – Company with biggest megadeal: Ford

• Total number of state megadeals: 15
• Total value of state’s megadeals: $2.11 billion
• Company with state’s biggest megadeals: 2 deals for Ford Motor Company (NYSE: F)
• Value of megadeals: $650 million
• Projects: Plant retention/expansion, two new EV battery plants (one plant backed by federal subsidy postponed)

Louisiana – Company with biggest megadeal: Sempra Energy

• Total number of state megadeals: 29
• Total value of state’s megadeals: $9.72 billion
• Company with state’s biggest megadeals: 2 deals for Sempra Energy (NYSE: SRE)
• Value of megadeals: $2.25 billion
• Projects: LNG export facility, LNG export terminal through Sempra co-investment

Maine – Company with biggest megadeal: General Dynamics

• Total number of state megadeals: 2
• Total value of state’s megadeals: $317 million
• Company with state’s biggest megadeal: General Dynamics (NYSE: GD)
• Value of megadeal: $194 million
• Project: Shipyard modernization (1997)

Maryland – Company with biggest megadeal: Sagamore Development

• Total number of state megadeals: 7
• Total value of state’s megadeals: $1.72 billion
• Company with the state’s biggest megadeal: Sagamore Development
• Value of megadeal: $660 million
• Project: Baltimore development that includes Under Armour (NYSE:UAA) headquarters

Massachusetts – Company with biggest megadeal: General Electric

• Total number of state megadeals: 4
• Total value of state’s megadeals: $384 million
• Company with state’s biggest megadeal: General Electric (NYSE: GE)
• Value of megadeal: $145 million
• Project: Headquarters relocation from Connecticut

Michigan – Company with biggest megadeal: Ford

• Total number of state megadeals: 45
• Total value of state’s megadeals: $17.28 billion
• Company with state’s biggest megadeal: Nine for Ford Motor Company
• Value of megadeal: $5.15 billion
• Projects: Numerous since 2000, latest is an EV battery plant whose project was paused by Ford in September amid labor strikes

Minnesota – Company with biggest megadeal: Northwest Airlines and Delta Air Lines (tie)

• Total number of state megadeals: 5
• Total value of state’s megadeals: $1.85 billion
• Company with state’s biggest megadeal: Northwest Airlines (1991); now part of Delta Air Lines (NYSE: DAL)
• Value of megadeal: $838 million
• Projects: Aircraft maintenance facility, engine repair facility

Mississippi – Company with biggest megadeal: Nissan Motor

• Total number of state megadeals: 12
• Total value of state’s megadeals: $3.51 billion
• Company with the state’s biggest megadeal: Nissan Motor
• Value of megadeal: $1.25 billion
• Project: Auto assembly plant

Missouri – Company with biggest megadeal: Cerner

• Total number of state megadeals: 17
• Total value of state’s megadeals: $4.45 billion
• Company with the state’s biggest megadeal: Cerner
• Value of megadeal: $1.64 billion
• Project: Office development for health IT company now owned by Oracle (NYSE: ORCL)

Nebraska – Company with biggest megadeal: NioCorp Developments

• Total number of state megadeals: 3
• Total value of state’s megadeals: $417 million
• Company with state’s biggest megadeal: NioCorp Developments (NASDAQ: NB)
• Value of megadeal: $200 million
• Project: Niobium mine

Nevada – Company with biggest megadeal: Tesla

• Total number of state megadeals: 5
• Total value of state’s megadeals: $2.04 billion
• Company with state’s biggest megadeals: 2 deals for Tesla (NASDAQ: TSLA)
• Value of megadeal(s) with state’s top recipients: $1.62 billion
• Projects: EV systems and battery plant (2014) and capital investment in plant (2023)

New Jersey – Company with biggest megadeal: Prudential Financial

• Total number of state megadeals: 30
• Total value of state’s megadeals: $4.13 billion
• Company with the state’s biggest megadeals: 2 deals for Prudential Financial (NYSE: PRU)
• Value of megadeals: $434 million
• Projects: Office tower (2012), LuxuryPoint project majority held by Prudential (2014)

New Mexico – Company with biggest megadeal: Intel

• Total number of state megadeals: 5
• Total value of state’s megadeals: $3.38 billion
• Company with state’s biggest megadeals: 2 deals for Intel (NASDAQ: INTC)
• Value of megadeals: $2.65 billion
• Projects: Semiconductor plants, in 1993 and 2004.

New York – Company with biggest megadeal: Micron Technology

• Total number of state megadeals: 54
• Total value of state’s megadeals: $24.46 billion
• Company with state’s biggest megadeals: Micron Technology (NASDAQ: MU)
• Value of megadeal: $6.36 billion (the largest single megadeal on this list)
• Projects: A computer chip factory complex in Clay, New York.

North Carolina – Company with biggest megadeal: Toyota Motor

• Total number of state megadeals: 20
• Total value of state’s megadeals: $6.88 billion
• Company with state’s biggest megadeals: 2 deals for Toyota Motor (NYSE: TM)
• Value of megadeal: $1.30 billion
• Projects: EV battery production (2021)

Ohio – Company with biggest megadeal: Intel

• Total number of state megadeals: 25
• Total value of state’s megadeals: $5.29 billion
• Company with state’s biggest megadeal: Intel
• Value of megadeal: $2.39 billion
• Project: Semiconductor plant

Oklahoma – Company with biggest megadeal: Alphabet

• Total number of state megadeals: 7
• Total value of state’s megadeals: $1.15 billion
• Company with state’s biggest megadeal: Alphabet (NASDAQ: GOOGL)
• Value of megadeal: $377 million
• Project: Google data center

Oregon – Company with biggest megadeal: Intel

• Total number of state megadeals: 10
• Total value of state’s megadeals: $6.69 billion
• Company with state’s biggest megadeal(s): Four for Intel
• Value of megadeal(s) with state’s top recipients: $2.90 billion
• Projects: Semiconductor plant expansions/retentions

Pennsylvania – Company with biggest megadeal: Shell PLC

• Total number of state megadeals: 4
• Total value of state’s megadeals: $2.16 billion
• Company with state’s biggest megadeal: Shell PLC (NYSE: SHEL)
• Value of megadeal: $1.65 billion
• Project: Ethane cracker plant

Rhode Island – Company with biggest megadeal: Brookfield Asset Management

• Total number of state megadeals: 2
• Total value of state’s megadeals: $215 million
• Company with state’s biggest megadeal: Brookfield Asset Management
• Value of megadeal: $140 million
• Project: Providence shopping mall (1996), now struggling

South Carolina – Company with biggest megadeal: Volkswagen Group

• Total number of state megadeals: 16
• Total value of state’s megadeals: $4.68 billion
• Company with the state’s biggest megadeal: Volkswagen Group
• Value of megadeal: $1.30 billion
• Project: EV factory for Volkswagen’s Scout Motors subsidiary

Tennessee – Company with biggest megadeal: Ford

• Total number of state megadeals: 20
• Total value of state’s megadeals: $4.43 billion
• Company with state’s biggest megadeal: Ford Motor Company
• Value of megadeal: $884 million
• Projects: Electric car and EV battery plant

Texas – Company with biggest megadeal: Texas Instruments

• Total number of state megadeals: 20
• Total value of state’s megadeals: $8.12 billion
• Company with state’s biggest megadeals: 2 deals for Texas Instruments
• Value of megadeal: $2.96 billion
• Projects: Semiconductor plant (2003), semiconductor-manufacturing campus (2021)

Utah – Company with biggest megadeal: Meta Platforms

• Total number of state megadeals: 3
• Total value of state’s megadeals: $360 million
• Company with state’s biggest megadeal: Meta Platforms (Facebook)
• Value of megadeal: $150 million
• Project: Data center

Virginia – Company with biggest megadeal: Amazon.com

• Total number of state megadeals: 8
• Total value of state’s megadeals: $1.47 billion
• Company with state’s biggest megadeal: Amazon.com
• Value of megadeal: $801 million
• Project: H2Q headquarters expansion

Washington – Company with biggest megadeal: Boeing

• Total number of state megadeals: 2
• Total value of state’s megadeals: $11.94 billion
• Company with the state’s biggest megadeals: 2 deals for Boeing
• Value of megadeal: $11.94 billion (one of the megadeals, worth $8.7 billion, was repealed by Boeing in 2013 after WTO ruled the subsidy illegal)
• Project: Aircraft manufacturing facilities

West Virginia – Company with biggest megadeal: Nucor

• Total number of state megadeals: 4
• Total value of state’s megadeals: $2.60 billion
• Company with state’s biggest megadeal: Nucor
• Value of megadeal: $1.70 billion
• Project: Steel mill

Wisconsin – Company with biggest megadeal: Foxconn

• Number of megadeals: 4
• Total value of state’s megadeals: $5.05 billion
• Company with state’s biggest megadeal: Foxconn
• Value of megadeal(s) with state’s top recipients: $4.79 billion
• Project: Flat-screen plant (Foxconn mostly backed out of deal touted by President Trump in 2018)

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