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By David McAfee
Starbucks Coffee Co., the Anthem Companies Inc., and five other companies are set to receive a total of more than $7 million in tax abatements from Nevada.
The Nevada Governor’s Office of Economic Development (GOED) July 17 approved $403,832 in tax abatements for Starbucks, which is planning a 700,000 square foot expansion in Douglas County, and $831,211 in tax abatements for Anthem. Anthem Inc., a health insurance company with a market capitalization above $50 billion, is expected to add 400 jobs and bring in $5,448,500 in capital investment.
“I continue to be impressed with the quality of companies that come before the GOED Board and their commitment to people of our state,” Gov. Brian Sandoval (R) said in a July 17 statement. “This is meaningful job creation for the people of Nevada, with competitive wages and healthcare being part of this employment. It is because of Nevada’s job creators that we have turned our economy around, and I am very thankful for their dedication.”
Other companies to receive abatements are Aristocrat Technologies Inc., Masonite Corp., Medolac Laboratories, Sunpreme Inc., and Vegas Sheets LLC. The companies collectively plan to create more than 900 jobs and invest more than $75 million in the state, according to the GOED.
The GOED was created in 2011 to restructure economic development in Nevada. The state’s tax incentives have come under recent scrutiny, with state officials seeking input through a GOED audit on whether tax credits are generating a fair return on the state’s investments. The Legislature in 2014 passed a $1.3 billion tax incentive package to attract Tesla Motors to locate its assembly plant in the state. That was followed by the state offering tax credits to electric vehicle startup Faraday Future for its plans to build a $1 billion assembly plant. The credits were the largest ever offered in the history of the state.
Starbucks, which has promised to bring in 99 jobs and $4,448,000 in capital investment, will expand its footprint at its Carson Valley Roasting Center and Distribution Center by 700,000 square feet. The company announced its move in June. Starbucks has a market cap of $83.9 billion.
“We serve all of California, Nevada and Utah, as well as parts of Arizona and Asia Pacific,” Todd McCullough, director of distribution at the facility, wrote in a June 2 statement. “We do everything here from coffee to syrups to behind-the-bar supplies.”
Representatives for Anthem and Starbucks didn’t immediately return requests for comment July 19.
To contact the reporter on this story: David McAfee in Los Angeles at dMcAfee@bna.com
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