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Proposed Alabama hybrid car plant to use EB-5 funding
A proposed $1.5-billion hybrid-car plant in Alabama that is utilizing the EB-5 visa program could be eligible for $1 billion in tax breaks, according to a letter from Alabama Development Office (ADO) Director Neal Wade, reports AL.com.
The proposed HK Motors plant is anticipated to bring 4,000 jobs to the area that pay more than $15 an hour, reports the news source.
Wade said that the letter was not a commitment, however.
“We are supportive of this project, but they will have to demonstrate that they have financial capability to build a plant and put it online before we commit to any incentives,” he told the news provider.
The EB-5 visa program has been essential in raising funds for the plant, according to HK. Under the program foreign nationals can earn U.S. green cards by investing in American businesses. If the foreigner invests $1 million (or in some areas, $500,000) in a U.S. business and that investment leads to the creation or preservation of 10 jobs, the investor becomes green card eligible.
“The great and continued support demonstrated by the state of Alabama in the ADO letter is of significant importance to the group as this symbolizes the development of the HK Motors project in the U.S.,” Yeung Yung, chairman of HK’s board, said in a written statement, reports the news source.