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Semiconductor industry

Big Business Dominates Federal Subsidy Spending, New Report Reveals

Strategic Insights

— 2 min read

Washington state's incentive package to Boeing was the largest corporate tax break in any state's history, valued at $8.7 billion. This broke a record that stood for just a few months. The state's Board of Economic Assistance and Revenue chose the Boeing package over a more expensive offer made by South Carolina. Boeing received the award by creating 787 commercial aircraft in the state. However, the story goes on further, as Boeing has received the most state and local subsidy dollars of any corporation in the United States. In a new report, it has been revealed that six companies have received $1 billion or more in federal grants and tax credits. These businesses have taken advantage of a lucrative system that has awarded nearly $68 billion to companies since 2000.

Key Takeaways:

  • Boeing is the biggest corporate winner in Washington state, receiving $13 billion in subsidies, while Intel has received nearly $6 billion and Alcoa has received $6 billion. Additionally, General Motors scored $3.7 billion, Ford secured $2.5 billion, and General Electric received $2.3 billion. Of the top 30 companies receiving state and local subsidy dollars, Boeing received the most, accepting over 50% of the total funds given out.
  • Nineteen large corporations have received at least $1 billion in subsidies, with a total of 164,000 awards from 137 federal programs during the period tracked by Good Jobs First.
  • Of the hundred most profitable federal contractors in the 2014 fiscal year, nearly half have received federal grants or tax credits since 2000.
  • The US government has given out nearly $68 billion in federal grants and tax credits since 2000, with two-thirds of the funds awarded to large corporations.
  • Iberdrola, a Spanish energy company, has received the most federal subsidiesthat and has investments in the US power generating facilities. The congress report also found that five companies have achieved a trifecta, ranking among the 50 largest recipients of three kinds of funds: state subsidies, federal grants and tax credits, and federal loans, loan guarantees and bailout assistance.
  • The five companies considered to be the most successful at obtaining subsidies from all levels of government are Boeing, Ford, General Electric, General Motors, and JPMorgan Chase.
  • The "most successful at obtaining subsidies" club includes companies such as Goldman Sachs. T he company received federal loan assistance.

Statistics:

  • Over the 15-year period, the federal government has given out $68 billion in federal grants and tax credits. ($68 billion)
  • Almost two-thirds of that, or around $46 billion, has been awarded to large corporations. ($46 billion)
  • Six companies have received $1 billion or more in federal grants and tax credits since 2000.
  • The largest recipient of federal grants and tax credits was Iberdrola, with a total of $4.7 billion awarded. ($4.7 billion)
  • Of the top 30 companies receiving state and local subsidy dollars, Boeing received the most, accounting for over 50% of the total funds given out. (50%)
  • Since 2000, the US government has given out nearly $68 billion in federal grants and tax credits. ($68 billion)
  • Iberdrola, a Spanish energy company, has received the most federal subsidies and has investments in the US power generating facilities. ($4.7 billion)
  • Of the top 30 companies receiving state and local subsidy dollars, General Motors received the second most, with General Motors receiving just under $4.4 billion in subsidies. ($4.4 billion)
  • US government has given out nearly $68 billion in federal grants and tax credits since 2000, with two-thirds of the funds awarded to large corporations. ($46 billion)
  • 164,000 awards from 137 federal programs since 2000 has been given out to businesses. (164,000)

Sources:

  • Philip Mattera, a co-author of the study (Philip Mattera)
  • Good Jobs First, a policy resource center on subsidy data. (Good Jobs First)
  • [https://www.goodjobsfirst.org/uoi](https://www.goodjobsfirst.org/uoi)
  • [https://www.goodjobsfirst.org/what-we-do](https://www.goodjobsfirst.org/what-we-do)
  • The study is available here: ( https://www.goodjobsfirst.org/research/uncle-sams-favorite-corporations )

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