An Analysis of South Carolina's Incentives to the Boeing Company

Amanda S. Kuker1

In 2009, South Carolina passed House Bill 3130. This bill amends various existing South Carolina Code sections and provides certain benefits, including tax exemptions and economic development bonds to taxpayers who create 3,800 full-time jobs and invest a minimum of $750 million within the state. Although the bill does not mention a specific corporation by name, the legislation and the political movements that occurred around the time of its drafting strongly suggest that it was drafted to incentivize the dominant U.S. aircraft manufacturer, The Boeing Company, to expand its presence in South Carolina. This paper examines the South Carolina incentive package under the World Trade Organization’s Agreement on Subsidies and Countervailing Measures (“SCM Agreement”) and finds that, based on the information available and in light of prior World Trade Organization panel decisions, at least a portion of the South Carolina incentives would most likely be actionable under the SCM Agreement.