According to the Wall Street Journal, states and local governments in the United States have vigorously promoted the establishment of chip and electric vehicle factories in local areas. Last year, corporate tax relief surged. According to an analysis by Good Jobs First, state and local governments in the United States, including Georgia, Michigan and West Virginia, agreed to provide subsidies of more than US $1 billion for up to eight times in 2022.

It was reported that this was the year with the largest subsidies of the same scale in history. From 2018 to 2021, only one transaction of this size occurred.

In addition, according to the data of Good Jobs First, state and local officials agreed to conclude up to 23 subsidy transactions worth US $50 million or more in 2022, which is the most such transaction in seven years. The figures of Good Jobs First only include state and local subsidies, excluding the federal tax relief provided by the Chip and Science Act and the Inflation Reduction Act.

JP Nauseef, chief executive of the Ohio Department of Private Economic Development, said that when Ohio competed with Intel's computer chip factory, the state officials realized that other competing states could provide payroll tax credit for up to 30 years. According to state law, Ohio could only provide payroll tax credit for 15 years.

Therefore, in 2021, the state legislature voted to pass a law extending its tax relief period for large projects to 30 years. Ohio finally won the Intel project and provided about $2.1 billion in grants and tax credits. Mike DeWine, governor of Ohio, later said that 40 states had contested the construction of the plant.

Opponents say that these subsidies are often wasteful, and the states often overestimate the benefits.

Mr. Timothy Bartik, a senior economist at WE Upjohn Employment Research Institute, said that federal funds are usually limited to prevent states from using them for enterprise subsidies. But he also said that states that use federal cash to pay for certain expenses have more of their own money left to enterprises.