Wednesday, June 3, 2009

Hoku In $43M Economic Development Deal With Pocatello

Pocatello, Idaho-based Hoku Materials reported Tuesday that the firm has signed an Economic Development Agreement with the City of Pocatello, which could be worth up to $43M in tax benefits from the city over time. According to Hoku, which is looking to manufacture and sell polysilicon for the solar market, the Pocatello Development Authority will provide up to 95% of the incremental property tax paid by Hoku in the form of tax increment financing, to help reimburse the firm for capital costs in building up the site, up to a max of $26M. Hoku also said that, if it hires and maintains a certain number of employees, it will gain tax reimbursement of up to 50% of incremental property tax paid by the company, up to $17M.