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Alabama Providing Mercedes Incentives

Officials say local governments will pay out $1 million a year for 10 years as an economic incentive grant to Mercedes-Benz U.S. International.

TUSCALOOSA, Ala. (AP) -- Alabama officials say local governments will pay out $1 million a year for 10 years as an economic incentive grant to Mercedes-Benz U.S. International.

The German carmaker said Wednesday it will shift some of its C-Class car production to Alabama from Germany, adding about 1,000 jobs at its Vance factory.

Gov. Bob Riley announced a $100 million incentive to the company. Local governments would provide $10 million in cash, and a portion of the $15 million the company would receive in tax abatements would be local.

The Tuscaloosa News reports the cash payments and the abatements would be spread out over 10 years.

Local governments provided substantial support when Mercedes chose Tuscaloosa County in 1993 for its first assembly plant outside Germany and again when the plant expanded.

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