State News

Dell returns $1.5 million in incentives to state

Posted October 27, 2009

— Dell (Nasdaq: DELL) has repaid more than $1.5 million to the state of North Carolina after the company announced that it was closing a large computer assembly plant in Winston-Salem.

The Department of Commerce said Tuesday that the company fully returned grant payments from 2006 and 2007. Officials in Winston-Salem have said the company is also in the process of repaying $26 million in local incentives.

The repayments were for two Job Development Investment Grants made to Dell by North Carolina in 2006 and 2007.

The grants, called JDIG, are actually rebates on state withholding taxes paid by Dell. The contract between Dell and the state required certain levels of new jobs in order for the rebates to be paid.

In 2006, Dell received $567,000.

In 2007, Dell was rebated another $945,000.

Dell also qualified for a JDIG grant in 2008 but will not be receiving that money, according to the Department of Commerce.

Local, state and economic development officials had promised more than $300 million in state and local incentives to lure Dell to the region. The company announced earlier this month that it would close the four-year-old facility by the end of January. More than 900 workers will lose their jobs.

Officials in the Triad, the Department of Commerce and Dell are putting together a task force to help find a new tenant for the massive plant.

According to the Winston-Salem Journal, Winston-Salem Mayor Allen Joines formed the task force in order to "find a user who would be generating as many good, quality jobs as we can find.”

The Dell plant covers more than 700,000 square feet.

Dell is laying off more than 900 workers and preparing to offshore the PC assembly jobs to Mexico and other locations.

Joines is also spearheading efforts to get Dell to repay million of dollars it received in local tax incentives in building the plant in North Carolina.

14 Comments

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  • superman Oct 28, 6:02 p.m.

    Dell has several ways to assist customers. You can call, you can do messenger chat or remote access. If you have language issues maybe you should use the chat-- where you type in your question and they type in their response. Remote access is when they take control of your computer and they will fix the problem for you. You sit back-- they check out the issue you are having and they fix it for you. You dont have to do anything. You can watch them click on yur computer and you get to watch what they are doing. You absolutely need a good virus program and check your computer frequently. A good Windows fix program checks your program files and will fix them for you. A computer is like a car-- you have to do regular maintenance. The more you know -- the easier it is to fix your own problems. If you dont know how-- use goggle and you can find directions to fix a lot of your computer problems. Finally-- always have a backup of your hard drive.

  • superman Oct 28, 4:46 p.m.

    Over the years I have had a lot of computers, my first one being an Atari many years ago. Dell is by FAR the best. And as for their customer service it is on a scale of 1-10- a 10. Part of the problem with being on the phone or on their chat is that many people dont know much more about their computer than being able to distingish the mouse, the keyboard and the monitor. The more computer knowlege you have, it makes it so much easier to understand what they want you to do and how to do it. We have 3 children and I purchased each one of them a Dell laptop. I have 4 Dell desktops and a laptop just for personal use. I buy computers like women buy shoes. I would never ever purchase any computer other than Dell. I sent a laptop back for repair. Sent it on Monday and got it back the next Monday repaired. You just cant do better than that.

  • meh2 Oct 27, 6:10 p.m.

    Good - more money for democrats to throw at their cronies. Is this a great state or what?

    And, it looks as if your caps lock key is stuck and your spell check is broken.

  • shakennotstirred Oct 27, 6:05 p.m.

    ncpacker and pbjbeach
    I have 3 dell laptops for my family and they are as good as any pc we have ever owned. The difference is, always get the gold service (not the standard), and you always speak to someone in america without the thick accents. Also tech support is 1 on 1 and I have never had to wait at all, not even for a minute! On the other hand, I believe there should be severe penalties for moving jobs to Mexico or anywhere other than america. Like tarifs (spelling?) and extra taxes. Come on Obama, go after these companies who are draining americas jobs and still receiving massive benefits...

  • pbjbeach Oct 27, 5:35 p.m.

    NCPACKER:

    I AM IN 100 & AGREEMENT WITH YOUR POSTING ON HERE AS THAT IT DOES TAKE AN HOUR OR MORE TO GET SOME ONE IN DELL SUPPORT OFFICE IN INDIA TO FIX A PROBLEM JUST DUE TO THE FACT THAT YOU HAVE TO KEEP ON & ON ASKING THEM TO REPEAT WHAT THEY HAVE SAID AS THAT THE PERSONNAL THERE DOESN'T SPEAKE ENGLISH AN THEY ARE SOMETIMES EXTREMELY HARD TO UNDERSTAND WHAT THEY ARE SAYING THANK YOU

  • jgilchr Oct 27, 4:58 p.m.

    Great that leaves only 260.5 million more to pay back.

  • pbjbeach Oct 27, 4:53 p.m.

    this little piadly amount isn't evena drop in the proverbal bucket when it come to the 262 million that rhey receivec in tax incentives. thank you

  • lkanzig Oct 27, 4:52 p.m.

    and you expect to get all the money back? yeah right! the politicians are just drooling over that money!

  • HappyGirl08 Oct 27, 4:13 p.m.

    Wow, looks like the budget crisis is over. LOL

  • NCPACKER Oct 27, 4:03 p.m.

    I am sure that Dell was obligated by contracts to pay this back. Personally, I'll never buy a Dell product again. Their products are not as good as other competitors and if you call for customer support you can never understand the person on the phone from India!

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