WORLD TRADE  
ORGANIZATION  G/SCM/Q2/USA/30 
17 March 2004 
 
 (04-1196) 
Committee on Subsidies and  
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
UNITED STATES responses to Questions   
Posed by Canada1 and the European Communities2  
Regarding the New and Full Notification of the United States3  
   The following communication, dated 15 March 2004, is being circulated at the request of the Permanent Delegation of the United States. 
 
 
_______________ 
 
                                                     
 
1 G/SCM/Q2/USA/28. 
2 G/SCM/Q2/USA/29. 
3 G/SCM/N/95/USA. G/SCM/Q2/USA/30 
Page 2  
 
 Replies to Questions Posed by Canada
1 
Regarding the New and Full Notification of the United States2 
  
Q1. Regarding the Fisheries Finance Programme (FFP) set out on pages 32 & 33, the "Trade 
effects" section states that "FFP has been ba rred by NOAA policy and Congressional directives 
from financing any project that could be construed to lead to overcapitalization of any fishery."   
  What are the criteria for "overcapitalization of  any fishery" in the FFP context?  If such 
criteria are specifically set out in NOAA polic y and Congressional directives, please provide 
references to the location of such criteria within those instruments. 
 
Reply
 
  There is no FFP regulation that provides a de finition of either "overcapitalization" or 
"overcapacity".  Generally, the National Marine Fi shery Service has defined overcapitalization to be 
the same as overcapacity which can be expressed in te rms of the level of output a firm can produce.  
Overcapacity is the difference between the level of  output at maximum economic yield and the level 
of output that could be produced by the fish ha rvesting industry.  The FFP amendment to which the 
question refers simply barred in all national fisheri es, regardless of their capacity condition, loans that 
would result in increasing harvesting capacity.  Q2. The covering page of the notification indi cates that information with respect to federal 
domestic agricultural support programmes for 2000 through 2002 is not yet available.  Canada 
notes that information on many of these prog rammes, as well as actual spending figures 
through to 2002, is available on the website of the US Department of Agriculture. 
 
Could the United States indicate if the US Department of Agriculture information is relevant and whether it should be included in the WTO notification? 
 
Reply
 
 
 The Domestic Support notifications for 2000 and 2001 will be made available to WTO 
members shortly.  As we responded to Canada’s question in the Trade Policy Review process, the 
United States is in the process of preparing DS:2  notification to the Co mmittee on Agriculture for 
programs under the 2002 Farm Act for which ex emption will be claimed and will submit these 
notifications as soon as possible.  The United Stat es remains committed to the notification process and 
will work to fulfil its WTO obligations. 
 
                                                      
1 G/SCM/Q2/USA/28. 
2 G/SCM/N/95/USA.  G/SCM/Q2/USA/30 
 Page 3 
 
 
 Replies to Questions Posed by the European Communities1  
Regarding the New and Full Notification of the United States2 
  
Federal Programs 
 
Aerospace and Aeronautics 
 Q1. The notification makes mention of only one aerospace program, the Spacecraft 
Technology Development Program, specifying a total of US$19.4 million in funds, but no 
aeronautics program.  It is the understanding of the European Communities that, for example 
in US Fiscal Year 2002, the US Government provided at least US$806 million in aeronautics-related program funding thro ugh NASA, and at least US$473 million in 
institutional support funding for aeronautics- related programs, for total NASA aeronautics 
funding of at least US$1,279 million during that 12-month period.  The notification, however, 
omits any mention of these financial expenditures , which are focused, primarily or exclusively, 
on civilian ventures.   Please explain the reason for this omission and provide a list of all applicable NASA subsidies and their contents  for each calendar year covered by the 
notification.  For each of these subsidies, was full participation open to both US and non-US 
companies?   
 In last year’s exercise, the US answered to a similar question that "the relevant 
administering authorities have been contacted to determine if additional information needs to be provided." No answer has been provided to date. 
 
Reply
 
 
 We are working with the appropriate authoriti es and expect to provide an answer in the 
coming weeks.    
Q2. The notification omits any mention of fina ncial expenditures by the US Department of 
Defence that provides benefit to commercial entities ( e.g., US producers of civilian aircraft).  
Please explain the reason for this omission and pr ovide a list of all applicable DoD subsidies and 
their contents.  In particular, please iden tify and discuss subsidies granted under DoD’s 
Research, Development, Testing & Evaluation (RDT&E) and Independent Research & Development (IR&D) programs.  
 In last year’s exercise, the US answer ed to this question that: "The relevant 
administering authorities for these programmes have been contacted. An answer will be 
provided as soon as possible." To date, no answer has been received. 
 
Reply
 
 
 Appropriations under Research, Development, Test, and Evaluation  of the Department of 
Defense’s budget supported defense modernization th rough basic and applied research, fabrication of 
technology-demonstration devices, and developm ent and testing of prototypes and full-scale 
preproduction hardware.  This work is performed  by contractors, government laboratories and 
facilities, universities and non-profit organizations .  In fiscal year 2002, the budget included an 
initiative to emphasize four key areas: (1) Leap-a head technologies for new weapons and intelligence 
systems; (2) Improvements to the laboratory and t est range infrastructure; (3) Technologies aimed at 
                                                      
1 G/SCM/Q2/USA/29. 
2 G/SCM/N/95/USA. G/SCM/Q2/USA/30 
Page 4  
 
 reducing the costs of weapons and intelligence system s; and (4) Efforts that are focused on countering 
unconventional threats to the United States’ nationa l security.  Funding was also included to conduct 
research, development and testing of missiles de fenses.  Given the nature and purpose of these 
expenses, and other Members’ exclusion of simila r expenses, the United States does not believe it was 
inappropriate for these expenses to be excluded from its notification. 
 
Q3. The US notification is described as a full s ubsidies notification for calendar year 2002.  
However, the notification omits any mention of tax-related subsidies provided to US firms.  
Please explain the reason for the omission of tax-related subsidies, including tax credits, export credits, and tax exemptions for investments or res earch, and provide a list of all such tax-related 
subsidies and their contents.  
Reply
 
  Numerous tax programs were notif ied in our notification at both th e federal and state level.  A 
section is also included regarding the activities of the Export-Import Bank.  We did not segregate 
these programs by product or sector because they are generally not granted to specific products or sectors ( e.g., aerospace products).      
 The Spacecraft Technology Development Programme : 
 Q4. Please indicate to what extent the program  participants shared the full costs of the 
program, explain how assistance is provided to industry and how technology know-how transfer from NASA is taken into account? 
 
Reply
 
 
 We are working with the appropriate authoriti es and expect to provide an answer in the 
coming weeks.  
Q5. Was participation open to both US and non-US companies? 
 Reply
 
  We are working with the appropriate authoriti es and expect to provide an answer in the 
coming weeks.  Agriculture  Q6. Can the US please explain why the current notification does not mention all programs 
that are notified in the domestic support no tification 1999, reviewed in the Committee on 
agriculture (e.g. crop insurance premium subsidies, water subsidies, grazing "non-fee", conservation and environmental payments)? 
 
Reply
 
  All the programs listed are generally av ailable or non-product specific programs. 
 Q7. The EC note a very significant level of tax exemption linked to "capital gains treatment of certain agricultural income" (more than US$1 billion; page 13-14). Could the US please inform how much of this amount was linked to th e sale of unharvested crops sold together with 
farmland? Could the US also in form about the area concerned? 
  G/SCM/Q2/USA/30 
 Page 5 
 
 
 Reply  
  The tax return data collected on asset sales, unf ortunately, is not deta iled enough to give a 
reliable estimate regarding the portion due to unharvest ed crops sold together with farmland.  Also, 
please note that the provision is not limited to a pa rticular geographic region of the United States. 
 
Q8. Export Enhancement Programed:  How is the effect on non-subsidising exporters 
assessed?  Does 'non-subsidising exporters' refer to  countries, to US enterprises or to non-US 
enterprises?  What safeguards are included to  ensure that beneficiaries, in making a 
'commercial sale' of the eligible commodity, do  not under price below the world market price?  
If no disbursements were made in FY 2002, ca n it be concluded that the programed is now 
defunct? 
 
Reply
 
 
 Under the Export Enhancement Program (EEP), the United States defines "non-subsidizing" 
exporters as countries.  EEP helps products pr oduced by US farmers meet competition from 
subsidizing countries, especially the European Union.  Consistent with its export subsidy 
commitments under the Uruguay Round Agreement on Agriculture, the United States has established 
annual ceilings by commodity with respect to expo rt quantities and budget outlays.  We employed a 
rigorous review procedure to ensure that the e xport subsidies awarded on a daily basis did not 
undercut the prevailing world market price.  To measure the impact on non-subsidizers, the United 
States annually reviews the import market shares for each targeted country prio r to the activation.  
EEP was announced by USDA on May 15, 1985, and is  operated under authority of the Agricultural 
Trade Act of 1978 as amended, the Uruguay Round Agreements Act, and the Federal Agriculture 
Improvement and Reform Act of 1996. 
 
Q9. Dairy Export Incentive Programed: How is  the effect on non-subsidising exporters 
assessed?  Does 'non-subsidising exporters' refer to  countries, to US enterprises or to non-US 
enterprises?  How is it ensured that export sales under the program ed are in addition to and do 
not displace commerci al export sales? 
 
Reply  
  Under the Dairy Export Incentive Program (DEIP)  we define "non-subsid izing" exporters as 
countries.  In the past, the United States targeted only countries where a significant share of the import 
market was covered by subsidized dairy products  from the EU.  The United States limited the volume 
available under the DEIP depending on the EU's subs idized market share and employed a rigorous 
review procedure to ensure that the export subsid ies awarded on a daily basis did not undercut the 
prevailing world market price.  To measure the impact on non-subsidizers, the United States annually 
reviewed the import market shares for each targeted  country prior to the activation of a new DEIP .  
EU subsidies have traditionally held the NDM impor t market for Mexico and thus displacement of 
non-subsidizing exports is not an issue.    
 
Q10. Treatment of Loans Forgiven Solvent Farm ers as if Insolvent: Does this provision also 
apply to loans forgiven by the public authorit ies, including the tax authorities?  Does the 
measure not have the same effect as increasing the amount of any loan forgiveness?  If not, 
please explain why not.  
Reply
 
  This provision applies to debt cancelled by public authorities, including tax authorities.  
However, even if the debt is cancelled and no curre nt tax is due, cancelled debt excluded from income G/SCM/Q2/USA/30 
Page 6  
 
 reduces favourable tax attributes, such as net opera ting losses carried forward from previous years and 
the cost basis of property.  
Q11. Energy Conservation Programmes, Transp ortation sector: What proportion of the 
appropriations were granted to vehicle manufacturers?  Is there any requirement for the 
research results to be made available publicly or to other companies? 
 
Reply
 
  To be supplied. 
  
Q12. The document with the US replies (G/SCM/Q2/27/USA) to the additional questions 
posed by the EC (G/SCM/Q2/USA/26) on the previous notifications by the US 
(G/SCM/N/48/USA G/SCM/N/60/USA G/SCM/N/71/USA) included on page 3 a table titled "SUMMARY OF FISHERY DISASTER ASSIST ANCE – (updated June 2002)". This 
information was provided in reply to question 6 by the EC on the "Fisheries Disaster Relief" 
programmes.  
 
 The EC notes that the total sum of the "Federal amounts" listed in the aforementioned 
table under these programmes is US$113.2M. The EC also notes that this table was not included 
in the latest "New and Full Notification" by  the US (doc. G/SCM/N/95/USA).  Given the 
significant total amount of the above-mentioned  transfers, could the US provide an updated 
version of this information, including new programmes if any? 
 
Reply
 
 
 No additional assistance has been provided. 
 
Q13. Could the US clarify whether these purch ases have been included or not in previous 
notifications? If yes, could the US provide details about the notification? 
 
Reply  
 
 The Agricultural Marketing Service purchases a va riety of food products in support of the 
National School Lunch Program and other Federal food assistance programs.  Products are purchased 
through competitive bids or negotiated contracts.         Q14. Empowerment Zones, etc: Please clarify if the employment tax credit is for 20 per cent of the first US$15,000 of qualifying wages for each  employee.  Does this apply to all employees, 
only to new employees or only to net increases in employees?  Please explain which sectors are 
excluded from the programme?  Please specify whether any large enterprises like steel 
producers have benefited from this programme. 
 Reply
   
  The credit applies at a rate of 20 percent on the first US$15,000 of qualifying wages paid annually to qualified zone employees.  To be a qua lified zone employee, the employee must perform 
substantially all of the services for the employer  within an empowerment zone, and the employee 
must reside within an empowerment zone during the time of employment.  The credit is not restricted 
to new employees or to the net increase in employees.     Employees of the following places of employment do not qualify for the credit:  private or commercial golf courses, country clubs, massage pa rlours, hot tub facilities, suntan facilities,  G/SCM/Q2/USA/30 
 Page 7 
 
 
 racetracks or other facilities used for gambling, li quor stores, and farming businesses with owned or 
leased assets greater than US$500,000.   A certain portion of the credit does flow to la rge businesses.  For 2001, almost 30 percent of 
the wage credit generated by corpora tions and partnerships went to entities with total assets of at least 
US$100 million.   
 
STATE PROGRAMS 
 Alabama 
 
TRICO Steel Program 
 Q15. The last US notification mentioned tax incentives and other advantages totalling 
US$35 million or higher for the TRICO Steel Company with 10 – 20 years duration. Can the US 
please explain if there were any subsidies made available to this company during the present 
notification period? 
 
Reply
 
  No additional tax incentives were given in 2002. 
 
Alaska 
 
Commercial fishing revolving loan fund 
 
Q16. What are the conditions of eligibility?  Is there any check on the creditworthiness of the 
beneficiary?  What is the size of the average l oan given and what is the maximum loan amount? 
 
Reply
 
  To be supplied. 
 
Arkansas 
 
Economic Development Act 
 
Q17(a). For how long can the tax credit be used?  Only in the year of the investment, over a 
number of years or indefinitely?  
 
Reply
 
  The credit must be applied to the tax year in  which it is earned.  Any unused credit may be 
carried forward for nine (9) years or until exhauste d, or until the expiration of the financial incentive 
agreement, whichever occurs first.   
Q17(b). Please clarify if the value of the credit is 50 to 100 per cent of the employer's state 
income tax liability, or of the total investment. 
 G/SCM/Q2/USA/30 
Page 8  
 
 Reply
 
  The annual credit is based upon the total proj ect investment; however, the amount of credit 
that may be claimed each year depends upon th e average hourly wage of the new permanent 
employees as follows:  
 
• If the average hourly wage of the new employ ees is between 125 percent and 149 percent of 
the lesser of the county or state average hourly wage, the company the credit is 50 percent of the company’s state income tax liability. 
 
• If the average hourly wage of the new employ ees is between 150 percent and 174 percent of 
the lesser of the county or state average hourly wage, the company the credit is 75 percent of 
the company’s state income tax liability. 
 
• If the average hourly wage of the new employees is 175 percent of the lesser of the county or 
state average hourly wage, the company the credit is 100 percent of the company’s state income tax liability. 
 
• If the average hourly wage of the new employees is  less than 125 percent no credit is issued.   
  The tax credit of up to 100 percent is on the total amount of investment in the project.  
California 
 
Enterprise Zones and LAMBRA zones  Q18. Is the hiring credit for all new employees or  only for net increases in employees?  Does 
the 15-year carryover of operating losses not have the same effect as a grant covering these 
losses at the time they are set against later pr ofits?  If not, please explain why not. 
 Reply
 
  The hiring credit applies for all new "qualified" employees.   Like any tax deduction, a loss carryover can off set taxable income, which would otherwise be 
taxed at a certain percentage.  The benefit to th e taxpayer would be the resulting tax savings, which 
will always be less than the amount of the carryover.   Also, please note that the NOL (net operating loss) is suspended through June of 2005 and that companies outside the zone are not entitle d to claim credits or carry forward losses. 
 California 
 
Recycling Market development Zone Programme  
 Q19. What are the terms and conditions at tached to the loans under this programme? 
 
Reply
 
 The terms and conditions of the loans are as follows:   G/SCM/Q2/USA/30 
 Page 9 
 
 
 • Each eligible business or local government agency may borrow up to 75 percent of the cost of 
a project, for a maximum loan of US$2 million. 
 
• The term of the loan is not to exceed 10 years (15 years if secured by real estate) and 
amortization schedules are based on the averag e useful life of the asset being financed. 
 
• Interest rates are fixed for the term of the loan, which are set by the Board semiannually, and 
below the market interest rate. 
 
Colorado 
 
Enterprise Zones 
 
Q20(a). Are there any limitations on sectors eligible for this programme?    
Reply
 
  Qualified research must satisfy three criteria: 
 
• It must be technological in nature. 
 
• It must be useful in the development of a new or improved product or component of the 
business. 
 
• It must utilize the process of experimentation. 
 
Q20(b). Is there any limit on the 3 per cent tax credit for R&D expenditures?  
Reply
 
  The following types of expenses do not qualif y: 1) land or impr ovement to land, 2) 
depreciable equipment, 3) management surveys, 4)  costs incurred to adapt a product to a particular 
customer’s needs, and 5) research funded by any government entity.   
Connecticut 
 Connecticut Growth Fund 
 
Q21. On what basis does the authority determin e working capital requirements?  Given that 
the purpose is to make finance available to busin esses unable to maintain conventional finance, 
is the programed open to loss-making enterp rises?  On what terms are the loans given? 
 
Reply
 
  To be supplied.  
Electronic Data Processing etc  
 
Q22. Please explain the reason for a sectoral programmed in this sector.  G/SCM/Q2/USA/30 
Page 10  
 
 Reply
 
  To be supplied.  
Enterprise Zones 
 
Q23(a). Are there sectoral limitations on this programed?   
 
Reply
 
 
 This program is geared toward manufacturing and certain service sector businesses as well as 
research and development related to manufacturi ng and non-retail distributors of manufactured 
products.  Eligible facilities include newly constructe d facilities, older facilities idle for at least one 
year prior to being acquired through lease or purch ase, and facilities that are substantially renovated 
or expanded.  Eligible companies must be within an industry classified under standard industrial codes 
2000-3999, which covers a very broad array of economic sectors.   
 
Q23(b). Is there any maximum level of benefit under the 50 per cent tax credit?  What has been 
the total revenue forgone under this programmed?   
 
Reply  
 
 To be supplied.  
Q23(c). Have any enterprises from the steel sector benefited? 
 Reply
 
  To be supplied.  
Manufacturing Assistance Act 
 
Q24. What are the terms of the loans?  Is there any maximum amount?  Are any sectors 
excluded?  Have enterprises in any of the following sectors benefited: steel? 
 
Reply
 
 
 To be supplied. 
 
Manufacturing Credit 
 Q25. Are these credits additional to those available under other programmes? 
 Reply
 
  To be supplied.  
Florida 
 
Capital Investment Tax Programme 
 Q26(a). This programmed appears to give higher (indeed possibly total) tax exemption for large 
projects than for smaller ones.  What is the justification for this?  G/SCM/Q2/USA/30 
 Page 11 
 
 
  
Reply  
  The program is intended to encourage very large projects in certain sectors that are anticipated to have a regional impact by buildin g those industries and attracting other businesses to 
the region.  
 
Q26(b). How many large projects ( i.e., over US$100m) have benefited from this programme? 
  
Reply
    
 
 Four projects with over US$100 million invested  have been approved since January 2000; 
however, not all have been in position to take  advantage of the credit as of this date. 
 
Q26(c). For how long has the tax exem ption been granted in these cases? 
 
Reply  
  It is a credit against the corporate tax liability arising out of the project for up to five percent of the value of the investment, every year for 20 years .  High Impact Business Performance Incentive  Q27. What is the average level of grant under this programme? 
 
Reply
     
 
 US$5.9 million  
Qualified Target Industry Tax refund 
 Q28. Does "primary/fabricated metals" include the steel sector? 
 
Reply
 
  This tax refund is available to all manuf acturing facilities (in which metal manufacturing 
facilities are included); finance & insurance servi ces; wholesale trade; information industries; 
professional, scientific & technical services; management services as well as administrative & support 
services.      
Semiconductor, Defence or Space Technology 
 Q29. Please specify the rate of sales tax whic h would otherwise apply were it not exempted 
under this programme.  
Reply
 
  The sales tax rate varies by county, ranging from a minimum of six percent to as high as 
7.5 per cent. 
 G/SCM/Q2/USA/30 
Page 12  
 
 Georgia 
 
Head Quarters tax credit 
 Q30. Please explain the sentence: "The company mu st elect not to take the job or investment 
tax credit."  
Reply
 
  A company which elects to take the Headquarter s Tax Credit is not eligible to receive the job 
tax credit or the investment tax credit.     
 
Sales tax exemption 
 Q31. Please specify the rate of sales tax whic h would otherwise apply were it not exempted 
under this programmed.  
Reply
 
  The state wide sales tax is four percent.  Th is applies to purchases (other than real estate) 
delivered or stored in Georgia to be used or consumed in the business (not for resale). 
 
 Communities have the option of imposing a one, two, or three percent additional sales tax for 
funding special purposes/special projects called SPLO ST (Special Purpose Local Option Sales Tax).  
For example, to provide for rapid transit in metro Atlanta, one percent has been added to the sales tax 
in Fulton and DeKalb counties. 
 
Idaho 
 
Sales Tax Production Exemption 
 Q32. Please specify the rate of sales and use taxes which would otherwise apply were it not 
exempted under this programme.  
Reply
 
  The rate of sales and use taxes which would otherwise apply were it not exempted under this 
program is six percent. 
 
Indiana 
 
DeKalb and Spencer Counties 
 
Q33. Please explain the justification for s ubsidies of US$160m for the creation of new 
steel-making capacity. 
 
Reply
 
 
 These state programs were enacted  prior to the steel crisis that began in late 1998 and early 
1999 as a result of the Asian financial crisis.  It woul d be speculative to conclude that these subsidies 
resulted in any net increase in steelmaking capacity in the United States.  However, as the EU is 
aware, the United States strongly supports stre ngthening multilateral disciplines on subsidies that 
increase or sustain excess, inefficient steelmaking capacity.  G/SCM/Q2/USA/30 
 Page 13 
 
 
  
Iowa  
 
Ipsco 
 
Q34. Please explain the justification for subsidies of US$73m for the creation of new 
steel-making capacity 
 
Reply  
 
 The state program was enacted prior to the steel  crisis that began in late 1998 and early 1999 
as a result of the Asian financial crisis.  It woul d be speculative to conclude that these subsidies 
resulted in any net increase in steelmaking capacity in the United States.  However, as the EU is 
aware, the United States strongly supports stre ngthening multilateral disciplines on subsidies that 
increase or sustain excess, inefficient steelmaking capacity. 
 
Kentucky 
 
KIDA/KREDA 
 Q35. Is there any limit on the size of enterprise or project that can benefit under these 
programmes?  What are the largest projects to benefit to date?  
Reply
 
  Both KIDA and KREDA have limitations as to the minimum size of a project.  To qualify for 
these incentives, a project must create at least 15 new jobs and have a minimum investment of 
US$100,000.  An automobile company made the larg est investment and a food company created the 
largest number of jobs.  
Michigan 
 
Job creation tax credits  Q36. Please specify the number and size of projects that have benefited under this programmed, and the sectors involved.   
 Reply
 
  Since the inception of the program in April 1995, the Michigan Economic Growth Authority 
has provided job creation tax credits to 190 compani es.  The projects have ranged in size from under 
US$1 million to US$1 billion.  Jobs created or retain ed as a result of the credit range from 25 to 3300.  
The investment and job creation/retention numbers are those from the application materials (provided 
by the companies).  The actual amount of investment and jobs created/retained will vary from those 
proposed in the application.  The sectors receiving credits are varied.  There is no le gal stipulation regarding type of industry that is 
eligible.  Generally, projects are for manufacturing,  research and development, office operations, and 
headquarters activities.  Specific areas incl ude information technology, food processing, 
warehousing/distribution, and engineering.  G/SCM/Q2/USA/30 
Page 14  
 
 Mississippi 
 
State Port Income Tax Credit 
 Q37. Is this tax credit only applicable  for charges related to export cargo? 
 
Reply
 
  The purpose of this tax credit is to promote th e increased use of ports and related facilities in 
the state – particularly by those taxpayers whic h would not otherwise use such ports and related 
facilities without the benefit of the tax credit –  an d increase the number of port related jobs and other 
economic development benefits associated with the increased use of such ports and related facilities. 
 
New Mexico 
 
Property Tax Abatement  Q38. Please specify the range of ad valorem  tax rates which are exempted by this 
programmed. 
 
Reply
 
 
 Property is normally assessed at  the rate of 33.3 percent. 
 
Ohio 
 
Steel Development Initiative  Q39. Please specify how it is determined that a job has been ‘retained’.  Does it imply that the 
job would have been lost in the absence of th e subsidy?  Are loss making enterprises eligible? 
 
Reply
 
 
 This is a determination that is made by the program administrator.  The eligibility requirements for this programme state that steel makers, processors, and foundries (SIC 3300-3400) 
are eligible for assistance.   Utah 
 
Corporate Loan Programmed 
 Q40. Does this programmed consist of loans or grants?  What are the maximum amounts 
involved, how many companies be nefited from this programmed? 
 
Reply
 
  The Corporate Loan Program is a legacy progr amme from the original Industrial Assistance 
Fund (IAF) loan program established in 1991.  Historically, the program provided loans.  A major 
policy change occurred in 2001 when the Industria l Assistance Fund stopped making loans and began 
to exclusively provide post-performance grants.  Th is program is now simply  known as the Industrial 
Assistance Fund Corporate Program and provides only grant funding subsequent to successful 
performance by the grantee.   G/SCM/Q2/USA/30 
 Page 15 
 
 
  Historically, the IAF Corporate Loan Program was capped at US$10 million. Four  companies 
received loans prior to the policy change in 2001.  The largest single corporate loan was 
US$4.4 million. Three companies have received grants since 2001.  The largest single post-performance grant was US$2.1 million.  Washington 
 
Ships and Vessels under Construction 
 Q41. What are the average amounts of tax ex emptions granted?  Does the tax exemption 
concern the property tax of the shipyard as such or the vessel? 
 
Reply
 
  This is a property tax exemption for vessels unde r construction that are 1,000 tons or more.  
The law dates back to 1959.  However, there has been very little construc tion of large vessels in 
Washington state in recent years.  The Washington State Office of Fiscal Management estimated that 
the amount of revenue foregone in CY 2003 was US$8,000 at the state level, and US$23,000 at the local level.   
__________