North Carolina Must Pay Big Price for Merger Tobacco Jobs

The State of North Carolina will have to pony up millions in incentives to get R.J. Reynolds Holdings to bring 800 to 1,000 manufacturing and administrative jobs to Winston-Salem after the completion of RJR's merger with British American Tobacco.

During a news conference Wednesday, North Carolina Gov. Mike Easley said he has been working with state officials and RJR executives to get the legislative backing needed to make the deal possible. "This is doable," said Easley. "I want people to know we are going to get this done."

Easley described the jobs as high-skill positions with an average salary of $56,000 and total benefits package of $100,000. He said the deal could generate a $40 million to $50 million investment to the state.

Easley was less exact about what it would cost taxpayers to get those new jobs. "I can't give the total value at this point," Easley said. RJR would be eligible for a number of tax credits, including the William S. Lee Tax Credits and the tobacco-export tax credits.

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