KINGSPORT — Eastman Chemical Co. will receive a multimillion dollar tax break for its $1.3 billion reinvestment project the company plans to undertake over the next five years. The tax break, however, did not come with the full support of the Kingsport Board of Mayor and Aldermen.
Over the next five years, Eastman plans to invest more than $1.3 billion in its Kingsport headquarters operation. The company plans to modernize the plant, investing about $265 million every year at the Kingsport site through 2012.
Eastman requested an in-lieu-of-tax agreement with Kingsport where the company would pay the city $6.6 million over 14 years instead of an estimated $28 million in property taxes. The $6.6 million is money Eastman would pay to Kingsport instead of the taxes assessed on the increased value of property.