Group Files Suit Against Google Incentives

A small-government advocacy group filed a lawsuit today challenging the millions of dollars in state incentives used to lure Google to Caldwell County.

The suit was filed in Wake County Superior Court by the North Carolina Institute for Constitutional Law. It alleges the tax credits and grants offered to Google as inducement to build a computer center violate the state's Constitution.

State lawmakers passed new exemptions last year to relieve Google of some retail sales and use taxes. The provision could save Google up to 90 million dollars over 30 years.

State business recruiters also earmarked nearly five million dollars to the company if it meets job-creation goals.

Local incentives increase the total to 260 million dollars.

Google issued a statement saying it believes "the lawsuit is without merit."