What happens when companies promise jobs and don’t deliver?

Element TV, which announced last week it will close its assembly plant, is an example.

The company had to create far fewer jobs than originally promised under a $1.3 million state grant, according to state records.

The Minnesota-based company hadn’t maintained even the reduced job target; but it won’t have to repay the taxpayer-funded grant, according to a state Department of Commerce official.

Element TV agreed to create 200 full-time jobs and invest at least $2.5 million. That’s much lower than the initially required 500 full-time jobs and $7.5 million investment.

The money went to buy a building in Fairfield County, already hard hit by the closing of SC Electric & Gas’s $9 billion nuclear project and the loss of 5,000 nuclear jobs.

Element TV officials blamed the closing on Trump administration tariffs on imported Chinese TV parts.

Asked if the state will seek repayment of the $1.3 million grant, Commerce spokeswoman Adrienne Fairwell said in an email, “Since the incentive went toward the purchase and upfit of the building, which is still owned by Fairfield County, no repayment is necessary.”

And why did state and Fairfield County officials agree last year to lower the job creation and investment requirements by more than 60%?

“The decision was made because it was better to have 200 full-time jobs in a Tier 3, high-unemployment rural county than no jobs at all,” Fairwell said.

Asked how often job creation and investment targets are lowered, Fairwell estimated fewer than 5 grants have been “modified” since Jan. 1, 2015.

A number of companies closed after receiving taxpayer-backed incentives. These include Mack Trucks’ assembly plant in Fairfield County.

State records showed that Mack Trucks estimated taxpayer cost over 15 years was nearly $14.8 million.

Brundrett is news editor of the SC Policy Council’s “The Nerve” newsletter. Contact him at 803-254-4411.