Forsyth County, North Carolina's board of commissioners has approved $10.15 million in incentives to attract Caterpillar to the state, the Winston-Salem Journal reports. Winston-Salem is also competing with Montgomery, Alabama and Spartanburg, South Carolina for the project.

"Without this assistance, Winston-Salem would not be in the running for this project," Deputy Winston-Salem City Manager Derwick Paige told the Journal.

Caterpillar will invest $426 million and create more than 390 jobs. The facility will house manufacturing and testing for the company's heavy-duty construction and agricultural machinery.

The county plans to offer $3.75 million for land, and $6.4 million towards tax payments. The City of Winston-Salem plans to offer $13.35 million for the facility, in addition to $1 million it is seeking from the Golden Leaf Foundation, a private grant group from North Carolina's General Assembly that helps former tobacco-producing areas.

Caterpillar is scheduling the plant to be operational by the first quarter of 2012.