INDIANAPOLIS -- Carrier, the company that announced it will move 1,400 jobs from Indianapolis to Mexico, said they were awarded, but did not receive more than $5 million for its Indianapolis facility from President Obama’s stimulus plan.
— #IndyThisWeek (@IndyThisWeek) February 15, 2016
The Department of Energy awarded Carrier $5.1 million in clean energy tax credits in December 2013.
The announcement said the money would allow Carrier to “expand production at its Indianapolis facility to meet increasing demand for its eco-friendly condensing gas furnace product line.”
Energy Efficient Buildings: With the support of $5.1 million in 48C Program tax credits, Carrier Corporation will expand production at its Indianapolis facility to meet increasing demand for its eco-friendly condensing gas furnace product line. The new line includes the most energy efficient gas furnaces on the market – all with at least 95 percent annual fuel utilization efficiency
The Advanced Energy Manufacturing Tax Credit was part of President Obama’s 2009 stimulus package, formally known as the American Recovery and Reinvestment Act.
The tax credit “has been instrumental in helping Carrier’s Indianapolis manufacturing facility accelerate production of our high-efficiency gas furnace line,” John Gibbons, director of Carrier’s residential product and platform strategy, said at the time.
However, on Monday, a spokesperson for Carrier said the company has not received and will not claim the $5.1 million federal tax credit. A statement said they are evaluating other grants and credits that have been awarded and will not retain or claim any credits for obligations that have not been met.
Carrier announced February 10 it plans to close its Indianapolis facility and move the production to Mexico, eliminating 1,400 jobs in the city.
Video of the announcement has sparked outrage around the country, including a tweet from Republican presidential front-runner Donald Trump.
— Donald J. Trump (@realDonaldTrump) February 13, 2016
The Indiana Economic Development Council announced it is reviewing up to $200,000 in job training grants to Carrier, and may seek to force the company to repay some or all of it.
Sen. Joe Donnelly said in a statement Monday that the company should return the federal tax credit:
"I spoke with a Carrier executive late last week and called on the company to return the federal tax credit. I let him know that the tax credit they received was contingent upon job creation in the United States, and that hard working taxpayers, especially the 2,100 Hoosiers who learned last week they will lose their jobs, will expect that money back. Carrier indicated that they intended to meet their obligations, and I intend to hold them to that."