INDIANAPOLIS -- Carrier will be cashing in on $7 million in tax breaks over the next 10 years from the deal that was struck in partnership with President Trump’s administration to keep a portion of their jobs in the United States.
But the money is not automatic, and the company must meet certain benchmarks to get the dollars involved.
The Indiana Economic Development Corporation board will vote on the proposal Tuesday in Indianapolis, while the plan must also be approved by the Indiana State Budget Committee to become official.
Here’s the breakdown of what is at stake per the IEDC:
- The IEDC offered Carrier up to $5 million in conditional tax credits over a 10-year period based on the company’s commitment to retain 1,069 Hoosier jobs. Economic Development for a Growing Economy Retention (EDGE-R) tax credits are calculated based on expected tax withholdings of payroll are awarded through contracts that require the company to maintain its base employment over the course of 10 years to be eligible to receive incentives.
- The IEDC offered Carrier up to $1 million in Skills Enhancement Fund (SEF) training grants to support future workforce development and training for Carrier employees. Payment of funds under the IEDC’s SEF training grants is conditional upon the training being provided to the employees.
- The IEDC offered Carrier up to $1 million in Hoosier Business Investment (HBI) tax credits based on the company's plans to invest $16 million at its Indianapolis facility to foster economic growth. HBI incentives are conditional, meaning the company is not eligible to receive incentives until the capital investment is made.
In 2016, Carrier refunded the city and the state $1.58 million for tax breaks and training grants after its initial jobs announcement in February. The company did not ask for the money back after its December announcement in which they agreed to keep their Indianapolis plant open.
The company is currently waiting to see how many employees will accept offers for voluntary separation. Workers must make a decision by April 6. Some are concerned about accepting the offer after learning from the Indiana Department of Workforce Development that they would not be eligible for unemployment or benefits from the Trade Adjustment Act.
Carrier is still planning to send 550 jobs in its fan coil division to its Monterrey, Mexico operations by the end of December.
FULL CARRIER COVERAGE : DOCUMENTARY SERIES: Moving to Mexico with 1,400 of Indy's lost jobs | Jilted workers get first look at Carrier's offer | TIMELINE: Carrier to ship 1,400 jobs from Indiana to Mexico | Trump made money off of Carrier in 2015 | Carrier president: More growth expected in '16 | Ex-Carrier employee sentenced for embezzlement | Carrier pay in Mexico questioned | Carrier refutes offer of $5.85/hour for workers to stay in Indy | Coats, Donnelly have 'disappointing' meeting with Carrier execs | Sen. Donnelly: Carrier never cited federal regulations as reason for move | Union president: 'We're not going away quietly ' | Carrier employees protest move at statehouse | Pence on Carrier meeting: 'I don't want to create any false hope for people' | Moving to Mexico: What you need to know about Monterrey, Mexico | Moving to Mexico: On the ground in Monterrey, Mexico, where Carrier is moving Trump weights in on Carrier relocation to Mexico | Carrier: Company did not receive $5M in federal stimulus funds | President of United Steelworkers Union: No hope of saving 1,400 jobs | Carrier employees, local businesses reel after announcement of move to Mexico | WATCH: Employees react to news that Carrier is moving from Indy to Mexico v