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Carrier to cash in on $7 million in tax breaks

Part of deal to keep plant in Indianapolis
Posted: 4:56 PM, Mar 26, 2017
Updated: 2017-03-27 12:00:01Z

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.

RELATED |  More than 250 Carrier workers have applied for voluntary separation ahead of layoffs

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.

RELATED |  Carrier workers learn they can apply for voluntary separation  |  Carrier workers learn layoffs may come in two waves

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.

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