More Details on Carrier Deal, Indiana’s Offer
Trump and Pence are expected to make the official announcement Thursday.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowInside INdiana Business has learned additional details about today’s announcement at Carrier Corp., including the value of the state’s incentive package, plans by the company to invest in the Indianapolis plant and expected jobs numbers.
As indicated in a Wednesday statement released by Carrier, the company plans to make the Indianapolis plant a Center of Excellence for home gas furnace production in North America and is eyeing a $16 million investment in improvements to help make that happen.
In terms of incentives, as we reported this morning, the ten-year package includes a mix of EDGE tax credits and training money. The state is offering up to $5 million in EDGE tax credits, in which the state will refund a “minority portion” of employee state tax withholdings over a ten year period. EDGE credits, common in attraction and expansion deals, are rare in retention deals like Carrier, but are in play here.
The incentive package also includes up to $1 million in training dollars and the potential for up to another $1 million related to Carrier’s potential investment in the plant.
The Indiana Economic Development Corp. says the “all-in” $7 million incentive package over ten years would put it among the IEDC’s most conservative offers for a deal of this magnitude.
Inside INdiana Business has also learned that Carrier is expected to announce that 1,069 of the approximately 1,400 jobs at the plant will be retained. A source also indicates that the remaining jobs may be handled through attrition over the next two years or so.
Full details of the deal will come out at a 2 PM event at Carrier’s west side plant, with President-elect Donald Trump, Vice President-elect Governor Mike Pence, Carrier parent United Technologies Corp. (NYSE: UTX) CEO Gregory J. Hayes, UTC Climate, Controls and Security President Robert J. McDonough and state and local leaders in attendance.
We will be streaming the announcement live at InsideINdianaBusiness.com.
This developing story will be updated.