Indiana grants US$ 7 million tax break to Carrier
Indiana agreed to give United Technologies $7 million in financial incentives over a decade to persuade the industrial giant to keep 1,000 jobs from its subsidiary Carrier in the state, Carrier announced.
The United Technologies’ heating and air conditioning unit business had planned to close a furnace plant in the state and move it to Monterrey, Mexico. Carrier will invest about $16 million in Indiana to keep operations there.
In a statement, Carrier said the financial incentives are “contingent upon factors including employment, job retention and capital investment.”
The company said that state “incentives” were “an important consideration” for keeping the positions in Indiana. Carrier is still moving 600 jobs from the plant to Mexico, and closing another plant in Indiana that would move 700 jobs, according to the The Wall Street Journal, which first reported the tax breaks.
The company reached this week a deal with President-elect Donald Trump and Vice President-elect Mike Pence to keep the jobs in the state, after announcing earlier this year it would shut down a plant in Indianapolis and move manufacturing to Mexico.
Pence is the outgoing Indiana governor.
The deal would cover 800 workers from the Indianapolis furnace plant and an additional 300 research and headquarters positions that weren’t planned to go to Mexico, according to the Journal.
On the campaign trail, Trump frequently rallied against the move and pledged to force Carrier to keeps its jobs in the U.S.