Make wishtv.com your home page

Carrier tax breaks one step closer to reality

INDIANAPOLIS (WISH) — The deal President Donald Trump and Vice President Mike Pence brokered with Carrier is now one step closer to reality.

A state economic board approved the plan to give Carrier $7 million in tax breaks and grants Tuesday. The deal now moves to a state budget committee that will hold public hearings before making a final vote later this year.

Governor Eric Holcomb led Tuesday’s meeting at Ivy Tech’s north Indianapolis campus.

State leaders stressed that the deal is performance-based. If Carrier does not live up to their word, the company doesn’t keep the money.

The state plans to give Carrier $7 million over ten years. That includes $5 million for keeping hundreds of jobs in Indiana, $1 million for training workers, and another $1 million if Carrier follows through on plans to invest $16 million in their local plant. The investment includes plans for automation.

Carrier plans to keep nearly 1,100 jobs in Indianapolis, including 800 production jobs that Carrier considered moving to Mexico.

About 500 local workers are still slated to lose their jobs.

Jim Schellinger, the state’s Secretary of Commerce, praised the deal Tuesday.

“I’m excited that 800 families are positively affected by this and 800 families could realize that during the holidays,” Schellinger said.

Chuck Jones is the leader of the local union that represents Carrier workers. He said he expects the company to start laying off workers in August or September.

“You got quite a few jobs leaving this state and the taxpayers of Indiana are gonna reward a very profitable company for taking that many jobs overseas? Don’t make a hell of a lot of sense,” Jones said.

The governor’s team said they reached out to Rexnord to see if that company can be persuaded to keep jobs here, but the company is not cooperating.

24-Hour News 8 reached out to Carrier for comment late Tuesday afternoon after the vote and did not immediately here back.

Never miss another Facebook post from WISH-TV