A potential $110 million project at General Motors' truck plant could result in a generous tax break that would be the first of its kind for Allen County government.
County Council on Thursday is expected to consider waiving all property taxes for 10 years on equipment GM may install in the paint shop of its plant at 12200 Lafayette Center Road. In the past, such abatements – now called “phase-ins” – eliminated the tax on new investment in the first year only, with the tax gradually increasing to 100 percent over the life of the abatement, usually a maximum of 10 years.
But as part of the negotiations that lured the plant to southwest Allen County in the mid-1990s, local officials apparently promised to grant the company the maximum economic development incentives allowable. And, thanks to recent changes in state law, so-called “super abatements” such as the one to be considered Thursday are now possible – even though County Council has previously shown little desire in granting such extensive incentives.
“(Officials at the time) didn't foresee a 10-year, 100 percent abatement,” Council President Darren Vogt conceded. Even so, Vogt insisted approval of the deal would not establish a precedent when dealing with future requests from other companies.
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