Tuesday, March 4, 2014

Journal & Courier Reports Subaru Tax Breaks Clear Final Hurdle in Lafayette

From the Lafayette Journal & Courier

Subaru of Indiana Automotive, Inc.’s request for tax abatements on a $422 million expansion won unanimous approval Monday from the Lafayette City Council.

Councilman Kevin Klinker abstained because he works as a contractor for SIA.

The tax abatements on $354 million in new manufacturing and technology equipment, and $68 million in real estate improvements are part of an incentive package to bring production of the Subaru Impreza to the plant at 5500 Indiana 38 East.

SIA already manufactures the Suburu Outback and Legacy there.

Tom Easterday, executive vice president, said SIA’s parent company, Fuji Heavy Industries, was looking at sites around the world when it decided to expand Impreza production for North America.

“Honda and Nissan eventually built plants in Mexico, so it meant a tremendous amount because to make us competitive was extremely important to be able to get this project here in Lafayette,” said Easterday.

The abatements allow the company’s property tax liabilities to increase from zero percent in the first year to 100 percent 10 years after the equipment and building improvements are assessed.

Construction will begin after the Indiana Department of Environmental Management approves SIA’s permit, likely in May, Easterday said.