Cummins gets $20 million in tax breaks for Seymour expansion

Seymour City Council has approved three tax reductions for Cummins Inc. that represent investments worth an estimated $20.4 million to promote development in the community.

Jim Plump, executive director of Jackson County Industrial Development Corp., spoke on behalf of the engine maker at the March 28 council meeting in the council chambers of Seymour City Hall.

He said Cummins was asking for two tax abatements for personal property and one for real estate.

A tax break is a 10-year period during which companies pay 10% more in taxes each consecutive year. Companies pay no tax in the first year of a tax allowance.

According to Cummins’ earnings statement, the company plans to invest $19.4 million in equipment and machinery.

This includes $11.2 million for equipment manufacturing for an undisclosed project and $8.2 million for the technical center expansion which adds a new assembly line, paint area, equipment, test cells and other facility upgrades.

Cummins also received a $1 million real estate tax abatement for the technical center expansion.

The three tax cuts were unanimously approved by the board.

Plump also reviewed the benefits statement for 12 personal property tax abatements and 10 property tax abatements that Cummins enjoys.

Of the 22 tax abatements, the company invested $312 million after planning to spend $149 million.

He said Cummins planned to create 433 new jobs out of the 22 investments, but actually created 892.

Additionally, the company planned to invest $33.7 million in salaries for new hires, but ended up paying $74.6 million.

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