Two local businesses benefit from tax breaks
The investment of a local auto parts maker of nearly $ 40 million that could also create 70 jobs in the area has been blessed by Seymour City Council.
Aisin USA Mfg. Inc. came to Monday night’s board meeting to request three 10-year tax breaks and received approval for all three.
Two of the allowances relate to qualifying real estate improvements and personal property at Plant 1 at 1700 E. Fourth St., Seymour. The other only concerned personal property eligible for plant 2 at 500, boul. Burkart, Seymour.
S and S Diesel Motorsport at 3480 N. County Road 650W, Brownstown, also received a 10-year tax abatement from the council.
This company plans to move to 1471 W. Tipton St., Seymour, and spend $ 350,000 to renovate the building. S and S currently employs 10 people and does not plan to hire anyone at this time, but that could change in the future, Jim Plump told the board.
Plump, executive director of Jackson County Industrial Development Corp., spoke on behalf of the two companies.
Tax breaks are granted to facilitate the payment of property taxes by companies on new investments. This means that over the next 10 years, Aisin USA and S and S will be less and less exempt from property taxes, with the exemptions decreasing by 10% each year.
During the first year of abatement, no property tax or personal property tax is due. The first full payments of property tax and personal property tax will take place after 10 years.
Plump said Indiana Economic Development Corp. Also supported Aisin’s growth by providing the company with Economic Development Tax Credits for a Growing Economy, or EDGE, in the amount of $ 750,000.
Aisin USA plans to make investments to accommodate customer design changes and new model requirements for automotive components used in assemblies and shipped and sold to its customers.
Vehicle models for which Aisin USA supplies components include the Toyota Sienna, Toyota Camry, Toyota Highlander, Toyota Corolla, Toyota Avalon and Honda Odyssey. It also manufactures parts for Chevrolet, Subaru and Lexus.
The company’s total investment for Aisin Plant 1 for new projects is approximately $ 31,311,420 with estimated completion in July 2023. The company is also investing approximately $ 465,000 for renovations that will be completed in a year.
It is estimated that $ 7,936,870 will be invested at Aisin Plant 2 for new equipment. This project will be completed in two years.
Aisin currently employs 1,404 jobs at Plant 1 and 486 at Plant 2. The company plans to add 70 jobs at both plants in response to the investments.
S and S Diesel is in the process of applying for a zoning exemption that would allow the company to relocate to Seymour.
Homeowners Andrew Stauffer and Luke Langellier were hoping to move in faster by asking for a tax break before getting a zoning waiver.
âThey have to get into their new facility, put the building back into the shape they need and move their current equipment,â Plump said. âBut there is very good potential for future growth with new personal assets, and it could eventually come with some new employees.