Challenge

A multinational company which provides lightweighting technologies to the automotive industry was planning on expanding its production footprint and employee headcount in its facilities located in the Midwest.  Overall, the company was expecting approximately $12 million in real and personal property investment and 70-115 new, full-time equivalent jobs to be created. The client was aware that state and local government subsidies may be available for its expansion plans, but did not have a full grasp of the government subsidies for which they were eligible.

Approach

LNE Group identified and qualified the Indiana Economic Development Corporation (IEDC), which is managed by a board of directors (chaired by then-Indiana Governor Mike Pence).  IEDC offers a variety of incentives to encourage companies to expand operations in Indiana, including tax credits, worker training grants, and hiring support through the Indiana Department of Workforce Development.  In addition to these state level incentives, LNE Group explored local government property tax abatements that are common in Indiana municipalities to encourage investment in manufacturing facilities.

On behalf of the client, LNE Group managed the application process, including all communications and activities related to pursuing these government incentives. LNE Group also led the application development, editing, and submission process with technical input from the client to ensure it fully complied with IEDC requirements and provided a compelling narrative necessary for a generous incentive package to be offered.  To maximize the incentive value, LNE Group also managed ongoing communication and negotiation with IEDC and local government officials to expand or adjust the incentives package offer.

Result

The client secured approximately $1.2 million in combined tax credits, training grants, and local tax abatements.  Two of the client’s manufacturing facilities in Indiana have commenced their planned expansion and both will be completed by mid-2018. The total job creation will ultimately be an increase of 107 FTE employees.

It is important to note that this incentives package mimics the highly publicized deal by then President-elect Trump and Indiana Governor and Vice President-elect Mike Pence in which Carrier Corp. agreed to maintain 1,069 workers in its Indiana furnace-making operation in exchange for a combined $7 million in tax credits and training grants in December 2016.