LAFAYETTE, Ind. (WLFI) – A large tax break for a Lafayette company made it over another hurdle Thursday.
The city’s redevelopment commission approved $422 million in tax abatements for Subaru of Indiana Automotive.
SIA is asking for two abatements, $68 million for expansion and $354 million for production tools and equipment. The auto manufacturer wants to add half a million square feet to the existing building with the 10-year tax breaks.
The expansion will add 900 jobs for production of the Impreza.
Since SIA will stop producing the Camry in 2016, only 50 of those will be new jobs. SIA attorney Doug Meyer said the new line should start producing around the same time the Camry line stops.
“We anticipate that there will be a time frame where Camry production ceases before Impreza production starts. We do not anticipate that there will any lay offs, any job loss at all. It will just be a matter of the timing as to when Camry production ends and Impreza production begins,” said Meyer.
Meyer said construction is set to begin in April, and SIA plans to start production on the new Impreza line in late 2016.
The Lafayette City Council will have the final say on the tax abatements with a vote on Monday night.