The Seymour Cummins Engine Plant is located along East Fourth Street in Seymour. tribune file photo
The Seymour City Council approved three tax abatements for Cummins Inc. that have an estimated $20.4 million worth of investments to promote development in the community.
Jim Plump, executive director of Jackson County Industrial Development Corp., spoke on behalf of the engine maker during the council’s March 28 meeting in the council chambers at Seymour City Hall.
He said Cummins was requesting two tax abatements for personal property and one for real estate property.
A tax abatement is a 10-year period where companies pay 10% more on taxes each consecutive year. Companies do not pay any taxes on the first year of a tax abatement.
According to Cummins’ statement of benefits, the company plans on investing $19.4 million toward equipment and machinery.
This includes $11.2 million for manufacturing equipment for an undisclosed project and $8.2 million toward a technical center expansion that adds a new assembly line, a paint area, equipment, test cells and other facility upgrades.
Cummins also received a tax abatement for $1 million for real estate for the technical center expansion.
All three tax abatements were unanimously approved by the council.
Plump also went over the statement of benefits for 12 personal property tax abatements and 10 real estate tax abatements that Cummins has.
Across the 22 tax abatements, the company invested $312 million after projecting to spend $149 million.
He said Cummins projected to create 433 new jobs across the 22 investments but actually created 892.
Also, the company expected to invest $33.7 million toward the salaries of new hires but ended up paying out $74.6 million.
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