UT Electronic Controls Division to Invest in Huntington

United Technologies Electronic Controls Invests in New Equipment

Huntington, Indiana –

United Technologies (UT) Electronic Controls Division announced its intent to invest $2,306,004.00 to add new manufacturing equipment and an additional $254,000.00 investment in new research and development equipment at its facility in Huntington’s Riverfork Industrial Park.  The project contributes to the retention of 668 incumbent workers at the plant.  The City of Huntington unanimously approved a ten year tax abatement for the project.  Depending upon the final assessed valuation of the total investment of $2,560,004.00, the Company may still incur a liability of approximately $78,000.00 over the ten year period even with the abatement.

Tax abatement as an economic development incentive has existed in Indiana for several  years.  It is an opportunity for Companies to reduce their tax liability at the time when they most need the help, right after a major capital outlay, yet before that investment is paying off.   It is a performance based incentive.  The only way a Company benefits is if they indeed make the investment. 

Municipal governments which offer tax abatement toward major investments still receive new tax revenue, just not as much nor as quickly as requiring a full, immediate, liability.  In some cases, making that requirement would prevent a company from making the investment in the first place.  “The only way a Community loses with abatement offers, is if the Company is not able to make the investment,”  said Mark Wickersham, Executive Director of Huntington County Economic Development.

“Huntington County Economic Development and the City of Huntington congratulate UT Electronic Controls Division for this opportunity and really appreciates the Company’s continued commitment to Huntington,” Wickersham concluded.

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