According to the official statement by Carrier, the company worked with President-elect Trump and Vice President-elect Pence to negotiate an agreement to retain 1,000 of the current 2,100 jobs in Indianaoplis. They cited state tax incentives as their key motivation.
We are announcing today that Carrier will continue to manufacture gas furnaces in Indianapolis, in addition to retaining engineering and headquarters staff, preserving more than 1,000 jobs.
Today’s announcement is possible because the incoming Trump-Pence administration has emphasized to us its commitment to support the business community and create an improved, more competitive U.S. business climate. The incentives offered by the state were an important consideration.
Details of the agreement are not public. Reports from those familiar with the deal indicate that the incentives offered included $700,000/year for 10 years in state tax incentives. This incentive was offered by the Indiana Economic Development Corporation, which does not need legislative approval and Vice President-elect Pence is Chair.
The Indiana governor was offering $7 million over 10 years to encourage the company to keep in the state roughly one-third of the 2,100 jobs it planned to ship to Mexico. United Technologies would also get credit from the state for keeping 300 research and headquarters jobs that it didn’t plan to shift abroad.
Indiana Economic Development Corporation board member John Mutz spoke to the press regarding the deal and speculated that Carrier’s parent company United Technology agreed to the deal in order to protect their government contracts.
“United Technologies is a gigantic international company with many different divisions and subsidiaries, many of which do substantial amounts of business with the U.S. government,” Mutz said. “The dynamics are considerably different than they were even before the election. You’re talking here about a company that is trying to be competitive and also wants to keep their business with the government.”