Subaru of Indiana Automotive Inc. has received approval from the Lafayette City Council for two tax abatements on more than $100 million in new equipment and real estate investments at its Lafayette plant, according to the Journal & Courier.
The 10-year abatements will save the automaker nearly $1.2 million in the first year of the deal.
The council approved the incentives in a 7-1 vote Monday. Councilman Jack Rhoda voted against the measure, expressing doubt that the automaker would move to another city if it did not receive the abatement.
Subaru’s expansion has sparked investments in the area by other firms and industries, including Norfolk Southern Corp., which will spend $5.2 million to expand a rail yard near the automaker’s plant, the newspaper reported.
That project will nearly double rail lines in the yard, which are used to transport new Subaru and Toyota vehicles from the plant.