Carrier-inspired corporate incentives claw-back proposal blocked

INDIANAPOLIS – An initiative authored by State Senate Democratic Leader Tim Lanane (D-Anderson) to require the reimbursement of economic incentives paid to companies that leave Indiana was defeated on the Senate floor Monday. Lanane expressed disappointment in the vote, considering a manufacturer’s recent decision to move jobs from Indiana to Mexico.

“We extend tax breaks and grants to companies on the condition they create and maintain jobs in Indiana,” said Sen. Lanane. “When these corporations fail to hold up their end of the bargain, Hoosier taxpayers deserve a full refund. You don’t pay for something you didn’t get. Indiana taxpayers should not be padding the profits of corporations that are moving jobs out of Indiana.”

The amendment Lanane offered to House Bill (HB) 1001 would require the recapture of any incentives or tax breaks awarded by the state including: tax credits, tax deductions, grants, loans, or loan guarantees to companies that close a plant resulting in the transfer of at least 100 jobs outside of Indiana. The employer must have received those incentives within seven years of the plant closing.

“We’re making a commitment to these companies through loan guarantees and tax breaks,” said Lanane. “The communities that support these businesses and the employees that make them profitable deserve the same commitment. It’s pretty simple. If you leave Indiana, we’re going to claw back any taxpayer support you received.”

All 10 Democrats were joined by seven Republicans in supporting the amendment. The amendment was defeated 17-33.

 

About Brian Scott

I play on the radio from 7 am -1 pm weekdays on 98.9 FM WYRZ and WYRZ.org. Follow me on twitter @WYRZBrianScott or e-mail me at brian@wyrz.org.

Check Also

Indiana DOR Reminds Nonprofits About Upcoming Tax Changes

INDIANAPOLIS, Ind. – The Indiana Department of Revenue (DOR) wants to remind nonprofit organizations about changes …

Leave a Reply

Your email address will not be published. Required fields are marked *