H-D Turns Down $25M Tax Credit

Planned job cuts to save up to $50M a year

By Motorcycle.Com Staff, Nov. 15, 2010
Harley-Davidson is turning down a $25 million tax credit from the state of Wisconsin because planned job cuts may mean it no longer qualifies for the incentive program.

The Wisconsin Department of Commerce offered Harley-Davidson the $25 million incentive package to encourage the Motor Company to remain in the state. The incentive package, to be paid out over a nine-year period, was contingent on Harley-Davidson providing jobs in Wisconsin and purchasing from local parts suppliers.

If it accepted the incentive however, Harley-Davidson would not be able to follow through on planned job cuts that could translate to savings of $50 million a year.

As previously announced, Harley-Davidson anticipates a reduction in the size of its Wisconsin production work force upon implementation of the new labor agreements in 2012, reads a statement from Harley-Davidson. While the work force reduction estimates provided at the time of contract ratification have not changed, the anticipated employment level may not meet the technical requirements of the Wisconsin statute for job retention or growth.

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