Indy to Consider Incentives For Allison Transmission Facility

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Allison Transmission's global headquarters are located in Indianapolis. (photo courtesy of Allison Transmission) Allison Transmission's global headquarters are located in Indianapolis. (photo courtesy of Allison Transmission)

Indianapolis-based Allison Transmission Inc. (NYSE: ALSN) is providing more details on its previously-announced vehicle testing facility. The manufacturer is seeking tax abatement for its $34.5 million investment, which the company says will create nearly 200 jobs. The Metropolitan Development Commission in Indianapolis will consider the abatement requests at its meeting Wednesday.

Allison says it will invest $16.3 million to construct the 60,000-square-foot facility, which is being described as the first of its kind in the Midwest and one of a few in the country. The company will also spend $18.2 million to purchase and install equipment. 

The real and personal property tax abatements will save the company more than $2.7 million over 10 years, according to documents filed with the city. Allison says the entire project will create 193 jobs at an average wage of $20.39 per hour and retain more than 2,300 jobs.

Allison Transmission announced plans for the Vehicle Environmental Test facility in February. The facility will allow testing for regulatory compliance, on-board diagnostic development, and performance improvements for vehicle functional optimization, according to the company. Additionally, the facility will support testing for various propulsion systems.

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