St. Joseph County approves first step in tax abatement process for SF Motors
A company that's expected to bring hundreds of jobs to Michiana is one step closer to getting a tax break.
You may remember, SF Motors bought the old AM general plant last fall.
On Tuesday, the St. Joseph County Council approved the first step in the tax abatement process, money that would help the start-up begin production.
The SF-5 and SF-7 electric cars by SF Motors will soon both be built right here in Mishawaka.
As with any start-up, the County will likely be able to provide a tax break.
"This tax abatement will help them as the ramp up and start production over the years,” said Bill Schalliol, economic development director for Saint Joseph County.
With an estimated savings of $1.4 million over seven years, the County hopes the production will put Mishawaka at the forefront of electric car production. The tax breaks are only available on personal property.
"This is brand new technology, this is cutting-edge technology with electric cars so we not only see it as a win for the community and the county as a manufacturer, but also this new technology into the market," Schalliol said.
"It's new jobs for workers that really are at a different skill level than perhaps we've had in the community before."
The company plans to buy $43 million in new equipment and to bring 467 jobs by 2021.
The County expects the tax abatement process to be complete in October. Tuesday was the first of four steps to do so.
SF Motors hopes to have the majority of that equipment purchased by the middle of next year with production of the new electric cars by the end of next year.