Cummins Inc. received a 10-year tax abatement for its $33 million investment in a new Electrified Power business segment in Columbus.
The Columbus City Council approved the abatement for the Fortune 160 company on Tuesday, with the abatement covering new machinery and improvements to its Columbus Engine Plant, also known as Plant One, at 500 Central Ave. The company’s Electrified Power segment will be headquartered there.
The $33 million investment in the 1.6-million-square-foot facility includes $30 million worth of machinery and equipment, and will create 75 new jobs by 2021. It will also retain 67 existing jobs, according to the company.
In an earlier interview with The Republic, Cummins Chairman and CEO Tom Linebarger said Columbus has supported Cummins since the founding of the company in 1919, and although other locations for the Electrified Power headquarters were considered, after about a year-and-a-half they decided the Columbus Engine Plant was the best location.
“We’re just really excited that they’re making that investment here,” Columbus City Councilman Tom Dell said at the Tuesday meeting. “It’s the small things we do, but the large things that you guys do that we’re just really thankful for. I appreciate Cummins and all its employees making that investment here in Columbus.”
Cummins executives and local stakeholders announced the investment on May 16 in the company’s pavilion at the Indianapolis Motor Speedway during Cummins Day for its employees at the track.
Indiana Gov. Eric Holcomb, Columbus Mayor Jim Lienhoop, Greenwood Mayor Mark Myers and Indianapolis Mayor Joe Hogsett were among elected city and state officials present for the event. Greenwood and Indianapolis will also benefit from additional company investments.
Cummins is building a new facility in Greenwood to serve as the hub for digital and information technology employees. The company is also building out additional workforce space in its Distribution Business headquarters in downtown Indianapolis, and will occupy additional space in the Salesforce Tower.
The Electrified Power segment will launch its first commercial product in the fourth quarter this year, an electrified powertrain in the GILLIG zero-emissions city transit buses.
Cummins is receiving up to $950,000 in conditional tax credits and up to $100,000 in training grants from the Indiana Economic Development Corp., in addition to the tax abatement from Columbus.
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Columbus Engine Plant, a 1.6-million-square-foot facility at 500 Central Ave., will serve as the corporate hub and North American manufacturing center for its Electrified Power business segment, which formally launched in 2018.
The $33 million investment includes $30 million worth of new machinery and equipment, and 75 new jobs will be added by 2021 that will pay an average of $62,000.
Hiring and work to prepare the production line have begun. The company will launch its first commercial product in the fourth quarter of this year.
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