PRINCETON — A $600 million investment is growing to $1.3 billion in expanded capabilities with new automotive technology at Toyota Motor Manufacturing Indiana to assure the Gibson County plant has global, flexible manufacturing capabilities.
Gibson County Council Council members are considering a request for a 10-year abatement of personal property taxes on a $785 million investment in new equipment. TMMI Vice President of Administration Tim Hollander explained the proposal to the council Tuesday.
Hollander said the investment creates 550 jobs (approximately 150 jobs more than the 400 new jobs expected with the 2017 project) with the earning potential of up to $29 per hour.
The council agreed to take the request under advisement for possible action at their October monthly meeting.
Hollander said that even with the abatement, the county would see no decrease in tax revenue in 2020, and would see more than $25.9 million in new tax revenue over the 10-year period.
Toyota has paid more than $160 million in property taxes since the plant was built in 1997 and has made more than $37 million in donations in Indiana to 125 local organizations. The local plant had a $372 million payroll in 2018, he reported.
Hollander told the council the plans are "the most important investment" to assure more vehicle manufacturing capability and flexibility over the long-term.
He reported that without the investment, Toyota will pay $111 million in taxes over the next decade. With investment and abatement, Toyota will pay about $137 million in taxes over the next decade.
In 2017, TMMI announced plans to invest $600 million for retooling, new equipment and advanced technologies to make the plant more competitive and create 400 new jobs by the end of 2019.
The plant's first vehicle production line assembled Toyota Tundra pickups, which are now manufactured in San Antonio, Texas. The Gibson County plant builds Toyota Sienna minivans, Highlander and Sequoia SUVs.
Since its groundbreaking in 1996, TMMI has invested $4.9 billion at the 4.3 million square feet manufacturing facility south of Princeton and directly employs more than 5,400 people.
According to economic impact calculations, TMMI’s presence in Indiana has led to the creation of 24,058 jobs in Indiana over the last 20 years.