Harley to Get $25 Million Tax Credit

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Wisconsin Harley News

After Harley-Davidson decided to keep hundreds of jobs in the Milwaukee and Tomahawk areas, Wisconsin has agreed to provide the Motor Company with $25 million in tax credits.

The tax credits were provided a week after union workers at Milwaukee and Tomahawk facilities voted yes on a seven-year contract that will slash hundreds of jobs, freeze pay and assign additional work to part-time employees. Harley threatened to move well over 1,000 jobs out of the Wisconsin area if H-D union workers didn’t comply with the contract.

But after all was resolved, the Wisconsin Department of Commerce is providing Harley with a $25 million Enterprise Zone tax credit over nine years. These credits will be linked to jobs, capital investments and purchases from Harley’s in-state providers.

A similar situation occurred last year in Pennsylvania’s Harley plant in York County; during that deal, PA’s Gov. Ed Rendell’s administration offered The Motor Company a $15.4 million incentives package to get the Harley jobs in York County.

Concering the new Wisconsin deal, Harley’s CEO Keith Wandell and Wis. Gov. Jim Doyle offered a joint statement regarding the tax deal.

Keith Wandell says: “Together with our employees we are making the changes necessary for us to compete and win in a global marketplace. We have worked closely with the state of Wisconsin and we appreciate their efforts to foster a competitive business environment that will help us succeed here long term. As we look to the future, we are confident that Harley-Davidson will be as great going forward as it has been in the past.”

Gov. Jim Doyle says: “Through hard work and cooperation Harley-Davidson will keep its production operations open in Wisconsin, and keep hundreds of jobs in this state – both at Harley and their suppliers,” Doyle said. “This has been a challenging time for Harley and its great employees, and I want to thank everyone who came together in difficult circumstances to ensure this iconic Wisconsin company stays in Wisconsin.”

“The state has worked closely with Harley-Davidson to bring about a good outcome in this tough situation. I personally spoke with Harley’s CEO, and the state has offered a strong $25 million incentive package to help the company stay in Wisconsin. The incentive package created by the state consists of tax credits primarily linked to jobs at Harley, and with their Wisconsin suppliers.”