Auburn City Council approves tax abatements - WTVM.com-Columbus, GA News Weather & Sports

Auburn City Council approves tax abatements

AUBURN, AL (WTVM) -

The city of Auburn is trying to promote more economic development by offering tax breaks to businesses.

Auburn City Council unanimously passed resolutions Tuesday night for two local businesses to offset future taxes to help them grow.

SCA, Inc. asked for a tax abatement, which is a stay of paying a tax for a certain amount of time. 

They want to be able to continue expanding their facility, buy and install new equipment and hire more workers.

SCA expects to hire 15 new people with an estimated annual payroll of $420,000. 

Officials say these tax breaks would not impact existing city programs.

"Those abatements are interesting because you're abating something that you don't currently get," said Phillip Dunlap, Economic Development Director. "In return you get an investment and so if you receive that investment as an incentive that's what leads to job creation and economic activity through the interjection of payrolls."

The second company benefiting from these abatements is GE Aviation.

Council approved the renewal and modification to their existing tax reduction for capital upgrades to equipment.

Dunlap says the city will continue to support these types of programs in the future to promote economic growth in Auburn.

Copyright 2013 WTVM. All rights reserved.


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