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Two local government jurisdictions approved a tax abatement agreement with Trane, with hopes that the parent company will bring more jobs to Tyler.
On Tuesday, the Smith County Commissioners Court approved granting a five-year tax abatement to Trane. The Tyler City Council approved the same agreement last week.
The abatement is for 100 percent of new taxes resulting from increase valuation due to the $6.5 million project for four years, and for 50 percent of those taxes for a fifth year.
The incentive is dependent on the company meeting certain investment and job creation goals for expanding operations, but Ted Crabtree, Trane’s vice president of operations, said the deal isn’t done and the manufacturers’ parent company Ingersol Rand is evaluating all of its options.
The project would result in 50 additional permanent jobs and the retention of 419 jobs.
The abatement will allow the company to redesign and revamp the entrance and some meeting spaces.
“This is for an office facility project that will provide them with a flagship identity at the Tyler location,” said Felecia Herndon, vice president of finance for the Tyler Economic Development Council.
This would be the third tax abatement agreement with Trane. In 1993, a four-year agreement was reached with the city for a $5 million investment. A second agreement was signed in 2007 for a $6.5 million project.
Senior Editor Roy Maynard contributed to this report.