Lafayette certifies $64.5 million Subaru tax abatement

Lafayette’s Subaru Automotive Indiana plant, one of the only domestic producers of Subaru, is expanding to accommodate hybrid vehicles.

They were granted a 10-year tax abatement by the city of Lafayette that will cover $64.5 million of the property equipment needed to make refinements, with another $5 million towards building changes.

“We’re going to be phasing in their taxes over time so they requested a 10-year abatement,” said Lafayette Economic Development Director Dennis Carson. “The first year we will abate 100% (of their), then it goes all the way down in 10% increments over a 10-year period.”

The plant, which used to produce Isuzu Rodeos, Honda Passports and Toyota Camrys, has been exclusively making Subaru cars since 2016. The factory development is primarily for creating Subaru’s new Hybrid Forester models, and they will discontinue popular Legacy and Outback models at the Lafayette plant, Subaru’s website says.

“If there’s a government mandate, there’s a push to the auto industry towards electric vehicles with a missive mileage requirement, but it’s also a business market decision,” he said. “The EVs are growing more popular with the public and such,” Carson said.

Roughly 100 new jobs will be created for forester production and the Subaru plant will remain the largest county employer with over 6,000 employees after Purdue University.

However, some locals worry about Subaru’s wages and how the abatement might affect taxes.

“Only 100 jobs in 10 years is ridiculous,” said Pearl Speakman, a Lafayette resident. “They’re not going to be able to retain good quality workers when they’re paying a low wage. Within five years, I bet (the workers) will form a union.”

In response to this comment, Carson said his department feels Subaru provides a living wage.

“As they stay, wages go up pretty rapidly. (Subaru) also has a pretty robust benefits package. So, (workers) have full health insurance, childcare, and tuition reimbursement.”