(BEDFORD) - The Bedford City Council approved a tax abatement for GM Tuesday.
According to meeting minutes, the automaker plans to invest $27.3 million at it Bedford casting plant, purchasing equipment and machinery to produce small aluminum engine blocks. The expansion should being in November.
According to paperwork filed with the city, GM plans to hire 42 new employees, which will increase their workforce to 656 employees.
A tax abatement is a reduction of or exemption from personal property taxes granted by a government for a specified period, usually to encourage certain activities such as investment in capital equipment.
Now the law allows has changed to allow a company to ask for a full tax abatement for a full 10 years, which is what GM requested.
The law also allows 15 percent of the company's tax savings to be allocated to a local economic development group. The money will go to the Redevelopment Commission and will be used to meet the obligations the city committed to the Stellar Community projects.
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